Possible Reasons for Unexpected Significant Changes in Financial Relationships

Changes in Financial Relationships
Student's Name
University
Course
Professor
Date
Changes in Financial Relationships
* Inventory turns are a measure of how closely a company's inventory levels correspond to its sales. When manufacturing is planned correctly, an organization does not have too much or too little inventory. A drop in sales is the most prevalent reason for lower inventory turnover. Surplus inventory is created when a corporation plans and produces particular stock levels reached from sales estimates which fail to occur. Lower turnover can be caused by returns from past periods, excess manufacturing to build buffer stock against foreseeable sales surges, or the completion of a contracted inventory arrangement with a client. Also, low stock turnover may result from ineffective inventory control rules and practices (Amanda, 2019). Inventory management teams without automated solutions may find it challenging to enhance efficiency and minimize order cycle times, increasing inventory turnover nearly unattainable. Additionally, stocking large quantities of high-cost, slow-...