Choose the match answer: Would a inventory turnover of 40 be good or bad for a r
ID: 2466604 • Letter: C
Question
Choose the match answer:
Would a inventory turnover of 40 be good or bad for a restaurant? If they are selling and making dry sausage, they must be closing doors at 9am. Those things are supposed to hang for 6 weeks not 9 days. It is good because It Is greater than 1. That Is not bad for a deli. They must be getting some really good deals to be buying In volume and holding It on average 9 days. Sounds like it is holding onto food product for about 360/40 = 9 days. No tomato lasts that long. No fresh meet and produce lasts that long. They must be throwing a lot away.Explanation / Answer
Answer:
Third option " That is not bad for a deli. They mush be getting some really good deals to be buying in volume and holding it on average 9 days" is correct.
Holding 9 days inventory to meet the increased demand is good for restaurant.
In the first option, they are not supposed to hand for 6 weeks. In the second option, greater than 1 inventory turnover is not always good. Option 4 is also not correct, since 9 days inventory does not require throwing a lot.