What could poor stock control cause in ABC's e-waste operations?

What could poor stock control cause in ABC's e-waste operations?

• A. Reduced overheads.
• B. Shortages, production delays, higher storage costs, or missed sales opportunities.
• C. Improved supplier relationships.
• D. Faster product development.

Answer: (B)

Stock control is about having the right amount of inventory so you can operate smoothly without tying up too much cash or letting items go missing or expire. When stock control is poor, you’re likely to face shortages that stop or slow production, leading to delays. You’ll also accumulate extra storage costs from holding unnecessary or slow-moving stock, and you may miss sales opportunities because you can’t meet customer demand or process waste quickly enough. These combined effects explain why the described path—shortages, delays, higher storage costs, and missed sales opportunities—is the best fit for what poor stock control can cause in ABC’s e-waste operations. The other options don’t fit as well because weak stock control wouldn’t typically reduce overheads, improve supplier relationships, or speed up product development; those outcomes usually come from better planning, collaboration with suppliers, or innovation rather than from poor inventory management.

Stock control is about having the right amount of inventory so you can operate smoothly without tying up too much cash or letting items go missing or expire. When stock control is poor, you’re likely to face shortages that stop or slow production, leading to delays. You’ll also accumulate extra storage costs from holding unnecessary or slow-moving stock, and you may miss sales opportunities because you can’t meet customer demand or process waste quickly enough. These combined effects explain why the described path—shortages, delays, higher storage costs, and missed sales opportunities—is the best fit for what poor stock control can cause in ABC’s e-waste operations.

The other options don’t fit as well because weak stock control wouldn’t typically reduce overheads, improve supplier relationships, or speed up product development; those outcomes usually come from better planning, collaboration with suppliers, or innovation rather than from poor inventory management.