Are increases in sales related to an increase in inventory?

From a small business point of view.

2 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    Typically not. Inventory is the amount of goods you have available to sell, sales are the amount of goods people buy. People usually don't buy more just because the store has more. The only exception to this would be if the store increased its product lines. If the store is carrying new items, they might be expected to increase sales as customers buy them in addition to the old variety of items.

  • 1 decade ago

    You can't run out of merchandise so you always overstock. An increase in sales will make me want to increase inventory. Nothing worse than telling a customer that you have to 'back order" an item. That will send them to a competitor. /

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