Answer:
Focus his stock on the most vital items while keeping those that do not sell as well at lower levels.
Explanation:
Juan has a very loose control over her inventory, it is not a good inventory control system to maintains large stockpiles of every item he sells in a warehouse.
She is advised to employ the use of ABC inventory control system. This system is very suitable for business that maintain variety of inventories. All the inventories a categorized according to value and turnover,
Category A - The inventory with the highest value or volume turnover is categorized as A item, the entity must keep a very tight control over such inventory
Category B - The inventories that is next to A in value and volume of turnover fall into this category and the control here may not be as strict as category A but must be more than that of category C
Category C - These are inventories that has a very low turnover and possibly lowest in value also. The lowest control is exercised on this type of inventory.
