Question

A likely consequence of excessive inventory levels is

Answer 1

A likely consequence of excess inventory level would be the cost of the storage that is paid out would be higher. The funds the business could potentially use in other areas are tied up by excess inventory. An opportunity to purchase and sell other products or materials is missed by the organization when the business ties funds up in excess inventory. Companies that finance the inventory will pay additional costs until the business uses or sells the material/product.