Which statement best describes effective inventory turnover?

Effective inventory turnover is best described by the statement that aims for a balance between stock availability and customer demand. This concept is crucial in inventory management because it reflects the efficiency of how inventory is bought, sold, and replenished. By achieving a balance, organizations can ensure that they have enough stock to meet customer needs without overstocking, which can lead to increased holding costs and waste.

This balance is essential for optimizing working capital and enhancing customer satisfaction. When inventory levels are aligned with customer demand, it prevents stockouts and enables businesses to respond quickly to market changes, ultimately leading to higher sales and improved operational efficiency.