Advantage and disadvantage of increasing stock turnover?

Answer 1

Advantage :-
1) The easiest way to increase stock-turn over is to increase sales whilst holding down stock. This leads to increased profits (assuming you have got you pricing right :-) )
2) You shift any old goods before they go out-of-date or become obsolete
3) You are making better use of your Capital
4) If stock turnover is up, but sales stay the same, you will free up cash that was previously tied-up in stock (and also reduce warehousing / storage space).

Disadvantages:-
1) You may have to hire more staff to process orders / deliver goods and issue / chase Invoices
2) You have to replace goods faster = this often leads to a short term negative cash flow as your Invoicing system usually takes longer to 'speed up' than your ordering system .. (Businesses usually go bust because of Cash Flow problems).
3) You increase the likelihood of running out of stock (and may have to turn down any large orders wanted for immediate delivery).