What is a disadvantage of high turnover in inventory management?

High turnover in inventory management can lead to a potential increase in merchandise shrinkage. This refers to the loss of inventory due to theft, damage, or errors in tracking. When inventory is frequently cycled through, it may not be monitored as closely, making it easier for shrinkage to occur without detection. Additionally, rapid turnover can sometimes lead to insufficient training for staff managing the inventory, which can exacerbate the problem of shrinkage. As inventory moves quickly out of the stockroom and into sales, if proper controls are not in place, it might not be accurately accounted for, thus increasing the risk of losses. Therefore, while high turnover can bring various advantages—such as refreshing stock and addressing market trends—the downside includes the significant risk of increased shrinkage.