What is a potential drawback of poor inventory management?

The choice that highlights a significant drawback of poor inventory management is related to stockouts and excess inventory. When inventory levels are not properly managed, a business may experience stockouts, meaning they run out of essential items. This can lead to missed sales opportunities, unhappy customers, and a damaged reputation. On the other hand, having excess inventory ties up capital, increases storage costs, and potentially leads to wastage, especially for perishable goods. Both of these issues can severely impact a warehouse's efficiency and overall business performance, making it crucial to maintain a well-balanced inventory system.

The other options represent positive outcomes or aspects that are typically associated with effective inventory management rather than drawbacks. Increased customer satisfaction, lower operational costs, and improved supplier relationships can be consequences of good inventory practices, not poor management. Therefore, the identification of stockouts and excess inventory as a result of poor inventory management captures its negative implications accurately.