CSU The Organizations Consider Inventory a Current Asset Discussion

I’m working on a management discussion question and need an explanation and answer to help me learn.

When inventory is not balanced or controlled it causes an organization to over-stock or under-stock merchandise. Either, could have various negative results on the business. This has a bearing on supply and demand and verifies the importance of effective inventory management. What could be the results if an organization did not effective manage inventory, and over-stock, and under-stock merchandise?