Improving Inventory Turnover Rate Steps:

• Recall inventory turnover rate formula: Cost of Goods Sold / Average Inventory.
• Identify actions that increase sales or reduce average inventory to raise the ratio.
• Evaluate each option: 1 likely increases inventory (wrong), 2 reduces holding time (right), 3 may not directly impact turnover (wrong).
• Select option isolating the effective action.

Why C is correct:

• Option 2 directly speeds up sales or clears stock, boosting turnover per the formula without inflating inventory.

Why the others are wrong:

• A includes ineffective 1 and 3.
• B adds wrong actions 1 and 3.
• D ignores effective 2.

Not enough information on specific actions 1, 2, and 3.

Final answer: C