1. Stock going obsolete -> Stock Write Downs (Unit 4)
2. More exposure to theft/damage/wearing
There are more it is more suitable for Unit 4.
I would argue that you're just giving a generic answer.
Doncaster Discs actually has quite a fast turnover, and a JIT process in place with little room for error.
This minimises the chances of stock obsolescence, theft, etc.
In fact, if they delayed their stock purchases any longer, they run the strong risk of not having enough stock on hand to meet demand.
For instance, on the 9th June there are only 100 CD cases left after that sale.
It takes them until the 14th (!!) to get more stock in.
We can see from sales dated 5th, 16th and 20th that Doncaster Discs often sells CD cases in large quantities.
With only 100 cases to last them 5 days, they should consider themselves lucky that they did not run out of stock.
It is dangerous for a business' profitability for them to have such a delay between stock depletion and the arrival of an order of stock.
Instead, I would argue that they are unnecessarily increasing their ordering costs, through having such a tight JIT process in place.
By increasing this expense, they are diminishing their profit margin.
Instead of making several relatively small orders throughout the month, I would argue that it would be much, much more efficient to order a larger quantity more infrequently (perhaps once a month), and to employ a tighter control over stock.
This way, they're only paying their employees to fill out an order form once a month (instead of wasting time doing this every couple of days), and they'll only have to pay delivery/shipment costs once a month (instead of several). This method may also attract a discount from their supplier, as a reward for ordering larger quantities of stock. Additionally, if they adopt better stock control they will be less likely to suffer stock loss through theft, damage, etc. (given the differences b/w their physical stocktake and on-book stock levels, I would argue that there is a clear need for them to do this anyway). If they receive their DVD and CD cases from the same source (given the single invoice for 24th June transaction, this seems to be so), this has the potential to cut their ordering costs down to around 1/3 of their current costs.
To counter the increase in stock turnover time, I would mention how unlikely it is that stock will become obsolete within the span of a single month (how often I suggested they order). In reality there will be warning signs months beforehand about the declining popularity of DVD and CD cases - sales of these products will keep gradually declining despite Doncaster Discs' best efforts. In this instance, they would simply sell the stock they have on hand and not order any more. Realistically, the only goods that can be made obsolete within a single month are mostly found in the realm of technology - eg. Apple releasing a new iPhone next week will almost certainly make the current iPhone completely and utterly obsolete (unless there are design flaws in the new iPhone, or the new iPhone serves a different enough function from the current one to warrant the continual production of both versions - unlikely).
The bottom line of stock turnover and JIT ordering is that you have to find a balance between the holding costs and the ordering costs associated with stock - a turnover too fast could indicate that you're paying too much in ordering costs (delivery and such); too small and you could be spending far more money than necessary on holding costs (keeping these goods safe from harm such as theft, damage, etc) and run a higher risk of them becoming obsolete. At the moment, Doncaster Discs seems to be sitting at the extreme end of fast turnover and is facing unnecessarily high ordering costs.
If you are unsure about any of the concepts I have spoken of, please consult your textbook to find these things.
It may be that (like MHSazn said) you simply have not covered the relevant material yet.
If you are still not sure, then you know where to find us
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