what are the advantages of holding inventory


What are the advantages of holding inventory control systems?

Advantages of holding inventory control Systems:

a. Discounts for bulk buying for example, order higher volumes but few frequently

b. Reduction within transaction costs when buying higher volume but less often

c. Continuity of production for example ignore stock-outs and expensive hold ups

d. Flexibility to meet surges within customer demand

e. ignorance of price rises as an example, buy larger quantities while the price is lower

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Operation Management: what are the advantages of holding inventory
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