what are the disadvantages of holding inventory, Operation Management

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what are the disadvantages of holding inventory

What are the disadvantages of holding inventory control systems?

Disadvantages of holding inventory control systems:

a. Higher risk of damage, theft and deterioration

b. Higher risk of stock obsolescence

c. Opportunity cost of money or cash tied up

d. Succeeding price reductions maybe be missed

e. Storage and administration cost of assists for example, warehousing, systems and staff.

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