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Inventory holding may be retorted by a company management in certain situations. For example, the inventory can be held as a hedge against certain factors, external or internal, an opportunity, a precaution, or research and speculative purposes.
By holding inventory, for example, raw materials, a company can meet variation in production demand.
it presents economies of scale during procurement seasons
It takes advantage of price increase and discount in quantity
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Nov 4th, 2015
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