Explain the motives of holding inventory.

Question

20 Mar 2023

Answer :

Word Count : 286

Inventory refers to the stock of goods or raw materials that a business holds for the purpose of fulfilling customer demand. Holding inventory can serve several important motives for businesses, including:

Meeting customer demand: Businesses hold inventory to ensure that they have enough stock to meet customer demand. This can be particularly important for businesses that operate in markets where demand is difficult to predict or that experience seasonal __________ ____ ___ ____ _________ ___.
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