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Holding inventories

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There are several factors why firms may choose to hold inventories. Do you think holding inventories is a form of inefficiency?

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There are several factors why firms may choose to hold inventories. Do you think holding inventories is a form of inefficiency?

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No, I definitely don't think that holding inventory always shows inefficiency. I am sure that in some cases it could, if the company continually holds inventory for multiple reasons and it leads to shortages or inefficiencies within the company. However, there are so many reasons why inventory is held. If there is an unexpected increase in demand, which can be due to any number of reasons, ...

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