Alternatives To Holding Inventories
Introduction Inventory protects a business from uncertain demand, supply disruption, production imbalance, and long replenishment times, but it also ties up cash and creates storage, insurance, handling, obsolescence, damage, shrinkage, and expiry costs. The original essay correctly identifies drop shipping and par levels as methods for reducing stock. It overstates the idea that the disadvantages of inventory always exceed the benefits and describes all holding cost as something a company

