Question

What is the purpose of carrying inventory? Is inventory a good thing or a bad thing?

Answer 1

Carrying inventory is to making finished products available for sales. Selling is a continuous process and carrying inventory leads to success of business. Carrying inventory may be possible to give the better profits because of the rate issue and shortage of finished products. Carrying inventory always based on the future demand or the future prediction of soaring prices. Every business organization or the stockiest always carrying a sufficient inventory to meet out the future demand and carrying inventory may be good or possible to be bad because of the market conditions and changing business conditions. Carrying inventory will be bad in such condition when rate of stocks are decreasing or stocks become waste due to the improper storage. Carrying inventory may be good because of the soaring prices of stocks or the market will suffering due to the shortage of finished products.