In 2020, the company I work for produced product that was used to fight the Covid pandemic. In order to meet demand, there was a ton of ramp up work done to product as much product as possible. Once demand slowed, we found ourselves with a surplus of inventory. After a long period of being hand to mouth to fulfill orders, it was initially nice to have the luxury of a slow down, however, holding inventory can have consquences.

1. What are the risks of holding inventory?

2. How does holding inventory impact a companie's balance sheet?

3. How can companies prevent themselves from getting into the position where they are holding too much inventory? What do they do once they are already in that position?