respond to: There is a risk for all levels such as retailers, wholesalers, and manufacturers. But the risk of holding inventory becomes more imperative for the wholesalers and manufacturers. Simply because the retailers are able to still make a sale with markdowns. However, with wholesale and manufacturers they have a higher risk since for both if the item is not being sold it is simply costing the company/ business. In addition, it not only takes into account the actual item being held and its manufacturing and sourcing costs. But, it also includes the transportation costs and order costs. There has been a trend to push inventory back up the channel of distribution simply to ensure the product that eventually trickles down to retailers with then in turn be pushed back up the distribution channels. Allowing for not as large of a loss of profit for the company