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What is the purpose of holding inventories for a firm? What are the potential problems and disadvantages with holding inventory? How does this vary

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What is the purpose of holding inventories for a firm? What are the potential problems and disadvantages with holding inventory? How does this vary with the type of industry in which the firm operates? Retail, heavy industry, agriculture, chemicals, restaurants, computer, etc... What are several types of inventories and their specific purposes? Explain how properly managing the level of inventories can help a firm's cash position and its financial performance.

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