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  • ROHIT BEHERA thinks this is interesting:

Perhaps demand forecasting is constantly and significantly inaccurate, maybe supplier lead times are unnecessarily long, perhaps firm operations are laden with bottlenecks and inefficient inventory handling, or maybe transportation carriers are not providing quality service in the form of delivering inventory damage-free and on-time



These are possible reasons why companies might be holding more safety stock than required. And in the process, end up having precious dollars tied up to the Inventory. Indeed a liability.