本文详细探讨了企业维持高水平库存可能面临的主要成本，如库存积压、资金占用增加、响应市场变化能力受限，以及相应的收益，如减少仓储费用、降低过期风险等。同时强调了这种决策与业务类型和需求波动之间的权衡。
Explain the costs and benefits to a business of a decision to hold low levels of inventory. (5)
解析
Answers could include:
Costs such as:
Insufficient stock to meet demands – lost sales
Lack of raw materials leads to idle production resources
Unable to respond to exceptional/new orders quickly
If not buying large quantity of inventory, miss out on bulk buying discounts (JIT).
Benefits:
Opportunity cost of capital invested in inventory is reduced
Reduced storage costs
Reduced risk of wastage/obsolescence
Easier to organise and retrieve inventory.
Very much depends on the type of business activity involved and whether demand is normal or exceptional. It is a trade-off between benefits and risk of incurring costs.
知识点：
Inventory management
下面我们为大家准备了一道同类型的题目，请大家一起来试试解答。
Briefly explain two reasons why a business might decide to hold a high level of inventory.
答案就在：linstitute10
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