烟台大学经济管理学院现代物流英文 Lecture7（1）.pdfVIP

Lecture 7 Inventory Reasons for holding inventory (1) It enables the firm to achieve economies of scale; (2) It balances supply and demand; (3) It enables specialization in manufacturing; (4) It provides protection from uncertainties in demand and order cycle; (5) It acts as a buffer. Economies of Scale Purchasing transportation manufacturing. Balancing Supply and Demand Seasonal supply and/or demand Demand for a product may be