Posted: May 6th, 2022

a) Despite its adverse effect on cost and liquidity ,most companies rely heavily on inventories. Explain the different reasons for holding inventories as well as the underlying trade-offs and corresponding types of inventories.

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a) Despite its adverse effect on cost and liquidity ,most companies rely heavily on inventories. Explain the different reasons for holding inventories as well as the underlying trade-offs and corresponding types of inventories.
(15 marks)
b) Using an appropriate case example,discuss how emerging digital technologies enable companies to manage their inventories more effectively.
(10 marks)

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