A company should always keep extra inventory on hand; it could be needed if demand increases and it has to be bought sooner or later so it adds nothing to cost.
BT: Knowledge

Question

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Keeping extra inventory on hand can add to the cost of storage, handling, and potential losses due to obsolescence or spoilage. It is important for companies to balance the costs and benefits of carrying extra inventory.

A Company Should Always Keep Extra Inventory on Hand; It