Inventories will normally tie up considerable amounts of capital thus a balance has to be struck between obtaining the benefits of inventories such as flexibility high customer service and insulation against demand fluctuations on the other hand and minimising the costs of such stocks on the other

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Inventories will normally tie up considerable amounts of capital, thus a balance has to be struck between obtaining the benefits of inventories, such as flexibility, high customer service, and insulation against demand fluctuations on the other hand, and minimising the costs of such stocks on the other.