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On the supply side, constraints such as large manufacturing batchsizes and supplier delivery lead time force organizations to hold some raw materials or components in stock to deliver products to customers. The system also helps maintain optimal levels of stock by integrating the needs of staff, customers and suppliers.
On the supply side, constraints such as large manufacturing batchsizes and supplier delivery lead time force organisations to hold some raw materials or components in stock so that products can be delivered to customers. Inventory exists because a buffer is needed to balance out the uncertainties between demand and supply.
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