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To avoid materials shortage.
There could be five basic reasons for keeping stock:
1) time2) uncertainty3) seasonal demand4) appreciation in value5) economies of scale
In order to avoid any disruption in running operations
Five basic benefits are achieved through warehousing:
spot stock,
assortment,
mixing,
production support,
Best Reagrds.
I agree with the answers been added by EXPERTS. Thanks
AGREED BY HELMI AND ABDOU......................................