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If our company is having a high financial liquidity position and excess fund, stocking goods at economic price is a good strategy if the carrying costs are minimal and in anticipation of a price increase for the stocked goods in the near future to take seasonal advantage.
To improve the working capital leverage lengthy credit facilities are also an attraction so that it can take advantage of buying position in other commodities by using the funds and increase the profitability by temporary gains so that small increase in prices are well covered by arbitration advantages .
