So throughout the Marketing and Accounting meet Operations lecture, an overarching concept we were discussing was the disadvantages of holding too much stock and inventory, and the advantages of having just the right amount of stock. The advantages include less costs of storage, more flexibility in responding to changes in preferences and tastes of customers, and less wastage if the products don’t sell. However, can forecasts accurately predict the level of demand? No matter how much market research is conducted, there is still a significant level of inaccuracy and uncertainty. This brings us to the benefits of holding too much stock! Yes, there can be benefits. Holding too much stock enables businesses to respond quickly to a sudden increase in demand. This also ensures a less time-consuming process of having to get raw materials from suppliers, and go through the production process, therefore ensures less loss of sales. Storing inventory also allows firms to buy in bulk from suppliers, thereby reducing costs of factors of production.