Answers:
To gain an upper edge over the competitors: Managing an appropriate inventory assists organisations to maintain an upper edge over competitors. Adequate inventory provides an edge to the nearest competitor, who does not have an appropriate stock to meet customers’ demands.
To help organisations to build customer relationships: Inventory management assists units in building customer relationship in the form of supplying the items on time, which is possible only when the stock is maintained.
To minimise the wastage of the items: Maintaining the wastage of items is another measure that is adopted by the business units to minimise the cost. This is possible when organisations are able to plan and anticipate what would be required and when it would be required and how much is to be kept as buffer stock.