Why would the company want to build up inventory

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Reference no: EM133624941

Problem: In the last year, there has been a shortage of silicone used for tubing, and PlastiPharm's major suppliers have increased their lead times for delivery of tubing. As its need for the silicone tubing increased, the company increased its inventory. But isn't excess inventory bad? Why would the company want to build up inventory?

Reference no: EM133624941

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