Final answer:
Inventory can be useful in a process to meet customer demand quickly, act as a buffer against supply chain disruptions, and provide a strategic advantage.
Step-by-step explanation:
Inventories can be useful in a process despite the costs associated with holding inventory. One reason is that inventory allows a business to meet customer demand quickly. For example, if a customer wants to purchase a specific product, having inventory on hand allows the business to fulfill that order immediately, improving customer satisfaction and potentially increasing sales.
Another reason why inventory can be useful is that it acts as a buffer against supply chain disruptions. If there are disruptions in the supply chain, such as delays in receiving raw materials, having inventory on hand can help prevent production delays and keep the business running smoothly.
Lastly, inventory can be used as a strategic tool for competitive advantage. By carrying a diverse range of products in inventory, a business can offer a wider selection to customers, attracting more customers and potentially increasing market share.