Identify key reasons that organisations may need to hold inventories.

1.Identify key reasons that organisations may need to hold inventories.
2.What factors may lead an organisation to change the level of inventories that it holds?3.How could such a decision affect the other elements of working capital?
Please categorize solution based on the question abovePlease use real world examples.
Plagraism freeHarvard style referencing in side and at the the end of the solution
Additional links to sources:http://www.bized.co.uk/learn/accounting/financial/sources/index.htmhttp://www.economywatch.com/finance/sources-of-finance.html
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