Why Hold Inventories .For Transportation Pipeline inventories is the inventory moving from point to point,e.g., materials moving from suppliers to a plant,from one operation to the next in a plant. It exists for purpose of transportation or materials handling in a plant; .Smoothing-Producing and storing inventory in anticipation of peak demand helps to alleviate the disruptions caused by changing production rates and workforce level. .Logistics-To cope with constraints in purchasing,production,or distribution of items that may cause a system maintain inventory; Purchase an item in minimum quantities; Logistics of manufacture-zero inventory is impossible in order to keep continuity in manufacturing process; .Control costs-More inventory need less and simpler controlWhy Hold Inventories •For Transportation Pipeline inventories is the inventory moving from point to point, e.g., materials moving from suppliers to a plant, from one operation to the next in a plant. It exists for purpose of transportation or materials handling in a plant; •Smoothing-Producing and storing inventory in anticipation of peak demand helps to alleviate the disruptions caused by changing production rates and workforce level. •Logistics-To cope with constraints in purchasing, production, or distribution of items that may cause a system maintain inventory; Purchase an item in minimum quantities; Logistics of manufacture-zero inventory is impossible in order to keep continuity in manufacturing process; •Control costs-More inventory need less and simpler control