This would diminish the need for dealers to hold huge inventories of cars, one of their main functions in the current market.

Dealers do not want to be holding large inventories of the new securities, which would leave them open to losses, if interest rates start moving higher.

If you hold large inventories of finished products, a change in market conditions might mean their value is reduced.

"We've gotten to the point where the consumer will bear the higher cost of the companies holding low inventories."

As the next section demonstrates, holding larger inventories to service lean retailing demand translates into diminished profitability.

To do this, the brokerage firms hold inventories of certificates, giving them a vested interest in dealing only with creditworthy banks.

From our standpoint, holding high inventories to meet rapid replenishment demands is strictly a short-term strategy for manufacturers.

Plants and construction firms held large inventories of materials to compensate for irregular deliveries from suppliers.

"But we are also going in the direction of not holding costly inventories."

If the trade is careful about asset management, they will hold inventories down.