The reasons to carry inventory in warehouse -

You need to take calendar period of time (quarter, half year or a year ) and calculate with amount of volume ( have to be presented in report) what is the ideal amount of of inventory, including explanation of the decision based on price, size of the facility, volume of movements and a budget of operation. Including the explicit calculation with conclusions on every point of calculation

Have to be included :

-budget of the facility

-volume possibility

-calculations that bring you to the conclusion

- the number of product(s) that your warehouse can bare

-explanation of the calculation for the finance department with pros for the improving profit

- have to be market value realistic

1000 words

Note- Conclusion is must for the above question. Also please give reference if any !!!!