Question: PlastiPharm has several clients whose contracts require the company to store three to six months of raw materials for them just in case they require

PlastiPharm has several clients whose contracts require the company to store three to six months of raw materials for them just in case they require a quick turnaround for an order, something that rarely happens. As the contracts come up for renewal, PlastiPharm intends to renegotiate the contract terms to reduce or

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ideally, eliminate the inventory clause. Why should PlastiPharm care about excess inventory?

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