SECTION B [60 MARKS] Answer ANY THREE (3) questions in this section. QUESTION 2 (20 Marks) It is almost impossible for any organisation to function properly without some form of inventory holding. Unavailability of goods or services is a cause for customer dissatisfaction. Therefore it is important that the cost of holding inventory is calculated to determine the impact of these costs on the organisation. One measurement that can be used is return-on- investment (ROI) method. This method can be employed because the monies paid for the inventory can be seen as an investment. The ROI can be calculated by dividing the profits earned after the deduction of taxes by the value of the total assets. The larger the reduction in the holding of inventory, the higher is the ROI. Therefore, firms should minimise inventory holdings in order to maximise shareholder returns. In light of the above, provide a counter argument for the holding of inventory