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8. Don't forget paper.
Managing inventory means more than just keeping an eye on your finished goods position. Paper inventory levels should be reviewed regularly, and prudence suggests that you may want to think twice before making a defensive paper buy (i.e., bringing in extra inventory to avoid anticipated price increases). While a reasonable amount of defensive buying may be appropriate—remember that the carrying cost for holding paper inventory can be significant—printers' storage fees, obsolescence risk, and insurance and interest costs mount quickly, and the anticipated savings can quickly morph into an unanticipated expense.
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David Hetherington
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