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Movement inventories are also called train it or pipeline inventories. Their existence owes to the fact that transportation time is involved in transferring substantial amounts of resources. For example when coal is transported from the coalfields to an industrial town b trains. Then the coal while in the transit cannot provide any service to the customers for power generation or burning in furnaces.
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Cycle inventories are held for the reason that purchases are usually made in lots rather than the exact amount which may be needed at a point of time. Of course if all p
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