What can be considered a disadvantage of keeping large inventories?

Maintaining large inventories can indeed lead to decreased production flexibility. When a company holds significant quantities of stock, it may become less adaptive to changes in market demand or shifts in production requirements. For instance, if a new trend emerges that requires different materials or products, a company with extensive inventory may find it challenging to pivot to new production lines without incurring additional costs or delays. This inflexibility can hinder a company's ability to respond effectively to customer needs or capitalize on new opportunities.

In contrast, lower storage costs, increased quality assurance, and faster production times are generally associated with well-managed inventory levels, rather than the challenges posed by large inventories. High inventory levels often lead to increased storage costs and potential waste due to outdated stock, highlighting the disadvantages of excess inventory rather than the benefits.