Is it good or bad for a retail store to have a large inventory and why?

There are advantages as well as disadvantages of having a large inventory. Few of them are listed below:

Advantages:

1. Keeping up with consumer demand i.e. no loss of sales

2. Opportunity to purchase at lower per unit price through bulk buying

Disadvantages:

1. High storage, insurance, security costs.

2. Risk of Obsolescence.

3. Money spent on purchasing large inventory could have better spent elsewhere.