The quota of material reserves refers to the standard of the most economic and reasonable amount of material reserves necessary to ensure smooth production under certain conditions. In order to ensure that production is carried out normally, a certain amount of material reserves is necessary, but there is no reserve. Excess reserves, not only takes up a lot of capital and warehouse area businesses, increase storage costs, and long-term storage, also make damage to property deterioration, resulting in waste. Therefore, this reserve must be economically reasonable.
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