All of the following are disadvantages of having too much inventory except:

Having too much inventory often leads to various challenges for a business, but reduced holding costs is not one of them. In fact, when a business holds excess inventory, it typically incurs higher holding costs. This includes expenses related to storage, insurance, and the management of the inventory itself. The more inventory a business has, the more it often pays to ensure that inventory is stored and maintained appropriately.

While having excess inventory might seem advantageous in terms of ensuring product availability, it actually ties up capital that could be used for other investments or operating expenses. Other disadvantages, such as difficulty in storage and control, increased risk of product obsolescence, and reduced availability of cash, are commonly recognized issues linked to excessive inventory levels. However, holding costs generally increase with excess inventory, highlighting why reduced holding costs is the correct choice in this context.