A reason to hold inventory arises when an organization anticipates that an unusual event might occur that will negatively impact its source of supply.

True

Explanation:

The essential goal as far as holding stock is to guarantee that client support targets can generally be met without trading off income or coming up short on stock. Stock chiefs are continually refining their inventory network activities in a steady and endless offer to accomplish ideal stock levels. Inventory management is one of the core objective of any firm to keep the company and firm moving and to achieve the target objective.