Annual consumption and maximum reserves
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May I ask everyone, can the annual consumption of raw materials and auxiliary materials for the project be less than the maximum storage capacity?
It should be possible. Such as relatively scarce raw materials. However, it is generally not advisable to use bulk raw materials that are easily available, as this can result in the annual consumption of materials for the project being less than the maximum available stock. This not only consumes a large amount of funds but also increases management costs and certain levels of consumption, often making the cost higher than that of purchasing the materials directly.