However, it may not be necessary to keep inventory for all the forecasted varieties of rice, as they
may occupy the rice processing unit’s storage capacity and block the space for some variety of
more demand. In practice it has been found that many of the rice processing units are loaded with
high inventory which is due to a large number of variants irrespective of their demand, which
results in overstocking of the varieties with lower demand and stock outs of the varieties with
higher demand.