In these heady days of YouTube, MySpace, Google, eBay et al, it can be easy to forget that some people still run businesses that sell physical things.
This blog gives a very practical view on stock and cash. There is a good comment on there as well. See Positive Churn: Cash Belongs in the Bank, Not in the Warehouse
A full warehouse with excessive stock versus sales rates makes businesses chase the wrong type of business. You end up paying to have the stock in the warehouse or reducing margins to move it.