ECONOMICS

Detailed explanation-1: -Inventory management helps companies identify which and how much stock to order at what time. It tracks inventory from purchase to the sale of goods. The practice identifies and responds to trends to ensure there’s always enough stock to fulfill customer orders and proper warning of a shortage.

Detailed explanation-2: -Effective inventory management allows suppliers to maintain the right balance of stock in the warehouse. It also helps suppliers to replenish when necessary and ensure product availability when and where it is needed without having to maintain costly excess back-up or buffer inventory.

Detailed explanation-3: -Inventory management helps you manage the customer experience when it comes to product returns. An inventory management system can track important data concerning returned items and giving you the option to maintain additional inventory levels that mirror your return rates.

Detailed explanation-4: -The goal of inventory management is to minimize the cost of holding inventory by helping you know when it’s time to replenish products or buy more materials to manufacture them. This helps you maintain optimal inventory levels and minimize costs.