ECONOMICS

Detailed explanation-1: -Significance of inventory in logistics and supply chain management is its ability to make the demand from the end customer’s side to be met with the supply from the supplier’s side. It is the inventory that can meet the customer’s satisfaction.

Detailed explanation-2: -The management of inventory is necessary for any company so that excess stock is not stored at the company while simultaneously ensuring demand for customers is met. The optimal balance, however, is often achieved through properly planned and managed inventory.

Detailed explanation-3: -Inventory refers to the products, materials or supplies stored inside a warehouse prior to production, shipping or selling. Inventory is an important part of making sales and generating a profit, and it should be managed efficiently to ensure an optimal supply chain.