MANAGEMENT

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: -Inventory control, also called stock control, is the process of ensuring the right amount of supply is available in an organization. With the appropriate internal and production controls, the practice ensures the company can meet customer demand and delivers financial elasticity.

Detailed explanation-3: -Understocking is when your supply of a particular product fails to meet consumer demand. If a customer walks into your store, asks for a product and finds that you’ve run out, they’ll leave dissatisfied and frustrated. If it happens often enough, they might not return.

Detailed explanation-4: -In all forms of retail, overstocking is when a company orders too much inventory and understocking is when a company orders too little. To minimize the likelihood of overstocking and understocking, retailers utilize a systematic process of sourcing, storing, and selling inventory, known as inventory management.