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: -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: -The objective of inventory management is to minimize the cost of holding inventory. The objective of inventory management is to allow satisfactory customer service while keeping costs down. A retail store that carries twice as much inventory as its competitor will provide twice the customer service level.

Detailed explanation-4: -The primary purpose of inventory management is to ensure there is enough goods or materials to meet demand without creating overstock, or excess inventory.