Inventory management is a comprehensive approach to controlling stock levels, ensuring that goods are available when needed while minimizing excess inventory. It involves monitoring stock, forecasting demand, establishing reorder points, and integrating procurement, production, and sales functions. Effective inventory management balances cost efficiency with service levels and operational continuity.
Characteristics:
- Ensures timely availability of stock
- Balances supply with demand to reduce shortages or excess
- Reduces holding and operational costs
- Integrates inventory with procurement and production systems
