Operations•3 min read
Inventory Management
Definition
Process of ordering, storing, tracking, and controlling inventory levels.
Detailed Explanation
Inventory management is the process of ordering, storing, tracking, and controlling inventory levels to meet customer demand while minimizing costs. Effective inventory management prevents stockouts (lost sales) and overstocking (tied-up capital). Techniques include just-in-time, dropshipping, and automated reorder points.
Key Points to Remember
- 1Balances stock availability and costs
- 2Prevents stockouts and overstocking
- 3Inventory turnover is key metric
- 4Can be automated with software
- 5Forecasting reduces uncertainty