Study of Inventory Management Methods and its importance

Abstract

Inventory management is a critical aspect of business operations that involves overseeing and controlling the flow of goods and materials within a company. It encompasses various methods and strategies aimed at efficiently managing a company's inventory levels to meet customer demand while minimizing costs and maximizing profitability. One of the primary goals of inventory management is to strike a balance between maintaining sufficient stock to meet customer demand and minimizing excess inventory that ties up valuable resources. This balance is crucial because excessive inventory can lead to increased storage costs, risk of obsolescence, and reduced cash flow, while inadequate inventory can result in stockouts, customer dissatisfaction, and lost sales.