What is Inventory?
Inventory refers to the collection of goods or products that a company possesses for the purpose of selling them to customers or using them in the production process. It includes various categories such as raw materials, work-in-progress items, and finished goods, which are held by the company at a specific point in time.
What is Inventory Management:
Inventory management involves the strategic control and tracking of inventory throughout its lifecycle. It includes activities such as inventory planning, forecasting, procurement, storage, and inventory valuation. The goal is to maintain optimal inventory levels, minimize stockouts and excess inventory, and control holding costs.
By efficiently managing inventory, businesses can reduce costs, meet customer demand, and improve overall operational efficiency.
Objective of Inventory Management:
Overall, the goal of inventory management is to optimize inventory levels to ensure customer satisfaction while minimizing costs and improving operational efficiency.
Types of Inventory:
Importance of Inventory:
Efficient inventory management is crucial for several reasons:
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