Materials

Inventory Management

The process of tracking, controlling, and optimizing inventory levels to meet demand efficiently.

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Updated 2025-10-01

Definition

Inventory management ensures that the right amount of stock is available at the right time while minimizing holding costs and avoiding stockouts.

Overview

Overview

Inventory management is critical for supply chain efficiency, reducing excess stock, and maintaining service levels.

Techniques

  • Just-In-Time (JIT)
  • Economic Order Quantity (EOQ)
  • ABC Analysis
  • Cycle Counting

Example

A retailer uses inventory management software to track sales and automatically reorder popular products before stock runs out.

Tags

#Inventory Management#Stock Control#Warehouse#Materials#Supply Chain

Related Terms

Inventory Turnover
Cycle Counting
Perpetual Inventory System