Inventory management refers to the process of ordering, storing, using, and selling a company’s inventory. It involves managing the stock mix of a company and understanding the different demands on that stock. The goal of inventory management is to efficiently streamline inventories to avoid both excess inventory and shortages.
An important aspect of inventory management includes the types of inventory. Inventory management encompasses the management of raw materials, components, and finished products. It includes tracking inventory from manufacturers to warehouses and from these facilities to the point of sale.