What does Inventory Management aim to achieve?

Inventory Management aims to balance inventory needs to reduce costs effectively. This involves maintaining optimal inventory levels to meet demand without overstocking or understocking. By achieving this balance, an organization can minimize carrying costs, avoid waste, and ensure that resources are utilized efficiently. Proper inventory management allows for timely order fulfillment, helping to meet customer demands while controlling costs associated with storage, obsolescence, and inventory handling. The ultimate goal is to maintain an efficient supply chain that aligns inventory levels with business needs, thereby contributing to overall operational efficiency and cost-effectiveness.

Through careful analysis and planning, inventory management supports the broader objectives of the organization, ensuring that the right products are available at the right time, which is essential for sustaining production and meeting customer expectations.