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Lavanya Navet
The Safejob Expert
Asked a question 8 months ago

What is inventory management?

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The inventory is the backbone of any retail business because the stock is what is making the business stand. Minus the goods, there is no business. This means that the inventory is your company’s main asset.

Pilferage causes many companies to suffer great losses. If undetected or not tackled effectively, then you could as well end up shutting down.

This is because the stock available for selling is less than what you bought. You will therefore make no profit from what you are selling.

 

When you consider inventory management, there are three main points to consider:

I. Restock levels – the products you are selling will run out and you will have to buy some more. The question is, at what point do you buy more stock?

Ideally, customers should never come to your store and find that you don’t have the stock that is available elsewhere. If you have worked hard and managed to get the customers into your store, then ensure they come back again for the supplies they need.

Inventory Management: Inventory management refers to the process of ordering, storing, and using a company's inventory. These include the management of raw materials, components, and finished products, as well as warehousing and processing such items.

For companies with complex supply chains and manufacturing processes, balancing the risks of inventory gluts and shortages is especially difficult. To achieve these balances, firms have developed two major methods for inventory management: just-in-time and materials requirement planning: just-in-time (JIT) and materials requirement planning (MRP).