Inventory Budgeting is a strategic plan for controlling the costs and capital investment of goods stored in a business. It takes into account a variety of factors such as market demand, production capacity, supplier relationships, and financial constraints. By having an effective inventory budgeting process in place, businesses can ensure that they have the right products available when consumers need them–without investing too much capital in stock that won’t be sold. Ultimately, this helps create a more efficient and cost-effective system, leading to better bottom line results.