Inventory Economics is the study of the acquisition and use of inventory. It looks at how businesses can maximize the value of their stock while minimizing their risk of shortage. This means examining how companies can most effectively acquire and store inventory, as well as when to sell it at the right price. Additionally, Inventory Economics looks at how businesses can best utilize their current resources in order to achieve optimal inventory levels without over-investing. By understanding Inventory Economics, companies are able to make more informed decisions with regard to their operations and finances.