oboloo Glossary

Inventory Management Styles

oboloo Glossary

Inventory Management Styles

Inventory management styles are the strategies used to accurately track and organize a company’s inventory. Depending on the size and type of business, companies might choose from various approaches when managing their inventory, such as the ABC approach, First-in/First-out (FIFO) method, or Just-in-Time (JIT) approach. The ABC approach requires dividing items into categories according to their importance, FIFO aims to keep costs down by having businesses sell the oldest inventory first, and JIT seeks to minimize storage costs by only stocking the exact amount of inventory needed at a point in time. Ultimately, the right inventory management style will depend on individual business needs, but all aim to ensure that a company has just the right amount of stock without excessive overstocking or understocking.