Inventory Strategy Definition
Inventory strategy definition: An inventory strategy is a plan for ensuring that an organization has the right type and amount of inventory on hand to meet its business needs. The goal of an inventory strategy is to minimize costs while still providing the necessary level of customer service.
There are a number of factors to consider when developing an inventory strategy, including the types of products offered, customer demand patterns, production lead times, and supplier reliability. The right inventory strategy will vary from business to business, and it may change over time as market conditions and other factors evolve.
An effective inventory strategy can help an organization reduce costs, improve customer service, and avoid stock-outs. A poorly planned or executed strategy can result in lost sales, higher carrying costs, and excess inventory. When developing an inventory strategy, it is important to strike a balance between these different objectives.
