Inventory management in supply chain is the process of overseeing and controlling the ordering, storage, and use of materials within a business. It is an important component of supply chain management, as it helps to ensure that the right products are in the right place at the right time, while also minimizing costs associated with inventory. The goal of inventory management is to balance the cost of inventory with the need to have the right amount of inventory on hand to meet customer demand. This includes managing the supply of raw materials, components, and finished goods, as well as managing the inventory of products in warehouses and stores. It also involves forecasting demand, monitoring stock levels, and optimizing inventory levels. In addition, inventory management helps to reduce the risk of stock-outs, minimize inventory carrying costs, and maximize customer satisfaction. Ultimately, inventory management helps to ensure that the supply chain is running smoothly and efficiently.
