Inventory management formulas are mathematical equations and calculations that help businesses manage their inventory. They provide information, such as the amount of stock needed to satisfy customer demand, the financial cost of holding too much or too little inventory, and the optimal order size for a given item. By using these formulas, businesses can ensure they are making the right decisions when it comes to stocking the right products, at the right time, in the right quantities. Taking the time to understand inventory management formulas is essential if you want to have an effective and efficient inventory management system.