Inventory management is the practice of overseeing and controlling the ordering, storing and use of materials in a business. It includes standardizing and streamlining operations, tracking stock levels, detecting discrepancies in production and sales, and taking corrective action when needed. Proper inventory management helps companies maximize their profits by properly managing stock levels, reduce costs associated with excess inventories and achieve higher customer satisfaction rates. An effective inventory management system should be used to track product lines and adjust order levels as market conditions change. Additionally, it should be used to identify products that are slow movers in the market, allowing businesses to make necessary adjustments in pricing or discontinue the product altogether.