Inventory planning is unpredictable by nature. The slightest shift in market conditions could tip the scale, and could end you up with excessive stock or too little inventory to keep up with demand. Too much inventory may force you to discount heavily to move excess stocks while too little inventory may mean missing out on sales due to out-of-stock items.
While there is no silver bullet that can fix these inventory management woes, there is one effective model you can implement to achieve the right inventory balance – and that is inventory management optimization.
What is Inventory Management?
As explained by Investopedia, inventory management refers to the process of ordering, storing and using a company’s inventory. These include the management of raw materials, components, and finished products, as well as warehousing and processing such items.
For the most part, inventory management is all about striking that balance and ensuring that you have the right stocks, at the right levels, at the right time, and at the rig