📌 Definition:

Inventory management is the process of tracking, storing, and controlling products so businesses have the right amount of stock at the right time.

Too much inventory wastes money.

Too little inventory causes lost sales.

📦 What businesses manage:

• raw materials

• finished goods

• warehouse stock

• retail inventory

• online inventory

📉 Problems with too much inventory:

• storage costs increase

• products expire

• unsold stock blocks cash flow

• discounting may be required

📈 Problems with too little inventory:

• stockouts

• delayed orders

• unhappy customers

• lost revenue

💡 Example:

Companies like Amazon and Walmart use advanced inventory systems to predict demand.

⚙️ Common inventory methods:

• Just-in-Time inventory

• safety stock

• demand forecasting

• warehouse automation

✨ Key Takeaway:

Great inventory systems help businesses avoid both waste and shortages.