What is inventory management and why is it important?
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and sub-assemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs. The expenses associated with financing and maintaining inventories are a substantial part of the cost of doing business (i.e., cost of goods sold). Managers are faced with the dual challenges of maintaining sufficient inventories to meet demand while at the same time incurring the lowest possible cost.
Business