Inventory management refers to the process of ordering, storing, using, and selling a company's inventory. This includes the management of raw materials, components and finished products, as well as the storage and processing of such items. Inventory management is a systematic approach to obtaining, storing and selling inventory of both raw materials (components) and finished products (products). Inventory management is the tracking of inventory from manufacturers to warehouses and from these facilities to the point of sale.
Inventory management is the system that a company uses to order, store, organize and move inventory along its supply chain. It ensures that companies have the right amount of product in the right place at the right time. Inventory management refers to the process of storing, ordering, and selling goods and services. The discipline also involves the management of various supplies and processes.
Instead of taking advantage of inventory management systems, you can cycle count to perform complete physical inventories. While physical inventories are usually only done once a year, they can be incredibly annoying to the business and tedious. The SEC requires public companies to disclose the LIFO reserve, which can make inventories with a LIFO cost comparable to FIFO costs.