What means inventory management?

Inventory management helps companies identify what stock to order and when and when. Track inventory from buying to selling goods.

What means inventory management?

Inventory management helps companies identify what stock to order and when and when. Track inventory from buying to selling goods. The practice identifies and responds to trends to ensure that there is always enough stock to fulfill customer orders and to adequately warn if there is a shortage. 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 the oversight of uncapitalized assets (or inventory) and items in stock. As a component of supply chain management, inventory management oversees the flow of products from manufacturers to warehouses and from these facilities to the point of sale. A key function of inventory management is to maintain a detailed record of each new or returned product when it enters or leaves a warehouse or point of sale.

Inventory management is the tracking of inventory from manufacturers to warehouses and from these facilities to the point of sale. 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. The SEC requires public companies to disclose the LIFO reserve, which can make inventories with a LIFO cost comparable to FIFO costs.

Companies with large inventories, complex warehouses, or that sell on multiple channels may have many moving parts in their inventories.

Lachlan Thompson
Lachlan Thompson

Avid tv advocate. Passionate coffee enthusiast. General beer advocate. Award-winning beer junkie. Lifelong internet junkie. Wannabe food expert.

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