Inventory Management: Definition, Importance, and Best Practices

Inventory refers to the total quantity of goods, products, or materials that a business has in its possession and available for sale or use. It can include raw materials, work-in-progress items, finished goods, and other supplies. Inventory management involves tracking and controlling the flow of inventory to ensure that there is enough stock to meet demand while minimizing waste and excess. Effective inventory management is crucial for businesses to maintain profitability, optimize production, and meet customer needs.