inventory management

  

Definition

Activities employed in maintaining the optimum number or amount of each inventory item.

The objective of inventory management is to provide uninterrupted production, sales, and/or customer-service levels at the minimum cost. Since for many companies inventory is the largest item in the current assets category, inventory problems can and do contribute to losses or even business failures. Also called inventory control. See also inventory analysis.


Use this term in a sentence

  • Department stores such as Wal-Mart and Target have grown successful due to proper staffing and inventory management, making sure that all stock is accounted for.

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  • We had to hire more people for our inventory management team, because we really needed some help in that area.

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  • You should have great inventory management so that you know where everything is and can locate it when you need.

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