Objectives of Inventory Management
Providing required inventory continuously
Businesses should maintain sufficient inventory levels to support smooth production processes and meet customer demands.
Reducing understocking and overstocking
Maintaining appropriate inventory levels is essential for seamless business operations. Avoiding inventory shortages or excesses is crucial to match market requirements.
To keep up a systematic record of inventory
Proper record-keeping of inventory levels and usage enables effective inventory management, facilitating decision-making and issue resolution.
Reduction of wastage and of misappropriation of materials
Efficient inventory management helps minimize waste, damages, and improper handling of stock within the business.
To reduce the price related to inventory
Effective inventory management aims to reduce costs associated with inventory by avoiding overstocking or low stock situations.
To form price stability
The objective is to maintain price stability and minimize fluctuations in inventory prices, ultimately contributing to increased revenue generation.