What is the importance of inventory management?

Answer by  jimcro55 (813)

If you are stuck with too much inventory, then it takes up more space in your company. Also this means that more of your cash is stuck in these material assets instead of going towards the other things that the company might need at a given time. This is a key concept for all business that sell things.

Answer by  ahmed77 (44)

1. Continuation of feeding sections productivity needs 2. Reduce the cost of storage 3. Avoid a situation in the accumulation of stocks 4. Avoid stopping the production line due to out of stock items

Answer by  sonicfoundation (2597)

Without inventory management, you have no idea about what your inventory levels are and how much product you are moving in or out.

Answer by  tamarawilhite (17883)

Inventory represents a cost that is locked in until the item is sold. Too much inventory limits the available cash for other purposes. Too little inventory means lost sales and profits. Inventory in products that don't sell must be sold at a loss, a loss of money. Inventory requires logistics to buy, store, and track. You don't want too much.

Answer by  technogeek (6640)

Inventory management is necessary because in business it is important to know how many items have sold and have not. By knowing this, a business owner can know what items are moving and if money is being lost through purchasing a particular item for sale.

Answer by  joe34 (57)

Inventory management is very important. It lets you know how much inventory you have, how much you need to order and also helps you to predict future sales or future orders that you will need to place.

Answer by  diane41 (309)

Inventory management is important because a manufacturer or a retail supplier needs to know how much of any given product they have on hand. It is important because you do not want to be in a place where you have too much inventory on hand or two little. The process of finding the right balance, however, is the tricky part.

Answer by  sc1234 (1319)

Inventory management helps you to make sure that you're not promising customers goods that you cannot deliver. This could damage your credibility in business tremendously.

Answer by  tamarawilhite (17883)

Running out of inventory costs money in the form of lost business. Excess inventory results in money locked up in inventory that takes time to sell and storage costs. Inventory needs to be managed so that you never run out and never have too much on hand at one time.