DEFINITIONS OF INVENTORY MANAGEMENT

Policies, procedures, and techniques 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 firms, 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 Involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. Systems and processes that identify inventory requirements, set targets, provide replenishment techniques and report actual and projected inventory status. Developing and maintaining adequate assortments of products to meet customers' needs Inventory management means controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs. The process of acquiring and maintaining a proper assortment of merchandise while keeping ordering, shipping, handling, and other related costs in check. It is the activities involved in maintaining the appropriate level of stock in a warehouse.