Inventory management is a technique of stocking, delivering, and tracking of materials that are required in the production of a good. Inventory management techniques are customizable, and hence companies are free to adopt a mixture for best commercial results.
The significance of inventory management
Inventory management is significant for manufacturing units as it blocks cash. Keeping too little or too much inventory could be unfavorable for a company; too much stock could result in the loss as it might not be used up within a stipulated time, and too little inventory could hamper production and supply.