Inventory Management

Inventory management is the systematic process of ordering, storing, using, and selling a company's inventory, which includes raw materials, components, and finished products. As a critical function within operations and supply chain management, its primary goal is to maintain the optimal quantity of stock to meet customer demand without interruption, while minimizing the costs associated with holding excess inventory, such as storage fees, insurance, and the risk of obsolescence. Effective inventory management involves forecasting demand, setting reorder points, and determining order quantities to strike a crucial balance between stock availability and capital investment, directly impacting a company's profitability and operational efficiency.

1. Introduction to Inventory Management
   1. Definition and Scope of Inventory
      1. Definition of Inventory
      2. Types of Items Considered Inventory
      3. Scope within Different Industries
   2. The Role of Inventory in the Supply Chain
      1. Inventory as a Buffer
      2. Inventory and Lead Time Reduction
      3. Inventory and Supply Chain Coordination
   3. Strategic Importance of Inventory Management
      1. Impact on Financial Performance
      2. Role in Competitive Advantage
      3. Relationship with Customer Satisfaction
   4. Objectives of Inventory Management
      1. Balancing Costs and Customer Service
      2. Maximizing Profitability
      3. Improving Operational Efficiency