Inventory control is the process of managing and tracking the inventory levels, orders, sales, and deliveries of a business. It can involve manual or automated processes to ensure that the right amount of stock is available at all times, while also keeping costs low by preventing over-ordering or under-ordering.
Inventory management is to keep sufficient inventories to meet consumer requirements, and at the same time its carrying cost must be Lowest. It is fundamentally an exercise in a balance between the customer service for not missing the market opportunity and the cost to meet the same. The inventory is the utmost problem in the overall supply chain of a company because of its higher carrying cost, which indirectly affects the profits. It involves the cost of financing the insurance, inventory, losses, storage, pilferage, and damages.
inventory control serves as the cornerstone of effective supply chain management and enables businesses to seize market opportunities by optimising inventory levels, responding swiftly to demand fluctuations, enhancing customer satisfaction, exploring new markets, executing promotional strategies, optimising costs, and fostering strategic collaboration.