What is Inventory Management

Inventory management is a process to manage of a business purchases,sales, stocks and for the production company's: raw materials, components and productions. For a production company's an inventory management may called to manage all the manufacturing process , such as raw materials and finally productions where for an retail business inventory management is to maintain purchases, sales and stocks. Finally difference only the business process but the main theme is to manage all business factors or capitals.

For this reason, inventory management is important for any type or any size of businesses.For restoring positive items in the right time, what amounts to buy or produce, what fee to pay – including all of the plans of your business for production and sales – can do without difficulty if you have good inventory management policy.

Small companies will frequently keep tune of stock manually and decide reorder points and portions the use of excel formulas.

Larger companies will use specialized business enterprise resource planning (ERP) software program and retailer companies can use a simple inventory software. But every business must follow their business types and polices before choosing a software management.

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