Inventory Management


Definition: Inventory Management is the planning, organizing and controlling of the ordering, storage and use of the components that a company will use in its manufacturing process and of the finished products for sale.
A firm's inventory is one of its major assets and there are cost of capital associated with owning all of these items until they are sold or used in production. On top of that there are also costs to store, track and insure inventory. Furthermore inventories that not managed well can create significant financial problems for a business, including inventory glut and inventory shortage.


More on inventory: ABC Analysis, Inventory, Materials Management, Vendor Managed Inventory.


MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.

© 2023 MBA Brief - Last updated: 21-3-2023  -  Privacy   |   Terms