Inventory management (business)

Function of understanding stock mix of a company and the different demands on that stock Inventory management, also known as field inventory management, is the task of understanding the range and quantities of inventory (or "stock") held by a company and the handling of the different demands placed on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. Inventory management is important for every business enterprise. It includes tasks related to setting and reviewing inventory targets efficiently. Overview A typical inventory management process for a retail business follows the following sequence: A forecast of how much inventory needs to be held, and the stock mix to which it relates. Request for new inventory from stores to head office, Head office issues a purchase order to the vendor, Vendor ships the goods, Warehouse receives the goods, Warehouse stores and distributes to the stores, Shops and/or consumers (e.g. wholesale shops) receive the goods, Goods are sold to customers at the shops. Gartner's research in 2017 found that many businesses