What is the primary function of inventory management?

The primary function of inventory management is to manage and control inventory levels. This process involves maintaining the right amount of stock to meet customer demand while minimizing excess inventory and associated carrying costs. Effective inventory management ensures that a business can fulfill orders promptly without overstocking items that may not sell, which can tie up capital and increase storage costs.

By maintaining proper inventory levels, a company can optimize its operations, ensuring that it has sufficient products on hand at all times while also avoiding the pitfalls of stockouts or overstock situations. This balance directly impacts customer satisfaction and operational efficiency, making it a critical aspect of supply chain and operations management.

While other aspects such as overseeing supply chain disruptions, enhancing supplier relationships, and regulating shipping times are important in the broader context of supply chain management, they do not encapsulate the core purpose of inventory management as effectively as controlling inventory levels does.