: Balancing stock levels to avoid both stockouts (which lose sales) and overstocking (which ties up capital).
: Categorizing inventory based on value or turnover: Category A : High-value items requiring strict control. Category B : Moderate-value items with medium control. Category C : Low-value items with loose control. Key Pillars of Production Management The Importance of Inventory Management in Supply Chain Inventory and Production Management in Supply C...
: Determining reorder points (when to buy) and reorder quantities (how much to buy) based on lead times and safety stock needs. : Balancing stock levels to avoid both stockouts