Definition

inventory management

Contributor(s): Brenda Cole

Inventory management is the supervision of non-capitalized assets (inventory) and stock items. 

A component of supply chain management, inventory management supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale. A key function of inventory management is to keep a detailed record of each new or returned product as it enters or leaves a warehouse or point of sale. 

Inventory control, a similar term, is the area of inventory management that is concerned with minimizing the total cost of inventory while maximizing the ability to provide customers with product in a timely manner. In some countries the two terms are used as synonyms.

See also: logistics management

 

This was last updated in September 2011

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