What role does Inventory Management play in Supply Chain Management?

Inventory Management is crucial in Supply Chain Management because it ensures that products are available when and where they are needed. This involves maintaining the right balance of stock to meet customer demand without overstocking, which can tie up capital and increase storage costs.

Effective inventory management practices help prevent stockouts—situations where products are unavailable to customers—and support smooth operations within the supply chain. By accurately forecasting demand and managing inventory levels accordingly, businesses can maintain product availability, respond swiftly to market changes, and enhance overall customer satisfaction. This function is vital as it directly influences both service levels and operational efficiency within the supply chain, ultimately impacting the company's profitability and competitiveness in the market.