How do businesses manage inventory?
The cost of storing stock must be balanced with the risk that a lack of stock will stop production
Businesses will have a system in place in order to ensure they have sufficient inventory held in the The building or area in the business designated to hold inventory (stock)..
The system may utilise modern technology. For example barcodes may be used on products to relay information about sales to the warehouse via an ICT system. Then when the inventory reaches a set level or trigger point the business will be alerted to reorder and restock the levels of inventory.
Businesses must avoid the problems of having too much inventory, called Having too much inventory (stock) held in the business. and the problems of not having sufficient inventory, called Having not enough inventory (stock) held in the business..
