The biggest problem in managing inventory is keeping the right amount of items available. If you have too much, it costs money to store and might go to waste.
If you have too little, customers get upset as they can’t buy what they want. This balancing act is hard because it depends on lots of things like sales patterns, supplier delays, and seasonal changes.
Good inventory management needs accurate forecasting, knowing when to reorder, and having a system to track what comes in and goes out. If these things aren’t done well, a business might lose money and customers.
Technology can help with better tracking and predicting, but human decision-making is still vital. Communication is also key; different departments like sales and purchasing need to share information to avoid overstock or stockouts. In short, finding the right balance between supply and demand, using data smartly, and having smooth teamwork are all crucial challenges in inventory management.