The right inventory control techniques help businesses optimize stock levels, reduce costs, and improve customer satisfaction. Without proper control, companies risk overstocking, stockouts, and financial losses.
Some widely used inventory control techniques include:
ABC Analysis – Classifies inventory into categories (A, B, C) based on importance.
Economic Order Quantity (EOQ) – Helps determine the ideal order quantity to minimize costs.
Just-in-Time (JIT) – Reduces inventory waste by ordering only when needed.
FIFO & LIFO – Inventory valuation methods ensuring proper stock rotation.
Reorder Point System – Establishes minimum stock levels to trigger replenishment.
The application of inventory control techniques ensures that resources are managed efficiently, working capital is optimized, and customer demands are consistently met. Modern companies also integrate ERP software and AI-driven systems for real-time inventory tracking, further enhancing efficiency.