Managing inventory involves several strategies and tools. Some of the most common methods include:
Just-In-Time (JIT): This strategy aims to minimize inventory by receiving goods only as they are needed in the production process. ABC Analysis: This categorizes inventory into three categories (A, B, and C) based on their importance and value. Economic Order Quantity (EOQ): This formula helps in determining the optimal order quantity that minimizes total inventory costs. Inventory Management Software: Modern software solutions can automate various aspects of inventory management, making the process more efficient and less prone to errors.