There are several strategies to optimize inventory, including:
Demand Forecasting: Predicting future customer demand to adjust inventory levels accordingly. Just-in-Time (JIT): Reducing inventory levels by receiving goods only when they are needed in the production process. Safety Stock: Keeping a buffer stock to prevent stockouts during unexpected demand spikes or supply chain disruptions. ABC Analysis: Categorizing inventory into three classes (A, B, and C) based on their importance and value, and focusing on managing the most critical items. Vendor Managed Inventory (VMI): Allowing suppliers to manage inventory levels based on agreed-upon parameters.