Inventory management is essential to promote the proper functioning of any company or organization. It allows determining the methods of entry and exit registration and classification of the products of a company at a given time, as well as the costs associated with the process of maintaining inventory. A company usually has a minimum amount of stock to cope with increases in demand and has the necessary material for its production, without causing any pause in activity.
There are differenttypes of inventories, such as raw materials, products in process of manufacture or semi-finished products, finished products, materials and supplies (office supplies, fuels, containers, tools, etc.). Likewise, to manage an inventory or stock correctly, two methods are usually used:
- ABC system
- Economic order quantity
Virtually all companies, both goods and services, have inventories, either of one type or another.