What is the primary focus of inventory management?

The primary focus of inventory management is the supervision of ordering, storing, and using inventory. This aspect is crucial as it ensures that a business has the right amount of stock available at the right time, which helps to meet customer demand without overstocking or running into shortages. Effective inventory management involves various processes such as ordering supplies in a timely manner, keeping track of inventory levels, maintaining proper storage conditions, and optimizing the usage of inventory.

By managing these aspects effectively, companies can reduce costs, improve efficiency, and enhance overall operational performance. This leads to better service levels and customer satisfaction since products are readily available when needed.

While determining selling prices for products, tracking cash flow, and managing staff can all be important operational aspects of a business, they are not the primary focus of inventory management. These other functions may intersect with inventory processes, but they do not encompass the overall objectives and strategies associated with managing inventory effectively.