What is involved in inventory management?

Inventory management encompasses the entire process related to the ordering, storing, and utilizing a company's inventory effectively. This includes ensuring that a business has the right amount of stock on hand to meet customer demand while minimizing excess inventory that can lead to increased costs.

It involves various activities such as tracking inventory levels, forecasting demand to avoid stockouts or overstocking, and managing relationships with suppliers. By efficiently managing inventory, companies can reduce costs, improve cash flow, and enhance customer satisfaction through timely fulfillment of orders, making it an essential aspect of overall business operations.

The focus on comprehensive inventory processes as mentioned in this option distinguishes it from other aspects of business management, such as cash flow or employee scheduling, which, while important, do not relate directly to the specific challenges and strategies involved in managing inventory.