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[Music] Inventory management types benefits and methods Inventory management helps businesses decide what and how much to order it tracks inventory purchases to sales Trends are identified and addressed to ensure enough stock to fulfill customer orders and timely warning of shortages inventory sells for Revenue inventory an asset on the balance sheet ties up cash before it sells thus excess stock reduces cash flow and costs money inventory turnover measures Inventory management inventory turnover measures stock sales in a period no business wants more stock than sales dead stock results from low inventory turnover why inventory management inventory management reduces the risk of stock outs and inaccurate records keeping a company healthy sarban Oxley s Sox and SEC regulations require public companies to track Inventory management processes must be documented for compliance Inventory management benefits Inventory management guarantees order fulfillment and boosts profits manage inventor
