The overriding goal of inventory management is to ensure that the firm never suffers a stock-out, i.e., never runs out of an inventory item.

Question

Quizplus · Accepted Answer

The overriding goal of inventory management is to balance the costs of holding inventory against the benefits of holding inventory, including ensuring product availability without unnecessarily tying up capital in excess inventory. Avoiding stock-outs is important, but it's not the sole goal.

The Overriding Goal of Inventory Management Is to Ensure That