For any business establishment, inventory is a very essential part of the business. No business would say that they don’t need inventory, may it be a service-oriented, merchandising or manufacturing type of business.
Given that we live in a perfect world, I could say that we don’t need to stock inventories because we would have the item available when the item is required for consumption (the concept of Just-in-Time inventory management). However, we do not live in a perfect world and the competition of getting the items that we need is just so overwhelming. Thus, the availability in the market is just so unpredictable. This is the reason why we need to stock inventories.
Inventory is what makes every business continuously efficient. But we must also consider that we must not practice the art of “over stocking inventories”, especially when the item is perishable (in the case food) or subject to sudden innovations (in the case of technological products). We really need to learn the art of managing our inventory without sacrificing the efficiency of our business. And with today’s technological innovations, there are now stock control software available in the market that would help us control our inventories. With the help of a stock control software there would be no need to compute lead times and EOQ’s because the software does it for you! Now that is inventory control with ease!