Inventory management refers to the process of efficiently overseeing and controlling the flow of goods or products within a business. It involves activities such as tracking inventory levels, replenishing stock, and optimizing stock movement to ensure the right amount of inventory is available at the right time.

Effective inventory management helps businesses avoid stockouts, minimize excess inventory, and optimize cash flow. It requires accurate forecasting, monitoring sales trends, implementing inventory control systems, and establishing inventory policies. By maintaining optimal inventory levels, businesses can improve customer satisfaction, reduce holding costs, prevent stock obsolescence, and enhance overall operational efficiency.