What is inventory planning ?

Definition

Inventory planning is an important process for businesses of all sizes. It is the process of determining what to order when to order, and how much to order. This process is important because it can affect business profitability. If there are not enough products to meet customer demand, the company will experience a shortage. This will cause customers to buy from competitors instead. If there are too many products, then the inventory will be wasted and the company will not reach its full potential. The process of creating an inventory plan to determine the quantities of inventory to order, produce, or store. Inventory planning is the process of creating an inventory plan to determine the quantities of inventory to order, produce, or store. It includes balancing inventory across the distribution channels, the products, and the timing of the purchases. It also includes inventory forecasting, inventory control, and tactical inventory management.