Inventory management is the process of overseeing and controlling the flow of goods and materials within an organization's supply chain. It involves various activities, including inventory tracking, ordering, storing, and replenishing, to ensure that adequate stock levels are maintained to meet customer demand while minimizing holding costs. Inventory management encompasses tasks such as inventory planning, forecasting demand, setting reorder points, managing stock levels, implementing inventory control policies, and optimizing inventory turnover. Effective inventory management aims to balance the costs associated with holding inventory against the costs of stockouts and lost sales, ultimately maximizing profitability and operational efficiency.