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Inventory management:
This refers to the method in which tangible resources and materials are handled by businesses in order to make sure resources are readily available for use. The simplest form of inventory management is the hard-copy technique whereby a list is kept of materials that are being used on a routine. When supplies run low, a purchase is made to replenish materials. In this way, a running inventory of the most important materials can be provided at any time. Inventory management is useful so that materials can be purchased when most wanted and also when the prices are low, nothing in this way can run critical.
The most important reason that inventory systems are used is to trace supplies so that inventory related problems can be identified quickly and required action can be taken to overcome them.
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