Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 37)

What is a primary goal of efficient inventory management?

To maximize the amount of inventory held.

To minimize the risk of stockouts and reduce costs.

To increase the company's debt levels.

To slow down the rate of inventory turnover.

Efficient inventory management aims to strike a balance between having enough stock to meet demand and minimizing costs and the risk of obsolescence.