Shopping has become an integral part of every day life for people in the modern world. As a result, inventory management is becoming increasingly important for consumer goods companies as they balance the need to keep prices low and stock high with the desire to maintain profitability.

Companies must always be careful when they make a decision to invest in inventory. They need to do this because it takes up room and if the product doesn’t sell, the company is left with all of that excess inventory which can end up being a great burden on the company. In order to solve this dilemma, they must try to balance out their supplies with demand for that product.