Inventory analysis
Inventory analysis is one of the branches of Operation Research which deals in studying and understanding the stock/product mix combined with the knowledge of the demand for stock/product.[1] It is the technique to determine the optimum level of inventory for a firm.[2][3]
Methods and applications
[edit]Inventory analysis is widely used to classify and manage stock items according to their demand patterns and strategic importance within a firm’s operations. Modern analytical approaches combine traditional inventory control with techniques such as ABC–XYZ classification and safety-stock modelling to determine optimal stock levels and reduce the likelihood of shortages. These methods enable firms to identify high-value items with stable demand, distinguish them from low-value or highly variable-demand items, and allocate resources more efficiently.[4]
Computing inventory balances
[edit]References
[edit]- ^ Jenkins, Abby (October 14, 2020). "Inventory Analysis: Tips, Methods and KPIs". Retrieved September 10, 2025.
- ^ "What is inventory analysis? definition and meaning". BusinessDictionary.com. Archived from the original on 2017-05-19. Retrieved 2017-05-05.
- ^ "What is inventory analysis? - Questions & Answers - AccountingTools". www.accountingtools.com. Retrieved 2017-05-05.
- ^ Kırmızı, Sema; Ceylan, Zeynep; Bulkan, Serol (2024). "Enhancing Inventory Management through Safety-Stock Strategies—A Case Study". Systems. 12 (7): 260. Retrieved 10 September 2025.
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