inventory level

inventory level refers to the quantity of products or raw materials that a business has on hand at any given time. Maintaining the right inventory level is crucial for businesses to meet customer demand while avoiding overstocking or stockouts. Inventory levels can be managed through various methods, including just-in-time (JIT) inventory, economic order quantity (EOQ), and safety stock calculations. By regularly monitoring and adjusting inventory levels, businesses can optimize their supply chain and ensure that they are neither overstocked nor understocked, both of which can impact profitability and customer satisfaction.