Inventory refers to the goods and materials a business holds for the purpose of resale or production. Effective inventory management is crucial for maintaining the balance between supply and demand, ensuring that a company can meet customer needs without overstocking or understocking products. This process involves tracking inventory levels, orders, sales, and deliveries. Proper inventory management helps businesses minimize costs and maximize efficiency. By utilizing various techniques and technologies, such as barcoding and inventory software, companies can streamline their operations, reduce waste, and improve customer satisfaction. Ultimately, a well-managed inventory system contributes to a company's overall success.