Inventory levels refer to the amount of goods or products that a business has on hand at any given time. This includes everything from raw materials to finished products ready for sale. Maintaining the right inventory levels is crucial for businesses, as it helps ensure they can meet customer demand without overstocking, which can lead to increased costs and waste. Managing inventory levels involves tracking sales trends, seasonal changes, and supply chain factors. Businesses often use software systems to monitor these levels, allowing them to make informed decisions about when to reorder products or reduce stock. Proper inventory management can lead to improved efficiency and profitability for companies like retailers and manufacturers.