Inventory analysis is the process of examining inventory to determine the optimum amount a business should carry. By obtaining a clear picture of the inventory that keeps your company profitable, you can keep up with customer demand while increasing sales and controlling costs.
You don’t need a complex data infrastructure to reap the benefits of inventory analysis. It simply requires understanding inventory analysis formulas and a grasp of inventory analysis principles. We’ll cover both of those later on, but first, let’s take a step back and better define this concept.