What is the primary goal of inventory management in retail operations?

The primary goal of inventory management in retail operations is to ensure product availability while minimizing excess stock. This concept is crucial because it involves maintaining the right balance between having enough products on hand to meet customer demand and avoiding overstock situations that can tie up capital and increase storage costs.

Effective inventory management directly impacts a retailer's ability to serve customers. When products are readily available, customers can find what they need, leading to increased sales and customer satisfaction. Conversely, having too much inventory can lead to issues such as obsolescence, spoilage, and increased handling costs, which can negatively affect a retailer's profitability.

While staff productivity and marketing expenses are important in the overall retail strategy, they are not the focal points of inventory management specifically. Shipping costs are also critical, but eliminating them entirely is not feasible or practical for most businesses. Thus, focusing on product availability while minimizing excess is the most strategic approach to managing inventory in retail.