Which of the following is a primary goal of effective inventory management?

Effective inventory management focuses on maintaining the balance between having enough inventory to meet customer demand while avoiding excess stock that can incur unnecessary costs. The primary goal is to ensure product availability, meaning that when customers need a product, it is readily available for purchase. Simultaneously, it aims to minimize excess stock, which can tie up capital and lead to increased storage costs, waste due to obsolescence, or markdowns in cases where products are no longer in demand.

By achieving this balance, businesses can operate more efficiently, optimize their cash flow, and improve overall customer satisfaction. This approach enables a company to respond quickly to market changes and consumer preferences while managing its resources effectively.