What is effective inventory management?

I personally believe that effective inventory management revolves around the 5R

1. Right goods

2. Right quantities

3. Right quality

4. Right place

5. Right time

Well-functioning system is a process of overseeing the flow of items into and out of your stock. It's a balance of having just enough products in the warehouse. Effective inventory management keeps the stock costs under control so you can run a successful business.