Inventory management is the planning and control of stock quantities, locations and rotation to meet customer demand without excessive capital tied up in goods, while respecting shelf-life and food safety requirements.
In trade practice
Buyers of frozen fruit or dried goods set minimum and maximum stock levels based on lead times from Ukraine and seasonal supply patterns. Warehouse teams apply FEFO rotation and monitor remaining shelf life at goods receipt to avoid accepting stock that cannot be sold within customer-mandated minimum remaining life. Common errors include failing to update system records after partial pallet picks, which distorts reorder calculations. Inventory accuracy is typically verified through regular cycle counts rather than a single annual stocktake.
In a specification
Supply agreements often state a minimum remaining shelf life, expressed as a percentage of total shelf life or a fixed number of days, that stock must carry at the point of delivery, directly linking inventory rotation to contractual compliance.