Which of the following is true about inventory management?

Inventory management plays a crucial role in the overall efficiency and effectiveness of a business. Prioritizing accuracy and efficiency means that inventory management practices are designed to maintain precise records of stock levels, minimize errors in order fulfillment, and ensure that products are available when needed without overstocking. This focus helps in reducing costs associated with excess inventory, improving cash flow, and enhancing customer satisfaction by ensuring that products can be delivered promptly when demanded.

A commitment to accuracy ensures that businesses can track inventory movement accurately, preventing stockouts or overages that can negatively impact operations. Efficiency involves streamlining processes related to inventory management, such as ordering, receiving, and storing products, which helps to optimize resource utilization and operational workflow.

In contrast, ignoring customer preferences, solely depending on supplier terms, or focusing primarily on administrative tasks does not align with the holistic approach required for successful inventory management. Customer preferences are essential for demand forecasting, supplier relationships must be balanced with operational needs, and while administrative tasks are important, the core of inventory management lies in accuracy and efficiency to meet market demands effectively.