Which describes the purpose for maintaining an inventory system?

The primary purpose of maintaining an inventory system is to ensure the availability of raw materials, components, finished goods, and other resources necessary for production and customer fulfillment while simultaneously minimizing the costs associated with holding excess inventory. An effective inventory system helps businesses strike a balance between meeting demand efficiently and avoiding the risks of overstocking or stockouts, optimizing resource allocation and cash flow, and supporting smooth operations and customer satisfaction throughout the supply chain.