Final answer:
The statement is true; inventory management involves maintaining a balance between too little and too much inventory to avoid stockouts and excess costs while meeting customer demand.
Step-by-step explanation:
Maintaining a careful balance between having too little and too much inventory is indeed a key component of inventory management. The statement is true. Having too little inventory can lead to stockouts, lost sales, and unsatisfied customers. On the other hand, having too much inventory can result in excess costs for storage, deterioration, and potential obsolescence.
Efficient inventory management systems aim to minimize costs while satisfying customer demand. Techniques such as Just-In-Time (JIT) and Economic Order Quantity (EOQ) are utilized to achieve this balance. The ultimate goal is to ensure that inventory levels align with business strategy and market demand to operational efficiency and profitability.