Final answer:
A major challenge in inventory management is the optimal balance between supply and demand, inventory costs, and inventory accuracy.
Step-by-step explanation:
In the field of inventory management, a major challenge is achieving an optimal balance between supply and demand. This involves accurately forecasting customer demand, ensuring adequate stock levels to meet that demand, and avoiding the costs of excessive inventory or stockouts. Companies need to implement effective inventory control techniques and employ efficient systems like Just-in-Time (JIT) or Economic Order Quantity (EOQ) to overcome this challenge.
Another crucial aspect is managing inventory costs. This includes the expenses associated with storing, handling, and obsolescence of inventory. Minimizing holding costs by optimizing inventory turnover and implementing effective supply chain strategies can improve overall performance.