What is the primary goal of supply control?

The primary goal of supply control is to determine inventory requirements and ordering policies. This focus on managing inventory effectively enables organizations to maintain an optimal supply level that meets demand without incurring unnecessary costs. Effective supply control ensures that the right amount of product is available when needed, which in turn minimizes excess inventory and reduces the risk of stockouts. By establishing clear inventory requirements, businesses can streamline their ordering processes, improve cash flow, and enhance overall operational efficiency.

Organizations that prioritize supply control can respond more rapidly to changes in demand, avoid overstock situations that lead to increased carrying costs, and align their supply chain processes with broader strategic goals. This holistic approach contributes significantly to organizational success and sustainability.