Which of the following is a benefit of effective inventory management?

Effective inventory management plays a crucial role in ensuring that the right products are available at the right time, significantly impacting overall business operations. One of the primary benefits of this practice is improved customer satisfaction. When inventory is managed efficiently, customers are more likely to find the products they need when they need them. This availability leads to a better shopping experience, fostering loyalty and repeat business.

Efficient inventory management also helps maintain optimal stock levels, reducing the chances of overstocking or understocking, which can hinder customer service. When stock is readily available, customers do not face delays or the frustration of out-of-stock items, thus enhancing their perception of the company.

In contrast, aspects like increased storage costs and decreased product availability would likely detract from customer satisfaction. Higher risks of stockouts can directly lead to negative customer experiences, indicating that these options do not align with the benefits derived from effective inventory management practices.