What is the goal of inventory analysis?

The primary goal of inventory analysis is to keep inventory costs low while preventing stockouts. This involves assessing the quantity and availability of stock needed to meet demand without over-investing in inventory. Effective inventory management ensures that a company can fulfill customer orders promptly, thereby maintaining service levels and maximizing sales opportunities. Additionally, by optimizing inventory levels, businesses can reduce holding costs, which include storage, insurance, and obsolescence expenses.

In contrast to the other options, focusing on employee satisfaction, turnover rates, and production efficiency are important aspects of an organization but are not directly related to inventory analysis. Employee satisfaction and turnover rates primarily pertain to human resources management, while production efficiency is about how well a company utilizes its resources during the production process. While all these factors contribute to a company's overall success, they do not specifically address the core objectives of inventory analysis.