What does an inventory management system help to minimize?

An inventory management system plays a crucial role in minimizing carrying costs associated with excess stock. Carrying costs are expenses related to holding inventory, which can include storage costs, insurance, depreciation, and opportunity costs. When inventory levels are managed effectively, a business can avoid keeping unnecessary large amounts of stock, which can tie up cash flow and increase overall operational expenses.

By providing real-time data and analytics, inventory management systems help businesses make informed decisions about stock levels, reorder points, and forecasting demand. This ensures that products are available when needed without overstocking, leading to more efficient use of resources and reduced costs in the long run.

The other options focus on different aspects of operations but do not directly relate to the primary function of inventory management systems. For example, while minimizing employee workload during peak times may be a benefit of efficient processes, it is not the core purpose of inventory management. Similarly, while a well-managed inventory can contribute to better supplier relations, it is not specifically designed to address disputes. Lastly, inventory management systems can help improve customer delivery times indirectly by ensuring the right products are available, but this is not their main function; rather, they primarily focus on managing stock levels and costs.