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Inventory management can be categorized into several types, including just-in-time (JIT), where inventory is ordered and received only as needed; economic order quantity (EOQ), which determines the optimal order size to minimize costs; and ABC analysis, which prioritizes inventory based on its value and turnover rate. Other methods include dropshipping, where retailers fulfill orders from suppliers directly, and consignment, where inventory is held by a retailer but owned by a supplier until sold. Efficient inventory management helps businesses minimize costs and meet customer demand effectively.

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