Inventory planning is the strategic process of determining the optimal levels of inventory to be held by an organization to meet customer demand while minimizing costs and maximizing operational efficiency. It involves forecasting demand, analyzing inventory levels, and making decisions regarding when and how much inventory to order or produce.

The goal of inventory planning is to strike a balance between maintaining sufficient inventory levels to meet customer demand and minimizing the costs associated with holding excess inventory. It aims to ensure that the right quantity of products or materials is available at the right time and place to support operations while optimizing inventory turnover and operational efficiency.

Effective inventory planning helps organizations maintain adequate stock levels to fulfill customer orders promptly, minimize stockouts and excess inventory, reduce carrying costs, and improve overall supply chain performance.