Which of the following best describes the impact of real-time decision-making in inventory management?

Real-time decision-making in inventory management leads to more accurate inventory planning and enhanced responsiveness. This is because it allows organizations to access up-to-date information about stock levels, demand forecasts, and market conditions. By utilizing real-time data, businesses can make informed decisions quickly—adjusting inventory levels to match current demand, minimizing stockouts, and reducing excess inventory. This dynamic approach ensures that the inventory strategy is closely aligned with consumer needs and market fluctuations, ultimately improving operational efficiency and responsiveness.

In contrast, slower responses to market changes or increased reliance on estimates would hinder agility and accuracy in inventory management. Additionally, less need for performance metrics would diminish the ability to measure and assess the effectiveness of inventory strategies, which is crucial for continuous improvement in supply chain operations.