Inventory policy
Gist
Way that store manages its inventory and orders.
Full definition
Inventory policy is a set of rules that dictate how a store should manage its inventory. The purpose of an inventory policy is to ensure that the store maintains the right level of inventory to satisfy the customers’ needs. There are many factors to consider when crafting an inventory policy, such as the type of products being sold, customer demand, supply chain, etc.
Inventory policy in subscriptions refers especially to the way out-of-stock items should be handled — for example, should a store continue to renew subscriptions and bill subscribers for products that are out-of-stock, or should it pause the subscription and only resume once the products are available again.