What is a critical practice for inventory management?

• A. Keeping unlimited stock.
• B. Establishing product identification and traceability.
• C. Relying on memory for stock levels.
• D. Discarding records.

Answer: (B)

Product identification and traceability are essential for inventory management. By labeling items with clear identifiers, lot numbers, expiry dates, and source information, you can know exactly what is in stock, where it came from, and which batch it belongs to. This makes recalls faster and safer because you can isolate only the affected lots without discarding safe stock. It also supports accurate stock levels, proper rotation (like FIFO), and better allergen control, since you can track which items might pose a risk to specific customers. In contrast, keeping unlimited stock is impractical and wasteful, relying on memory for stock levels is prone to errors, and discarding records eliminates the ability to verify safety and traceability during audits or recalls.