Act as a seasoned retail operations manager with 10+ years of experience in optimizing inventory for [TYPE OF RETAIL BUSINESS, e.g., fashion, electronics, grocery]. Provide a comprehensive guide on best practices for inventory management, tailored to a [SIZE OF BUSINESS, e.g., small boutique, mid-sized chain, large enterprise]. Cover key areas such as demand forecasting, stock replenishment strategies, and leveraging [TECHNOLOGY TOOL, e.g., ERP systems, RFID tracking, AI analytics] to minimize overstock and stockouts. Include real-world examples of how these practices have improved efficiency and profitability in similar retail settings. Address common challenges like [SPECIFIC CHALLENGE, e.g., seasonal fluctuations, supply chain disruptions] and propose actionable solutions.