Centralized inventory is managed and tracked in one central location. It allows visibility into the total amount of inventory in the organization’s possession. This type of inventory is typically used by larger organizations that have multiple warehouses or locations with inventory. Decentralized inventory, on the other hand, is managed and tracked at various locations, such as stores and warehouses. Each location is responsible for keeping track of their own inventory and any changes to it. This type of inventory is typically used by smaller organizations or organizations with fewer warehouses.