Abstract: An inventory management system includes a database (40) and a server (30) connected to the database. The database is configured for storing electronic inventory documents associated with information of a raw material. The server includes a loading module (302) and a processing module (304). The loading module is configured for transmitting the electronic inventory documents to the database. The processing module includes a calculating module (3041), an analysis module (3043), and an alert module (3044). The calculating module is configured for calculating a safety stock amount of the raw material. The analysis module is configured for generating an analysis signal indicating whether an on-hand inventory amount of the raw material is balanced, by comparing the on-hand inventory amount with the safety stock amount. The alert module is configured for generating an alert based on the analysis signal. An inventory management method is also provided.