Inventory

It is a stock of raw material finished goods.

Need

1)   To improve customer service 

2)   To smoother the operations of logistic system

3)   Reduces costs

Objective of inventory Management

1)  It aims to achieve perfect balance b/w customer service target and reducing inventory costs.

2)   Cost associated with inventory.

3)   Inventory procurement costs

4)   Inventory carrying cost.

5)   Stock out cost