Inventory items usually consist of the goods, raw materials and finished products. All of these items are seen as money or profit for the owner of any specific organization. Campbell (2007) states that keeping track of raw materials, works-in-process and finished products are obviously critical to a companys bottom line.
The aims and objectives of the research regarding inventory management are to analyze various issues which are associated with the inventory management process in any specific organization. Another purpose is to talk about the importance and significance of these issues in the process of inventory management. The plan of the report is that those matters or issues, which influence the inventory management process of any company or organization, will be critically examined and studied in order to see their impact on the inventory control and management system and suitable solutions will be found in order to properly tackle any sort of issue that may appear in the organization regarding the process of inventory management.
If we talk about the importance of inventory management system, we can say that inventory management is the root cause for the success of any company or organization. Zierden (2009) states that to be successful in today’s market, dealers need to have concrete inventory strategies and processes in place. If the company contains required amount of inventory items in the stock, the company never faces a demand-supply problem. Demand-supply issue always occur when the company gets out of stock and when the inventory stock level of the company is balanced, the company will never face the issue of less stock and high demand. Muller (2003) found that balanced inventories are very important for the companies because all companies, whether they are medium sized or a large sized organization, inventory management is the key to productivity and success.
Piasecki (2003) found that