All businesses have to carry stock or inventory of some kinds in order to ensure that the demands from customers are met promptly. Inventory management is risky, and risk varies upon a firm’s position in the service, manufacturing and distribution systems.
The typical measures of inventory exposure are time duration, depth and width of commitment. For business survival and profitability, inventory must be managed strategically. Managing its levels, qualities, quantities and storage areas (environmental conditions) to achieve profitability by minimizing overstocking and stock-outs