INVENTORY MANAGEMENT 1
Inventory management
James Norwood
Dr. Morrison
MNGT 3340
UTPB
Date
INVENTORY MANAGEMENT 2
Inventory management is a management function that involves the planning and control
of inventory in an organization. The main role of the inventory management function is to
maintain a desired level of stock. The system adopted in inventory management must be based
on the customer, product and the process that makes the products available. The cost of
maintaining inventory becomes part of the cost of the finished product and therefore it must be
taken seriously. Maintaining an optimal level of inventory is a very important issue to a
business’s operational performance. This is because efficient inventory management is very
closely and positively related to financial performance. There a number of techniques that can be
used to manage inventory which include Just in Time, ABC analysis, Stock review, Drop-
shipping, Cross-docking and Bulk shipments. Finding the right technique to manage inventory is
