Learning and Understanding Various Inventory Management Concepts

Inventories are idle resources which almost every organization must maintain for efficient and smooth running of operations. Maintaining inventories causes cost due to chocking of money on the other hand low inventory level causes cost of stock out (loss of customer’s good will). So the inventory should be optimum neither in excess nor to short. In order to optimize inventory levels techniques like EOQ, ABC Analysis and VED Analysis are used. We have applied various inventory management concepts in order to determine the optimal inventory level.