I.

INTRODUCTION
I.1. Background

Inventory management within the organization is an important part of reducing total costs.
To manage inventory, a typical approach is to determine what is there and how fast inventory is
used. Slow-moving inventory can be returned for credit, used by another department, donated, or
sold. Then, determine the recorder points and economic order quantity, do an inventory count,
and determine the progress. Since the orders may be placed randomly, too much or too little
stock may be kept in the central location or on the originating department. There also may be
last-minute orders. JoAnn Verdin, in Technology in Supply Chain Management and
Logistics, 2020. The success of any industry depends upon the effective utilization of its
inventory. The inventory manager is expected to ensure right inventory at right time with right
quality from a right place at right price in order to minimize the cost of manufacturing of
products or services. Inventory management is a very important function that determines the
health of the supply chain as well as the impacts the financial health of the balance sheet. Every
organization constantly strives to maintain optimum inventory to be able to meet its requirements
and avoid over or under inventory that can impact the financial figures. The various forms of
Inventory in which it exists are 3 types. They are materials that are converted into finished
products ready for consumption, which can be stored for future production, Work- in- process is
the stage at which further process is required to reach the final stage of production, and finished
goods is the stage of the products which are ready for dispatch for consumption (stores and
spares, which is usually a marginal portion of the total inventory).

I.2. Objective

The purpose of the inventory management is

 to ensure there is enough goods or materials to meet demand without creating overstock,
or excess inventory.
 Profit and limitation of the inventory management
 The usage of the inventory management
V. CONCLUSION

In conclusion, inventory management is the process of making sure a company has the
right amount of stock to meet customer demand. This involves keeping track of how much
inventory is on hand, predicting how much will be needed in the future, and ordering new stock
when necessary. The goal is to have enough inventory to satisfy customers, but not too much that
it ties up money and space. Good inventory management can lead to happy customers, lower
costs, and a smoother supply chain. But if done poorly, it can result in running out of stock, too
much stock, and higher costs. Overall, it's an important part of running a successful business. By
implementing effective inventory management practices, companies can improve their overall
efficiency and profitability.