Integrated Inventory Management Key to Organizational Profitability and Efficient Delivery

Abstract

Inventory can be one of the most expensive assets of an organization. It may account for than 10% of total revenue or 20% of total assets for some organization. Although companies in the manufacturing sector usually carry more inventory than service firms, effective inventory management is nonetheless important to both manufactures and service organization. The focus of this work is to show the integration of inventory management as a key to organizational profitability and efficient delivery. The definitions of inventory as a lifeblood of any business, the need for inventory and its control, determining safety stock and some other relevant issues on inventory management had been emphasized in this work. Various authors, experts and professionals work has been cited reviewed for better understanding. Among them are:- David Burt et al (8^th) edition: Supply management, A.K Datta (2^nd edition) Materials Management, Joel D. Wisner et al (2^nd edition) principles of supply chain and some relevant authors on Inventory Management which has been cited at the back of this work.