Inventory Management in Corporate Firms: Reasons for and Techniques

This paper aims at explaining and exposing the importance of inventory management in a corporate firm. In this work, the exposition of inventory as stock of various kinds such as raw materials, work in progress, maintenance, repairs and operating goods, finished goods and safety stocks incited the question of how and ways the inventories could be managed to achieve the optimal quantity and required profitability for engendering sustainable growth of the firm. In a bid to obtaining the optimal quantity, various costs associated with the inventory and the techniques of optimizing the quantity and minimizing the costs for effective management were elucidated. Thus, if the elucidated techniques are appropriately and religiously adopted, efficient inventory management and hence sustainable growth of the firms will be assured.