Inventory to all the businessmen, irrespective of size of their business, is the most important aspect of doing business. Inventory consists of raw material, WIP and finished goods. All the inventory involves locking up of huge sum of money. In case of retail stores, the unsold merchandise stocks is inventory. In simple words, inventory is nothing but anything that is necessary to carry on business. Inventory involves huge amount and hence must be handled wisely and cautiously. Infect, many business houses suffer losses due to poor management of inventory. Inventories, if not controlled properly, may turn out to be unreliable, inefficient and costly.