Kasagoni swetha ,Dr Chandra Sekhar Pattnaik 02 7(1) In daytoday management of the firm it is essential to manage the inventory so as to maintain proper supply of goods at proper time Inventory represents an important decision variable at all stages of product manufacturing distribution and sales in addition to being a major portion of current assets of many organizations Too much and too low inventories bring down the level of profitability of an organization Therefore whether it is a manufacturing or merchandized organization the goal should always be the same that is to ensure the inventory is ready and at the same time inventory is at a low level Inventory management is functional field of finance and production that covers the efficient and effective use of raw materials and spares which are consumed in producing the finished goods in manufacturing concern A firm ignoring the management of inventories will be jeopardizing its long run profitability and may fail finally The reduction in excessive inventories carries a favourable impact on a companys profitability This paper consists of different parts where the inventory management concepts are discussed and different inventory control techniques are discussed This paper also introduces the various costs incurred due to the storage inventory economic order quantities stock levels shortage costs inventory methods Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026