ABSTRACT
The inventory management is really a challenging job. Moreover, inventory structure varies very widely from industry to industry, depending on nature and type of product, production technology, collaborating country, nature and extent of the imported materials, production cycle etc. The main objective of inventory control is to minimise the overall investment (or costs) or inventory carrying at lowest possible level and consistency in operating requirements. The operating doctrine of inventory (i.e., when and how much to order or stock) depends on how much it costs to the organisation. Thus concept of optimum order quantity or Economic Order Quantity has gained the prominent and significant role in inventory management. The stochastic inventory control decisions depend on the factors such as with or with out set-up cost, instantaneous or continuous demand, descrete and continuous replenishments, and shortages allowed or not allowed and so forth.
