ABSTRACT
Inventory control is the activity that organises the availability of items to customers. Inventory enables a company to support the customer service, logistic or manufacturing activities in situations where purchase or manufacture of the items is not able to satisfy the demand. Manufacturing management tend to aim more for plant and labour efficiency and allow high stocks in order to avoid the disruptions caused by shortages, breakdowns and changing customer demand. Demand for the products varies as a result of changes in market and financial forces. The purpose of the inventory control function in supporting the business activities is to optimise the three targets that include customer service, inventory costs, and operating costs. As transport costs are often significant, inventory controllers have to be careful to transfer a wide variety of items in each shipment, or change shipment method in order to minimise inventory and logistic cost. Customers change their minds, contracts are lost, and markets vary.
