Effect of Inventory Management on Organisation Productivity

Inventory has created a great impact on the profitability of the manufacturing firms, which resulted to the deep research of this topic, “Inventory management as a means of enhancing profitability in manufacturing companies”.

            Inventory plays a vital role in the operation of many business and manufacturing industries. In manufacturing, inventories of raw materials allow industries to operate independently of their sources of supplies. Day-to-day operations are not dependent on deliveries from supplies since stock of the necessary materials are maintained and used is needed.

            The process of management of inventory is a very important factor in the success or failure of any business for example; little stock will result in stock out, which will disrupt the production, distribution cycle that is crucial to the survival of all manufacturing industries while too much stock will tie down the resources of an industry.