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INTRODUCTION 1.1 Concept of Inventory: Inventory refers to the physical stock of goods which though remain idle in a store but in a store but is essential for smooth sailing of the company and hence has economic value. Inventory, thus includes tools, standard supply items, raw materials, goods in process, and also the finished goods. Tools include fixtures, dies, patterns, gauges, and hand tools used with machines and operations; supplies are items such as abrasives, and lubricants used to aid production but do not go into the product: raw materials and commodities such as steel, lumber, fabric, etc, and purchased parts such as gears, pistons, etc. that go into the final product: goods in process are materials that have been partly fabricated but are not as yet completed and the finished goods are completed items ready for shipment.

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