Inventory management is designed to enable smooth flow of materials and avoid any major stockouts. Inventory management ensures that materials are available in the sufficient quantity needed and minimizes the total investment in inventory. Each inventory item represents money that a business has spent and treated as an expense until the material becomes a purchased product. Since many organizations have money tied up in their inventory; It is essential that inventory is managed very effectively and efficiently to avoid unnecessary investments. In case an organization has poor inventory management; Excessive or insufficient inventory can significantly affect the organization's profits and reputation. For example, excess inventory can lead to lost revenue due to products not selling quickly enough, and a lack of inventory can lead to loss of business for an organization. As the example shows; Good inventory management is essential. For an organization to be successful in its inventory management, one must balance the costs of inventory with the benefits associated with inventory so that the organization can turn around its business and obtain the maximum profit. By visiting some local businesses; the managers explained what they were doing to control their inventory. These companies talked about the direct costs associated with insurance, warehouse space, taxes and the money that had to be tied up in inventory and how they had to be properly managed and controlled. Others discussed the strategies that have made them successful, such as increasing their inventory turnover, maintaining a minimum amount of inventory that prevents them from sacrificing their performance or delivery of goods, and purchasing inventory in larger volumes to achieve lower overall purchasing costs. Constant changes in the financial market as well as the type of stocks vary depending on the