Inventory management is designed to allow for a smooth flow of materials and prevent any serious stockouts. Inventory management ensures that the availability of materials has the sufficient quantity needed and minimizes the total investment in inventory. Each item in inventory represents money that a company 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 important that inventory is managed very efficiently and effectively in an effort to avoid unnecessary investments. In case an organization has poor inventory management; Excessive or insufficient inventory can significantly affect the organization's profit and reputation. For example, having excessive inventory can cause revenue losses due to products not being sold fast enough, and a shortage of inventory can cause an organization to lose business. As the example shows; Proper inventory management is a must. For an organization to be successful in inventory management, it is necessary to balance inventory costs with the benefits associated with inventory so that the organization can turn around its volume and achieve maximum profit. While visiting some local businesses; the managers explained what they did to control their inventory. These companies talked about direct costs associated with insurance, storage space, taxes and money that needed to be tied up in inventory and how they needed to be properly managed and controlled. Others discussed strategies that made them successful, such as increasing inventory turnover, maintaining the minimum amount of inventory that prevents them from not sacrificing performance or delivery of goods, and purchasing inventory in larger volumes to achieve purchasing costs lower overall. Continuous changes in the financial market along with the type of stocks vary with the