Inventory control is one of the fundamental areas of management in any organisation. According to Love (1979), the term inventory refers to “an idle resource of any kind having an economic value”. Inventory of equipment, Spare parts, domestic consumables etc., are some familiar words in which the word inventory is understood as ‘physical stock awaiting its use or consumption’. The very existence of inventory is due to a temporary halt between the supply and demand processes for the commodity under consideration. It is normally not possible to get items as and when they are demanded. Certain amount of inventory is always necessary for the smooth running of the business. However, neither a high inventory nor a low inventory is desirable because there are costs associated with keeping stock.

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