How inventory control helps the organization in maximizing the profits

Inventory control is a function of materials management and the objective is to keep the total cost associated with the system to a minimum. This requires familiarity with supply sources, price negotiations including bulk quantity discounts, modes of transportation, budgeting, physical handling, record keeping, and monitoring the incoming quality of materials.  We have a very large number of items in an inventory. It may not be possible to review. Such a large number of items with equal intensity. Review activities take time and cost money. Hence items are usually classified into important and less important groups. The important ones get more attention than the others. The goal is to keep stocks at low level while giving good service.

it helps organization to maintain its customer level with low inventory as much as possible which lead to protect organization from risks of holding high inventory and minimizing inventory investment