Inventory itself is a list of products that a business has available for sale to customers. So, what is inventory management? By definition, according to BusinessDictionary.com, “Inventory management includes policies, procedures, and techniques employed to maintain the optimal number or quantity of each inventory item.” There are many other definitions such as "a retailer who seeks to acquire and maintain adequate merchandise, the assortment during ordering, shipping, handling and related costs are kept under control" or "all functions related to traceability and management of the material”, and in business management, the management of “a list of goods and materials available in inventory” . Basically, inventory management is necessary to provide a continuous flow through all functions of a company. inventory management is how a business controls its inventory and the costs of carrying that inventory. It is also important to understand that inventory and inventory are related, but two different things, just like finance and accounting, are related but different. stock refers to the actual physical items and an inventory is simply a list of the items. It is impossible to have an inventory without stock. For a business to function properly, it must be able to effectively manage its inventory. Inventory is one of a company's largest, if not its largest, assets, and it needs to be protected. Problems with a company's inventory can and will lead to large losses and even bankruptcy of the company. Inventory management is mostly about being specific about where an item is placed and its size. This is needed in all places within a company or possibly in many places outside the company but still... middle of paper... stories or counts, a combination of computerized and manual systems and large attention to detail.Works CitedInventory Management. All rights reserved. Inventory Management 2003 - 2011, Web. January 17, 2011. "Glossary of Inventory Management Terms." Wiley: Knowledge for generations. Copyright 2000-2011, - . www.google.com. Network. January 19, 2011. .Mandak, Kristeen. AnswerBag.com. Indian Institute of Materials Management, March 30, 2010. Web. January 21, 2011. .BusinessDictionary.com. WebFinance, Inc., - 2010. Web. January 17, 2011. Practical Financial Management 6th Edition, William R. Lasher, 2011, 2008 South-Western, Cengage Learning, textbook