Purpose of an Inventory Management System

• To ensure the production line will always be able to run.
• To ensure customer orders aren't delayed.
• To avoid over-stocking and the resulting high cost of storage.
• To keep down the cost of insuring inventory/arranging security.
• To minimise the amount of money tied up in inventory which could be used elsewhere.
• To reduce the likelihood of Inventory becoming damaged or out-of-date.