Application of Inventory Management in Construction Industry

Abstract

Inventory management is the soul of Materials Management, aims at optimisation of inventory investment to ensure continuity in availability of materials. Around 60% of the firm's working capital is normally tied up in its different forms of inventory. Inventory management is an important constituent of any construction industry therefore the organization need to know the repercussions of proper material management techniques on the success of project execution. Inventories represents aggregate of those items which are either held for sale in the ordinary course of business or are in the process of production for sale or are yet to be utilised in the production of goods & services. in the paper techniques & importance for inventory management is given. Also few studies have been carried out on the inventory management techniques & its importance.