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Abstract
Inventory analysis is one of the most popular topics in production and material management. One reason is that almost all types of business organizations have inventory. For many firms inventory is the largest current asset. Inventory also includes partially finished products at different stage of a manufacturing process, raw materials and components, resources, finished products, labor or cash. The purpose of inventory is to meet customer demand, to avoid stock-out of material which may cause stoppage of production or even to hedge against strikes and lock-out and to meet uncertainties in supply form vendors. Skillful inventory management can make a significant contribution to a firm’s profit.