According out of stock. According to Ann

According to Hold (2010), “Inventory is very important to a business to be able to operate a transaction and help the business to exist”. In using this type of system, a company makes better decisions regarding inventory purchases, storing inventory, scheduling production and other logistic decisions. Inventory data enables the company to increase or decrease production in the factory so the company won’t have too many finished goods stored in the warehouse.
Ogbo (2011), suppose that the major objective of inventory system and control is to inform managers how much of a good to re-order, when to reorder the good, how frequently orders should be placed and what the appropriate safety stock is, for minimizing stock-outs. Thus, the overall goal on inventory is to have what is needed, and to minimize the number of times one is out of stock.
According to Ann I et al. (2014), measuring the flexibility in managing inventory control such as storage systems, retrieval of materials, and effective strategies for sales. The results showed that these indicators have a positive impact on improving the business performance, reducing the operational cost and also revealed that implementing operational feasibility, maximizing the utility from inventory control management and using the effectiveness technique for calculating the cost of inventory are important to enhance the return on investment.
According to Kaye Morris (2010), manual inventory management system can help the production managers to control the cost by identifying lost sales due to inventory shortages.
According to Kentwatak (2013), inventory system is a product of human knowledge with the use of technology and benefits ourselves. It proposed inventory system aims to lighten works involving strict and complex recording.
Flordayuha (2013), stated that inventory system is very important in business transactions and to that business person who do not want to be bankrupt and loss profits.


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