Effective stock/Inventory planning & control is needed to ensure that the business has the right goods on hand to avoid stock-outs, to prevent shrinkage and to provide proper accounting.

Many businesses have too much of resources tied up in their major asset, inventory. Worse, they may have their capital tied up in the wrong kind of inventory. Inventory may be old, worn out, shopworn, obsolete, or the wrong sizes or colors, or there may be an imbalance among different product lines that reduces the customer appeal of the total operation.