Inventory is an expensive asset that needs to be carefully managed and controlled. A poor inventory management has posed great challenges to many companies across several industries including manufacturing industry. Complex decisions have to be made about how much and which items a company should hold overall and at each stocking location. Additionally, the company needs to know when to replenish, how much and where. They face an ongoing balancing act as they try to carry enough inventory to respond quickly to customer demand, minimize transportation costs, and minimize investment in inventory to reduce warehousing and storage costs.