Inventory management is a crucial aspect of the bottom line regardless of what the business is. From accounting and financial perspective, inventory is an asset for businesses. Inventory is a buffer against uncertainty. However, inventory items have a limited life cycle. There is a window of opportunity to sell the product. Once that window closes then the sales value of it decreases and the profitability and inventory yield are not maximized. In addition to too much capital tied up, excess inventory influences service and operations. There are many reasons for excess inventory, and more often than none, the inventory buildup is not due to one reason only. Instead, multiple causes create the over inventory situation. The multiple reasons reflect the lack of underlying priority, process and control.