The paper introduces the use of inventory management in supply chain and how it can be useful for business and proper supply chain management. Inventory management refers to the process of ordering, storing and using a company’s inventory: raw materials, components and finished products.The aim of inventory management is to maintain and keep an optimum size of inventory for efficient and smooth production and sales operations. There are several ways to improve the inventory management such as effective sales forecasting, managing customer service, close working relation with suppliers, good information systems etc.

Keywords : Inventory Management, Supply Chain, RFID, Inventory Turnover.