that inventory management got to be organized in a consistent way to encourage the organization knowledge of when to order and amount to order. Financial order amount enables organizations plan their inventory replenishment on a timely basis such as month to month, quarterly, half yearly or yearly basis. As organizations attempt to move forward on the stock administration, Financial Order Amount (EOQ) and Re-order Point (ROP) are important tools organizations can use to guarantee that stock supply does not hit a stock out as clarified by Gonzalez and Gonzalez (2010) .
Just-in-time (JIT) contributes significantly to an organization’s positive execution and client satisfaction. A study attempted between 1981 and 2000 within the US to analyze stock administration and was found out that organizations that kept as well much stock in their warehouse worked an wasteful supply chain, whereas those that kept minimal stock in their warehouse were exceptionally effective (Lai and Cheng 2009). It was found out that keeping direct stock is nice and it empowers an organization work negligible costs of holding and setup costs, eliminate undesirable lead time and create products as per clients order. This enables an organization accomplish add up to quality control (TQC) as proficient and successful supply chain management are executed in a firm’s value chain (Kumar and Suresh 2009) and (Datta, 2007).
