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Inventory is an important aspect of Distribution Management and it contributes to the engagement of working capital. There are certain costs in carrying inventory and they include cost of obsolescence, stock out and wrong product. There are numerous techniques in forecasting inventory. They include survey, panels, market research, consensus, Delphi method, panel of experts, historical analogy. Then there are time series techniques, Moving Average Forecasts, Exponential Smoothing, Regression analysis, Economic Order Quantity. This is apart from a famous Japanese technique termed “Kanban”.