This document discusses inventory management. It defines inventory and explains that inventory management aims to maintain optimal inventory levels by balancing adequate stock levels with minimal investment. The document outlines factors that determine inventory levels and costs associated with inventory like carrying costs and ordering costs. It also explains the economic order quantity (EOQ) model for determining optimal order quantities and re-order points. The document concludes by discussing inventory valuation methods and just-in-time (JIT) systems for minimizing inventory levels.