This document discusses the importance and management of inventory. It begins by defining inventory and its functions, which include maintaining a balance between purchases/production and sales to fulfill stock. The objective of inventory management is balancing inventory investment with customer service. The document then discusses types of inventory including raw materials, work in process, maintenance/repairs, and finished goods. It also covers ABC analysis for classifying inventory, the importance of record accuracy, and cycle counting. The last section discusses controlling service inventory through personnel selection and tight controls over incoming and outgoing shipments.