Inventory occupies a paradoxical position in modern business. On one hand, excessive inventory locks up working capital, increases storage and insurance costs, creates obsolescence and deterioration risks, and may conceal inefficiencies in purchasing and production. On the other hand, inadequate inventory can interrupt production, delay deliveries, cause stockouts, reduce customer satisfaction and ultimately paralyze supply chain operations. Therefore, inventory should not simply be regarded as waste or a “graveyard” of business resources; rather, it is a strategic asset that must be carefully balanced against operational requirements. A major strategic function of inventory is to ensure continuity of operations. Manufacturing firms require raw materials, components and consumables to maintain uninterrupted production. Similarly, distributors and retailers need finished goods to satisfy customer demand. Inventory acts as a buffer between supply and demand, particularly when suppliers are unreliable or demand fluctuates. Inventory also performs a decoupling function by separating different stages of the supply chain. For example, a manufacturer may maintain stocks of raw materials so that temporary delays from suppliers do not immediately stop production. Work-in-progress inventory allows different production processes to operate at different speeds without bringing the entire system to a halt. Another important function is meeting demand uncertainty. Demand forecasts are rarely perfect, and unexpected increases in customer orders can create