Invesntory is the total of raw materials , work in progress and finished goods which company holds for sales in the future. Company will purchase the raw material and process on it and convert it in to finished goods and sell it in the market. But it requires time it lead to idle of resources. So comapany need to make the proper inventory management. Need to adopt the EOQ techniques so the ordering cost and the holding cost of the materials and damage on the material can be reduced. By adopting EOQ comapany can make order of how much required to company for a time. By adopting ABC analysis company can devide it’s rawmaterials in to 3 category according to that order can be placed and most important in production to campany can be given more importance. So the wastage of material can be reduced. So by following inventory management properly the cost of inventory and idle of resources can be reduced.