Inventory management is a core operations management activity. A good inventory management system is important for the successful operation of most businesses and their supply chains. Some organizations have excellent inventory management and many have just satisfactory inventory management. The inventory is the link between the production and the distribution process. In today's competitive world, manufacturing companies are searching new ways of improving the industry process, how to satisfy the customer and by following this how they can stay ahead with their competitors. A firm who is neglecting the managing of inventories will be at risk at its long run profitability and may fail ultimately. This study is based on various articles about the inventory management practices followed by various organizations around the world.