The term inventory control is used to cover functions which are quite different and are related to one another only in that they both require the maintenance of adequate records of inventory as well as receipt and issue corresponding to these two functions. It is interpreted as accounting control and operating control. Accounting control of inventories is concerned with the proper recording of the receipt and consumption of the material as well as the flow of goods through the plant into finished stock and eventually to customers. It is also concerned with the safeguarding of the undertaking’s property in the form of raw materials, work-in-progress and semi-finished product. Operating control of inventories is concerned with maintaining inventories with the optimum level keeping in view the operational require¬ments and financial resources of the enterprise.