Introduction The simplest way to visualize inventory is to imagine money sitting in warehouses, on store shelves, in the back of trucks, in containers at ports, and so on . Depending on the company's purpose and activity, inventory could represent a significant asset on the balance sheet (Jacobs & Chase, 2011). The U.S. Census reported that the inventory-to-sales ratio was estimated at 1.31 for all businesses as of February 2014, meaning that organizations have 31 percent more inventory than they need to cover their sales (Department of United States Commerce, 2014). Another statistic indicates that holding inventory, on average, costs a U.S. company about 30% to 35% of the value of that inventory. Overall, in February 2014, the value of businesses' inventories amounted to $1.7 trillion (U.S. Department of Commerce, 2014), and thus cost them half a trillion dollars. However, when thinking about inventory, not only the obvious carrying costs must be taken into account, but also the cost of production changes, the cost of orders and the costs that inventory shortages can bring to the company (Jacobs & Chase, 2011). Considering the value of inventory itself and the costs associated with it, inventory management represents an important field of consideration for organizations and their management accounting. This document aims to define inventory management, show its importance, as well as its advantages and disadvantages. Additionally, we will introduce companies that provide inventory management systems and services to organizations and industries that require inventory management. To take a broader view, we will also discuss whether or not federal, state, and local governments should manage stockpiles, and what it means for insurance to maintain stockpiles in other locations…paper halves…cargoes or military supplies. Governments have begun using inventory management systems to improve their balance sheets and should continue to do so for the sake of efficiency and cost savings, especially at a time when the federal government, states and communities are battling debt. Finally, inventory management can pose challenges, such as correctly processing items if the company operates in multiple locations. A company must establish internal control systems and security measures to keep track of its inventory and the items it holds but sells on behalf of others, given the large values ​​associated with them. Overall, with proper inventory management and use of the provided systems and solutions, organizations in all operational areas will be able to maintain reasonable quantities of stock and track their items while remaining efficient and saving costs.