Managing the inventory is a key part of every manufacturing business in order to function efficiently. When it comes to manufacturing products, different companies have different approach of looking at it. Some companies tend to stock manufactured products in bulk while some believe in demand-based production. Companies often tend to stock excess inventory eyeing bulk purchasing or assuming shortages in the later stages but there are more disadvantages than advantages in the process. Doing this can often backfire companies, which leads to an increase in selling of outdated stocks.