Inventory management is a core operations management activity. Good inventory management is important for the successful operation of most businesses and their supply chain. Operations, marketing, and finance have interests in good inventory management. Poor inventory management hampers operations, diminishes customer satisfaction, and increases operating costs (Stevenson, 2009, pg. 549). Inventory is a stock or store of goods. Too many companies have unsatisfactory inventory management, which sometimes is a sign that management does not recognize the importance of inventories. More often than not, though the recognition is there. What is lacking is an understanding of what needs to be done and how to do it (Stevenson, 2009, pg. 549). Harvey Industries current financial and inventory distress includes: no accountability for managing inventory issues, poor inventory record keeping of on-hand and out of stock supplies and inventory that has been used. Recommendations that would help Harvey Industries with better inventory control: First, make sure to set up an inventory control team. Their task should include inventory record maintenance that covers the stock room and assembly area and a regular inventory count. Secondly, use the A-B-C approach. In which classifies inventory items according to some measure of importance, usually annual dollar value, and then allocates control efforts accordingly. Harvey can use three classes of items they used: A (very important), B (moderately important), and C (least important). The actual number of categories may vary per company, depending on the extent to which a firm wants to differentiate controls efforts (Stevenson, 2009, pg. 556). If they use the A-B-C concept it could improve operations. Helps management focus on the most important aspects of customer service. Another application of