Inventory flow management system provides framework for achieving goals of top-line management. India is going through FMCG revolution, all the big business houses are entering this sector like Field fresh (Air Tel), TATA with Pepsi Co India etc. Our country also poses a big challenge to organized large FMCG particularly in beverages sector. A well managed inventory ensures that customers receive the products when they need them, in the quantities they need, and with the uniform high quality they expect. In this research paper, we discuss how to manage the flow of inventory through the FMCG manufacturing and distribution system. Globalization and integration of the world economy, the concept of extended enterprise has take root leading to an increasingly important role played by the entire inventory management system. The most important thing to an owner of business is to provide a quality product and service to his customers with the help of Inventory flow management system. Inventory flow management allows the management team to match the inventory to customer demand, while meeting the systems objectives for capacity, productivity, and profitability. In a competitive business environment, inventory flow is a critical part of business.

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