Inventory management is science of attaining the set targets of deciding to buy the materials at the lowest viable costs

Inventory management is science of attaining the set targets of deciding to buy the materials at the lowest viable costs, making sure sufficient go with the flow and making the most economical use of such materials in order that the total cost of production is minimized through the creation of such an environment that would enable the humans make a contribution to the success of the objectives with least quantity of such inputs as money, time, materiality. On the different hand, inventory manipulate is the science primarily based art of making sure that enough inventory is held via an agency to meet economically both its internal and external demand commitments. There can be dangers in holding both very a good deal or too little inventory, as such, inventory control is principally concerned with acquiring the correct balance or compromise between these two extremes. It is therefore, the extent that should be held that management is interested in.
1.2 Inventory management
Organization’s stock is an important component and its management is imperative to the company and cost lessening of the firm’s use. Appropriate warehousing of stock so that when products are requested, they are held at the warehouse for the least time conceivable minimizing holding cost of stock (Wild, T., 2017). Consequently, other operational costs may increment inventory management costs like through the balance of requesting costs, holding costs, security stock and stock outs (Palevich, 2011) and (Wisner, Tan and Leong ,2011). Once an organization realizes this, it can create online stock management instrument to screen its stock data by breaking it down into bunches by relating the categories with its customers.
Beamon and Kotleba (2006) clarify that Re-order level (ROL) is helping organizations to attain ideal efficiency and be successful. They got to have two reorder levels one that’s normal whereas a second one that’s for emergency cases .This gives customer satisfaction.
Bachetti, Plebani, Saccani and Syntetos (2010) argue that inventory management got to be organized in a consistent way to encourage the organization knowledge of when to order and amount to order. Economic order quantity enables organizations plan their inventory replenishment on a timely basis such as month to month quarterly half yearly or yearly basis. As organizations attempt to move forward on the inventory management economic order quantity EOQ and re-order point ROP are important tools organizations can use to guarantee that stock supply does not hit a stock out as clarified by (gonzalez and gonzalez ,2010 )
just-in-time (JIT) contributes significantly to an organizations positive execution and client satisfaction. a study attempted that in the us to analyze inventory management was found out that organizations that kept as well much stock in their warehouse an wasteful supply chain whereas those that kept minimal stock in their warehouse were exceptionally effective ( lai and cheng ,2009). Also was found out that keeping direct stock is nice and it empowers an organization work negligible costs of holding and setup costs eliminate undesirable lead time and create products as per clients order. this enables an organization accomplish total quality control (TQC) as proficient and successful supply chain management are executed in a firms value chain kumar and suresh (2009) datta ( 2007) guarantee an unceasing supply of raw materials to encourage continuous production.

1.3 Aref Contractor Company Background
Aref Contractor is one of the unique companies in Jeddah Saudi Arabia owned by Abdullah Aref Alsharif. It was founded in 2006. It offers the customer a variety of services such as a design for residential and public buildings, road design, road construction, and gardens. Aref Contracting has a large number of clients from Jeddah, Riyadh, Makkah, Dammam and Tabuk, and now wants to expand in Saudi Arabia. The success is a strong relationship with customers and the believe in customer satisfaction.
1.4 Aref Contractor Company nature
Aref Contractor Company is providing all materials, labor and equipment such as cars, tools, engineers and services required to build the project. The main contractor is the person who hires the workers to perform construction work.
1.5 Problem Background
Inventory management is great to all companies. The availability of goods and materials that have the right amount of finished products, components and / or raw materials is essential to the success of a business. For example, if a company that sells goods or services has insufficient inventory, sales may be lost when customers access another company to purchase available goods or services. The cost to the business can increase, because costs associated with overstocking may include, but are not limited to, maintenance, storage, depreciation, amortization, loss of assets, such as money, net interest income, and / or inventory impairment. In any case, over-inventory will allocate capital that can be used more effectively elsewhere. Manufacturing companies or contracting companies face many challenges. In this regard, a manufacturer may require a variety of manufacturing parts / components used in the manufacture of a good. Inventory of inadequate workforce from these components can result in production delays, delivery delays, and ultimately, low customer satisfaction. As with entrepreneurs, it is necessary to reconcile the need for available stocks with the cost of excessive stock (Henderson, M., Pytel, D., McCreary, P. and Cortes, G., Flowvision LLC, 2013).

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1.6 Problem Statement
Any contracting company must manage its inventories effectively. Inventory management involves identifying inventory that must remain at hand at a given time, decisions regarding the purchase of raw materials in large quantities, the number of times physical orders are placed and the optimal time to submit a request. “Why do we always run out of stock?” A large number of contractors face the frustration and frustration of trying to maintain stable production processes at the same time, providing customers with appropriate services and maintaining investments in equities and equipment at reasonable levels. The fact that statements are made so often indicates the many conflicts of interest (Henderson, M., Pytel, D., McCreary, P. and Cortes, G., Flowvision LLC, 2013).

1.7 Research Objectives
Aiming to improve the service , this paper studies on inventory situations throughout the contractor company and manufacturing . The findings of this research will be the input for improve the inventory management to retain customers’ loyalty and trust, also to maintain the reputation of Aref Contractor Company
The research objectives (RO) can be further detailed as follows:

• To determine the extent of inventory management techniques application in Aref Contractor.

• To establish the challenges of inventory management implementation techniques in Aref Contractor.

• To examine basic action models (such as EOQ), safty stocks also amount of work.

• To find out how much the company loses by using quantitative volumes (EOQ).

• To determine if there is a relationship between inventory level and production level and customer services.
• Determine if there is a relationship between the inventory level and the profitability level of Aref Contracting Company.
• Finally. Make recommendations for improvement

1.8 Research Questions
• The research questions (RQ) for this study are:
• Objective 1. What is the amount of economic order of the Aref Contracting Company ?
• Objective 2. Does the company buy in the amount of the economic order?
• Objective 3. What basic inventory models are most common for contractor companies and manufacturing companies?
• Objective 4. What should be the size of the inventory?
• 5. Is there a link between inventory levels and profitability?

1.9 Scope of Research

Inventory management is really a very broad area, but this study is limited to contractor companies, with special reference to the Aref Contractor Company in Jeddah Saudi Arabia.
the Investigations in this project is to what extent the inventory management have affected the profitability, efficiency e.t.c. Also, attempts are made to analyses any cost savings. Efforts are also made to relate the level of inventory to the level of production and sales. Finally, inventory costs are related to the levels of profit with the aid of basic statistical tools.

1.10 Significant of the Study
It is important to consider the social and economic commitment to the growth of the country . So that all the ways that will improve the company’s growth ,it must be exploited, so the researcher’s hope is that this study is useful for owner of Aref Contractor Company and others.
This research project would help the management of Aref Contractor Company, to identify the most influential risk of inventory management and production. Furthermore, the study will also help the management of the company, to guide against losses .

1.11 Report Organization

In this course, three chapters will be covered that comprises introduction, literature review, and methodology.