INTRODUCTIONAdeyemi et al. (2010) describes the work of Durry (1996) who defined inventory as “the stock of goods maintained by a company in anticipation of future demand”. It can also be seen as the stock of any item held by a manufacturing organisation, it could be a physical product or a service (Imtiaz Ahmed et al, 2013). Even in manufacturing organization there are types of inventories. They include finished products, semi-finished products and raw materials. The collective name given to these elements is inventory (Mathur 2010). It is also seen as an accumulated tangible property that is owned for the purpose of processing production for sale and consumed in the process of producing goods and services (Mathur 2010). A manufacturing organization is an organization that produces or processes goods or a product from raw materials to finished products. This is usually a large-scale operation that uses machinery to produce or process goods or a product. The goal of a manufacturing organization holding inventories may be to balance the inconsistency of economic factors. This involves avoiding holding too much inventory which can lead to capital being tied up with items or commodities. This would allow goods to be available when required so as to avoid the cost of not meeting demand at any time. (Adeyemi et al, 2010) This literature review will explore the strengths and weaknesses of inventory maintenance in a manufacturing organization. LITERATURE REVIEW In a manufacturing organization there are strengths and weaknesses in holding inventories. First, Barnes (1997) argues that a manufacturing organization holding inventories is assured of a secure supply of raw materials and goods. In addition to this, Johnson (undated) states that it produces…half the paper…strategies available to an air conditioning company. These strategies include stockpiling during off-season periods and increasing the manufacturing company's production capacity to benefit from economies of scale. These capacity management strategies would help the air conditioning manufacturing company to avoid demand fluctuations, have a smooth production line, and increase gross profits. However, these strategies have drawbacks; they would add storage and waste costs to the air conditioning company and delays in orders that interrupt production. Although these strategies may result in additional costs for the air conditioning company, in the long run, due to product seasonality in demand, these strategies can be seen as a reasonable tactic to support.