Stores keeping and Inventory Management occupies a strategic position in the supply chain. Store-Keeping or warehousing sees to the avoidance of over and under stocking of materials such that it is no longer used as a dump-and-pick spot, whereas Inventory management sees to the process of ordering, storing and selling products throughout the supply chain. Despite this great importance, many organizations have failed because their store keeping and inventories tied up too much capital (funds), or the items in inventory became obsolete, impaired or lost. It is therefore not unnecessary to have an appropriate set of policies concerning the items to carry in store or inventory, the level of inventory control and management of stocks. It is pragmatically evident that the profitability of any business organization depends largely on the ability of management of the concerned organization to exercise effective purchasing and efficient materials control. However, the problem of most organisation is the lack of “know-how” in this area of business operation. This has been attributed to many business failures. Furthermore, most Organizations have difficulty in maintaining the right quantity of store keeping level and inventory for optimal productivity, growth and profitability due to poor vision, inadequate market forecast and effective planning. The result has been either under or over -capacity utilization which often spell doom on the corporate existence of such organization. Any industry that fails to observe the rule of Store and Inventory Control and Management is heading towards a doom. However, excess or shortage of it is equally dangerous. It plays a very important role in determining the profitability of a business. Inventory policies relating to stock purchasing and inventory control require a decision of frame -work and an administrative structure to implement the decisions. Inventories constitute the most significant part of current assets of a large majority of organizations in Nigeria. On average, inventories are approximately 60% of current asset of organizations. Because of the large size of inventories maintained by organizations, a considerable amount of funds is required to be committed to them. It is therefore, absolutely imperative to manage store and inventories efficiently and effectively in order to avoid unnecessary investment. A firm neglecting the management of inventories will be jeopardizing its long-run profitability and may fail ultimately.