**Abstract**

Inventory control is an important part in logistics, which could manage the inventory by making revenue to keep continuous moving on to strengthen logistics and inventory management activities. The desired results and ensure measurable targets are set to drive the right decisions across the organization. The objective of the proposed model is to take into account the distributed block chain ledger system in industry. Block chain technology on inventory management will become a good traceability system. The impact of such digitization will be a very effective and efficient process that facilitates transactions for all industry people in the network.

**Keywords:** inventory, cost of inventories, production inventory, backorder inventory, inventory management, block chain technology

## **1. Introduction**

Inventory control plays an important role in running a business smoothly and ensuring a better economy for the company. Inventory is in the form of raw material, finished goods, or semifinished goods, etc., which are supplied to the customers at right time according to their need. A business needs to implement inventory control so that it can produce an optimum level of inventory and avoid excess inventory, minimize loss due to obsolescence, deterioration, and meet demand fluctuations. Inventory control is the process of ensuring to keep surplus, scrap, and obsolete at the minimum level, minimizing the shortage is due to nonavailability of stock at the right time, and with minimum holding cost.
