An effective inventory management may be very useful in knowing &understanding about the nature of materials which are being used in the field of construction. In general pract ice all items of inventory need not be controlled with equal attention. Some inventory items may be very important and while some item may be too unimportant. Management often gives properties for different items for the extent and nature of control required. The inventory is classified into different groups in order to have a different control of huge number of items. In this project, about 100 ite ms of materials were collected from the construction company and they are classified as three categories based an annual rupee usage .