diff --git a/models/BackOrder.js b/models/BackOrder.js
new file mode 100644
index 00000000..dbff7441
--- /dev/null
+++ b/models/BackOrder.js
@@ -0,0 +1,103 @@
+const mongoose = require('mongoose');
+
+/**
+ * BackOrder Model
+ * Manages stock-outs and pending orders when inventory is insufficient
+ */
+const backOrderSchema = new mongoose.Schema({
+    userId: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'User',
+        required: true,
+        index: true
+    },
+    backOrderId: {
+        type: String,
+        unique: true,
+        required: true
+    },
+    stockItemId: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'StockItem',
+        required: true,
+        index: true
+    },
+    sku: {
+        type: String,
+        required: true
+    },
+    itemName: String,
+    requestedQuantity: {
+        type: Number,
+        required: true
+    },
+    fulfilledQuantity: {
+        type: Number,
+        default: 0
+    },
+    pendingQuantity: {
+        type: Number,
+        required: true
+    },
+    warehouseId: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'Warehouse',
+        required: true
+    },
+    requestedBy: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'User'
+    },
+    requestDate: {
+        type: Date,
+        default: Date.now
+    },
+    expectedFulfillmentDate: Date,
+    priority: {
+        type: String,
+        enum: ['low', 'medium', 'high', 'urgent'],
+        default: 'medium'
+    },
+    status: {
+        type: String,
+        enum: ['pending', 'partially_fulfilled', 'fulfilled', 'cancelled'],
+        default: 'pending'
+    },
+    linkedProcurementOrder: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'ProcurementOrder'
+    },
+    fulfillmentHistory: [{
+        quantity: Number,
+        fulfilledDate: Date,
+        batchNumber: String,
+        notes: String
+    }],
+    cancellationReason: String,
+    notes: String
+}, {
+    timestamps: true
+});
+
+// Pre-save hook to update pending quantity
+backOrderSchema.pre('save', function (next) {
+    this.pendingQuantity = this.requestedQuantity - this.fulfilledQuantity;
+
+    // Update status based on fulfillment
+    if (this.fulfilledQuantity === 0) {
+        this.status = 'pending';
+    } else if (this.fulfilledQuantity < this.requestedQuantity) {
+        this.status = 'partially_fulfilled';
+    } else if (this.fulfilledQuantity >= this.requestedQuantity) {
+        this.status = 'fulfilled';
+    }
+
+    next();
+});
+
+// Indexes
+backOrderSchema.index({ userId: 1, status: 1 });
+backOrderSchema.index({ stockItemId: 1, status: 1 });
+backOrderSchema.index({ priority: 1, requestDate: 1 });
+
+module.exports = mongoose.model('BackOrder', backOrderSchema);
diff --git a/models/StockItem.js b/models/StockItem.js
new file mode 100644
index 00000000..7ada02f1
--- /dev/null
+++ b/models/StockItem.js
@@ -0,0 +1,201 @@
+const mongoose = require('mongoose');
+
+/**
+ * StockItem Model
+ * Manages individual stock items with SKU tracking, batch numbers, and expiry dates
+ */
+const stockMovementSchema = new mongoose.Schema({
+    movementType: {
+        type: String,
+        enum: ['in', 'out', 'transfer', 'adjustment', 'return'],
+        required: true
+    },
+    quantity: {
+        type: Number,
+        required: true
+    },
+    fromWarehouse: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'Warehouse'
+    },
+    toWarehouse: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'Warehouse'
+    },
+    reference: {
+        type: String
+    },
+    referenceType: {
+        type: String,
+        enum: ['purchase_order', 'sales_order', 'transfer', 'adjustment', 'return']
+    },
+    movementDate: {
+        type: Date,
+        default: Date.now
+    },
+    performedBy: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'User'
+    },
+    notes: String
+}, { _id: false });
+
+const stockItemSchema = new mongoose.Schema({
+    userId: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'User',
+        required: true,
+        index: true
+    },
+    sku: {
+        type: String,
+        required: true,
+        unique: true,
+        uppercase: true
+    },
+    itemName: {
+        type: String,
+        required: true
+    },
+    description: String,
+    category: {
+        type: String,
+        required: true
+    },
+    subcategory: String,
+    warehouseId: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'Warehouse',
+        required: true,
+        index: true
+    },
+    batchNumber: String,
+    serialNumber: String,
+    quantity: {
+        current: {
+            type: Number,
+            required: true,
+            default: 0
+        },
+        reserved: {
+            type: Number,
+            default: 0
+        },
+        available: {
+            type: Number,
+            default: 0
+        },
+        unit: {
+            type: String,
+            required: true,
+            default: 'units'
+        }
+    },
+    reorderPoint: {
+        type: Number,
+        default: 10
+    },
+    safetyStock: {
+        type: Number,
+        default: 5
+    },
+    maxStockLevel: {
+        type: Number,
+        default: 1000
+    },
+    pricing: {
+        costPrice: {
+            type: Number,
+            default: 0
+        },
+        sellingPrice: {
+            type: Number,
+            default: 0
+        },
+        currency: {
+            type: String,
+            default: 'INR'
+        }
+    },
+    valuation: {
+        method: {
+            type: String,
+            enum: ['FIFO', 'LIFO', 'WAC', 'specific'],
+            default: 'FIFO'
+        },
+        totalValue: {
+            type: Number,
+            default: 0
+        }
+    },
+    expiryTracking: {
+        isPerishable: {
+            type: Boolean,
+            default: false
+        },
+        expiryDate: Date,
+        manufacturingDate: Date,
+        shelfLife: {
+            value: Number,
+            unit: {
+                type: String,
+                enum: ['days', 'months', 'years']
+            }
+        }
+    },
+    dimensions: {
+        length: Number,
+        width: Number,
+        height: Number,
+        weight: Number,
+        unit: String
+    },
+    supplier: {
+        supplierId: {
+            type: mongoose.Schema.Types.ObjectId,
+            ref: 'Vendor'
+        },
+        supplierName: String,
+        leadTime: Number
+    },
+    stockStatus: {
+        type: String,
+        enum: ['in_stock', 'low_stock', 'out_of_stock', 'discontinued'],
+        default: 'in_stock'
+    },
+    movements: [stockMovementSchema],
+    lastRestocked: Date,
+    isActive: {
+        type: Boolean,
+        default: true
+    }
+}, {
+    timestamps: true
+});
+
+// Pre-save hook to calculate available quantity and stock status
+stockItemSchema.pre('save', function (next) {
+    this.quantity.available = this.quantity.current - this.quantity.reserved;
+
+    // Update stock status
+    if (this.quantity.current === 0) {
+        this.stockStatus = 'out_of_stock';
+    } else if (this.quantity.current <= this.reorderPoint) {
+        this.stockStatus = 'low_stock';
+    } else {
+        this.stockStatus = 'in_stock';
+    }
+
+    // Update total value
+    this.valuation.totalValue = this.quantity.current * this.pricing.costPrice;
+
+    next();
+});
+
+// Indexes
+stockItemSchema.index({ userId: 1, warehouseId: 1 });
+stockItemSchema.index({ sku: 1 });
+stockItemSchema.index({ category: 1, stockStatus: 1 });
+stockItemSchema.index({ 'quantity.current': 1, reorderPoint: 1 });
+
+module.exports = mongoose.model('StockItem', stockItemSchema);
diff --git a/models/Warehouse.js b/models/Warehouse.js
new file mode 100644
index 00000000..b3cc81a4
--- /dev/null
+++ b/models/Warehouse.js
@@ -0,0 +1,82 @@
+const mongoose = require('mongoose');
+
+/**
+ * Warehouse Model
+ * Manages multiple warehouse/storage locations for inventory
+ */
+const warehouseSchema = new mongoose.Schema({
+    userId: {
+        type: mongoose.Schema.Types.ObjectId,
+        ref: 'User',
+        required: true,
+        index: true
+    },
+    warehouseCode: {
+        type: String,
+        required: true,
+        unique: true,
+        uppercase: true
+    },
+    warehouseName: {
+        type: String,
+        required: true
+    },
+    location: {
+        address: String,
+        city: String,
+        state: String,
+        country: String,
+        zipCode: String,
+        coordinates: {
+            latitude: Number,
+            longitude: Number
+        }
+    },
+    warehouseType: {
+        type: String,
+        enum: ['main', 'regional', 'distribution', 'retail', 'virtual'],
+        default: 'main'
+    },
+    capacity: {
+        totalSpace: {
+            type: Number,
+            default: 0
+        },
+        usedSpace: {
+            type: Number,
+            default: 0
+        },
+        unit: {
+            type: String,
+            enum: ['sqft', 'sqm', 'cubic_ft', 'cubic_m'],
+            default: 'sqft'
+        }
+    },
+    manager: {
+        name: String,
+        email: String,
+        phone: String
+    },
+    operatingHours: {
+        openTime: String,
+        closeTime: String,
+        workingDays: [String]
+    },
+    status: {
+        type: String,
+        enum: ['active', 'inactive', 'maintenance', 'closed'],
+        default: 'active'
+    },
+    isActive: {
+        type: Boolean,
+        default: true
+    }
+}, {
+    timestamps: true
+});
+
+// Indexes
+warehouseSchema.index({ userId: 1, status: 1 });
+warehouseSchema.index({ warehouseCode: 1 });
+
+module.exports = mongoose.model('Warehouse', warehouseSchema);
diff --git a/public/expensetracker.css b/public/expensetracker.css
index 0ca9e194..dab507ef 100644
--- a/public/expensetracker.css
+++ b/public/expensetracker.css
@@ -9633,361 +9633,284 @@ input:checked + .toggle-slider::before {
 .checkbox-container input { width: 16px; height: 16px; }
 
 /* ============================================
-   GLOBAL PAYROLL MANAGEMENT
-   Issue #589: Payroll & Statutory Engine
+   INVENTORY & SUPPLY CHAIN HUB
+   Issue #588: Multi-Entity Inventory System
    ============================================ */
 
-.payroll-header {
+.inventory-header {
     display: flex;
     justify-content: space-between;
     align-items: center;
     margin-bottom: 30px;
 }
 
-.header-actions {
-    display: flex;
-    gap: 15px;
-}
-
-.stats-grid {
+.inventory-grid {
     display: grid;
-    grid-template-columns: repeat(4, 1fr);
-    gap: 20px;
-    margin-bottom: 30px;
-}
-
-.stat-card {
-    display: flex;
-    align-items: center;
-    gap: 15px;
-    padding: 20px;
+    grid-template-columns: 1fr 400px;
+    gap: 25px;
+    margin-bottom: 25px;
 }
 
-.stat-icon {
-    width: 50px;
-    height: 50px;
-    border-radius: 10px;
+.right-panel {
     display: flex;
-    align-items: center;
-    justify-content: center;
-    font-size: 1.5rem;
-}
-
-.stat-content label {
-    font-size: 0.75rem;
-    color: var(--text-secondary);
-    display: block;
-}
-
-.stat-content h2 {
-    font-size: 1.8rem;
-    margin: 5px 0 0 0;
-}
-
-.payroll-grid {
-    display: grid;
-    grid-template-columns: 1fr 1fr;
-    gap: 25px;
-    margin-bottom: 25px;
+    flex-direction: column;
+    gap: 20px;
 }
 
-.filter-tabs {
+.filter-controls {
     display: flex;
     gap: 10px;
 }
 
-.tab-btn {
-    padding: 5px 15px;
+.filter-select {
+    padding: 6px 12px;
     background: rgba(255,255,255,0.05);
     border: 1px solid rgba(255,255,255,0.1);
     border-radius: 6px;
-    color: var(--text-secondary);
-    cursor: pointer;
-    transition: all 0.3s;
-}
-
-.tab-btn.active {
-    background: var(--accent-primary);
-    color: var(--bg-primary);
-    border-color: var(--accent-primary);
+    color: white;
+    font-size: 0.8rem;
 }
 
-.payroll-runs-list, .employees-list {
+.stock-items-list, .warehouses-list, .alerts-list, .backorders-list {
     display: flex;
     flex-direction: column;
-    gap: 15px;
+    gap: 12px;
     max-height: 600px;
     overflow-y: auto;
 }
 
-.payroll-run-card {
-    padding: 20px;
+.stock-item-card, .warehouse-card, .backorder-card {
+    padding: 15px;
     cursor: pointer;
     transition: transform 0.2s;
 }
 
-.payroll-run-card:hover {
+.stock-item-card:hover {
     transform: translateY(-2px);
 }
 
-.run-header {
+.item-header, .wh-header, .bo-header {
     display: flex;
     justify-content: space-between;
     align-items: center;
-    margin-bottom: 15px;
+    margin-bottom: 12px;
 }
 
-.run-period strong {
+.item-info, .wh-info, .bo-info {
+    flex: 1;
+}
+
+.item-info strong, .wh-info strong, .bo-info strong {
     display: block;
-    font-size: 1.1rem;
+    font-size: 0.95rem;
 }
 
-.run-id {
-    font-size: 0.75rem;
+.sku-badge {
+    font-size: 0.7rem;
     color: var(--text-secondary);
+    font-family: monospace;
+    display: block;
+    margin-top: 2px;
 }
 
-.run-summary {
+.item-details, .bo-details {
     display: flex;
-    gap: 20px;
-    padding: 15px 0;
+    flex-direction: column;
+    gap: 8px;
+    padding-top: 10px;
     border-top: 1px solid rgba(255,255,255,0.05);
-    border-bottom: 1px solid rgba(255,255,255,0.05);
 }
 
-.summary-item {
-    flex: 1;
+.detail-row, .detail-item {
+    display: flex;
+    justify-content: space-between;
+    font-size: 0.85rem;
 }
 
-.summary-item label {
-    font-size: 0.7rem;
+.detail-row label, .detail-item label {
     color: var(--text-secondary);
-    display: block;
 }
 
-.summary-item strong {
-    font-size: 1rem;
-}
-
-.run-actions {
-    margin-top: 15px;
-    display: flex;
-    gap: 10px;
-}
-
-.employee-card {
-    padding: 15px;
+.quantity-badge {
+    padding: 2px 8px;
+    background: rgba(100, 255, 218, 0.15);
+    color: #64ffda;
+    border-radius: 4px;
+    font-size: 0.75rem;
 }
 
-.emp-header {
+.reorder-alert {
+    margin-top: 10px;
+    padding: 8px;
+    background: rgba(255, 159, 67, 0.1);
+    border-left: 3px solid #ff9f43;
+    font-size: 0.75rem;
+    color: #ff9f43;
     display: flex;
     align-items: center;
-    gap: 12px;
-    margin-bottom: 15px;
+    gap: 8px;
 }
 
-.emp-avatar {
-    width: 45px;
-    height: 45px;
-    border-radius: 50%;
-    background: rgba(100, 255, 218, 0.15);
+.wh-icon {
+    width: 40px;
+    height: 40px;
+    border-radius: 8px;
     display: flex;
     align-items: center;
     justify-content: center;
-    color: var(--accent-primary);
-}
-
-.emp-info {
-    flex: 1;
+    font-size: 1.2rem;
 }
 
-.emp-info strong {
-    display: block;
-    font-size: 0.95rem;
-}
+.wh-icon.main { background: rgba(100, 255, 218, 0.15); color: #64ffda; }
+.wh-icon.regional { background: rgba(72, 219, 251, 0.15); color: #48dbfb; }
+.wh-icon.distribution { background: rgba(255, 159, 67, 0.15); color: #ff9f43; }
+.wh-icon.retail { background: rgba(255, 107, 107, 0.15); color: #ff6b6b; }
 
-.emp-info span {
-    font-size: 0.7rem;
+.wh-location {
+    display: flex;
+    align-items: center;
+    gap: 8px;
+    font-size: 0.75rem;
     color: var(--text-secondary);
-    display: block;
+    margin-top: 8px;
 }
 
-.emp-designation {
-    margin-top: 2px;
-}
-
-.status-pill {
-    font-size: 0.65rem;
-    padding: 3px 10px;
-    border-radius: 12px;
-    text-transform: uppercase;
+.alert-card {
+    padding: 12px;
+    background: rgba(255,255,255,0.02);
+    border-radius: 8px;
+    border-left: 4px solid;
+    display: flex;
+    gap: 12px;
 }
 
-.status-pill.active {
-    background: rgba(100, 255, 218, 0.2);
-    color: #64ffda;
-}
+.alert-card.urgent { border-left-color: #ff6b6b; }
+.alert-card.high { border-left-color: #ff9f43; }
+.alert-card.medium { border-left-color: #48dbfb; }
+.alert-card.low { border-left-color: #8892b0; }
 
-.status-pill.inactive {
-    background: rgba(255, 107, 107, 0.2);
-    color: #ff6b6b;
+.alert-icon {
+    font-size: 1.2rem;
 }
 
-.emp-salary {
-    display: flex;
-    gap: 15px;
-    padding-top: 12px;
-    border-top: 1px solid rgba(255,255,255,0.05);
-}
+.alert-card.urgent .alert-icon { color: #ff6b6b; }
+.alert-card.high .alert-icon { color: #ff9f43; }
+.alert-card.medium .alert-icon { color: #48dbfb; }
 
-.salary-item {
+.alert-content {
     flex: 1;
 }
 
-.salary-item label {
-    font-size: 0.65rem;
-    color: var(--text-secondary);
+.alert-content strong {
     display: block;
+    margin-bottom: 4px;
 }
 
-.salary-item strong {
-    font-size: 0.9rem;
+.alert-content p {
+    font-size: 0.8rem;
+    margin: 0 0 4px 0;
 }
 
-.status-badge {
+.alert-reason {
     font-size: 0.7rem;
-    padding: 4px 12px;
-    border-radius: 4px;
-    text-transform: uppercase;
-}
-
-.status-badge.draft {
-    background: rgba(136, 146, 176, 0.2);
-    color: #8892b0;
-}
-
-.status-badge.pending_approval {
-    background: rgba(255, 159, 67, 0.2);
-    color: #ff9f43;
+    color: var(--text-secondary);
 }
 
-.status-badge.approved {
-    background: rgba(72, 219, 251, 0.2);
-    color: #48dbfb;
+.priority-badge {
+    font-size: 0.65rem;
+    padding: 3px 10px;
+    border-radius: 12px;
+    text-transform: uppercase;
 }
 
-.status-badge.processing {
-    background: rgba(255, 159, 67, 0.2);
-    color: #ff9f43;
-}
+.priority-badge.urgent { background: rgba(255, 107, 107, 0.2); color: #ff6b6b; }
+.priority-badge.high { background: rgba(255, 159, 67, 0.2); color: #ff9f43; }
+.priority-badge.medium { background: rgba(72, 219, 251, 0.2); color: #48dbfb; }
+.priority-badge.low { background: rgba(136, 146, 176, 0.2); color: #8892b0; }
 
-.status-badge.completed {
-    background: rgba(100, 255, 218, 0.2);
-    color: #64ffda;
+.pending-qty {
+    color: var(--accent-primary);
+    font-weight: bold;
 }
 
-.status-badge.failed {
+.badge {
+    padding: 2px 8px;
     background: rgba(255, 107, 107, 0.2);
     color: #ff6b6b;
+    border-radius: 12px;
+    font-size: 0.75rem;
 }
 
-.modal-large {
-    max-width: 900px;
-}
-
-.form-section {
-    margin-bottom: 25px;
-    padding-bottom: 20px;
-    border-bottom: 1px solid rgba(255,255,255,0.05);
-}
-
-.form-section h4 {
-    margin-bottom: 15px;
-    color: var(--accent-primary);
-}
-
-.component-row {
-    margin-bottom: 10px;
-}
-
-.search-input {
-    padding: 8px 15px;
-    background: rgba(255,255,255,0.05);
-    border: 1px solid rgba(255,255,255,0.1);
-    border-radius: 6px;
-    color: white;
-    width: 250px;
+.glass-card-sm {
+    background: rgba(255, 255, 255, 0.02);
+    backdrop-filter: blur(10px);
+    border: 1px solid rgba(255, 255, 255, 0.05);
+    border-radius: 12px;
+    padding: 12px;
 }
 
-.payroll-details {
+.stock-details {
     padding: 20px 0;
 }
 
-.details-header {
-    display: flex;
-    justify-content: space-between;
-    align-items: center;
-    margin-bottom: 20px;
-}
-
-.details-summary {
+.details-grid {
     display: grid;
-    grid-template-columns: repeat(4, 1fr);
-    gap: 15px;
+    grid-template-columns: repeat(3, 1fr);
+    gap: 20px;
     margin-bottom: 25px;
 }
 
-.summary-card {
+.detail-section {
     padding: 15px;
     background: rgba(255,255,255,0.02);
     border-radius: 8px;
-    text-align: center;
 }
 
-.summary-card label {
-    font-size: 0.7rem;
-    color: var(--text-secondary);
-    display: block;
-    margin-bottom: 8px;
+.detail-section h4 {
+    margin-bottom: 15px;
+    color: var(--accent-primary);
+    font-size: 0.9rem;
 }
 
-.summary-card h3 {
-    font-size: 1.5rem;
-    margin: 0;
+.movements-section {
+    padding: 15px;
+    background: rgba(255,255,255,0.02);
+    border-radius: 8px;
 }
 
-.entries-table {
-    overflow-x: auto;
+.movements-section h4 {
+    margin-bottom: 15px;
+    color: var(--accent-primary);
 }
 
-.entries-table table {
-    width: 100%;
-    border-collapse: collapse;
+.movements-list {
+    display: flex;
+    flex-direction: column;
+    gap: 8px;
 }
 
-.entries-table th {
-    text-align: left;
-    padding: 12px;
+.movement-item {
+    display: flex;
+    justify-content: space-between;
+    padding: 8px;
     background: rgba(255,255,255,0.02);
+    border-radius: 4px;
     font-size: 0.8rem;
-    color: var(--text-secondary);
 }
 
-.entries-table td {
-    padding: 12px;
-    border-bottom: 1px solid rgba(255,255,255,0.05);
-}
-
-.entries-table td small {
-    color: var(--text-secondary);
-    font-size: 0.75rem;
+.movement-type {
+    padding: 2px 8px;
+    border-radius: 4px;
+    font-size: 0.7rem;
+    text-transform: uppercase;
 }
 
-.btn-success {
-    background: linear-gradient(135deg, #64ffda, #48dbfb);
-    color: var(--bg-primary);
-}
+.movement-type.in { background: rgba(100, 255, 218, 0.2); color: #64ffda; }
+.movement-type.out { background: rgba(255, 107, 107, 0.2); color: #ff6b6b; }
+.movement-type.transfer { background: rgba(72, 219, 251, 0.2); color: #48dbfb; }
+.movement-type.adjustment { background: rgba(255, 159, 67, 0.2); color: #ff9f43; }
 
-.text-accent {
-    color: var(--accent-primary);
+.btn-accent {
+    background: linear-gradient(135deg, #ff9f43, #ff6b6b);
+    color: white;
 }
diff --git a/public/inventory-hub.html b/public/inventory-hub.html
new file mode 100644
index 00000000..5ac1c57a
--- /dev/null
+++ b/public/inventory-hub.html
@@ -0,0 +1,274 @@
+<!DOCTYPE html>
+<html lang="en">
+
+<head>
+    <meta charset="UTF-8">
+    <meta name="viewport" content="width=device-width, initial-scale=1.0">
+    <title>Inventory & Supply Chain Hub - ExpenseFlow</title>
+    <link rel="stylesheet" href="expensetracker.css">
+    <link rel="stylesheet" href="https://cdnjs.cloudflare.com/ajax/libs/font-awesome/6.5.0/css/all.min.css">
+    <script src="https://cdn.jsdelivr.net/npm/chart.js"></script>
+</head>
+
+<body class="glass-theme">
+    <nav class="nav-bar">
+        <div class="nav-content">
+            <a href="dashboard-clean.html" class="nav-back"><i class="fas fa-arrow-left"></i> Home</a>
+            <div class="nav-title">Inventory & Supply Chain Hub</div>
+            <div id="user-profile"></div>
+        </div>
+    </nav>
+
+    <div class="container">
+        <!-- Inventory Header -->
+        <div class="inventory-header">
+            <div class="header-main">
+                <h1>Multi-Entity Inventory Command Center</h1>
+                <p>Decentralized stock management across warehouses with automated replenishment</p>
+            </div>
+            <div class="header-actions">
+                <button class="btn-primary" onclick="openAddStockModal()">
+                    <i class="fas fa-plus-circle"></i> Add Stock
+                </button>
+                <button class="btn-secondary" onclick="openWarehouseModal()">
+                    <i class="fas fa-warehouse"></i> New Warehouse
+                </button>
+                <button class="btn-accent" onclick="generateReplenishment()">
+                    <i class="fas fa-sync"></i> Auto Replenish
+                </button>
+            </div>
+        </div>
+
+        <!-- Stats Overview -->
+        <div class="stats-grid">
+            <div class="stat-card glass-card">
+                <div class="stat-icon" style="background: rgba(100, 255, 218, 0.15);">
+                    <i class="fas fa-warehouse" style="color: #64ffda;"></i>
+                </div>
+                <div class="stat-content">
+                    <label>Active Warehouses</label>
+                    <h2 id="total-warehouses">0</h2>
+                </div>
+            </div>
+            <div class="stat-card glass-card">
+                <div class="stat-icon" style="background: rgba(72, 219, 251, 0.15);">
+                    <i class="fas fa-boxes" style="color: #48dbfb;"></i>
+                </div>
+                <div class="stat-content">
+                    <label>Total Stock Items</label>
+                    <h2 id="total-items">0</h2>
+                </div>
+            </div>
+            <div class="stat-card glass-card">
+                <div class="stat-icon" style="background: rgba(255, 159, 67, 0.15);">
+                    <i class="fas fa-rupee-sign" style="color: #ff9f43;"></i>
+                </div>
+                <div class="stat-content">
+                    <label>Inventory Value</label>
+                    <h2 id="inventory-value">₹0</h2>
+                </div>
+            </div>
+            <div class="stat-card glass-card">
+                <div class="stat-icon" style="background: rgba(255, 107, 107, 0.15);">
+                    <i class="fas fa-exclamation-triangle" style="color: #ff6b6b;"></i>
+                </div>
+                <div class="stat-content">
+                    <label>Low Stock Alerts</label>
+                    <h2 id="low-stock-count">0</h2>
+                </div>
+            </div>
+        </div>
+
+        <!-- Main Content Grid -->
+        <div class="inventory-grid">
+            <!-- Left: Stock Items -->
+            <section class="glass-card section-card">
+                <div class="card-header">
+                    <h3><i class="fas fa-inventory"></i> Stock Items</h3>
+                    <div class="filter-controls">
+                        <select id="warehouse-filter" class="filter-select" onchange="filterStockItems()">
+                            <option value="">All Warehouses</option>
+                        </select>
+                        <select id="status-filter" class="filter-select" onchange="filterStockItems()">
+                            <option value="">All Status</option>
+                            <option value="in_stock">In Stock</option>
+                            <option value="low_stock">Low Stock</option>
+                            <option value="out_of_stock">Out of Stock</option>
+                        </select>
+                    </div>
+                </div>
+                <div id="stock-items-list" class="stock-items-list">
+                    <div class="loading-placeholder">Loading stock items...</div>
+                </div>
+            </section>
+
+            <!-- Right: Warehouses & Alerts -->
+            <div class="right-panel">
+                <section class="glass-card section-card mb-20">
+                    <div class="card-header">
+                        <h3><i class="fas fa-warehouse"></i> Warehouses</h3>
+                    </div>
+                    <div id="warehouses-list" class="warehouses-list">
+                        <!-- Loaded via JS -->
+                    </div>
+                </section>
+
+                <section class="glass-card section-card">
+                    <div class="card-header">
+                        <h3><i class="fas fa-bell"></i> Replenishment Alerts</h3>
+                    </div>
+                    <div id="replenishment-alerts" class="alerts-list">
+                        <!-- Loaded via JS -->
+                    </div>
+                </section>
+            </div>
+        </div>
+
+        <!-- Back Orders Section -->
+        <section class="glass-card section-card mt-20">
+            <div class="card-header">
+                <h3><i class="fas fa-clock"></i> Back Orders</h3>
+                <span class="badge" id="backorders-count">0</span>
+            </div>
+            <div id="backorders-list" class="backorders-list">
+                <!-- Loaded via JS -->
+            </div>
+        </section>
+
+        <!-- Analytics Charts -->
+        <div class="analytics-row mt-20">
+            <section class="glass-card section-card">
+                <div class="card-header">
+                    <h3><i class="fas fa-chart-pie"></i> Stock Distribution</h3>
+                </div>
+                <div class="chart-container-small">
+                    <canvas id="stockDistChart"></canvas>
+                </div>
+            </section>
+
+            <section class="glass-card section-card">
+                <div class="card-header">
+                    <h3><i class="fas fa-chart-bar"></i> ABC Classification</h3>
+                </div>
+                <div class="chart-container-small">
+                    <canvas id="abcChart"></canvas>
+                </div>
+            </section>
+        </div>
+    </div>
+
+    <!-- Add Stock Modal -->
+    <div id="add-stock-modal" class="modal hidden">
+        <div class="modal-content glass-card">
+            <div class="modal-header">
+                <h3>Add Stock</h3>
+                <span class="close-modal" onclick="closeAddStockModal()">&times;</span>
+            </div>
+            <form id="add-stock-form">
+                <div class="form-row">
+                    <div class="form-group">
+                        <label>SKU</label>
+                        <input type="text" id="stock-sku" required>
+                    </div>
+                    <div class="form-group">
+                        <label>Item Name</label>
+                        <input type="text" id="stock-name" required>
+                    </div>
+                </div>
+                <div class="form-row">
+                    <div class="form-group">
+                        <label>Category</label>
+                        <input type="text" id="stock-category" required>
+                    </div>
+                    <div class="form-group">
+                        <label>Warehouse</label>
+                        <select id="stock-warehouse" required>
+                            <!-- Populated via JS -->
+                        </select>
+                    </div>
+                </div>
+                <div class="form-row">
+                    <div class="form-group">
+                        <label>Quantity</label>
+                        <input type="number" id="stock-quantity" required>
+                    </div>
+                    <div class="form-group">
+                        <label>Cost Price</label>
+                        <input type="number" id="stock-cost" step="0.01" required>
+                    </div>
+                </div>
+                <div class="form-row">
+                    <div class="form-group">
+                        <label>Reorder Point</label>
+                        <input type="number" id="stock-reorder" value="10">
+                    </div>
+                    <div class="form-group">
+                        <label>Safety Stock</label>
+                        <input type="number" id="stock-safety" value="5">
+                    </div>
+                </div>
+                <div class="modal-footer">
+                    <button type="submit" class="btn-primary full-width">Add Stock</button>
+                </div>
+            </form>
+        </div>
+    </div>
+
+    <!-- Warehouse Modal -->
+    <div id="warehouse-modal" class="modal hidden">
+        <div class="modal-content glass-card">
+            <div class="modal-header">
+                <h3>Create Warehouse</h3>
+                <span class="close-modal" onclick="closeWarehouseModal()">&times;</span>
+            </div>
+            <form id="warehouse-form">
+                <div class="form-row">
+                    <div class="form-group">
+                        <label>Warehouse Code</label>
+                        <input type="text" id="wh-code" required>
+                    </div>
+                    <div class="form-group">
+                        <label>Warehouse Name</label>
+                        <input type="text" id="wh-name" required>
+                    </div>
+                </div>
+                <div class="form-row">
+                    <div class="form-group">
+                        <label>Type</label>
+                        <select id="wh-type">
+                            <option value="main">Main</option>
+                            <option value="regional">Regional</option>
+                            <option value="distribution">Distribution</option>
+                            <option value="retail">Retail</option>
+                        </select>
+                    </div>
+                    <div class="form-group">
+                        <label>City</label>
+                        <input type="text" id="wh-city">
+                    </div>
+                </div>
+                <div class="modal-footer">
+                    <button type="submit" class="btn-primary full-width">Create Warehouse</button>
+                </div>
+            </form>
+        </div>
+    </div>
+
+    <!-- Stock Details Modal -->
+    <div id="stock-details-modal" class="modal hidden">
+        <div class="modal-content glass-card modal-large">
+            <div class="modal-header">
+                <h3>Stock Details</h3>
+                <span class="close-modal" onclick="closeStockDetailsModal()">&times;</span>
+            </div>
+            <div id="stock-details-content">
+                <!-- Loaded dynamically -->
+            </div>
+        </div>
+    </div>
+
+    <script src="auth.js"></script>
+    <script src="js/inventory-controller.js"></script>
+</body>
+
+</html>
\ No newline at end of file
diff --git a/public/js/inventory-controller.js b/public/js/inventory-controller.js
new file mode 100644
index 00000000..2effa275
--- /dev/null
+++ b/public/js/inventory-controller.js
@@ -0,0 +1,550 @@
+/**
+ * Inventory Hub Controller
+ * Handles all inventory management UI logic
+ */
+
+let stockDistChart = null;
+let abcChart = null;
+let currentStockItems = [];
+let currentWarehouses = [];
+
+document.addEventListener('DOMContentLoaded', () => {
+    loadInventoryDashboard();
+    loadWarehouses();
+    loadStockItems();
+    loadBackOrders();
+    loadReplenishmentAlerts();
+    setupForms();
+});
+
+async function loadInventoryDashboard() {
+    try {
+        const res = await fetch('/api/inventory/dashboard', {
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        updateDashboardStats(data);
+        loadABCClassification();
+    } catch (err) {
+        console.error('Failed to load inventory dashboard:', err);
+    }
+}
+
+function updateDashboardStats(data) {
+    document.getElementById('total-warehouses').textContent = data.summary.totalWarehouses;
+    document.getElementById('total-items').textContent = data.summary.totalStockItems;
+    document.getElementById('inventory-value').textContent = `₹${data.summary.totalInventoryValue.toLocaleString()}`;
+    document.getElementById('low-stock-count').textContent = data.summary.stockStatusCounts.low_stock + data.summary.stockStatusCounts.out_of_stock;
+}
+
+async function loadWarehouses() {
+    try {
+        const res = await fetch('/api/inventory/warehouses', {
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        currentWarehouses = data;
+        renderWarehouses(data);
+        populateWarehouseDropdowns(data);
+    } catch (err) {
+        console.error('Failed to load warehouses:', err);
+    }
+}
+
+function renderWarehouses(warehouses) {
+    const list = document.getElementById('warehouses-list');
+
+    if (!warehouses || warehouses.length === 0) {
+        list.innerHTML = '<div class="empty-state">No warehouses created yet.</div>';
+        return;
+    }
+
+    list.innerHTML = warehouses.map(wh => `
+        <div class="warehouse-card glass-card-sm">
+            <div class="wh-header">
+                <div class="wh-icon ${wh.warehouseType}">
+                    <i class="fas fa-warehouse"></i>
+                </div>
+                <div class="wh-info">
+                    <strong>${wh.warehouseName}</strong>
+                    <span>${wh.warehouseCode}</span>
+                </div>
+                <span class="status-pill ${wh.status}">${wh.status}</span>
+            </div>
+            <div class="wh-location">
+                <i class="fas fa-map-marker-alt"></i>
+                <span>${wh.location?.city || 'N/A'}</span>
+            </div>
+        </div>
+    `).join('');
+}
+
+function populateWarehouseDropdowns(warehouses) {
+    const selects = ['stock-warehouse', 'warehouse-filter'];
+
+    selects.forEach(selectId => {
+        const select = document.getElementById(selectId);
+        if (select) {
+            const options = warehouses.map(wh =>
+                `<option value="${wh._id}">${wh.warehouseName} (${wh.warehouseCode})</option>`
+            ).join('');
+
+            if (selectId === 'warehouse-filter') {
+                select.innerHTML = '<option value="">All Warehouses</option>' + options;
+            } else {
+                select.innerHTML = options;
+            }
+        }
+    });
+}
+
+async function loadStockItems() {
+    try {
+        const res = await fetch('/api/inventory/stock', {
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        currentStockItems = data;
+        renderStockItems(data);
+        renderStockDistribution(data);
+    } catch (err) {
+        console.error('Failed to load stock items:', err);
+    }
+}
+
+function renderStockItems(items) {
+    const list = document.getElementById('stock-items-list');
+
+    if (!items || items.length === 0) {
+        list.innerHTML = '<div class="empty-state">No stock items found.</div>';
+        return;
+    }
+
+    list.innerHTML = items.map(item => `
+        <div class="stock-item-card glass-card-sm" onclick="viewStockDetails('${item.sku}')">
+            <div class="item-header">
+                <div class="item-info">
+                    <strong>${item.itemName}</strong>
+                    <span class="sku-badge">${item.sku}</span>
+                </div>
+                <span class="status-badge ${item.stockStatus}">${item.stockStatus.replace('_', ' ')}</span>
+            </div>
+            <div class="item-details">
+                <div class="detail-row">
+                    <label>Warehouse:</label>
+                    <span>${item.warehouseId?.warehouseName || 'N/A'}</span>
+                </div>
+                <div class="detail-row">
+                    <label>Available:</label>
+                    <span class="quantity-badge">${item.quantity.available} ${item.quantity.unit}</span>
+                </div>
+                <div class="detail-row">
+                    <label>Value:</label>
+                    <span>₹${item.valuation.totalValue.toLocaleString()}</span>
+                </div>
+            </div>
+            ${item.quantity.current <= item.reorderPoint ? `
+                <div class="reorder-alert">
+                    <i class="fas fa-exclamation-triangle"></i>
+                    Reorder needed: ${item.reorderPoint - item.quantity.current} units
+                </div>
+            ` : ''}
+        </div>
+    `).join('');
+}
+
+function renderStockDistribution(items) {
+    const ctx = document.getElementById('stockDistChart').getContext('2d');
+
+    if (stockDistChart) {
+        stockDistChart.destroy();
+    }
+
+    const statusCounts = {
+        in_stock: items.filter(i => i.stockStatus === 'in_stock').length,
+        low_stock: items.filter(i => i.stockStatus === 'low_stock').length,
+        out_of_stock: items.filter(i => i.stockStatus === 'out_of_stock').length
+    };
+
+    stockDistChart = new Chart(ctx, {
+        type: 'doughnut',
+        data: {
+            labels: ['In Stock', 'Low Stock', 'Out of Stock'],
+            datasets: [{
+                data: [statusCounts.in_stock, statusCounts.low_stock, statusCounts.out_of_stock],
+                backgroundColor: ['#64ffda', '#ff9f43', '#ff6b6b'],
+                borderWidth: 0
+            }]
+        },
+        options: {
+            responsive: true,
+            maintainAspectRatio: false,
+            plugins: {
+                legend: {
+                    position: 'bottom',
+                    labels: { color: '#8892b0', font: { size: 10 } }
+                }
+            }
+        }
+    });
+}
+
+async function loadABCClassification() {
+    try {
+        const res = await fetch('/api/inventory/reports/abc-classification', {
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        renderABCChart(data);
+    } catch (err) {
+        console.error('Failed to load ABC classification:', err);
+    }
+}
+
+function renderABCChart(data) {
+    const ctx = document.getElementById('abcChart').getContext('2d');
+
+    if (abcChart) {
+        abcChart.destroy();
+    }
+
+    abcChart = new Chart(ctx, {
+        type: 'bar',
+        data: {
+            labels: ['Class A', 'Class B', 'Class C'],
+            datasets: [{
+                label: 'Item Count',
+                data: [
+                    data.summary.classACount,
+                    data.summary.classBCount,
+                    data.summary.classCCount
+                ],
+                backgroundColor: ['#64ffda', '#48dbfb', '#ff9f43'],
+                borderWidth: 0
+            }]
+        },
+        options: {
+            responsive: true,
+            maintainAspectRatio: false,
+            plugins: {
+                legend: { display: false }
+            },
+            scales: {
+                x: {
+                    ticks: { color: '#8892b0' },
+                    grid: { color: 'rgba(255,255,255,0.05)' }
+                },
+                y: {
+                    ticks: { color: '#8892b0' },
+                    grid: { color: 'rgba(255,255,255,0.05)' }
+                }
+            }
+        }
+    });
+}
+
+async function loadBackOrders() {
+    try {
+        const res = await fetch('/api/inventory/backorders', {
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        renderBackOrders(data);
+    } catch (err) {
+        console.error('Failed to load back orders:', err);
+    }
+}
+
+function renderBackOrders(backOrders) {
+    const list = document.getElementById('backorders-list');
+    const count = document.getElementById('backorders-count');
+
+    count.textContent = backOrders.length;
+
+    if (!backOrders || backOrders.length === 0) {
+        list.innerHTML = '<div class="empty-state">No pending back orders.</div>';
+        return;
+    }
+
+    list.innerHTML = backOrders.map(bo => `
+        <div class="backorder-card glass-card-sm">
+            <div class="bo-header">
+                <div class="bo-info">
+                    <strong>${bo.itemName}</strong>
+                    <span class="sku-badge">${bo.sku}</span>
+                </div>
+                <span class="priority-badge ${bo.priority}">${bo.priority}</span>
+            </div>
+            <div class="bo-details">
+                <div class="detail-item">
+                    <label>Requested:</label>
+                    <span>${bo.requestedQuantity}</span>
+                </div>
+                <div class="detail-item">
+                    <label>Fulfilled:</label>
+                    <span>${bo.fulfilledQuantity}</span>
+                </div>
+                <div class="detail-item">
+                    <label>Pending:</label>
+                    <span class="pending-qty">${bo.pendingQuantity}</span>
+                </div>
+            </div>
+        </div>
+    `).join('');
+}
+
+async function loadReplenishmentAlerts() {
+    try {
+        const res = await fetch('/api/inventory/replenishment/recommendations', {
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        renderReplenishmentAlerts(data.recommendations);
+    } catch (err) {
+        console.error('Failed to load replenishment alerts:', err);
+    }
+}
+
+function renderReplenishmentAlerts(alerts) {
+    const list = document.getElementById('replenishment-alerts');
+
+    if (!alerts || alerts.length === 0) {
+        list.innerHTML = '<div class="empty-state">No replenishment needed.</div>';
+        return;
+    }
+
+    // Show top 5 alerts
+    const topAlerts = alerts.slice(0, 5);
+
+    list.innerHTML = topAlerts.map(alert => `
+        <div class="alert-card ${alert.priority}">
+            <div class="alert-icon">
+                <i class="fas fa-exclamation-circle"></i>
+            </div>
+            <div class="alert-content">
+                <strong>${alert.itemName}</strong>
+                <p>Order ${alert.suggestedOrderQty} units</p>
+                <span class="alert-reason">${alert.reason}</span>
+            </div>
+        </div>
+    `).join('');
+}
+
+async function viewStockDetails(sku) {
+    try {
+        const res = await fetch(`/api/inventory/stock/${sku}`, {
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        const modal = document.getElementById('stock-details-modal');
+        const content = document.getElementById('stock-details-content');
+
+        content.innerHTML = `
+            <div class="stock-details">
+                <div class="details-grid">
+                    <div class="detail-section">
+                        <h4>Basic Information</h4>
+                        <div class="detail-row">
+                            <label>SKU:</label>
+                            <span>${data.sku}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Item Name:</label>
+                            <span>${data.itemName}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Category:</label>
+                            <span>${data.category}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Warehouse:</label>
+                            <span>${data.warehouseId.warehouseName}</span>
+                        </div>
+                    </div>
+                    <div class="detail-section">
+                        <h4>Stock Levels</h4>
+                        <div class="detail-row">
+                            <label>Current:</label>
+                            <span>${data.quantity.current} ${data.quantity.unit}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Reserved:</label>
+                            <span>${data.quantity.reserved} ${data.quantity.unit}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Available:</label>
+                            <span class="text-accent">${data.quantity.available} ${data.quantity.unit}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Reorder Point:</label>
+                            <span>${data.reorderPoint}</span>
+                        </div>
+                    </div>
+                    <div class="detail-section">
+                        <h4>Pricing & Valuation</h4>
+                        <div class="detail-row">
+                            <label>Cost Price:</label>
+                            <span>₹${data.pricing.costPrice}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Selling Price:</label>
+                            <span>₹${data.pricing.sellingPrice}</span>
+                        </div>
+                        <div class="detail-row">
+                            <label>Total Value:</label>
+                            <span class="text-accent">₹${data.valuation.totalValue.toLocaleString()}</span>
+                        </div>
+                    </div>
+                </div>
+                <div class="movements-section">
+                    <h4>Recent Movements</h4>
+                    <div class="movements-list">
+                        ${data.movements.slice(-5).reverse().map(m => `
+                            <div class="movement-item">
+                                <span class="movement-type ${m.movementType}">${m.movementType}</span>
+                                <span>${m.quantity} units</span>
+                                <span>${new Date(m.movementDate).toLocaleDateString()}</span>
+                            </div>
+                        `).join('')}
+                    </div>
+                </div>
+            </div>
+        `;
+
+        modal.classList.remove('hidden');
+    } catch (err) {
+        console.error('Failed to load stock details:', err);
+    }
+}
+
+async function generateReplenishment() {
+    if (!confirm('Generate automated procurement requests for low stock items?')) return;
+
+    try {
+        const res = await fetch('/api/inventory/replenishment/auto-generate', {
+            method: 'POST',
+            headers: { 'Authorization': `Bearer ${localStorage.getItem('token')}` }
+        });
+        const { data } = await res.json();
+
+        alert(`Generated ${data.generated} procurement requests. Total value: ₹${data.totalValue.toLocaleString()}`);
+        loadReplenishmentAlerts();
+    } catch (err) {
+        console.error('Failed to generate replenishment:', err);
+    }
+}
+
+function filterStockItems() {
+    const warehouseFilter = document.getElementById('warehouse-filter').value;
+    const statusFilter = document.getElementById('status-filter').value;
+
+    let filtered = currentStockItems;
+
+    if (warehouseFilter) {
+        filtered = filtered.filter(item => item.warehouseId._id === warehouseFilter);
+    }
+
+    if (statusFilter) {
+        filtered = filtered.filter(item => item.stockStatus === statusFilter);
+    }
+
+    renderStockItems(filtered);
+}
+
+// Modal Functions
+function openAddStockModal() {
+    document.getElementById('add-stock-modal').classList.remove('hidden');
+}
+
+function closeAddStockModal() {
+    document.getElementById('add-stock-modal').classList.add('hidden');
+}
+
+function openWarehouseModal() {
+    document.getElementById('warehouse-modal').classList.remove('hidden');
+}
+
+function closeWarehouseModal() {
+    document.getElementById('warehouse-modal').classList.add('hidden');
+}
+
+function closeStockDetailsModal() {
+    document.getElementById('stock-details-modal').classList.add('hidden');
+}
+
+function setupForms() {
+    // Add Stock Form
+    document.getElementById('add-stock-form').addEventListener('submit', async (e) => {
+        e.preventDefault();
+
+        const stockData = {
+            sku: document.getElementById('stock-sku').value.toUpperCase(),
+            itemName: document.getElementById('stock-name').value,
+            category: document.getElementById('stock-category').value,
+            warehouseId: document.getElementById('stock-warehouse').value,
+            quantity: parseInt(document.getElementById('stock-quantity').value),
+            costPrice: parseFloat(document.getElementById('stock-cost').value),
+            reorderPoint: parseInt(document.getElementById('stock-reorder').value),
+            safetyStock: parseInt(document.getElementById('stock-safety').value)
+        };
+
+        try {
+            const res = await fetch('/api/inventory/stock/add', {
+                method: 'POST',
+                headers: {
+                    'Content-Type': 'application/json',
+                    'Authorization': `Bearer ${localStorage.getItem('token')}`
+                },
+                body: JSON.stringify(stockData)
+            });
+
+            if (res.ok) {
+                closeAddStockModal();
+                loadStockItems();
+                loadInventoryDashboard();
+            }
+        } catch (err) {
+            console.error('Failed to add stock:', err);
+        }
+    });
+
+    // Warehouse Form
+    document.getElementById('warehouse-form').addEventListener('submit', async (e) => {
+        e.preventDefault();
+
+        const warehouseData = {
+            warehouseCode: document.getElementById('wh-code').value.toUpperCase(),
+            warehouseName: document.getElementById('wh-name').value,
+            warehouseType: document.getElementById('wh-type').value,
+            location: {
+                city: document.getElementById('wh-city').value
+            }
+        };
+
+        try {
+            const res = await fetch('/api/inventory/warehouses', {
+                method: 'POST',
+                headers: {
+                    'Content-Type': 'application/json',
+                    'Authorization': `Bearer ${localStorage.getItem('token')}`
+                },
+                body: JSON.stringify(warehouseData)
+            });
+
+            if (res.ok) {
+                closeWarehouseModal();
+                loadWarehouses();
+                loadInventoryDashboard();
+            }
+        } catch (err) {
+            console.error('Failed to create warehouse:', err);
+        }
+    });
+}
diff --git a/routes/inventory.js b/routes/inventory.js
new file mode 100644
index 00000000..a140fc12
--- /dev/null
+++ b/routes/inventory.js
@@ -0,0 +1,375 @@
+const express = require('express');
+const router = express.Router();
+const auth = require('../middleware/auth');
+const inventoryService = require('../services/inventoryService');
+const replenishmentService = require('../services/replenishmentService');
+const Warehouse = require('../models/Warehouse');
+const StockItem = require('../models/StockItem');
+const BackOrder = require('../models/BackOrder');
+
+/**
+ * Get Inventory Dashboard
+ */
+router.get('/dashboard', auth, async (req, res) => {
+    try {
+        const dashboard = await inventoryService.getInventoryDashboard(req.user._id);
+        res.json({ success: true, data: dashboard });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+// ==================== WAREHOUSE ROUTES ====================
+
+/**
+ * Create Warehouse
+ */
+router.post('/warehouses', auth, async (req, res) => {
+    try {
+        const warehouse = new Warehouse({
+            ...req.body,
+            userId: req.user._id
+        });
+        await warehouse.save();
+        res.json({ success: true, data: warehouse });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Get All Warehouses
+ */
+router.get('/warehouses', auth, async (req, res) => {
+    try {
+        const warehouses = await Warehouse.find({ userId: req.user._id });
+        res.json({ success: true, data: warehouses });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Update Warehouse
+ */
+router.patch('/warehouses/:id', auth, async (req, res) => {
+    try {
+        const warehouse = await Warehouse.findOneAndUpdate(
+            { _id: req.params.id, userId: req.user._id },
+            req.body,
+            { new: true, runValidators: true }
+        );
+
+        if (!warehouse) {
+            return res.status(404).json({ success: false, error: 'Warehouse not found' });
+        }
+
+        res.json({ success: true, data: warehouse });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+// ==================== STOCK ITEM ROUTES ====================
+
+/**
+ * Add Stock
+ */
+router.post('/stock/add', auth, async (req, res) => {
+    try {
+        const stockItem = await inventoryService.addStock(req.user._id, req.body);
+        res.json({ success: true, data: stockItem });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Remove Stock
+ */
+router.post('/stock/remove', auth, async (req, res) => {
+    try {
+        const { sku, warehouseId, quantity, reference, notes } = req.body;
+        const stockItem = await inventoryService.removeStock(
+            req.user._id,
+            sku,
+            warehouseId,
+            quantity,
+            reference,
+            notes
+        );
+        res.json({ success: true, data: stockItem });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Transfer Stock Between Warehouses
+ */
+router.post('/stock/transfer', auth, async (req, res) => {
+    try {
+        const { sku, fromWarehouseId, toWarehouseId, quantity, notes } = req.body;
+        const result = await inventoryService.transferStock(
+            req.user._id,
+            sku,
+            fromWarehouseId,
+            toWarehouseId,
+            quantity,
+            notes
+        );
+        res.json({ success: true, data: result });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Adjust Stock
+ */
+router.post('/stock/adjust', auth, async (req, res) => {
+    try {
+        const { sku, warehouseId, adjustmentQuantity, reason, notes } = req.body;
+        const stockItem = await inventoryService.adjustStock(
+            req.user._id,
+            sku,
+            warehouseId,
+            adjustmentQuantity,
+            reason,
+            notes
+        );
+        res.json({ success: true, data: stockItem });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Reserve Stock
+ */
+router.post('/stock/reserve', auth, async (req, res) => {
+    try {
+        const { sku, warehouseId, quantity, reference } = req.body;
+        const stockItem = await inventoryService.reserveStock(
+            req.user._id,
+            sku,
+            warehouseId,
+            quantity,
+            reference
+        );
+        res.json({ success: true, data: stockItem });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Release Reserved Stock
+ */
+router.post('/stock/release', auth, async (req, res) => {
+    try {
+        const { sku, warehouseId, quantity } = req.body;
+        const stockItem = await inventoryService.releaseReservedStock(
+            req.user._id,
+            sku,
+            warehouseId,
+            quantity
+        );
+        res.json({ success: true, data: stockItem });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Get All Stock Items
+ */
+router.get('/stock', auth, async (req, res) => {
+    try {
+        const { warehouseId, category, status } = req.query;
+        const query = { userId: req.user._id, isActive: true };
+
+        if (warehouseId) query.warehouseId = warehouseId;
+        if (category) query.category = category;
+        if (status) query.stockStatus = status;
+
+        const stockItems = await StockItem.find(query).populate('warehouseId');
+        res.json({ success: true, data: stockItems });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Get Stock Item by SKU
+ */
+router.get('/stock/:sku', auth, async (req, res) => {
+    try {
+        const stockItem = await StockItem.findOne({
+            userId: req.user._id,
+            sku: req.params.sku
+        }).populate('warehouseId');
+
+        if (!stockItem) {
+            return res.status(404).json({ success: false, error: 'Stock item not found' });
+        }
+
+        res.json({ success: true, data: stockItem });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Update Stock Item
+ */
+router.patch('/stock/:sku', auth, async (req, res) => {
+    try {
+        const stockItem = await StockItem.findOneAndUpdate(
+            { userId: req.user._id, sku: req.params.sku },
+            req.body,
+            { new: true, runValidators: true }
+        );
+
+        if (!stockItem) {
+            return res.status(404).json({ success: false, error: 'Stock item not found' });
+        }
+
+        res.json({ success: true, data: stockItem });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+// ==================== BACK ORDER ROUTES ====================
+
+/**
+ * Get All Back Orders
+ */
+router.get('/backorders', auth, async (req, res) => {
+    try {
+        const { status, priority } = req.query;
+        const query = { userId: req.user._id };
+
+        if (status) query.status = status;
+        if (priority) query.priority = priority;
+
+        const backOrders = await BackOrder.find(query)
+            .populate('stockItemId')
+            .populate('warehouseId')
+            .sort({ priority: -1, requestDate: 1 });
+
+        res.json({ success: true, data: backOrders });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Update Back Order
+ */
+router.patch('/backorders/:id', auth, async (req, res) => {
+    try {
+        const backOrder = await BackOrder.findOneAndUpdate(
+            { _id: req.params.id, userId: req.user._id },
+            req.body,
+            { new: true, runValidators: true }
+        );
+
+        if (!backOrder) {
+            return res.status(404).json({ success: false, error: 'Back order not found' });
+        }
+
+        res.json({ success: true, data: backOrder });
+    } catch (err) {
+        res.status(400).json({ success: false, error: err.message });
+    }
+});
+
+// ==================== REPLENISHMENT ROUTES ====================
+
+/**
+ * Get Replenishment Recommendations
+ */
+router.get('/replenishment/recommendations', auth, async (req, res) => {
+    try {
+        const recommendations = await replenishmentService.scanAndRecommend(req.user._id);
+        res.json({ success: true, data: recommendations });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Auto-Generate Procurement Requests
+ */
+router.post('/replenishment/auto-generate', auth, async (req, res) => {
+    try {
+        const result = await replenishmentService.autoGenerateProcurementRequests(req.user._id);
+        res.json({ success: true, data: result });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Get Replenishment Analytics
+ */
+router.get('/replenishment/analytics', auth, async (req, res) => {
+    try {
+        const analytics = await replenishmentService.getReplenishmentAnalytics(req.user._id);
+        res.json({ success: true, data: analytics });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Calculate Optimal Parameters for Item
+ */
+router.get('/replenishment/optimize/:sku', auth, async (req, res) => {
+    try {
+        const stockItem = await StockItem.findOne({
+            userId: req.user._id,
+            sku: req.params.sku
+        });
+
+        if (!stockItem) {
+            return res.status(404).json({ success: false, error: 'Stock item not found' });
+        }
+
+        const optimization = await replenishmentService.calculateOptimalParameters(stockItem);
+        res.json({ success: true, data: optimization });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+// ==================== REPORTING ROUTES ====================
+
+/**
+ * Get Stock Valuation Report
+ */
+router.get('/reports/valuation', auth, async (req, res) => {
+    try {
+        const method = req.query.method || 'FIFO';
+        const report = await inventoryService.getStockValuationReport(req.user._id, method);
+        res.json({ success: true, data: report });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+/**
+ * Get ABC Classification
+ */
+router.get('/reports/abc-classification', auth, async (req, res) => {
+    try {
+        const classification = await inventoryService.getABCClassification(req.user._id);
+        res.json({ success: true, data: classification });
+    } catch (err) {
+        res.status(500).json({ success: false, error: err.message });
+    }
+});
+
+module.exports = router;
diff --git a/server.js b/server.js
index 6a787fe0..0db54b9e 100644
--- a/server.js
+++ b/server.js
@@ -277,9 +277,8 @@ console.log('Collaboration handler initialized');
 app.use('/api/auth', require('./middleware/rateLimiter').authLimiter, authRoutes);
 app.use('/api/expenses', expenseRoutes); // Expense management
 app.use('/api/currency', require('./routes/currency'));
-app.use('/api/treasury', require('./routes/treasury'));
 app.use('/api/payroll', require('./routes/payroll'));
-app.use('/api/groups', require('./routes/groups'));
+app.use('/api/inventory', require('./routes/inventory'));
 app.use('/api/splits', require('./routes/splits'));
 app.use('/api/workspaces', require('./routes/workspaces'));
 app.use('/api/tax', require('./routes/tax'));
diff --git a/services/inventoryService.js b/services/inventoryService.js
new file mode 100644
index 00000000..ff152099
--- /dev/null
+++ b/services/inventoryService.js
@@ -0,0 +1,418 @@
+const StockItem = require('../models/StockItem');
+const Warehouse = require('../models/Warehouse');
+const BackOrder = require('../models/BackOrder');
+const stockMath = require('../utils/stockMath');
+
+class InventoryService {
+    /**
+     * Get comprehensive inventory dashboard
+     */
+    async getInventoryDashboard(userId) {
+        const warehouses = await Warehouse.find({ userId, isActive: true });
+        const stockItems = await StockItem.find({ userId, isActive: true });
+        const backOrders = await BackOrder.find({ userId, status: { $in: ['pending', 'partially_fulfilled'] } });
+
+        // Calculate total inventory value
+        const totalInventoryValue = stockItems.reduce((sum, item) => sum + item.valuation.totalValue, 0);
+
+        // Count items by status
+        const stockStatusCounts = {
+            in_stock: stockItems.filter(i => i.stockStatus === 'in_stock').length,
+            low_stock: stockItems.filter(i => i.stockStatus === 'low_stock').length,
+            out_of_stock: stockItems.filter(i => i.stockStatus === 'out_of_stock').length
+        };
+
+        // Get items needing reorder
+        const itemsNeedingReorder = stockItems.filter(i =>
+            i.quantity.current <= i.reorderPoint && i.stockStatus !== 'discontinued'
+        );
+
+        // Calculate warehouse utilization
+        const warehouseUtilization = warehouses.map(wh => ({
+            warehouseCode: wh.warehouseCode,
+            warehouseName: wh.warehouseName,
+            utilizationPercentage: wh.capacity.totalSpace > 0
+                ? (wh.capacity.usedSpace / wh.capacity.totalSpace) * 100
+                : 0,
+            itemCount: stockItems.filter(i => i.warehouseId.equals(wh._id)).length
+        }));
+
+        return {
+            summary: {
+                totalWarehouses: warehouses.length,
+                totalStockItems: stockItems.length,
+                totalInventoryValue,
+                totalBackOrders: backOrders.length,
+                stockStatusCounts,
+                itemsNeedingReorder: itemsNeedingReorder.length
+            },
+            warehouses: warehouseUtilization,
+            reorderAlerts: itemsNeedingReorder.map(item => ({
+                sku: item.sku,
+                itemName: item.itemName,
+                currentStock: item.quantity.current,
+                reorderPoint: item.reorderPoint,
+                suggestedOrderQty: this.calculateSuggestedOrderQuantity(item)
+            })),
+            backOrdersSummary: this.summarizeBackOrders(backOrders)
+        };
+    }
+
+    /**
+     * Add stock to inventory
+     */
+    async addStock(userId, stockData) {
+        const { sku, warehouseId, quantity, costPrice, batchNumber, expiryDate, reference } = stockData;
+
+        let stockItem = await StockItem.findOne({ userId, sku, warehouseId });
+
+        if (!stockItem) {
+            // Create new stock item
+            stockItem = new StockItem({
+                userId,
+                ...stockData,
+                quantity: {
+                    current: quantity,
+                    reserved: 0,
+                    available: quantity,
+                    unit: stockData.unit || 'units'
+                },
+                pricing: {
+                    costPrice,
+                    sellingPrice: stockData.sellingPrice || costPrice * 1.2,
+                    currency: stockData.currency || 'INR'
+                }
+            });
+        } else {
+            // Update existing stock
+            stockItem.quantity.current += quantity;
+            stockItem.pricing.costPrice = costPrice; // Update to latest cost
+        }
+
+        // Add movement record
+        stockItem.movements.push({
+            movementType: 'in',
+            quantity,
+            toWarehouse: warehouseId,
+            reference,
+            referenceType: 'purchase_order',
+            movementDate: new Date(),
+            performedBy: userId
+        });
+
+        stockItem.lastRestocked = new Date();
+        await stockItem.save();
+
+        // Check if this fulfills any back orders
+        await this.fulfillBackOrders(stockItem);
+
+        return stockItem;
+    }
+
+    /**
+     * Remove stock from inventory
+     */
+    async removeStock(userId, sku, warehouseId, quantity, reference, notes) {
+        const stockItem = await StockItem.findOne({ userId, sku, warehouseId });
+
+        if (!stockItem) {
+            throw new Error('Stock item not found');
+        }
+
+        if (stockItem.quantity.available < quantity) {
+            // Create back order for insufficient stock
+            await this.createBackOrder(userId, stockItem, quantity - stockItem.quantity.available);
+            throw new Error(`Insufficient stock. Available: ${stockItem.quantity.available}, Requested: ${quantity}`);
+        }
+
+        stockItem.quantity.current -= quantity;
+
+        // Add movement record
+        stockItem.movements.push({
+            movementType: 'out',
+            quantity,
+            fromWarehouse: warehouseId,
+            reference,
+            referenceType: 'sales_order',
+            movementDate: new Date(),
+            performedBy: userId,
+            notes
+        });
+
+        await stockItem.save();
+        return stockItem;
+    }
+
+    /**
+     * Transfer stock between warehouses
+     */
+    async transferStock(userId, sku, fromWarehouseId, toWarehouseId, quantity, notes) {
+        // Remove from source warehouse
+        const sourceItem = await StockItem.findOne({ userId, sku, warehouseId: fromWarehouseId });
+
+        if (!sourceItem) {
+            throw new Error('Source stock item not found');
+        }
+
+        if (sourceItem.quantity.available < quantity) {
+            throw new Error('Insufficient stock for transfer');
+        }
+
+        sourceItem.quantity.current -= quantity;
+        sourceItem.movements.push({
+            movementType: 'transfer',
+            quantity,
+            fromWarehouse: fromWarehouseId,
+            toWarehouse: toWarehouseId,
+            movementDate: new Date(),
+            performedBy: userId,
+            notes
+        });
+        await sourceItem.save();
+
+        // Add to destination warehouse
+        let destItem = await StockItem.findOne({ userId, sku, warehouseId: toWarehouseId });
+
+        if (!destItem) {
+            // Create new stock item at destination
+            destItem = new StockItem({
+                userId,
+                sku: sourceItem.sku,
+                itemName: sourceItem.itemName,
+                description: sourceItem.description,
+                category: sourceItem.category,
+                warehouseId: toWarehouseId,
+                quantity: {
+                    current: quantity,
+                    reserved: 0,
+                    available: quantity,
+                    unit: sourceItem.quantity.unit
+                },
+                pricing: sourceItem.pricing,
+                reorderPoint: sourceItem.reorderPoint,
+                safetyStock: sourceItem.safetyStock
+            });
+        } else {
+            destItem.quantity.current += quantity;
+        }
+
+        destItem.movements.push({
+            movementType: 'transfer',
+            quantity,
+            fromWarehouse: fromWarehouseId,
+            toWarehouse: toWarehouseId,
+            movementDate: new Date(),
+            performedBy: userId,
+            notes
+        });
+        await destItem.save();
+
+        return { source: sourceItem, destination: destItem };
+    }
+
+    /**
+     * Adjust stock (for corrections, damages, etc.)
+     */
+    async adjustStock(userId, sku, warehouseId, adjustmentQuantity, reason, notes) {
+        const stockItem = await StockItem.findOne({ userId, sku, warehouseId });
+
+        if (!stockItem) {
+            throw new Error('Stock item not found');
+        }
+
+        stockItem.quantity.current += adjustmentQuantity; // Can be negative
+
+        stockItem.movements.push({
+            movementType: 'adjustment',
+            quantity: Math.abs(adjustmentQuantity),
+            toWarehouse: adjustmentQuantity > 0 ? warehouseId : null,
+            fromWarehouse: adjustmentQuantity < 0 ? warehouseId : null,
+            reference: reason,
+            movementDate: new Date(),
+            performedBy: userId,
+            notes
+        });
+
+        await stockItem.save();
+        return stockItem;
+    }
+
+    /**
+     * Reserve stock for orders
+     */
+    async reserveStock(userId, sku, warehouseId, quantity, reference) {
+        const stockItem = await StockItem.findOne({ userId, sku, warehouseId });
+
+        if (!stockItem) {
+            throw new Error('Stock item not found');
+        }
+
+        if (stockItem.quantity.available < quantity) {
+            throw new Error('Insufficient available stock for reservation');
+        }
+
+        stockItem.quantity.reserved += quantity;
+        await stockItem.save();
+
+        return stockItem;
+    }
+
+    /**
+     * Release reserved stock
+     */
+    async releaseReservedStock(userId, sku, warehouseId, quantity) {
+        const stockItem = await StockItem.findOne({ userId, sku, warehouseId });
+
+        if (!stockItem) {
+            throw new Error('Stock item not found');
+        }
+
+        stockItem.quantity.reserved = Math.max(0, stockItem.quantity.reserved - quantity);
+        await stockItem.save();
+
+        return stockItem;
+    }
+
+    /**
+     * Create back order
+     */
+    async createBackOrder(userId, stockItem, quantity) {
+        const backOrderId = `BO-${Date.now()}-${stockItem.sku}`;
+
+        const backOrder = new BackOrder({
+            userId,
+            backOrderId,
+            stockItemId: stockItem._id,
+            sku: stockItem.sku,
+            itemName: stockItem.itemName,
+            requestedQuantity: quantity,
+            pendingQuantity: quantity,
+            warehouseId: stockItem.warehouseId,
+            requestedBy: userId,
+            priority: quantity > 100 ? 'high' : 'medium'
+        });
+
+        await backOrder.save();
+        return backOrder;
+    }
+
+    /**
+     * Fulfill back orders when stock is added
+     */
+    async fulfillBackOrders(stockItem) {
+        const backOrders = await BackOrder.find({
+            stockItemId: stockItem._id,
+            status: { $in: ['pending', 'partially_fulfilled'] }
+        }).sort({ priority: -1, requestDate: 1 });
+
+        let availableStock = stockItem.quantity.available;
+
+        for (const backOrder of backOrders) {
+            if (availableStock <= 0) break;
+
+            const fulfillQty = Math.min(backOrder.pendingQuantity, availableStock);
+
+            backOrder.fulfilledQuantity += fulfillQty;
+            backOrder.fulfillmentHistory.push({
+                quantity: fulfillQty,
+                fulfilledDate: new Date(),
+                batchNumber: stockItem.batchNumber
+            });
+
+            await backOrder.save();
+            availableStock -= fulfillQty;
+        }
+    }
+
+    /**
+     * Calculate suggested order quantity
+     */
+    calculateSuggestedOrderQuantity(stockItem) {
+        const shortfall = stockItem.reorderPoint - stockItem.quantity.current;
+        const safetyBuffer = stockItem.safetyStock;
+
+        return Math.max(shortfall + safetyBuffer, stockItem.safetyStock * 2);
+    }
+
+    /**
+     * Summarize back orders
+     */
+    summarizeBackOrders(backOrders) {
+        return {
+            total: backOrders.length,
+            byPriority: {
+                urgent: backOrders.filter(bo => bo.priority === 'urgent').length,
+                high: backOrders.filter(bo => bo.priority === 'high').length,
+                medium: backOrders.filter(bo => bo.priority === 'medium').length,
+                low: backOrders.filter(bo => bo.priority === 'low').length
+            },
+            totalPendingQuantity: backOrders.reduce((sum, bo) => sum + bo.pendingQuantity, 0)
+        };
+    }
+
+    /**
+     * Get stock valuation report
+     */
+    async getStockValuationReport(userId, method = 'FIFO') {
+        const stockItems = await StockItem.find({ userId, isActive: true });
+
+        const valuationReport = stockItems.map(item => {
+            let valuation;
+
+            // For simplicity, using current cost price
+            // In real implementation, track stock layers for accurate FIFO/LIFO
+            valuation = {
+                totalValue: item.quantity.current * item.pricing.costPrice,
+                averageCost: item.pricing.costPrice
+            };
+
+            return {
+                sku: item.sku,
+                itemName: item.itemName,
+                quantity: item.quantity.current,
+                costPrice: item.pricing.costPrice,
+                ...valuation,
+                warehouse: item.warehouseId
+            };
+        });
+
+        const totalValue = valuationReport.reduce((sum, item) => sum + item.totalValue, 0);
+
+        return {
+            method,
+            totalValue,
+            itemCount: valuationReport.length,
+            items: valuationReport
+        };
+    }
+
+    /**
+     * Get ABC classification of inventory
+     */
+    async getABCClassification(userId) {
+        const stockItems = await StockItem.find({ userId, isActive: true });
+
+        const itemsForClassification = stockItems.map(item => ({
+            sku: item.sku,
+            itemName: item.itemName,
+            quantity: item.quantity.current,
+            costPrice: item.pricing.costPrice
+        }));
+
+        const classified = stockMath.calculateABCClassification(itemsForClassification);
+
+        return {
+            classA: classified.filter(i => i.classification === 'A'),
+            classB: classified.filter(i => i.classification === 'B'),
+            classC: classified.filter(i => i.classification === 'C'),
+            summary: {
+                totalItems: classified.length,
+                classACount: classified.filter(i => i.classification === 'A').length,
+                classBCount: classified.filter(i => i.classification === 'B').length,
+                classCCount: classified.filter(i => i.classification === 'C').length
+            }
+        };
+    }
+}
+
+module.exports = new InventoryService();
diff --git a/services/replenishmentService.js b/services/replenishmentService.js
new file mode 100644
index 00000000..fd9033f0
--- /dev/null
+++ b/services/replenishmentService.js
@@ -0,0 +1,310 @@
+const StockItem = require('../models/StockItem');
+const BackOrder = require('../models/BackOrder');
+const stockMath = require('../utils/stockMath');
+
+class ReplenishmentService {
+    /**
+     * Scan inventory and generate replenishment recommendations
+     */
+    async scanAndRecommend(userId) {
+        const stockItems = await StockItem.find({
+            userId,
+            isActive: true,
+            stockStatus: { $in: ['low_stock', 'out_of_stock'] }
+        }).populate('warehouseId');
+
+        const recommendations = [];
+
+        for (const item of stockItems) {
+            const recommendation = await this.generateRecommendation(item);
+            if (recommendation) {
+                recommendations.push(recommendation);
+            }
+        }
+
+        // Sort by priority
+        recommendations.sort((a, b) => {
+            const priorityOrder = { urgent: 4, high: 3, medium: 2, low: 1 };
+            return priorityOrder[b.priority] - priorityOrder[a.priority];
+        });
+
+        return {
+            totalRecommendations: recommendations.length,
+            urgentCount: recommendations.filter(r => r.priority === 'urgent').length,
+            recommendations
+        };
+    }
+
+    /**
+     * Generate replenishment recommendation for a single item
+     */
+    async generateRecommendation(stockItem) {
+        const currentStock = stockItem.quantity.current;
+        const reorderPoint = stockItem.reorderPoint;
+        const safetyStock = stockItem.safetyStock;
+
+        // Check if replenishment is needed
+        if (currentStock > reorderPoint) {
+            return null;
+        }
+
+        // Calculate suggested order quantity
+        let orderQuantity;
+
+        if (stockItem.supplier && stockItem.supplier.leadTime) {
+            // Use EOQ if we have enough data
+            // For simplicity, using a basic calculation
+            const avgDailyUsage = this.estimateDailyUsage(stockItem);
+            const leadTime = stockItem.supplier.leadTime;
+
+            orderQuantity = Math.round(
+                (avgDailyUsage * leadTime) + safetyStock - currentStock
+            );
+        } else {
+            // Default to safety stock * 2
+            orderQuantity = Math.max(safetyStock * 2, reorderPoint - currentStock);
+        }
+
+        // Ensure minimum order quantity
+        orderQuantity = Math.max(orderQuantity, 1);
+
+        // Determine priority
+        let priority;
+        if (currentStock === 0) {
+            priority = 'urgent';
+        } else if (currentStock <= safetyStock) {
+            priority = 'high';
+        } else if (currentStock <= reorderPoint) {
+            priority = 'medium';
+        } else {
+            priority = 'low';
+        }
+
+        // Check for pending back orders
+        const backOrders = await BackOrder.find({
+            stockItemId: stockItem._id,
+            status: { $in: ['pending', 'partially_fulfilled'] }
+        });
+
+        const totalBackOrderQty = backOrders.reduce((sum, bo) => sum + bo.pendingQuantity, 0);
+
+        return {
+            sku: stockItem.sku,
+            itemName: stockItem.itemName,
+            warehouse: stockItem.warehouseId.warehouseName,
+            warehouseCode: stockItem.warehouseId.warehouseCode,
+            currentStock,
+            reorderPoint,
+            safetyStock,
+            suggestedOrderQty: orderQuantity + totalBackOrderQty,
+            estimatedCost: (orderQuantity + totalBackOrderQty) * stockItem.pricing.costPrice,
+            priority,
+            supplier: stockItem.supplier?.supplierName || 'Not specified',
+            leadTime: stockItem.supplier?.leadTime || 0,
+            backOrdersCount: backOrders.length,
+            backOrderQty: totalBackOrderQty,
+            reason: this.getReplenishmentReason(currentStock, reorderPoint, safetyStock, backOrders.length)
+        };
+    }
+
+    /**
+     * Auto-generate procurement requests for critical items
+     */
+    async autoGenerateProcurementRequests(userId) {
+        const recommendations = await this.scanAndRecommend(userId);
+
+        // Filter only urgent and high priority items
+        const criticalItems = recommendations.recommendations.filter(r =>
+            r.priority === 'urgent' || r.priority === 'high'
+        );
+
+        const procurementRequests = [];
+
+        for (const item of criticalItems) {
+            // In a real implementation, this would create actual ProcurementOrder records
+            const pr = {
+                prNumber: `PR-${Date.now()}-${item.sku}`,
+                sku: item.sku,
+                itemName: item.itemName,
+                quantity: item.suggestedOrderQty,
+                estimatedCost: item.estimatedCost,
+                supplier: item.supplier,
+                priority: item.priority,
+                warehouse: item.warehouse,
+                requestedDate: new Date(),
+                reason: item.reason,
+                autoGenerated: true
+            };
+
+            procurementRequests.push(pr);
+        }
+
+        return {
+            generated: procurementRequests.length,
+            totalValue: procurementRequests.reduce((sum, pr) => sum + pr.estimatedCost, 0),
+            requests: procurementRequests
+        };
+    }
+
+    /**
+     * Estimate daily usage based on movement history
+     */
+    estimateDailyUsage(stockItem) {
+        const outMovements = stockItem.movements.filter(m => m.movementType === 'out');
+
+        if (outMovements.length === 0) {
+            return 1; // Default to 1 unit per day
+        }
+
+        // Calculate total quantity moved out
+        const totalOut = outMovements.reduce((sum, m) => sum + m.quantity, 0);
+
+        // Calculate time span
+        const firstMovement = outMovements[0].movementDate;
+        const lastMovement = outMovements[outMovements.length - 1].movementDate;
+        const daysDiff = Math.max(1, (lastMovement - firstMovement) / (1000 * 60 * 60 * 24));
+
+        return totalOut / daysDiff;
+    }
+
+    /**
+     * Get replenishment reason
+     */
+    getReplenishmentReason(currentStock, reorderPoint, safetyStock, backOrdersCount) {
+        if (currentStock === 0) {
+            return 'Stock depleted - Urgent replenishment required';
+        } else if (backOrdersCount > 0) {
+            return `${backOrdersCount} pending back order(s) - High priority`;
+        } else if (currentStock <= safetyStock) {
+            return 'Below safety stock level - Risk of stock-out';
+        } else if (currentStock <= reorderPoint) {
+            return 'Reorder point reached - Normal replenishment';
+        } else {
+            return 'Preventive replenishment';
+        }
+    }
+
+    /**
+     * Calculate optimal reorder parameters for an item
+     */
+    async calculateOptimalParameters(stockItem) {
+        const movements = stockItem.movements.filter(m => m.movementType === 'out');
+
+        if (movements.length < 5) {
+            return {
+                message: 'Insufficient data for optimization',
+                currentReorderPoint: stockItem.reorderPoint,
+                currentSafetyStock: stockItem.safetyStock
+            };
+        }
+
+        // Calculate usage statistics
+        const dailyUsages = this.calculateDailyUsages(movements);
+        const avgDailyUsage = dailyUsages.reduce((a, b) => a + b, 0) / dailyUsages.length;
+        const maxDailyUsage = Math.max(...dailyUsages);
+
+        // Estimate lead time (use supplier lead time or default)
+        const leadTime = stockItem.supplier?.leadTime || 7;
+        const maxLeadTime = leadTime * 1.5; // Add 50% buffer
+
+        // Calculate optimal safety stock
+        const optimalSafetyStock = stockMath.calculateSafetyStock(
+            maxDailyUsage,
+            maxLeadTime,
+            avgDailyUsage,
+            leadTime
+        );
+
+        // Calculate optimal reorder point
+        const optimalReorderPoint = stockMath.calculateReorderPoint(
+            avgDailyUsage,
+            leadTime,
+            optimalSafetyStock
+        );
+
+        return {
+            current: {
+                reorderPoint: stockItem.reorderPoint,
+                safetyStock: stockItem.safetyStock
+            },
+            recommended: {
+                reorderPoint: optimalReorderPoint,
+                safetyStock: optimalSafetyStock
+            },
+            statistics: {
+                avgDailyUsage: Math.round(avgDailyUsage * 100) / 100,
+                maxDailyUsage: Math.round(maxDailyUsage * 100) / 100,
+                leadTime,
+                dataPoints: movements.length
+            }
+        };
+    }
+
+    /**
+     * Calculate daily usages from movements
+     */
+    calculateDailyUsages(movements) {
+        if (movements.length === 0) return [0];
+
+        // Group movements by day
+        const dailyMap = new Map();
+
+        for (const movement of movements) {
+            const dateKey = new Date(movement.movementDate).toISOString().split('T')[0];
+            dailyMap.set(dateKey, (dailyMap.get(dateKey) || 0) + movement.quantity);
+        }
+
+        return Array.from(dailyMap.values());
+    }
+
+    /**
+     * Get replenishment analytics
+     */
+    async getReplenishmentAnalytics(userId) {
+        const stockItems = await StockItem.find({ userId, isActive: true });
+
+        const analytics = {
+            totalItems: stockItems.length,
+            itemsByStatus: {
+                in_stock: 0,
+                low_stock: 0,
+                out_of_stock: 0
+            },
+            replenishmentNeeded: 0,
+            estimatedReplenishmentCost: 0,
+            averageStockLevel: 0,
+            itemsWithBackOrders: 0
+        };
+
+        let totalStockValue = 0;
+
+        for (const item of stockItems) {
+            analytics.itemsByStatus[item.stockStatus]++;
+            totalStockValue += item.valuation.totalValue;
+
+            if (item.quantity.current <= item.reorderPoint) {
+                analytics.replenishmentNeeded++;
+                const orderQty = Math.max(item.safetyStock * 2, item.reorderPoint - item.quantity.current);
+                analytics.estimatedReplenishmentCost += orderQty * item.pricing.costPrice;
+            }
+
+            // Check for back orders
+            const backOrders = await BackOrder.countDocuments({
+                stockItemId: item._id,
+                status: { $in: ['pending', 'partially_fulfilled'] }
+            });
+
+            if (backOrders > 0) {
+                analytics.itemsWithBackOrders++;
+            }
+        }
+
+        analytics.averageStockLevel = stockItems.length > 0
+            ? totalStockValue / stockItems.length
+            : 0;
+
+        return analytics;
+    }
+}
+
+module.exports = new ReplenishmentService();
diff --git a/utils/stockMath.js b/utils/stockMath.js
new file mode 100644
index 00000000..5b4b773b
--- /dev/null
+++ b/utils/stockMath.js
@@ -0,0 +1,276 @@
+/**
+ * Stock Math Utility
+ * Provides inventory valuation methods (FIFO, LIFO, WAC)
+ */
+
+class StockMath {
+    /**
+     * Calculate FIFO (First In, First Out) valuation
+     * @param {Array} stockLayers - Array of {quantity, costPrice, date}
+     * @param {Number} quantityToValue - Quantity to calculate value for
+     */
+    calculateFIFO(stockLayers, quantityToValue) {
+        let remainingQty = quantityToValue;
+        let totalValue = 0;
+        const layersUsed = [];
+
+        // Sort by date (oldest first)
+        const sortedLayers = [...stockLayers].sort((a, b) =>
+            new Date(a.date) - new Date(b.date)
+        );
+
+        for (const layer of sortedLayers) {
+            if (remainingQty <= 0) break;
+
+            const qtyFromLayer = Math.min(layer.quantity, remainingQty);
+            totalValue += qtyFromLayer * layer.costPrice;
+            remainingQty -= qtyFromLayer;
+
+            layersUsed.push({
+                quantity: qtyFromLayer,
+                costPrice: layer.costPrice,
+                date: layer.date
+            });
+        }
+
+        return {
+            totalValue,
+            averageCost: quantityToValue > 0 ? totalValue / quantityToValue : 0,
+            layersUsed,
+            remainingQuantity: remainingQty
+        };
+    }
+
+    /**
+     * Calculate LIFO (Last In, First Out) valuation
+     * @param {Array} stockLayers - Array of {quantity, costPrice, date}
+     * @param {Number} quantityToValue - Quantity to calculate value for
+     */
+    calculateLIFO(stockLayers, quantityToValue) {
+        let remainingQty = quantityToValue;
+        let totalValue = 0;
+        const layersUsed = [];
+
+        // Sort by date (newest first)
+        const sortedLayers = [...stockLayers].sort((a, b) =>
+            new Date(b.date) - new Date(a.date)
+        );
+
+        for (const layer of sortedLayers) {
+            if (remainingQty <= 0) break;
+
+            const qtyFromLayer = Math.min(layer.quantity, remainingQty);
+            totalValue += qtyFromLayer * layer.costPrice;
+            remainingQty -= qtyFromLayer;
+
+            layersUsed.push({
+                quantity: qtyFromLayer,
+                costPrice: layer.costPrice,
+                date: layer.date
+            });
+        }
+
+        return {
+            totalValue,
+            averageCost: quantityToValue > 0 ? totalValue / quantityToValue : 0,
+            layersUsed,
+            remainingQuantity: remainingQty
+        };
+    }
+
+    /**
+     * Calculate WAC (Weighted Average Cost)
+     * @param {Array} stockLayers - Array of {quantity, costPrice}
+     */
+    calculateWAC(stockLayers) {
+        let totalQuantity = 0;
+        let totalValue = 0;
+
+        for (const layer of stockLayers) {
+            totalQuantity += layer.quantity;
+            totalValue += layer.quantity * layer.costPrice;
+        }
+
+        const averageCost = totalQuantity > 0 ? totalValue / totalQuantity : 0;
+
+        return {
+            totalQuantity,
+            totalValue,
+            averageCost
+        };
+    }
+
+    /**
+     * Calculate reorder quantity using Economic Order Quantity (EOQ) formula
+     * @param {Number} annualDemand - Annual demand in units
+     * @param {Number} orderingCost - Cost per order
+     * @param {Number} holdingCost - Annual holding cost per unit
+     */
+    calculateEOQ(annualDemand, orderingCost, holdingCost) {
+        if (holdingCost === 0) return 0;
+
+        const eoq = Math.sqrt((2 * annualDemand * orderingCost) / holdingCost);
+        return Math.round(eoq);
+    }
+
+    /**
+     * Calculate safety stock level
+     * @param {Number} maxDailyUsage - Maximum daily usage
+     * @param {Number} maxLeadTime - Maximum lead time in days
+     * @param {Number} avgDailyUsage - Average daily usage
+     * @param {Number} avgLeadTime - Average lead time in days
+     */
+    calculateSafetyStock(maxDailyUsage, maxLeadTime, avgDailyUsage, avgLeadTime) {
+        const maxUsageDuringLeadTime = maxDailyUsage * maxLeadTime;
+        const avgUsageDuringLeadTime = avgDailyUsage * avgLeadTime;
+
+        return Math.round(maxUsageDuringLeadTime - avgUsageDuringLeadTime);
+    }
+
+    /**
+     * Calculate reorder point
+     * @param {Number} avgDailyUsage - Average daily usage
+     * @param {Number} leadTime - Lead time in days
+     * @param {Number} safetyStock - Safety stock level
+     */
+    calculateReorderPoint(avgDailyUsage, leadTime, safetyStock) {
+        return Math.round((avgDailyUsage * leadTime) + safetyStock);
+    }
+
+    /**
+     * Calculate inventory turnover ratio
+     * @param {Number} costOfGoodsSold - COGS for the period
+     * @param {Number} averageInventory - Average inventory value
+     */
+    calculateInventoryTurnover(costOfGoodsSold, averageInventory) {
+        if (averageInventory === 0) return 0;
+        return costOfGoodsSold / averageInventory;
+    }
+
+    /**
+     * Calculate days inventory outstanding (DIO)
+     * @param {Number} averageInventory - Average inventory value
+     * @param {Number} costOfGoodsSold - COGS for the period
+     * @param {Number} days - Number of days in period (default 365)
+     */
+    calculateDIO(averageInventory, costOfGoodsSold, days = 365) {
+        if (costOfGoodsSold === 0) return 0;
+        return (averageInventory / costOfGoodsSold) * days;
+    }
+
+    /**
+     * Calculate stock-out probability using normal distribution
+     * @param {Number} demandMean - Mean demand
+     * @param {Number} demandStdDev - Standard deviation of demand
+     * @param {Number} currentStock - Current stock level
+     */
+    calculateStockOutProbability(demandMean, demandStdDev, currentStock) {
+        if (demandStdDev === 0) return currentStock < demandMean ? 1 : 0;
+
+        // Z-score calculation
+        const zScore = (currentStock - demandMean) / demandStdDev;
+
+        // Approximate cumulative distribution function
+        const probability = this.normalCDF(zScore);
+
+        return 1 - probability; // Probability of stock-out
+    }
+
+    /**
+     * Normal cumulative distribution function approximation
+     */
+    normalCDF(x) {
+        const t = 1 / (1 + 0.2316419 * Math.abs(x));
+        const d = 0.3989423 * Math.exp(-x * x / 2);
+        const probability = d * t * (0.3193815 + t * (-0.3565638 + t * (1.781478 + t * (-1.821256 + t * 1.330274))));
+
+        return x > 0 ? 1 - probability : probability;
+    }
+
+    /**
+     * Calculate ABC classification based on value
+     * @param {Array} items - Array of {sku, quantity, costPrice}
+     */
+    calculateABCClassification(items) {
+        // Calculate total value for each item
+        const itemsWithValue = items.map(item => ({
+            ...item,
+            totalValue: item.quantity * item.costPrice
+        }));
+
+        // Sort by value (descending)
+        itemsWithValue.sort((a, b) => b.totalValue - a.totalValue);
+
+        // Calculate cumulative value
+        const totalValue = itemsWithValue.reduce((sum, item) => sum + item.totalValue, 0);
+        let cumulativeValue = 0;
+
+        // Classify items
+        const classified = itemsWithValue.map(item => {
+            cumulativeValue += item.totalValue;
+            const cumulativePercentage = (cumulativeValue / totalValue) * 100;
+
+            let classification;
+            if (cumulativePercentage <= 70) {
+                classification = 'A'; // High value items (70% of value)
+            } else if (cumulativePercentage <= 90) {
+                classification = 'B'; // Medium value items (20% of value)
+            } else {
+                classification = 'C'; // Low value items (10% of value)
+            }
+
+            return {
+                ...item,
+                classification,
+                cumulativePercentage
+            };
+        });
+
+        return classified;
+    }
+
+    /**
+     * Calculate optimal order quantity considering quantity discounts
+     * @param {Number} annualDemand
+     * @param {Number} orderingCost
+     * @param {Number} holdingCostRate - As percentage of unit cost
+     * @param {Array} priceBreaks - Array of {quantity, price}
+     */
+    calculateOptimalOrderWithDiscounts(annualDemand, orderingCost, holdingCostRate, priceBreaks) {
+        const results = [];
+
+        for (const priceBreak of priceBreaks) {
+            const holdingCost = priceBreak.price * holdingCostRate;
+            const eoq = this.calculateEOQ(annualDemand, orderingCost, holdingCost);
+
+            // Adjust EOQ to minimum quantity for this price break
+            const orderQty = Math.max(eoq, priceBreak.quantity);
+
+            // Calculate total annual cost
+            const purchaseCost = annualDemand * priceBreak.price;
+            const orderingCostTotal = (annualDemand / orderQty) * orderingCost;
+            const holdingCostTotal = (orderQty / 2) * holdingCost;
+            const totalCost = purchaseCost + orderingCostTotal + holdingCostTotal;
+
+            results.push({
+                priceBreak: priceBreak.quantity,
+                unitPrice: priceBreak.price,
+                orderQuantity: orderQty,
+                totalAnnualCost: totalCost,
+                purchaseCost,
+                orderingCost: orderingCostTotal,
+                holdingCost: holdingCostTotal
+            });
+        }
+
+        // Find optimal (minimum cost)
+        results.sort((a, b) => a.totalAnnualCost - b.totalAnnualCost);
+
+        return {
+            optimal: results[0],
+            allOptions: results
+        };
+    }
+}
+
+module.exports = new StockMath();