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The aim of our book is to have an insight on how inventory management and supply chain management is done through an ERP package. For this purpose we have chosen MS DYNAMICS AX as our ERP package. Our work is aimed at learning how an ERP package works, by taking up the example of two main modules namely inventory management and supply chain management. Majorly our work starts from why we have opted to take up this study to the basic concepts of ERP which included the various ERP package which are existent, the various ERP modules, and the very need of ERP in the industry. After this we shifted our focus to the implementation of ERP package, for this again we chose the implementation of MS DYNAMICS AX as its implementation was done. As MS DYNAMICS AX is a client server application, so we focussed on the requirements of both the client side and server side. In addition to this we also focussed at the system requirements for the installation of MS DYNAMICS AX. This was an important study as from this we learnt how exactly implementation of an ERP package is done.