diff --git a/src/controller/dashboard.controller.js b/src/controller/dashboard.controller.js
index 9b67ce4..0f5c3b6 100644
--- a/src/controller/dashboard.controller.js
+++ b/src/controller/dashboard.controller.js
@@ -163,14 +163,34 @@ const createSublevels = async (subLevels, level, parent = undefined, depth = 0)
   return sub_levels_list;
 };
 
-const createInventory = async ({ name, type }) => {
+const createInventory = async ({ name, type, policies }) => {
   if (!(name && type)) {
     return;
   }
 
+  const preferredLocations = [];
+  if (policies.preferredLocations && Array.isArray(policies.preferredLocations)) {
+    for (const preferredLocation of policies.preferredLocations) {
+      preferredLocations.push({ id: preferredLocation.id, type: preferredLocation.type });
+    }
+  }
+
+  const verifiedPolicies = {
+    orderTracking: policies.orderTracking || {},
+    alerting: {
+      lowestStockLevel: policies.alerting && policies.alerting.lowestStockLevel ? policies.alerting.lowestStockLevel : false,
+      highestStockLevel: policies.alerting && policies.alerting.highestStockLevel ? policies.alerting.highestStockLevel : false,
+      alertStockLevel: policies.alerting && policies.alerting.alertStockLevel ? policies.alerting.alertStockLevel : false,
+      reOrderLevel: policies.alerting && policies.alerting.reOrderLevel ? policies.alerting.reOrderLevel : false,
+    },
+    replenishment: policies.replenishment || {},
+    preferredLocations: preferredLocations,
+  };
+
   return await Inventory.create({
     name,
     type,
+    policies: verifiedPolicies,
   });
 };
 
diff --git a/src/controller/inventory.controller.js b/src/controller/inventory.controller.js
index 93b6977..b17bac4 100644
--- a/src/controller/inventory.controller.js
+++ b/src/controller/inventory.controller.js
@@ -29,17 +29,36 @@ module.exports = {
    * Create a Inventory
    */
   createInventory: async (req, res, next) => {
-    const { name, type } = req.body;
+    const { name, type, policies } = req.body;
 
     if (!(name && type)) {
       res.status(400).send("Missing params param");
       return;
     }
+    const preferredLocations = [];
+    if (policies.preferredLocations && Array.isArray(policies.preferredLocations)) {
+      for (const preferredLocation of policies.preferredLocations) {
+        preferredLocations.push({ id: preferredLocation.id, type: preferredLocation.type });
+      }
+    }
+
+    const verifiedPolicies = {
+      orderTracking: policies.orderTracking || {},
+      alerting: {
+        lowestStockLevel: policies.alerting && policies.alerting.lowestStockLevel ? policies.alerting.lowestStockLevel : false,
+        highestStockLevel: policies.alerting && policies.alerting.highestStockLevel ? policies.alerting.highestStockLevel : false,
+        alertStockLevel: policies.alerting && policies.alerting.alertStockLevel ? policies.alerting.alertStockLevel : false,
+        reOrderLevel: policies.alerting && policies.alerting.reOrderLevel ? policies.alerting.reOrderLevel : false,
+      },
+      replenishment: policies.replenishment || {},
+      preferredLocations: preferredLocations,
+    };
 
     try {
       const inventoryData = new Inventory({
         name,
         type,
+        policies: verifiedPolicies,
       });
 
       await inventoryData.save();
@@ -64,7 +83,7 @@ module.exports = {
       return;
     }
 
-    const { name, type } = req.body;
+    const { name, type, policies } = req.body;
 
     if (!(name || type)) {
       res.status(400).send("Missing data in body");
@@ -81,6 +100,37 @@ module.exports = {
       if (name) inventoryData.name = name;
       if (type) inventoryData.type = type;
 
+      if (policies) {
+        const preferredLocations = [];
+        if (policies.preferredLocations && Array.isArray(policies.preferredLocations)) {
+          for (const preferredLocation of policies.preferredLocations) {
+            preferredLocations.push({ id: preferredLocation.id, type: preferredLocation.type });
+          }
+        }
+
+        inventoryData.policies = {
+          orderTracking: policies.orderTracking || inventoryData.policies.orderTracking,
+          alerting: {
+            lowestStockLevel:
+              policies.alerting && policies.alerting.lowestStockLevel
+                ? policies.alerting.lowestStockLevel
+                : inventoryData.policies.alerting.lowestStockLevel,
+            highestStockLevel:
+              policies.alerting && policies.alerting.highestStockLevel
+                ? policies.alerting.highestStockLevel
+                : inventoryData.policies.alerting.highestStockLevel,
+            alertStockLevel:
+              policies.alerting && policies.alerting.alertStockLevel
+                ? policies.alerting.alertStockLevel
+                : inventoryData.policies.alerting.alertStockLevel,
+            reOrderLevel:
+              policies.alerting && policies.alerting.reOrderLevel ? policies.alerting.reOrderLevel : inventoryData.policies.alerting.reOrderLevel,
+          },
+          replenishment: policies.replenishment || inventoryData.policies.replenishment,
+          preferredLocations: preferredLocations,
+        };
+      }
+
       await inventoryData.save();
       res.send({ success: true, data: inventoryData });
     } catch (error) {
diff --git a/src/models/Inventory.js b/src/models/Inventory.js
index 180ba24..4ee1fb6 100644
--- a/src/models/Inventory.js
+++ b/src/models/Inventory.js
@@ -1,5 +1,5 @@
 const mongoose = require("mongoose");
-const { InventoryTypes } = require("./../config/constants");
+const { InventoryTypes, WarehouseScopes } = require("./../config/constants");
 
 const schema = new mongoose.Schema(
   {
@@ -15,15 +15,42 @@ const schema = new mongoose.Schema(
       enum: InventoryTypes,
     },
     policies: {
-      tracking: {
+      orderTracking: {
         type: Object, // Create a different model and reference it here once more details available
       },
       alerting: {
-        type: Object, // Create a different model and reference it here once more details available
+        lowestStockLevel: {
+          type: Boolean,
+          required: true,
+        },
+        highestStockLevel: {
+          type: Boolean,
+          required: true,
+        },
+        alertStockLevel: {
+          type: Boolean,
+          required: true,
+        },
+        reOrderLevel: {
+          type: Boolean,
+          required: true,
+        },
       },
       replenishment: {
         type: Object, // Create a different model and reference it here once more details available
       },
+      preferredLocations: [
+        {
+          id: {
+            type: mongoose.Schema.Types.ObjectId,
+            refPath: "type",
+          },
+          type: {
+            type: String,
+            enum: WarehouseScopes,
+          },
+        },
+      ],
     },
   },
   {