Inventory: The stock of goods or materials that a business holds for sale or use in production.
Inventory refers to the stock of goods or materials that a business holds for sale or use in production. Inventory can include finished products, raw materials, work in progress, and supplies.
Inventory is a key component of a business's operations, as it allows them to meet customer demand and maintain production schedules. Effective inventory management is critical for businesses to achieve their goals, as inventory represents a significant investment of capital and can have a significant impact on a business's profitability.
There are several types of inventory, including:
Inventory is managed through a variety of strategies and tools, including just-in-time (JIT) inventory management, economic order quantity (EOQ), and safety stock. Effective inventory management helps businesses optimize inventory levels, reduce waste, and improve customer satisfaction.
Overall, inventory is a critical component of a business's operations, and effective inventory management is essential for achieving long-term success in a competitive marketplace. By carefully analyzing demand patterns, production schedules, and inventory holding costs, businesses can optimize their inventory management strategies and achieve their goals.