The processes a business uses to manage their inventory levels and the issues associated with overstocking and understocking are important factors in the survival and success of that business.
inventoryThe materials held or used by a business to produce a product. is the materials held by a business in order to produce the product being sold to the customer. Inventory is sometimes referred to as stock.
However, inventory can exists in three types:
raw materialsThe resources or ingredients required to produce a product.
works in progressGoods that are partly made or in assembly.
finished goodsThe end product ready for customers to buy.