Inventory
Inventory, also known as stock, refers to the goods and materials that a business holds for the purpose of resale or use in production. It is a crucial aspect of a company’s operations and plays a significant role in determining its profitability.
There are three main types of inventory:
- Raw materials: These are the basic materials that are used in the production process.
- Work-in-progress: This inventory includes goods that are in the process of being manufactured but are not yet completed.
- Finished goods: These are the final products that are ready for sale to customers.
Managing inventory effectively is essential for businesses to meet customer demand, minimize costs, and maximize profits. It involves monitoring stock levels, forecasting demand, and implementing inventory control measures.
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