Inventory refers to the stock of raw materials, work-in-progress (WIP), and finished goods held by a company to meet production and customer demand. Maintaining the right inventory levels is critical to ensuring continuity in operations, fulfilling orders on time, and avoiding overstocking or stockouts. Inventory management impacts operational efficiency, cash flow, and profitability. In logistics, accurate inventory tracking and reporting are essential to supply chain planning and decision-making.Â
Characteristics:
- Includes raw materials, WIP, and finished goods
- Supports production continuity and customer order fulfillment
- Prevents stock shortages and overstocking
- Impacts financial performance and supply chain efficiency
