Ans: Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale.
Ans: Inventory is generally categorized as
- Raw materials
- Work-in-progress and
- Finished goods
Ans: Raw materials are unprocessed materials used to produce a good. Examples of raw materials include aluminum and steel for the manufacture of cars, flour for bakeries production of bread, and crude oil held by refineries.
Ans: Work-in-progress inventory is the partially finished goods waiting for completion and resale; work-in-progress inventory is otherwise known as inventory on the production floor. For example, a half-assembled airliner or a partially completed yacht would be work-in-process.
Ans: Finished goods are products that have completed production and are ready for sale. Retailers typically refer to this inventory as "merchandise.” Common examples of merchandise include electronics, clothes, and cars held by retailers.
Ans: Inventory management refers to the process of ordering, storing, and using a company's inventory. These include the management of raw materials, components, and finished products, as well as warehousing.
Ans: An inventory management system/Software is a tool that allows you to track goods across your business’s supply chain. It optimizes the entire spectrum spanning from order placement with your vendor to order delivery to your customer, mapping the complete journey of a product.