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Oct 6, 2023 · Learn what inventory is, how it is valued, and why it is important for businesses. Find out the three types of inventory (raw materials, work-in-progress, and finished goods) and how to manage them effectively.
- Will Kenton
Sep 5, 2023 · Learn what inventory is, how it affects a company's financial health and prosperity, and how to classify and track it. Explore 13 types of inventory, from raw materials to excess inventory, with real-world examples and a graphic representation.
- Abby Jenkins
- Product Marketing Manager
- Raw materials. Raw materials consist of all the items that are processed to make the final product. In a cookie manufacturing company, the raw materials are items like milk, sugar, and flour that are used in the different stages of production.
- Work in progress. When raw materials have been sent for processing but have not yet been approved as finished goods, this stage is known as work in progress.
- Finished goods. Finished goods are the final items that are ready for sale in the market. These goods have passed through all stages of production and quality checking.
- MRO inventory. MRO stands for Maintenance Repairing and Operating supplies, this type of inventory is mostly relevant for manufacturing industries. MRO items are not accounted as inventory items in books of accounts, however, they play a crucial role in the day-to-day working of an organization.
Learn the meaning, synonyms, examples, and history of the word inventory as a noun and a verb. Find out how to use inventory in different contexts, such as business, accounting, or astronomy.
Learn what inventory is, how to classify it, and how to record and manage it in accounting. Find out the difference between periodic and perpetual inventory systems, and how to use inventory ratios to measure profitability.
Learn what inventory management is, how it works and why it is important for supply chain operations. Explore the different types of inventory management systems and the key features of effective inventory management.
May 27, 2024 · Inventory management refers to the process of ordering, storing, using, and selling a company's inventory. This includes the management of raw materials, components, and finished products, as...
