Inventory

Inventory encompasses raw materials, work-in-progress products, and finished goods that are considered a part of a business's assets that are ready or will be ready for sale. Managing inventory effectively can help a business meet demand without overproducing or wasting resources, which is vital for operational efficiency and profitability. Inventory management includes the ordering, storing, using, and selling of a company's inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing such items. Effective inventory management can lead to a reduction in costs and improve cash flow, which is crucial for the financial health of a business.