Inventory is the supply of raw materials
Inventory is the supply of raw materials, partially finished goods called work-in-progress and finished goods, an
organization maintains to meet its operational needs. It represents a sizeable investment and a potential source of waste
that needs to be carefully controlled. It managers keep too much inventory on hand, they will waste money storing it and
lose money it inventories are damaged or stolen. 13
Inventory is defined as a stock of goods that is maintained by a business in anticipation of some future demand.
3 The quantity to which inventory must fall in order to signal that an order must be placed to replenish an item. 14