This text provides informative, short introductions to the core concepts of Operations Management. This text contains more than 50 concept entries and is fully cross-referenced.An outstanding reference for Operations Management students at all levels.
Inventory refers to the stock of various items which is kept on site or in a facility in anticipation of a future use.
Manufacturing inventory has traditionally been described within three categories:
- Raw Materials Inventory: Sheets of metal, wood panels, etc. that are purchased for the purpose of using them in the manufacture of a product.
- Work in Process Inventory: Partially completed products which are located on the shopfloor and which are not ready for sale.
- Finished Goods Inventory: Goods which are finished and ready for sale, but which have not yet been purchased by final customers. This also includes goods purchased for resale, as for example in the case of a supermarket.
Factories often involve many additional types of inventory: spare parts, supplies, indirect materials, tools and fixtures, ...