The Sage Course Companion on Operations Management is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like an operations manager but also to think about the subject critically.
Inventory is present in all service and manufacturing processes. In manufacturing, inventory consists of the components that go to make up the product being manufactured. In services, inventory may be used as part of the service delivery system (for example disposable implements for hospital operations) or can be part of the tangible component of the service itself (for example the brochure for a car insurance policy).
Types of Inventory
All organisations will carry some inventory or stock of goods at any one time. This can range from items such as stationery to machinery parts or raw materials. Generally inventory is classified by its location or type.
Inventory Classified by Location
Inventory can be classified by location as raw materials (goods received from suppliers), work-in-progress (at some point ...