Inventory is the accounting of items, component parts and raw materials a company uses in production, or sells. Inventory is an important part of the business cycle as it contains information about the current state of production for products and services. It is used to help companies to plan for future needs, and to measure their progress towards meeting these requirements.
Inventory is an important part of inventory management. This Tutorial will talk about how to manage inventory in a company that has multiple products and components, like manufacturing or retail. The verb “inventory” refers to the act of counting or listing items. As an accounting term, inventory refers to all stock in the various production stages and is a current asset. By keeping stock, both retailers and manufacturers can continue to sell or build items. Inventory is a key asset for most companies. You don't have to worry about inventory if you know how to plan it properly. Inventory planning is a very important asset for any business. A proper inventory system can be a very effective tool to manage the cost of goods sold and ensure quick turn around of the inventory.