WHAT IS INVENTORY?

Any quantifiable item that you can handle, buy, sell, store, consume, produce, or track can be considered inventory.

This covers everything from office and maintenance supplies, to raw material used for manufacturing, to semi-finished and finished goods, to fuel used to power equipment used in the business.

1.Goods for resale

2.Consumables

3.Packing material

4.Stock items

•Raw materials

•Work In Progress (WIP)

•Semi finished Goods (SFG)

•Finished Goods (FG)

1.Goods for resale – paper, wood, boxes, TV

2.Consumables – paper, fuel, glue

3.Packing material – wood, boxes, plastic

4.Stock items –

•Raw - screws, wood, resistor, fabric

•WIP - Screws, wood, resistor, fabric

•SFG- Table top, drawer, motherboard

•FG – Table, TV

•RAW MATERIALS-

–materials and components scheduled for use in making a product



•WORK IN PROGRESS(WIP) –

–materials and components that have begun their transformation to finished goods

•SEMI FINISHED GOODS

•FINISHED GOODS

–goods ready for sale to customers.