Inventory Management: Types of Inventory
Table of Contents
Introduction 1
Body 1 Raw materials 2 Work-in-process 4 Finished goods 5 Maintenance inventory 7
Conclusion 8
Reference 9
Introduction
Inventory is defined as a stock or store of goods .generally speaking, inventory can be divided by two types: independent demand and dependent demand, independent demand is kind of demand which is no need to rely others types of item they are ordered by the external customers or manufacturer for stock and sale. If one type of inventory depends upon another item, take the example of car. The car as finished goods is as independent demand item, while the raw materials and components used in the manufacture of the finished Goods.The number of goods depends on the types of the firm.If the firm is a manufacturer, it must maintain some inventory of raw materials and work-in-process in order to keep the factory operating. In addition, finishedgoods are another necessary inventory for the firm to meet the customers who need the goods suddenly. The firm which has enough inventories to satisfy customer is a goodevaluation for the firm’s standard and itsstability, italso is a good way to save the costs of production fee.
There are 8 types of inventories: buffer inventory, de-coupling inventory anticipation inventory, pipeline inventory raw materials, partially completed goods and maintenance inventory and in-transmit goods inventory. I will use an example as a cart factory with four types of inventories and it will be raw materials, work-in-progress, finished goods and maintenance tools.
Body
Raw materials
Raw materialsare one of the inventory items that are used in the manufacturer's conversion process to produce the semi-completive goods and finished productsTypically, raw materials are the things such as ore, grain, minerals, petroleum, chemicals, paper, wood, paint, steel, and food items.cart is kind of old tools using for transfer goods, because it can saving the cost of the production, and the
Introduction 1
Body 1 Raw materials 2 Work-in-process 4 Finished goods 5 Maintenance inventory 7
Conclusion 8
Reference 9
Introduction
Inventory is defined as a stock or store of goods .generally speaking, inventory can be divided by two types: independent demand and dependent demand, independent demand is kind of demand which is no need to rely others types of item they are ordered by the external customers or manufacturer for stock and sale. If one type of inventory depends upon another item, take the example of car. The car as finished goods is as independent demand item, while the raw materials and components used in the manufacture of the finished Goods.The number of goods depends on the types of the firm.If the firm is a manufacturer, it must maintain some inventory of raw materials and work-in-process in order to keep the factory operating. In addition, finishedgoods are another necessary inventory for the firm to meet the customers who need the goods suddenly. The firm which has enough inventories to satisfy customer is a goodevaluation for the firm’s standard and itsstability, italso is a good way to save the costs of production fee.
There are 8 types of inventories: buffer inventory, de-coupling inventory anticipation inventory, pipeline inventory raw materials, partially completed goods and maintenance inventory and in-transmit goods inventory. I will use an example as a cart factory with four types of inventories and it will be raw materials, work-in-progress, finished goods and maintenance tools.
Body
Raw materials
Raw materialsare one of the inventory items that are used in the manufacturer's conversion process to produce the semi-completive goods and finished productsTypically, raw materials are the things such as ore, grain, minerals, petroleum, chemicals, paper, wood, paint, steel, and food items.cart is kind of old tools using for transfer goods, because it can saving the cost of the production, and the