Unit 11 Types of Inventory

​Inventory awaiting production

​

​​Raw Materials

​

​Items that are some stage in the manufacturing process.

​

​​Work in Process

​

​Completed goods awaiting distribution and sale.

​​Finished Goods

​

Fill in the Blank

A complete list of materials/products in stock: __________

Multiple Choice

Materials that are in transit or off-site

• Distribution Inventory

• MRO Supplies

• Service Part

Multiple Choice

Materials that have been processed in some way, but are not finished

• Raw Materials

• Service Parts

• Work in Process

Inventorying helps a company in terms of logically ordering and obtaining more raw materials as needed to produce the items in demand.​

​Use

It is defines as the quantity of goods owned and stored by a business.​

​Definition

​What is inventory

Inventory represents one of the largest sources of revenue within a company and it drives the flow of materials throughout an organization.​

Besides the four specific inventory types, businesses may also utilize the following inventories: buffer, cycle, decoupling, and transit inventory.​

​

​Types of Inventory

​

Fill in the Blank

Items in transit from one location to another

Reorder

Buffer Inventory

• An excess

• of supply

• based on

• forecasted demand.

1

2

3

4

• 1
• 2
• 3
• 4

Reorder

Cycle Inventory

• It's a portion

• of the

• available inventory

• used within a

• certain timeframe.

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

There are several types of inventory control systems, that business may use to monitor, record, and distribute raw materials and finished goods throughout the organization more effectively.​

​

​

​Inventory Management

​

Open Ended

Write the three examples of inventory control systems: