Unit 11 Types of Inventory

​Inventory awaiting production

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​​Raw Materials

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​Items that are some stage in the manufacturing process.

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​​Work in Process

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​Completed goods awaiting distribution and sale.

​​Finished Goods

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Fill in the Blanks

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.​

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​Types of Inventory

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Fill in the Blanks

Reorder

Buffer Inventory

• An excess

• of supply

• based on

• forecasted demand.

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Reorder

Cycle Inventory

• It's a portion

• of the

• available inventory

• used within a

• certain timeframe.

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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.​

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​Inventory Management

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Open Ended

Write the three examples of inventory control systems: