The term represents the complete listing of goods or materials a business holds for the ultimate purpose of resale or utilization in production. For a retailer, this constitutes finished products ready for sale to consumers. A manufacturing firm’s holdings might include raw materials, work-in-progress items (partially completed products), and completed goods awaiting distribution.
The maintenance of an appropriate volume is a critical aspect of business operations. Adequate supplies ensure the fulfillment of customer demand, preventing lost sales and preserving client relationships. Effective management also minimizes carrying costs associated with storage, obsolescence, and potential spoilage. Historically, manual counting and record-keeping were standard. Today, technology offers sophisticated tracking and optimization methods.
