The meaning of inventory and inventory management.Inventory (Inventory) means any material or item that is stored for use in operations, production operations can be sold or other inventory operation is divided into four major categories, namely.1. raw material (Raw Material) is purchased or parts used in the production. 2. work in progress (Work-in-Process) is a piece of work that is in the process of manufacture or production, or waiting to be looking forward to production in the next step. Note that not all the production process stages 3. maintenance supplies (Supplies Maintenance/Repair/Operating) is a machine part or spare change in case when the original parts or all of the service life. 4. the finished product (Finished Goods) are the inputs through production, completely ready to be all sold to customers.If there is no inventory, production may not be smooth. In General, a relatively satisfactory sales if there is a large amount of inventory because they feel confident that any items with the sales inventory is the duty of maintaining balance between demand and supply, saving. Size (Economy of Scale) because of the large amount of orders as to costs and help keep the large quantities.
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