Inventory

Inventory refers to the goods, products, or materials that a business keeps on hand for sale or production. It includes raw materials, work-in-progress items, and finished products ready to be sold to customers. Managing inventory effectively ensures a company can meet customer demand without overstocking, which ties up capital, or understocking, which leads to missed sales. Inventory levels are closely monitored to balance supply and demand, support operational efficiency, and optimize profitability. In essence, inventory acts as the supply buffer that keeps a business functioning smoothly.