Generally, inventory types can be grouped into four classifications: raw material, work-in-process, finished goods, and MRO goods.
- RAW MATERIALS.
- FINISHED GOODS.
- TRANSIT INVENTORY.
- BUFFER INVENTORY.
- ANTICIPATION INVENTORY.
- DECOUPLING INVENTORY.
- CYCLE INVENTORY.
Correspondingly, what are examples of inventory?
Inventory is commonly thought of as the finished goods a company accumulates before selling them to end users. But inventory can also describe the raw materials used to produce the finished goods, goods as they go through the production process (referred to as "work-in-progress" or WIP), or goods that are "in transit."
What are the three types of inventory?
Three Categories. A typical manufacturer will identify three types of inventory: raw materials, work in process and finished goods. Raw materials are the basic "inputs" of production -- steel, wood, plastic, chemicals and anything else that gets turned into the final product.