2nd November 2019

referenceforbusiness
16

What are the four basic types of inventory?

Generally, inventory types can be grouped into four classifications: raw material, work-in-process, finished goods, and MRO goods.
  • RAW MATERIALS.
  • WORK-IN-PROCESS.
  • 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.
Write Your Answer

Rate

60% people found this answer useful, click to cast your vote.

3 / 5 based on 2 votes.

Bookmark

Press Ctrl + D to add this site to your favorites!

Share