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Inventory (American English) or stock (British English) refers to the goods and materials that a business holds for the ultimate goal of resale, production or utilisation.[nb 1]
Inventory management is a discipline primarily about specifying the shape and placement of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials.
The concept of inventory, stock or work in process (or work in progress) has been extended from manufacturing systems to service businesses [1][2][3] and projects,[4] by generalizing the definition to be "all work within the process of production—all work that is or has occurred prior to the completion of production". In the context of a manufacturing production system, inventory refers to all work that has occurred—raw materials, partially finished products, finished products prior to sale and departure from the manufacturing system. In the context of services, inventory refers to all work done prior to sale, including partially process information.
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- ^ "Production and Operations Management: Manufacturing and Services", R.B. Chase, N.J. Aquiline and F.R. Jacobs, Eighth Edition, 1998, pp 582-583
- ^ "Operations and Supply Chain Management: The Core", Third Edition, F. Robert Jacobs and Richard B. Chase, p 346
- ^ Maynard's Industrial Engineering Handbook, Fifth Edition, Kjell B. Landin (ed.), McGraw-Hill 2001, p G.8
- ^ "Factory Physics for Managers", E.S. Pound, J.H. Bell, and M.L. Spearman, McGraw-Hill 2014, p 47