Inventory refers to the stock of goods and materials that a business holds for the purpose of resale or production.
Types of Inventory
Inventories comprise several categories, each serving a different role within the manufacturing, production, and retail industries. The categories of inventory include:
Goods purchased and held for resale
These are products that a company buys with the intention of selling them to customers without any modification. Examples may include items in a retail store, such as clothing, electronics, or groceries.
Finished goods produced
These are products that have completed the manufacturing process and are ready for sale to consumers. Finished goods are the end result of the production cycle and are fully packaged and labeled for sale.
Work in progress (WIP)
This category includes items that are in the process of being manufactured but are not yet completed. Work in progress involves all materials that have been put into production but whose final form is not yet achieved. It is crucial for tracking the progress of production and managing workflow.
Raw materials
Raw materials refer to the basic materials and supplies that are used in the production process. These are inputs that have not yet been processed or transformed into finished goods.
Examples include metals, plastics, and wood, which are essential for manufacturing various products.
Consumable stores
This refers to items used in the manufacturing process that are not directly part of the finished product but are essential for operations, such as lubricants, cleaning supplies, and tools. These consumables are generally spent during the production process and need to be replenished regularly.
NOTES ON KNUST
The transcript includes a note about KNUST (Kwame Nkrumah University of Science and Technology) ranking first globally for the provision of quality education, specifically in alignment with Sustainable Development Goal (SDG) 4.