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Glossary Supply Chain / Term

inventory

Raw, intermediate or finished items that are physically stocked by an organization, or for which they are financially liable. Classification methods specify the usage (for production or as MRO), valuation method, degree of control, timing (to order or to stock) and other factors associated with investing company assets in inventoried items. The sole purpose of carrying inventory is to fill an expected future internal or external demand; the ability to accurately predict that demand determines the level of investment required.

Permanent link inventory - Creation date 2021-11-03


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