Describe inventory and provide some examples.
How does inventory affect a firm’s financial performance?
What are the different types of inventories maintained by a typical business entity?
Inventory is a company’s form of insurance against supply chain uncertainty. “Companies cope with this uncertainty and try to avoid delays with their own form of “insurance,” inventory” (Russell & Taylor, 2009, p. 411). In order to meet customer and self needs, companies maintain inventory.
“Inventory is a stock of items kept by an organization to meet internal or external customer demand” (Russel