Effective inventory management is vital for business growth, production, and distribution decisions. Organizations typically have three types of inventory:

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Raw materials

Essential for production, raw materials are crucial for smooth operations. Adequate quantity is necessary to support manufacturing processes.

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Work-in-progress

This inventory represents products undergoing various production stages. These semi-finished goods require further processing to become sale-ready.

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Finished goods

These are ready-to-sell inventory items targeted at end customers. Quality and uniqueness play a significant role in generating sales and profitability.