Example of Inventory
Let’s take an example of inventory for a retail apparel store.
1. Raw Materials: This store’s raw materials would comprise fabrics, buttons, zippers, threads, and other products used in the creation of clothes.
2. Work-in-Progress (WIP): These are partially completed garments that are still being fitted, sewn, or customised. They are not yet available for purchase but are in the production stage.
3. Finished Goods: These are finished garment items that are ready to sell. This comprises shirts, trousers, dresses, jackets and so forth.
4. Maintenance, Repair, and Operations (MRO) Inventory: This could include products like sewing machines, needles, scissors, hangers, and other tools and equipment required to keep the store running and help the manufacturing process.
5. Cycle Inventory: Inventory that changes as new collections are launched or existing ones are phased out. For example, the store may stock up on winter goods in the autumn and lower its inventory of summer clothing throughout that time.
6. Seasonal Inventory: Inventory stored in preparation of seasonal demand swings. For example, the retailer may stock up on swimsuits and beachwear during the summer and coats and scarves during the winter.
These are just a few examples of the merchandise that a retail clothes store may handle. Each sort of inventory serves a distinct purpose and necessitates careful management to maximise stocking levels, save costs, and satisfy customer demands.
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