Inventory in supply chain management is defined as the total amount of goods and materials held in stock by a business. It is a critical component of the supply chain, as it helps to ensure that a business has the necessary materials to meet customer demand. Inventory can include raw materials, finished goods, components, and work-in-process. It is important to have the right amount of inventory in stock, as too much inventory can lead to higher costs and too little inventory can lead to stock-outs and lost sales. By managing inventory effectively, businesses can ensure that they have the right amount of inventory on hand to meet customer demand, while also keeping costs low.
