Product inventory, also known as stock or merchandise, refers to the goods and materials that a business keeps in stock at any given time. It is the items required for production or sale, including raw materials, finished products, components and supplies. Product inventory management involves tracking stock levels, locations and inventory costs over time, allowing businesses to make informed decisions about ordering, budgeting and forecasting. Properly managing product inventory can be vital for success; it helps to ensure optimal customer service and maximize profits.