Inventory in supply chain management is the collection of all items, merchandise, goods, and materials held by a business that could be used to meet customer demand. It includes both raw materials used to manufacture finished products and finished products ready to be sold. In supply chain management, inventory plays a critical role in ensuring the smooth running of operations, keeping customers satisfied, and optimizing profits. Companies must carefully manage their inventory to ensure they have enough on-hand to meet customer demands, while minimizing costs associated with overstocking and carrying too much inventory. By maintaining an efficient inventory process, businesses can lower their costs and increase their profit margins.