6.1 Functions and forms of inventories

Proper inventory management requires a thorough understanding of both the functions and forms of inventory.

The functions of inventory

	Provide and maintain good customer service.
	Smooth the flow of goods through the productive process.
	Provide protection against the uncertainties of supply and demand.
	Obtain a reasonable utilization of people and equipment.

The forms of inventory

	We can classify inventory according to form as well as function.
	The following classification is much more common.
	Five forms of inventories:

		Raw materials, purchased parts, and packaging.
		Work- in process.
		Finished goods.

6.1 Functions and forms of inventories

		Maintenance, repair, and operating (MRO) items.
		Resale items.

6.1 Functions and forms of inventories

6.1 Functions and forms of inventories

6.1 Functions and forms of inventories

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6.1 Functions and forms of inventories

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6.1 Functions and forms of inventories

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6.1 Functions and forms of inventories

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6.1 Functions and forms of inventories

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6.1 Functions and forms of inventories

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6.1 Functions and forms of inventories

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6.1 Functions and forms of inventories

6.1 Functions and forms of inventories

6.1 Functions and forms of inventories