What are the different types of inventory?

There can be stocks of items at every stage of production. There is not just the raw material or the finished goods but stock of the semi-finished goods as well. Even semi-finished goods can be further divided into various stages of completion. Therefore, inventory occurs at every stage of the business. Even the goods returned or the defective goods are a type of inventory and needs to be taken care of.

Efficient inventory management results in the best utilization of resources. Properly managed goods result in less wastage. A company can lower its cost by efficiently managing the inventory at all stages.