Types of inventory management
Typically, inventory types can be grouped into four categories: (1) raw materials, (2) works-in-process, (3) maintenance, repair, and operations (MRO) goods , and (4) finished goods.
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As you’ll see below, there are other terms such as “decoupling inventory” and “pipeline inventory” used to describe types of stock-based on its theoretical purpose and use. Nonetheless, physical inventory almost always falls into one of the four categories above.
Stock keeping units — commonly known as SKUs — are product codes that you and others use to search and identify stock on hand from lists, invoices, or order forms.
Setting up an easy-to-understand system for SKUs is important because it’s the main way you’ll identify and differentiate product variants; this includes monitoring…
Stick to an alphanumeric system for your SKUs and avoid accents and symbols that can cause formatting issues in Excel or elsewhere. Remember that the more stock you have, the harder it is to go back and develop a naming system, so it’s best to choose one as soon as you start holding it.