Inventory means a list compiled for formal transactional purposes. In the U.S. and Canada the term has developed from a list of goods and materials, especially those available in stock by a business. In accounting, inventory or stock is an asset.
The scope of inventory management concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods, and demand forecasting.
It also involves systems and processes that identify inventory requirements, set targets, provide replenishment techniques, report actual and projected inventory status, and handle all functions related to the tracking and management of materials. This would include the monitoring of material moved into and out of stockroom locations and the reconciling...