Whenever you see a reference to "creating an inventory" in Ansible, you are normally quite safe to assume that it is a static inventory. Ansible supports two types of inventory—static and dynamic, and we will cover the latter of these two later in this chapter. Static inventories are by their very nature static; they are unchanging unless a human being goes and manually edits them. This is great when you are starting out and testing Ansible, as it provides you with a very quick and easy way to get up and running quickly. Even in small, closed environments, static inventories are a great way to manage your environment, especially when changes to the infrastructure are infrequent.
Most Ansible installations will look for a default inventory file in /etc/ansible/hosts (though this path is configurable in the Ansible configuration...