Inventory Management Basics

Hi there! Today we’ll cover the basics of inventory management and how it keeps your business running smoothly.

Inventory management is all about ordering, storing, and using stock efficiently. It saves money, avoids stockouts, and keeps customers happy.

There are three main types. Raw materials: the basics for production, like wood for furniture. Work-in-progress: items currently being made but not finished yet. And finished goods: the products ready for customers.

Three popular methods help manage stock. FIFO, or First In, First Out: older stock is sold first, great for perishable goods. LIFO, Last In, First Out: newer stock goes out first, often used for non-perishables. And Just-in-Time: inventory arrives only when needed, reducing storage costs.

So, that’s the basics of inventory management! Thanks for watching, and see you next time!