Definition
Inventory includes materials, work in progress, finished goods and other resources held to maintain process continuity and meet future demand.
Human Explanation
Inventory is a reserve of materials or products used to keep production moving and fulfil orders.
Why it Matters
An appropriate Inventory level reduces the risk of downtime and delays, but too much Inventory increases cost and hides organisational problems.
Conceptual Boundary
Inventory is not an objective by itself. It should support the process rather than replace process efficiency or hide existing problems.
Practical Perspective
Excess Inventory often creates a feeling of safety while hiding problems with flow, quality or planning.