Inventory control
The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs
Types of inventory
•Raw materials: materials that will become part of the product during the production process
•Work-in-process: partially completed products
•Finished-goods: completed goods
Costs of inventory
•Holding costs: the investment and storage costs of inventory
•Stock-out costs: the costs of not having inventory available when needed