What is the inventory?

Inventory is the total amount of goods and/or materials contained in the store or factory at the moment. Shop owners must know the exact number of items on their shelves and storage spaces to place orders or control losses. Factory managers must know how many units of their products are available for customer orders. The restaurant has to order more meals based on their current needs and offers. All these business rely on the number of supplies to provide answers. Many companies regularly accept the inventory of their supplies to avoid popularity. Others have supplies to insure the number of ordered items that corresponds to the actual number of items physically. A shortage or excess of the inventory may indicate a problem with theft (called "Shricage" in retail circles) or inaccurate accounting procedures.

Restaurant and other retail businesses that take frequent supplies can use the "par" system perBed on the results. For example, the inventory itself can reveal 10 apples, 12 oranges and 8 bananas on the production shelf. The preferred number of each item is stated on the "par", the main list of all items in the restaurant. If the panel sheet requires 20 apples, 15 oranges and 10 bananas, then the manager knows that he will place an order for 10 apples, 3 oranges and 2 bananas to reach par. The same principle applies to any other retail with a range of different product lines.

Companies also accept every quarter to generate numbers for financial messages and tax records. Ideally, most companies want to have enough inventories to meet current orders. Too many products that disappear in the warehouse may look less attractive to investmentors and potential customers. Quite often, the company offers significant discounts if the stock numbers are high and the sale is low. This is commonly seen in new car stores because manufacturers release next year modEly before selling current vehicles on the plot. Furniture companies can also offer "Inventory sale" to clean their showrooms for newer goods.