TYPES OF INVENTORY

Raw materials are unprocessed materials used to produce a good. Examples of raw materials include:

Work-in-progress inventory is the partially finished goods waiting for completion and resale. WIP
inventory is also known as inventory on the production floor.

Finished Good are products that go through the production process, and are completed and ready for
sale.

Distribution Inventories is the splitting of physical goods across different fulfillment centers that are
strategically chosen to keep inventory closer to the end customer.

Maintenance, Repair and Operating Supplies (MRO) is the inventory that is required to assemble and
sell finished goods but is not actually a part of the product itself.For example, if you were a clothing
manufacturer making jeans, then the sewing machine and needles would be considered MRO.