Inventory is typically classified into four main categories based on its stage in the production process or its purpose. Understanding these categories helps you manage each type appropriately.
Basic inputs that have not yet entered the production process. These are the building blocks of your products.
Management tip: Track supplier lead times and maintain safety stock to prevent production delays.
Partially completed goods currently in the manufacturing process. They have begun transformation but are not yet ready for sale.
Management tip: Minimize WIP to reduce carrying costs and production bottlenecks.
Completed products that have passed quality control and are ready for sale to customers.
Management tip: Use demand forecasting to balance availability with holding costs.
Maintenance, Repair, and Operations supplies. Items used to support production but not incorporated into the final product.
Management tip: Align reorder points with preventive maintenance schedules.
| Industry | Raw Materials | WIP | Finished Goods |
|---|---|---|---|
| Furniture | Lumber, fabric, hardware | Frames, upholstered pieces | Completed chairs, tables |
| Electronics | Chips, wires, plastics | Assembled PCBs | Packaged devices |
| Food & Beverage | Ingredients, packaging | Batter, fermenting products | Packaged food, bottles |
| Retail | N/A (buy finished) | N/A | All store inventory |
StockZip helps you organize inventory by type, location, and status. Use folders and tags to categorize raw materials, WIP, finished goods, and MRO supplies all in one system.
Common questions about scanning, offline mode, pricing, and migration.
The four main types are: (1) Raw Materials - unprocessed inputs, (2) Work-in-Progress (WIP) - partially completed goods, (3) Finished Goods - completed products ready for sale, and (4) MRO - maintenance, repair, and operations supplies.