1. The different types of inventory
Inventories vary in nature. They are both a necessity and a heavy financial constraint; some are "suffered", i.e. the result of operation, while others are "wanted", i.e. created and form an integral part of production management.
This is why there are different ways of classifying inventories; the one most often used relates to the flow of materials (physical flow) through the production system (figure 1 ).
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The different types of inventory
Stock functions
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