The three perspectives of defining inventory. They are types of inventory, functions of inventory and nature of inventory. Raw material, work in process, finished goods inventory, distribution inventory and maintenance, repair and operating supplies (MRO) are the types of inventory. Safety stock, cycle stock, decoupling inventory, transportation inventory, hedge inventory, anticipation inventory, buffer inventory are the functions of inventory. The nature of inventory could be independent or dependent.
Are you able to discern the differences between types, functions and nature of inventory?
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