There are five basic reasons for keeping an inventory:
1. Time: The time lags present in the supply … See more

Inventory proportionality is the goal of demand-driven inventory management. The primary optimal outcome is to have the same number of days' (or hours', etc.) worth of inventory on hand across all products s… See more

It seems that around 1880 there was a change in manufacturing practice from companies with relatively homogeneous lines of products to horizontally integrated companies with unprecedented diversity in processes … See more

Each country has its own rules about accounting for inventory that fit with their financial-reporting rules.
For example, organizations in the U.S. define inventory to suit their needs within US Genera… See more

Inventories also play an important role in national accounts and the analysis of the business cycle. Some short-term macroeconomic fluctuations are attributed to the inventory cycle. See more