Inventory is all the money that the system has invested in purchasing things which it intends to sell.”

(chapter 8 The Goal)

Other Definitions

Inventory – Stock on hand; often divided between raw materials inventory, work-in-process , and finished goods inventory. (Lean Construction Institute Glossary)

Inventory – “Inventory is both an asset and a liability. Too much inventory consumes physical space, creates a financial burden and increases the possibility of damage, spoilage and loss. Too little inventory disrupts manufacturing operations, engenders chaos on the shop floor and increases the likelihood of poor customer service.” (Benfield in APICS: The Performance Advantage February 1996)

J. Jerrald Hayes
I am ex-architectural woodworker and general contractor turned IT, Business and Project Management consultant, software developer wannabe senior division triathlete and ski racer, Yankee fan and founder of Paradigm-360.com, 360 Difference Mac4Construction.com,iOS4Construction.com and now TheBuildingAndRemodelingWiki.com too.
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