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)
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