Understanding inventory is like knowing the lingo at a party—you can’t engage if you don’t speak the language. Whether you’re wrangling warehouse stock or fine-tuning your supply chain, terms like “lead time,” “stockout,” and “reorder point” shape how businesses manage inventory effectively. This article breaks down core inventory concepts with a touch of humor, making it easier to grasp the essentials without feeling like you’ve wandered into an accounting class. By the end, you’ll know the difference between FIFO and LIFO, why safety stock is your unsung hero, and how cycle counts keep things running smoothly.
Inventory: The Basics
Inventory isn’t just the stuff you sell—it’s everything your business holds to keep running, from raw materials to finished goods. Think of it as the lifeblood of operations. Too much, and you’re drowning in storage costs. Too little, and you’re losing sales faster than a phone with a cracked screen. Balance is the name of the game.
Key Concepts You Should K…
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