What are the purposes of inventories?

Question

What do inventories provide as a means of?

Answer 1

I suppose it depends on business. In broad terms it is a set of instruments, goods, materials that are not included in final product, but included in process of it creation and owned by business.

Answer 2

In business, inventories are being used to know the availability of stocks in businesses. This can be done in businesses for certain periods like weekly, monthly or couple of months and yearly. They do this to include in the monthly report of an accountant of the company. Because of this, the company will know which of its products are available and saleable. This helps the business to improve their products to maintain a healthy business.

Answer 3

The main purposes of inventories are to meet customer demand, minimize stockouts, reduce costs associated with ordering and production, and facilitate production planning and control.

Answer 4

Inventory serves the following purposes 

1. Provide a cushion between production and sales 

2. Ensure smooth flow of goods.

3. Ensure goods reach to the customers on time.

Answer 5

It provides a buffer between production and sales , smoothing out the flow of goods and ensuring that product are available  when customer order them. 

Answer 6

The primary purpose of inventories is to provide a means of tracking the quantity, quality, and cost of goods and materials in an organization. Inventories also provide a means of monitoring the flow of goods and materials in and out of the organization, as well as tracking the performance of the organization's supply chain. In addition, inventories can help to identify potential areas of improvement and provide a basis for decision making.