The five types of inventories are:
Raw Materials Inventory: Includes unprocessed materials waiting to be converted into final products. Essential for continuous production and a buffer against supply interruptions.
Work-in-Progress (WIP) Inventory: Comprises partially finished goods undergoing the production process. It helps in tracking progress and controlling production efficiency.
Maintenance, Repair, and Operating (MRO) Inventory: Consists of items like spare parts, maintenance supplies, and operating accessories. Vital for maintaining machinery and minimizing downtime.
Finished Goods Inventory: These are completed products ready for sale or distribution. It plays a critical role in meeting immediate market demand.
Packing Materials Inventory: Includes packaging materials such as boxes, wrappers, and labels. Essential for protecting, preserving, and presenting products for sale.