yet ready for sale. In the case of a candle-making business, work-in-progress inventory might
3.
Finished goods are products that have completed the production process and are ready to be
sold: the candles themselves.
4.
Maintenance, repair, and operations (MRO) goods are items used to support and facilitate
the production of finished goods. These items are usually consumed as a result of the
production process but aren‘t a direct part of the finished product. For instance, disposable
molds used to manufacture candles would be considered MRO inventory.
As you‘ll see below, there are other terms such as ―decoupling inventory‖ and ―pipeline
inventory‖ used to describe types of stock-based on its theoretical purpose and use. Nonetheless,
physical inventory almost always falls into one of the four categories above.
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