Overall inventory
The sum of the pre-build inventory, safety stock, and cycle stock constitutes the overall inventory at distribution centers. This is demonstrated in the following graph:
The overall inventories at manufacturing plants are similar; however, they also include WIP (work-in process) as part of their total inventory.
WIP and in-transit inventory are the other two types of inventory that are discussed briefly in the following sections.
Last modified: Wednesday May 15, 2024