Finished goods inventory refers to the completed products that a company has on hand and ready for sale. This inventory is a critical component of a company’s supply chain management, as it represents the final stage of production before products are shipped to customers. The value of finished goods inventory is an important metric for financial reporting, as it represents a significant portion of a company’s assets. Effective management of finished goods inventory requires careful planning and forecasting, as well as efficient production and distribution processes. Companies must balance the costs of holding inventory against the potential benefits of having products readily available for customers. In addition, companies must ensure that their finished goods inventory is properly accounted for and tracked, in order to avoid stockouts, overstocking, and other inventory-related issues. Overall, finished goods inventory is a critical component of a company’s operations, and effective management of this inventory is essential for long-term success.
