Materials
A deconstruction company refurbishes wood and packages it for shipping. The wood is considered a finished good when packaging is complete. When it is loaded into a truck it is considered goods in transit.Components
An industrial products company produces parts for aircraft. Customers often place urgent orders that are required immediately. The firm manufactures thousands of different parts in small production runs and stocks them in inventory until a customer order is received. This allows the firm to reduce order turnaround time but results in a large inventory of finished goods.Products
An electronics company manufacturers cameras in small runs based on sales forecasts. Every effort is made to minimize inventory because cameras are frequently improved and old models quickly lose value. As such, the firm's inventory of finished goods is small with an average inventory age of less than 3 days.| Overview: Finished Goods | ||
Type | ||
Definition | Items that are completely manufactured or processed and are ready to be sold to customers. | |
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