MANAGEMENT

Detailed explanation-1: -Inventory planning is the process of determining the optimal quantity and timing of inventory for the purpose of aligning it with sales and production capacity. Inventory planning affects a company’s cash flow and profits while contributing to an efficient supply chain.

Detailed explanation-2: -Operating Inventory means consumable items used or held in storage for use in the operation of the Garden, including bathroom supplies, paper towels, cleaning materials, supplies, gardening supplies and equipment and other similar items.

Detailed explanation-3: -There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.

Detailed explanation-4: -As noted above, inventory is classified as a current asset on a company’s balance sheet, and it serves as a buffer between manufacturing and order fulfillment. When an inventory item is sold, its carrying cost transfers to the cost of goods sold (COGS) category on the income statement.