Business inventory refers to the goods and materials that a company holds for the purpose of resale or production. This includes finished products, raw materials, and work-in-progress items. Proper management of inventory is crucial for businesses to meet customer demand while minimizing costs. Keeping track of inventory helps businesses understand what they have on hand and what they need to order. This process can involve using software systems to monitor stock levels, sales trends, and reorder points. Effective inventory management ensures that a business operates smoothly and can respond quickly to market changes.