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The Inventory function involves the activities that support the planning, maintenance and reporting of goods and materials held available in stock to meet the manufacturing and operational needs of the business.

Too little inventory results in unfulfilled orders, customer frustration, loss of sales and corresponding loss of revenue. If the situation continues it may result in loss of customers and market share.

Too much inventory results in misallocated funds that could be used elsewhere, aging inventory of reduced value and possibly outdated products that cannot be profitably sold to customers.

The Inventory Business Area Model provides a comprehensive data architecture to support the inventory management and reporting function:

>  Item
>  Warehouse
>  Lot
>  Supplier
>  Storeroom
>  Item Reporting
>  Item Disposition
>  Receiving
>  Inventory Transaction
>  Pick Lists
>  Shipment
>  Inventory Reporting
>  Inventory Metrics
     >>  Aging
     >>  Safety
     >>  Quarantine
     >>  Contingency
     >>  Obsolete
     >>  Allocation
     >>  Anticipation
     >>  Available-to-Promise

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