Product Suite

Supply Chain Glossary - I

Supply Chain Glossary - I

inventory usage

The value or the number of units of an inventory item consumed over a period of time.

The value of the inventory at either its cost or its market value. Because inventory value can change with time, some recognition is taken of the age distribution of inventory. Therefore, the cost value of inventory is usually computed on a first-in-first-out (FIFO) basis, last-in-first-out (LIFO) basis, or a standard cost basis to establish the cost of goods sold.


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