Raw material inventory refers to the stock of unprocessed materials a company holds before they enter the production process. Managing this inventory well is critical too little leads to production delays, while too much drives up storage costs and ties up working capital. For manufacturers, food producers, and other product-based businesses in the Philippines, getting this balance right directly affects operational efficiency and profitability.<\/p>\n
This article covers the definition of raw material inventory, the most common techniques used to manage it, how to calculate both its value and turnover ratio, and practical steps businesses can take to keep raw material levels optimized.<\/p>\n
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