Operations

Inventory

Also known as stock, stock on hand, goods in hand

The goods you are holding and have not sold yet. It is cash sitting on a shelf — too little and you miss sales, too much and you are broke but full of stock.

Example

A store holding ₹6,00,000 of unsold festive stock in January has ₹6,00,000 it cannot spend.

Related terms

COGS

The direct cost of producing what you sell — materials, manufacturing, delivery. Not overheads like rent or salaries of non-production staff.

Working Capital

The short-term money available to run day-to-day operations — what you own that can quickly become cash, minus what you owe soon.

Just-in-Time

Ordering stock only as you need it instead of holding large amounts. Frees up cash but leaves no cushion if a supplier is late.

Supply Chain

Everything it takes to get a product from raw material to your customer’s hands — suppliers, manufacturing, storage and delivery.

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