Finished goods

How it is used

Always plural. One of the three main types of inventory, next to raw materials and work in progress. Planners watch finished goods stock, and finished goods are kept in the FG warehouse until shipping.

Example sentences

1. We have three days of finished goods in stock, enough to cover the holiday.

2. Finished goods are moved to the shipping area twice a shift.

Common collocations

• finished goods inventory
• finished goods warehouse
• finished goods stock

Related terms

• inventoryAll the materials and products a company holds: raw materials, parts, work in progress and finished goods waiting to be sold.
• work in progressProducts that have been started but are not finished yet, such as parts waiting between machines. Often shortened to WIP.
• raw materialA basic material, such as steel coil, plastic granules or cotton, that a factory turns into parts or products.
• make-to-orderDescribing a production strategy in which products are made only after a customer places an order, rather than in advance for stock. Shortened to MTO.

More terms: Inventory and Materials

• safety stock
• reorder point
• economic order quantity
• ABC analysis
• FIFO