Inventory:

Inventory refers to whatever a business sells, for example a clothing store has an inventory of clothes.

• Merchandising stores buy inventory at wholesale prices and sell them at retail prices.
• For example a sport store may buy baseball bats from a factory at $5.00 per bat and mark up by 20% and charge $6.00 per bat, a profit of $1.00 per bat.

Inventory Management:

• It is expensive for a store to keep too much inventory because it requires space in the stockroom and the money used to buy the inventory could be invested in the bank if it wasn't used to buy the items.
• Not having enough inventory means that a business won't have the product when it needs it and lost sales.
• Spreadsheets are great for keeping track of inventory and calculating totals and markups.

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