Inventories are important for all organizations to manage as they must be counted, paid for, used in operations and to satisfy customers. Inventories include finished goods held for sale, goods in warehouses and transit, work in process, and raw materials. The appropriate level of inventory is important as too much reduces profitability while too little damages customer confidence. Inventories play a key role in supply chain management by allowing companies to monitor goods flowing in and out of warehouses and meet normal operating needs.