what is work in progress inventory

what is work in progress inventory refers to goods that are in the process of being manufactured but are not yet completed. This type of inventory includes raw materials that have been partially processed, items that are undergoing assembly, or products that are still awaiting the next step in the production cycle. Work in progress (WIP) inventory is an essential part of supply chain management, as it helps businesses track the flow of materials and labor, estimate production timelines, and identify potential bottlenecks. Managing WIP inventory effectively can lead to better production efficiency, reduced costs, and faster delivery times for customers.