Work-in-Progress refers to partially finished goods that are still undergoing manufacturing or assembly. These items have consumed some raw materials but are not yet complete products ready for sale.Managing WIP inventory is critical to maintaining efficient production flow and minimizing holding costs. Excessive WIP can indicate bottlenecks or inefficiencies, leading to increased lead times and tied-up capital. Conversely, too little WIP may cause production delays and stockouts, highlighting the importance of balancing WIP levels through effective scheduling and inventory control.
