What type of inventory is used for items that are frequently utilized or ordered?

Velocity Inventory is specifically designed for items that are frequently utilized or ordered. This type of inventory is characterized by high turnover rates, meaning that these items are constantly moving in and out of stock. The aim of managing velocity inventory is to ensure that there is always enough supply to meet demand without overstocking, which can lead to increased holding costs or wastage.

In the realm of logistics and supply chain management, velocity inventory is pivotal because it enables organizations to respond swiftly to customer needs. By keeping a close watch on the inventory levels of these high-turn items, businesses can optimize their operations, reduce lead times, and better manage replenishment cycles, ultimately leading to improved service levels and customer satisfaction.

The other inventory types—like standard, static, and batch—serve different purposes and are typically focused on items that do not move as quickly or that may be stored in larger quantities for specific uses, making them less suitable for frequent and immediate usage.