Subinventories

Subinventories are a fundamental concept in inventory management systems, representing distinct physical or logical groupings of inventory items within a main inventory. They are used to segregate stock based on various criteria, such as location, condition, ownership, or purpose. For example, a company might use a "Finished Goods" subinventory for completed products ready for sale, a "Raw Materials" subinventory for components used in production, and a "Work-in-Progress" subinventory for items currently undergoing manufacturing. Another common use case is to delineate inventory by warehouse location or even by specific storage bins within a warehouse. This granular level of organization allows for more accurate tracking, better control over stock movement, and improved reporting on inventory levels and costs. By assigning items to specific subinventories, businesses can more effectively manage stockouts, reduce holding costs, and streamline their supply chain operations. The ability to define and manage multiple subinventories provides flexibility in adapting inventory strategies to diverse business needs.