What Is Merchandise Inventory?

Commodity inventory refers to all commodities that stay in the circulation area at a certain point in time. There are two calibers of social commodity inventory and commercial sector commodity inventory. Social commodity inventory refers to all commodities (including commercial inventory, producer inventory, and national reserves) that have left the production area and have not yet entered the consumption area and remain in the circulation area. At present, only the social inventories of 20 major commodities such as grain, edible vegetable oil, fat pigs, fresh eggs, sugar, cotton, cotton cloth, and chemical fiber cloth are counted. The commodity inventory of the commercial sector refers to all commodities that have been purchased by the commercial sector that have not yet been sold and still hold their ownership. It is the main component of social commodity inventory. ^[1]