Work in process

[8] The term is used in supply chain management, and WIP is a key input for calculating inventory on a company's balance sheet.

[12] Higher WIP inventory levels are advantageous in that they can support a surge in demand, as well as improve cycle time since there is more material in production.

[14] These tools analyze historical data, market trends, and customer behavior to predict future demand with greater accuracy.

This allows companies to optimize WIP levels, ensuring they have enough material to meet anticipated demand without carrying excessive inventory that could become obsolete.

[11] In the United Kingdom, HMRC has no specific definition of work-in-process, but three different types of uncompleted items are identified for tax purposes: