A category is a classification or grouping of items or entities that share common characteristics or attributes. In business and inventory management, categories are used to organize products or services into distinct groups for easier identification, management, and analysis. Categories help in streamlining operations, enhancing customer experience, and improving marketing strategies by allowing businesses to manage and target specific segments more effectively. For example, in a retail context, categories might include electronics, clothing, and groceries, while in a restaurant, categories could be appetizers, main courses, and desserts. Proper categorization aids in inventory tracking, sales analysis, and decision-making processes.