Differentiate between merchandising inventory and manufacturing inventory?

Merchandise Inventory is inventory that a store purchased to resell like Macy's or Sears.

Manufacturing inventory is inventory that is made by the manufacturer like a car manufacturer

Retailers have merchandise inventory. That's they buy the ready made products and sell it to consumers. e.g; shampoo, soap etc.
Manufacturing inventory includes 3 things: Raw material, Work in process and finished goods. It includes factories for shampoo and soap.