diff --git a/src/app/api/inventory/[id]/route.ts b/src/app/api/inventory/[id]/route.ts
index b2ed152..9b58e2e 100644
--- a/src/app/api/inventory/[id]/route.ts
+++ b/src/app/api/inventory/[id]/route.ts
@@ -34,7 +34,7 @@ export async function PUT(
 ) {
   try {
     const { id } = await params;
-    const { name, quantity, value, location } = await request.json();
+    const { name, quantity, value, location, status } = await request.json();
 
     if (!name || quantity === undefined || value === undefined) {
       return NextResponse.json(
@@ -58,6 +58,7 @@ export async function PUT(
       quantity,
       value,
       location || '',
+      status || 'active',
       id
     );
 
@@ -81,13 +82,17 @@ export async function PUT(
     if (currentItem.location !== (location || '')) {
       auditQueries.create.run(id, 'UPDATE', 'location', currentItem.location || '', location || '');
     }
+    if (currentItem.status !== (status || 'active')) {
+      auditQueries.create.run(id, 'UPDATE', 'status', currentItem.status || 'active', status || 'active');
+    }
 
     return NextResponse.json({
       id: id,
       name,
       quantity,
       value,
-      location: location || ''
+      location: location || '',
+      status: status || 'active'
     });
   } catch (error) {
     console.error('Error updating inventory item:', error);
diff --git a/src/app/api/inventory/route.ts b/src/app/api/inventory/route.ts
index fa36d6b..564eca3 100644
--- a/src/app/api/inventory/route.ts
+++ b/src/app/api/inventory/route.ts
@@ -2,9 +2,18 @@ import { NextRequest, NextResponse } from 'next/server';
 import { inventoryQueries, auditQueries } from '@/lib/database';
 
 // GET /api/inventory - Get all inventory items
-export async function GET() {
+export async function GET(request: NextRequest) {
   try {
-    const items = inventoryQueries.getAll.all();
+    const { searchParams } = new URL(request.url);
+    const status = searchParams.get('status');
+    
+    let items;
+    if (status) {
+      items = inventoryQueries.getByStatus.all(status);
+    } else {
+      items = inventoryQueries.getActive.all(); // Default to active items only
+    }
+    
     return NextResponse.json(items);
   } catch (error) {
     console.error('Error fetching inventory:', error);
@@ -18,7 +27,7 @@ export async function GET() {
 // POST /api/inventory - Create new inventory item
 export async function POST(request: NextRequest) {
   try {
-    const { name, quantity, value, location } = await request.json();
+    const { name, quantity, value, location, status } = await request.json();
 
     if (!name || quantity === undefined || value === undefined) {
       return NextResponse.json(
@@ -27,7 +36,7 @@ export async function POST(request: NextRequest) {
       );
     }
 
-    const result = inventoryQueries.create.run(name, quantity, value, location || '');
+    const result = inventoryQueries.create.run(name, quantity, value, location || '', status || 'active');
     const itemId = result.lastInsertRowid;
     
     // Log the creation
@@ -39,7 +48,8 @@ export async function POST(request: NextRequest) {
         name,
         quantity,
         value,
-        location: location || ''
+        location: location || '',
+        status: status || 'active'
       },
       { status: 201 }
     );
diff --git a/src/app/api/users/route.ts b/src/app/api/users/route.ts
new file mode 100644
index 0000000..70bc98c
--- /dev/null
+++ b/src/app/api/users/route.ts
@@ -0,0 +1,48 @@
+import { NextRequest, NextResponse } from 'next/server';
+import { userQueries } from '@/lib/database';
+
+export async function GET() {
+  try {
+    const users = userQueries.getAll.all();
+    return NextResponse.json(users);
+  } catch (error) {
+    console.error('Error fetching users:', error);
+    return NextResponse.json(
+      { error: 'Failed to fetch users' },
+      { status: 500 }
+    );
+  }
+}
+
+export async function POST(request: NextRequest) {
+  try {
+    const { name, email } = await request.json();
+
+    if (!name || !email) {
+      return NextResponse.json(
+        { error: 'Name and email are required' },
+        { status: 400 }
+      );
+    }
+
+    // Check if user already exists
+    const existingUser = userQueries.getByEmail.get(email);
+    if (existingUser) {
+      return NextResponse.json(
+        { error: 'User with this email already exists' },
+        { status: 409 }
+      );
+    }
+
+    const result = userQueries.create.run(name, email);
+    const newUser = userQueries.getById.get(result.lastInsertRowid);
+
+    return NextResponse.json(newUser, { status: 201 });
+  } catch (error) {
+    console.error('Error creating user:', error);
+    return NextResponse.json(
+      { error: 'Failed to create user' },
+      { status: 500 }
+    );
+  }
+}
diff --git a/src/app/globals.css b/src/app/globals.css
index dc98be7..efa8047 100644
--- a/src/app/globals.css
+++ b/src/app/globals.css
@@ -3,6 +3,56 @@
 
 @custom-variant dark (&:is(.dark *));
 
+/* Mobile-friendly touch targets and scrolling */
+html {
+  -webkit-text-size-adjust: 100%;
+  -ms-text-size-adjust: 100%;
+}
+
+body {
+  -webkit-font-smoothing: antialiased;
+  -moz-osx-font-smoothing: grayscale;
+  overscroll-behavior-y: none;
+}
+
+/* Better touch targets */
+.touch-manipulation {
+  touch-action: manipulation;
+  -webkit-tap-highlight-color: transparent;
+}
+
+/* Smooth scrolling for mobile */
+* {
+  -webkit-overflow-scrolling: touch;
+}
+
+/* Prevent zoom on inputs on iOS */
+input[type="text"],
+input[type="number"],
+input[type="email"],
+input[type="password"],
+select,
+textarea {
+  font-size: 16px;
+}
+
+@media (max-width: 640px) {
+  /* Larger touch targets on mobile */
+  button,
+  input[type="button"],
+  input[type="submit"],
+  input[type="checkbox"],
+  select {
+    min-height: 44px;
+  }
+  
+  /* Better spacing for mobile */
+  .container {
+    padding-left: 1rem;
+    padding-right: 1rem;
+  }
+}
+
 @theme inline {
   --color-background: var(--background);
   --color-foreground: var(--foreground);
diff --git a/src/app/inventory/[id]/page.tsx b/src/app/inventory/[id]/page.tsx
index f158435..5227711 100644
--- a/src/app/inventory/[id]/page.tsx
+++ b/src/app/inventory/[id]/page.tsx
@@ -9,6 +9,7 @@ interface InventoryItem {
   quantity: number;
   value: number;
   location: string;
+  status: string;
   created_at: string;
   updated_at: string;
 }
@@ -34,7 +35,8 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
     name: '',
     quantity: 0,
     value: 0,
-    location: ''
+    location: '',
+    status: 'active'
   });
 
   // Initialize item ID from params
@@ -59,7 +61,8 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
           name: data.name,
           quantity: data.quantity,
           value: data.value,
-          location: data.location
+          location: data.location,
+          status: data.status || 'active'
         });
       } else {
         console.error('Item not found');
@@ -129,7 +132,8 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
         name: item.name,
         quantity: item.quantity,
         value: item.value,
-        location: item.location
+        location: item.location,
+        status: item.status || 'active'
       });
     }
     setIsEditing(false);
@@ -183,33 +187,33 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
   }
 
   return (
-    <div className="container mx-auto p-4 max-w-4xl">
+    <div className="container mx-auto p-3 sm:p-4 max-w-4xl min-h-screen">
       {/* Navigation */}
-      <div className="mb-6">
+      <div className="mb-4 sm:mb-6">
         <button
           onClick={() => router.push('/')}
-          className="text-blue-500 hover:text-blue-600 font-medium"
+          className="text-blue-500 hover:text-blue-600 font-medium text-sm touch-manipulation"
         >
           ← Back to Inventory
         </button>
       </div>
 
       {/* Item Details */}
-      <div className="bg-white shadow-md rounded-lg p-6 mb-6">
-        <div className="flex justify-between items-start mb-4">
-          <h1 className="text-2xl font-bold">{item.name}</h1>
-          <div className="flex gap-2">
+      <div className="bg-white shadow-md rounded-lg p-4 sm:p-6 mb-4 sm:mb-6">
+        <div className="flex flex-col sm:flex-row justify-between items-start mb-4 gap-3">
+          <h1 className="text-xl sm:text-2xl font-bold">{item.name}</h1>
+          <div className="flex flex-wrap gap-2 w-full sm:w-auto">
             {!isEditing ? (
               <>
                 <button
                   onClick={() => setIsEditing(true)}
-                  className="bg-blue-500 hover:bg-blue-600 text-white px-4 py-2 rounded font-medium"
+                  className="flex-1 sm:flex-initial bg-blue-500 hover:bg-blue-600 text-white px-3 sm:px-4 py-2 rounded font-medium text-sm touch-manipulation"
                 >
                   Edit
                 </button>
                 <button
                   onClick={deleteItem}
-                  className="bg-red-500 hover:bg-red-600 text-white px-4 py-2 rounded font-medium"
+                  className="flex-1 sm:flex-initial bg-red-500 hover:bg-red-600 text-white px-3 sm:px-4 py-2 rounded font-medium text-sm touch-manipulation"
                 >
                   Delete
                 </button>
@@ -218,13 +222,13 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
               <>
                 <button
                   onClick={saveItem}
-                  className="bg-green-500 hover:bg-green-600 text-white px-4 py-2 rounded font-medium"
+                  className="flex-1 sm:flex-initial bg-green-500 hover:bg-green-600 text-white px-3 sm:px-4 py-2 rounded font-medium text-sm touch-manipulation"
                 >
                   Save
                 </button>
                 <button
                   onClick={cancelEdit}
-                  className="bg-gray-300 hover:bg-gray-400 text-gray-700 px-4 py-2 rounded font-medium"
+                  className="flex-1 sm:flex-initial bg-gray-300 hover:bg-gray-400 text-gray-700 px-3 sm:px-4 py-2 rounded font-medium text-sm touch-manipulation"
                 >
                   Cancel
                 </button>
@@ -234,7 +238,7 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
         </div>
 
         {isEditing ? (
-          <form onSubmit={saveItem} className="grid grid-cols-1 md:grid-cols-2 gap-4">
+          <form onSubmit={saveItem} className="grid grid-cols-1 sm:grid-cols-2 gap-3 sm:gap-4">
             <div>
               <label htmlFor="name" className="block text-sm font-medium text-gray-700 mb-1">
                 Name
@@ -242,7 +246,7 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
               <input
                 id="name"
                 type="text"
-                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
                 value={formData.name}
                 onChange={(e) => setFormData({ ...formData, name: e.target.value })}
                 required
@@ -255,7 +259,7 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
               <input
                 id="quantity"
                 type="number"
-                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
                 value={formData.quantity}
                 onChange={(e) => setFormData({ ...formData, quantity: parseInt(e.target.value) || 0 })}
                 required
@@ -269,7 +273,7 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
                 id="value"
                 type="number"
                 step="0.01"
-                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
                 value={formData.value}
                 onChange={(e) => setFormData({ ...formData, value: parseFloat(e.target.value) || 0 })}
                 required
@@ -282,32 +286,102 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
               <input
                 id="location"
                 type="text"
-                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
                 value={formData.location}
                 onChange={(e) => setFormData({ ...formData, location: e.target.value })}
               />
             </div>
+            <div className="sm:col-span-2">
+              <label htmlFor="status" className="block text-sm font-medium text-gray-700 mb-1">
+                Status
+              </label>
+              <select
+                id="status"
+                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
+                value={formData.status}
+                onChange={(e) => setFormData({ ...formData, status: e.target.value })}
+              >
+                <option value="active">Active</option>
+                <option value="checked-out">Checked Out</option>
+                <option value="used-up">Used Up</option>
+              </select>
+            </div>
           </form>
         ) : (
-          <div className="grid grid-cols-1 md:grid-cols-2 gap-6">
-            <div className="space-y-4">
-              <div>
-                <label className="block text-sm font-medium text-gray-700">Quantity</label>
-                <p className="text-lg font-semibold">{item.quantity}</p>
+          <div className="space-y-4">
+            {/* Mobile Layout */}
+            <div className="sm:hidden space-y-3">
+              <div className="grid grid-cols-2 gap-4">
+                <div>
+                  <label className="block text-xs font-medium text-gray-700">Quantity</label>
+                  <p className="text-lg font-semibold">{item.quantity}</p>
+                </div>
+                <div>
+                  <label className="block text-xs font-medium text-gray-700">Value each</label>
+                  <p className="text-lg font-semibold">${item.value.toFixed(2)}</p>
+                </div>
               </div>
               <div>
-                <label className="block text-sm font-medium text-gray-700">Value per Item</label>
-                <p className="text-lg font-semibold">${item.value.toFixed(2)}</p>
+                <label className="block text-xs font-medium text-gray-700">Location</label>
+                <p className="text-sm font-semibold">{item.location || 'Not specified'}</p>
+              </div>
+              <div className="grid grid-cols-2 gap-4">
+                <div>
+                  <label className="block text-xs font-medium text-gray-700">Status</label>
+                  <p className={`text-sm font-semibold ${
+                    item.status === 'active' ? 'text-green-600' :
+                    item.status === 'checked-out' ? 'text-blue-600' :
+                    item.status === 'used-up' ? 'text-red-600' :
+                    'text-gray-600'
+                  }`}>
+                    {item.status === 'checked-out' ? 'Checked Out' :
+                     item.status === 'used-up' ? 'Used Up' :
+                     item.status === 'active' ? 'Active' :
+                     item.status}
+                  </p>
+                </div>
+                <div>
+                  <label className="block text-xs font-medium text-gray-700">Total Value</label>
+                  <p className="text-lg font-semibold text-green-600">${(item.quantity * item.value).toFixed(2)}</p>
+                </div>
               </div>
             </div>
-            <div className="space-y-4">
-              <div>
-                <label className="block text-sm font-medium text-gray-700">Location</label>
-                <p className="text-lg font-semibold">{item.location || 'Not specified'}</p>
+            
+            {/* Desktop Layout */}
+            <div className="hidden sm:grid sm:grid-cols-2 gap-6">
+              <div className="space-y-4">
+                <div>
+                  <label className="block text-sm font-medium text-gray-700">Quantity</label>
+                  <p className="text-lg font-semibold">{item.quantity}</p>
+                </div>
+                <div>
+                  <label className="block text-sm font-medium text-gray-700">Value per Item</label>
+                  <p className="text-lg font-semibold">${item.value.toFixed(2)}</p>
+                </div>
               </div>
-              <div>
-                <label className="block text-sm font-medium text-gray-700">Total Value</label>
-                <p className="text-lg font-semibold text-green-600">${(item.quantity * item.value).toFixed(2)}</p>
+              <div className="space-y-4">
+                <div>
+                  <label className="block text-sm font-medium text-gray-700">Location</label>
+                  <p className="text-lg font-semibold">{item.location || 'Not specified'}</p>
+                </div>
+                <div>
+                  <label className="block text-sm font-medium text-gray-700">Status</label>
+                  <p className={`text-lg font-semibold ${
+                    item.status === 'active' ? 'text-green-600' :
+                    item.status === 'checked-out' ? 'text-blue-600' :
+                    item.status === 'used-up' ? 'text-red-600' :
+                    'text-gray-600'
+                  }`}>
+                    {item.status === 'checked-out' ? 'Checked Out' :
+                     item.status === 'used-up' ? 'Used Up' :
+                     item.status === 'active' ? 'Active' :
+                     item.status}
+                  </p>
+                </div>
+                <div>
+                  <label className="block text-sm font-medium text-gray-700">Total Value</label>
+                  <p className="text-lg font-semibold text-green-600">${(item.quantity * item.value).toFixed(2)}</p>
+                </div>
               </div>
             </div>
           </div>
@@ -322,28 +396,28 @@ export default function ItemPage({ params }: { params: Promise<{ id: string }> }
       </div>
 
       {/* Change History */}
-      <div className="bg-white shadow-md rounded-lg p-6">
-        <h2 className="text-xl font-semibold mb-4">Change History</h2>
+      <div className="bg-white shadow-md rounded-lg p-4 sm:p-6">
+        <h2 className="text-lg sm:text-xl font-semibold mb-3 sm:mb-4">Change History</h2>
         
         {auditLogs.length === 0 ? (
-          <p className="text-gray-500">No changes recorded for this item.</p>
+          <p className="text-gray-500 text-center py-6 sm:py-8 text-sm">No changes recorded for this item.</p>
         ) : (
-          <div className="space-y-4">
+          <div className="space-y-2 sm:space-y-4">
             {auditLogs.map((log) => (
               <div
                 key={log.id}
-                className="border-l-4 border-blue-400 bg-blue-50 p-4 rounded-r"
+                className="border-l-4 border-blue-400 bg-blue-50 p-3 sm:p-4 rounded-r"
               >
-                <div className="flex justify-between items-start">
-                  <div>
-                    <div className="font-medium text-gray-800 mb-1">
+                <div className="flex flex-col sm:flex-row sm:justify-between sm:items-start gap-1 sm:gap-2">
+                  <div className="flex-1">
+                    <div className="font-medium text-gray-800 mb-1 text-sm">
                       {formatAuditMessage(log)}
                     </div>
-                    <div className="text-sm text-gray-600">
+                    <div className="text-xs sm:text-sm text-gray-600">
                       {formatTimestamp(log.timestamp)}
                     </div>
                   </div>
-                  <div className="text-xs bg-blue-200 text-blue-800 px-2 py-1 rounded">
+                  <div className="text-xs bg-blue-200 text-blue-800 px-2 py-1 rounded self-start">
                     {log.action}
                   </div>
                 </div>
diff --git a/src/app/layout.tsx b/src/app/layout.tsx
index f7fa87e..86eafde 100644
--- a/src/app/layout.tsx
+++ b/src/app/layout.tsx
@@ -13,8 +13,14 @@ const geistMono = Geist_Mono({
 });
 
 export const metadata: Metadata = {
-  title: "Create Next App",
-  description: "Generated by create next app",
+  title: "Inventory Management",
+  description: "Simple inventory management system with item tracking",
+};
+
+export const viewport = {
+  width: "device-width",
+  initialScale: 1,
+  maximumScale: 1,
 };
 
 export default function RootLayout({
diff --git a/src/app/page.tsx b/src/app/page.tsx
index 2e06026..1c04082 100644
--- a/src/app/page.tsx
+++ b/src/app/page.tsx
@@ -2,6 +2,7 @@
 
 import { useState, useEffect } from 'react';
 import { useRouter } from 'next/navigation';
+import CheckoutBasket from '@/components/CheckoutBasket';
 
 interface InventoryItem {
   id: number;
@@ -9,6 +10,7 @@ interface InventoryItem {
   quantity: number;
   value: number;
   location: string;
+  status: string;
   created_at: string;
   updated_at: string;
 }
@@ -18,17 +20,24 @@ export default function Home() {
   const [items, setItems] = useState<InventoryItem[]>([]);
   const [isLoading, setIsLoading] = useState(true);
   const [editingItem, setEditingItem] = useState<InventoryItem | null>(null);
+  const [selectedItems, setSelectedItems] = useState<Set<number>>(new Set());
+  const [showBasket, setShowBasket] = useState(false);
+  const [statusFilter, setStatusFilter] = useState<string>('active');
   const [formData, setFormData] = useState({
     name: '',
     quantity: 0,
     value: 0,
-    location: ''
+    location: '',
+    status: 'active'
   });
 
-  // Fetch all inventory items
+  // Fetch items by status
   const fetchItems = async () => {
     try {
-      const response = await fetch('/api/inventory');
+      const url = statusFilter === 'all' 
+        ? '/api/inventory?status=all' 
+        : `/api/inventory?status=${statusFilter}`;
+      const response = await fetch(url);
       const data = await response.json();
       setItems(data);
     } catch (error) {
@@ -85,14 +94,15 @@ export default function Home() {
       name: item.name,
       quantity: item.quantity,
       value: item.value,
-      location: item.location
+      location: item.location,
+      status: item.status || 'active'
     });
   };
 
   // Reset form
   const resetForm = () => {
     setEditingItem(null);
-    setFormData({ name: '', quantity: 0, value: 0, location: '' });
+    setFormData({ name: '', quantity: 0, value: 0, location: '', status: 'active' });
   };
 
   // Navigate to item page
@@ -100,9 +110,30 @@ export default function Home() {
     router.push(`/inventory/${itemId}`);
   };
 
+  // Handle item selection for checkout
+  const toggleItemSelection = (itemId: number) => {
+    const newSelected = new Set(selectedItems);
+    if (newSelected.has(itemId)) {
+      newSelected.delete(itemId);
+    } else {
+      newSelected.add(itemId);
+    }
+    setSelectedItems(newSelected);
+  };
+
+  // Clear all selections
+  const clearSelections = () => {
+    setSelectedItems(new Set());
+  };
+
+  // Get selected items data
+  const getSelectedItemsData = () => {
+    return items.filter(item => selectedItems.has(item.id));
+  };
+
   useEffect(() => {
     fetchItems();
-  }, []);
+  }, [statusFilter]);
 
   if (isLoading) {
     return (
@@ -113,23 +144,66 @@ export default function Home() {
   }
 
   return (
-    <div className="container mx-auto p-4 max-w-6xl">
-      <h1 className="text-3xl font-bold mb-6">Inventory Management</h1>
+    <div className="container mx-auto p-3 sm:p-4 max-w-6xl min-h-screen">
+      <div className="flex flex-col sm:flex-row justify-between items-start sm:items-center mb-4 sm:mb-6 gap-3 sm:gap-4">
+        <h1 className="text-2xl sm:text-3xl font-bold">Inventory Management</h1>
+        
+        {/* Status Filter */}
+        <div className="flex flex-col sm:flex-row items-start sm:items-center gap-3 sm:gap-4 w-full sm:w-auto">
+          <div className="flex items-center gap-2 w-full sm:w-auto">
+            <label htmlFor="statusFilter" className="text-sm font-medium text-gray-700 whitespace-nowrap">
+              Show:
+            </label>
+            <select
+              id="statusFilter"
+              value={statusFilter}
+              onChange={(e) => setStatusFilter(e.target.value)}
+              className="flex-1 sm:flex-initial px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
+            >
+              <option value="active">Active Items</option>
+              <option value="checked-out">Checked Out</option>
+              <option value="used-up">Used Up</option>
+              <option value="all">All Items</option>
+            </select>
+          </div>
+          
+          {/* Checkout Actions */}
+          {selectedItems.size > 0 && statusFilter === 'active' && (
+            <div className="flex gap-2 items-center w-full sm:w-auto">
+              <span className="text-xs sm:text-sm text-gray-600 whitespace-nowrap">
+                {selectedItems.size} item{selectedItems.size !== 1 ? 's' : ''} selected
+              </span>
+              <button
+                onClick={() => setShowBasket(true)}
+                className="flex-1 sm:flex-initial bg-green-500 hover:bg-green-600 text-white px-3 sm:px-4 py-2 rounded font-medium text-sm whitespace-nowrap"
+              >
+                Basket ({selectedItems.size})
+              </button>
+              <button
+                onClick={clearSelections}
+                className="bg-gray-300 hover:bg-gray-400 text-gray-700 px-3 py-2 rounded font-medium text-sm whitespace-nowrap"
+              >
+                Clear
+              </button>
+            </div>
+          )}
+        </div>
+      </div>
       
       {/* Add/Edit Form */}
-      <div className="bg-white shadow-md rounded-lg p-6 mb-6">
-        <h2 className="text-xl font-semibold mb-4">
+      <div className="bg-white shadow-md rounded-lg p-4 sm:p-6 mb-4 sm:mb-6">
+        <h2 className="text-lg sm:text-xl font-semibold mb-3 sm:mb-4">
           {editingItem ? 'Edit Item' : 'Add New Item'}
         </h2>
-        <form onSubmit={saveItem} className="grid grid-cols-1 md:grid-cols-4 gap-4">
-          <div>
+        <form onSubmit={saveItem} className="grid grid-cols-1 sm:grid-cols-2 lg:grid-cols-4 gap-3 sm:gap-4">
+          <div className="sm:col-span-2 lg:col-span-1">
             <label htmlFor="name" className="block text-sm font-medium text-gray-700 mb-1">
               Name
             </label>
             <input
               id="name"
               type="text"
-              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
               value={formData.name}
               onChange={(e) => setFormData({ ...formData, name: e.target.value })}
               required
@@ -142,7 +216,7 @@ export default function Home() {
             <input
               id="quantity"
               type="number"
-              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
               value={formData.quantity}
               onChange={(e) => setFormData({ ...formData, quantity: parseInt(e.target.value) || 0 })}
               required
@@ -156,35 +230,35 @@ export default function Home() {
               id="value"
               type="number"
               step="0.01"
-              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
               value={formData.value}
               onChange={(e) => setFormData({ ...formData, value: parseFloat(e.target.value) || 0 })}
               required
             />
           </div>
-          <div>
+          <div className="sm:col-span-2 lg:col-span-1">
             <label htmlFor="location" className="block text-sm font-medium text-gray-700 mb-1">
               Location
             </label>
             <input
               id="location"
               type="text"
-              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500"
+              className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
               value={formData.location}
               onChange={(e) => setFormData({ ...formData, location: e.target.value })}
             />
           </div>
-          <div className="md:col-span-4 flex gap-2">
+          <div className="sm:col-span-2 lg:col-span-4 flex flex-col sm:flex-row gap-2 sm:gap-2 pt-2">
             <button
               type="submit"
-              className="bg-blue-500 hover:bg-blue-600 text-white px-4 py-2 rounded-md font-medium"
+              className="flex-1 sm:flex-initial bg-blue-500 hover:bg-blue-600 text-white px-4 py-2 rounded-md font-medium text-sm"
             >
               {editingItem ? 'Update' : 'Add'} Item
             </button>
             {editingItem && (
               <button
                 type="button"
-                className="bg-gray-300 hover:bg-gray-400 text-gray-700 px-4 py-2 rounded-md font-medium"
+                className="flex-1 sm:flex-initial bg-gray-300 hover:bg-gray-400 text-gray-700 px-4 py-2 rounded-md font-medium text-sm"
                 onClick={resetForm}
               >
                 Cancel
@@ -195,50 +269,160 @@ export default function Home() {
       </div>
 
       {/* Items List */}
-      <div className="grid grid-cols-1 md:grid-cols-2 lg:grid-cols-3 gap-4">
-        {items.map((item) => (
-          <div key={item.id} className="bg-white shadow-md rounded-lg p-6">
-            <div 
-              className="cursor-pointer hover:bg-gray-50 -m-6 p-6 rounded-lg transition-colors"
-              onClick={() => viewItem(item.id)}
-            >
-              <h3 className="text-lg font-semibold mb-3">{item.name}</h3>
-              <div className="space-y-2">
-                <p><strong>Quantity:</strong> {item.quantity}</p>
-                <p><strong>Value:</strong> ${item.value.toFixed(2)}</p>
-                <p><strong>Location:</strong> {item.location || 'Not specified'}</p>
-                <p><strong>Total Value:</strong> ${(item.quantity * item.value).toFixed(2)}</p>
-              </div>
-            </div>
-            <div className="flex gap-2 mt-4">
-              <button
-                className="bg-blue-500 hover:bg-blue-600 text-white px-3 py-1 rounded text-sm font-medium"
-                onClick={() => editItem(item)}
-              >
-                Edit
-              </button>
-              <button
-                className="bg-green-500 hover:bg-green-600 text-white px-3 py-1 rounded text-sm font-medium"
-                onClick={() => viewItem(item.id)}
-              >
-                View Details
-              </button>
-              <button
-                className="bg-red-500 hover:bg-red-600 text-white px-3 py-1 rounded text-sm font-medium"
-                onClick={() => deleteItem(item.id)}
-              >
-                Delete
-              </button>
-            </div>
+      <div className="bg-white shadow-md rounded-lg overflow-hidden">
+        <div className="px-4 sm:px-6 py-3 sm:py-4 bg-gray-50 border-b">
+          <h2 className="text-base sm:text-lg font-semibold">Inventory Items</h2>
+        </div>
+        
+        {items.length === 0 ? (
+          <div className="text-center text-gray-500 py-8 px-4">
+            No inventory items found. Add your first item above!
           </div>
-        ))}
+        ) : (
+          <div className="divide-y divide-gray-200">
+            {items.map((item) => (
+              <div 
+                key={item.id} 
+                className="px-3 sm:px-6 py-3 sm:py-4 hover:bg-gray-50 transition-colors"
+              >
+                <div className="flex flex-col sm:flex-row sm:items-center sm:justify-between gap-3">
+                  <div className="flex items-start gap-3 flex-1">
+                    {/* Only show checkbox for active items */}
+                    {statusFilter === 'active' && (
+                      <input
+                        type="checkbox"
+                        checked={selectedItems.has(item.id)}
+                        onChange={() => toggleItemSelection(item.id)}
+                        className="h-4 w-4 text-blue-600 rounded border-gray-300 focus:ring-blue-500 mt-1 sm:mt-0"
+                      />
+                    )}
+                    
+                    <div 
+                      className="flex-1 cursor-pointer"
+                      onClick={() => viewItem(item.id)}
+                    >
+                      {/* Mobile Layout */}
+                      <div className="sm:hidden">
+                        <div className="flex justify-between items-start mb-2">
+                          <h3 className="font-medium text-gray-900 text-sm">{item.name}</h3>
+                          <div className={`text-xs font-medium px-2 py-1 rounded ${
+                            item.status === 'active' ? 'bg-green-100 text-green-600' :
+                            item.status === 'checked-out' ? 'bg-blue-100 text-blue-600' :
+                            item.status === 'used-up' ? 'bg-red-100 text-red-600' :
+                            'bg-gray-100 text-gray-600'
+                          }`}>
+                            {item.status === 'checked-out' ? 'Checked Out' :
+                             item.status === 'used-up' ? 'Used Up' :
+                             item.status === 'active' ? 'Active' :
+                             item.status}
+                          </div>
+                        </div>
+                        <div className="grid grid-cols-2 gap-2 text-xs text-gray-500">
+                          <div>Qty: <span className="font-medium text-gray-900">{item.quantity}</span></div>
+                          <div>Value: <span className="font-medium text-gray-900">${item.value.toFixed(2)}</span></div>
+                          <div className="col-span-2">Location: <span className="font-medium text-gray-900">{item.location || 'Not specified'}</span></div>
+                          <div className="col-span-2">Total: <span className="font-semibold text-green-600">${(item.quantity * item.value).toFixed(2)}</span></div>
+                        </div>
+                      </div>
+                      
+                      {/* Desktop Layout */}
+                      <div className="hidden sm:grid sm:grid-cols-5 gap-4">
+                        <div>
+                          <div className="text-sm font-medium text-gray-900">{item.name}</div>
+                          <div className="text-sm text-gray-500">ID: {item.id}</div>
+                        </div>
+                        <div>
+                          <div className="text-sm text-gray-500">Quantity</div>
+                          <div className="text-sm font-medium text-gray-900">{item.quantity}</div>
+                        </div>
+                        <div>
+                          <div className="text-sm text-gray-500">Value</div>
+                          <div className="text-sm font-medium text-gray-900">${item.value.toFixed(2)}</div>
+                        </div>
+                        <div>
+                          <div className="text-sm text-gray-500">Location</div>
+                          <div className="text-sm font-medium text-gray-900">{item.location || 'Not specified'}</div>
+                        </div>
+                        <div>
+                          <div className="text-sm text-gray-500">Status</div>
+                          <div className={`text-sm font-medium ${
+                            item.status === 'active' ? 'text-green-600' :
+                            item.status === 'checked-out' ? 'text-blue-600' :
+                            item.status === 'used-up' ? 'text-red-600' :
+                            'text-gray-600'
+                          }`}>
+                            {item.status === 'checked-out' ? 'Checked Out' :
+                             item.status === 'used-up' ? 'Used Up' :
+                             item.status === 'active' ? 'Active' :
+                             item.status}
+                          </div>
+                        </div>
+                      </div>
+                    </div>
+                  </div>
+                  
+                  <div className="flex items-center justify-between sm:justify-end gap-2 sm:ml-4">
+                    {/* Mobile: Show total value prominently */}
+                    <div className="sm:hidden">
+                      <div className="text-xs text-gray-500">Total</div>
+                      <div className="text-sm font-semibold text-green-600">${(item.quantity * item.value).toFixed(2)}</div>
+                    </div>
+                    
+                    {/* Desktop: Show total value */}
+                    <div className="hidden sm:block text-right mr-4">
+                      <div className="text-sm text-gray-500">Total Value</div>
+                      <div className="text-sm font-semibold text-green-600">${(item.quantity * item.value).toFixed(2)}</div>
+                    </div>
+                    
+                    {/* Action Buttons */}
+                    <div className="flex gap-1">
+                      <button
+                        className="bg-blue-500 hover:bg-blue-600 text-white px-2 py-1 rounded text-xs font-medium touch-manipulation"
+                        onClick={(e) => {
+                          e.stopPropagation();
+                          editItem(item);
+                        }}
+                      >
+                        Edit
+                      </button>
+                      <button
+                        className="bg-green-500 hover:bg-green-600 text-white px-2 py-1 rounded text-xs font-medium touch-manipulation"
+                        onClick={(e) => {
+                          e.stopPropagation();
+                          viewItem(item.id);
+                        }}
+                      >
+                        View
+                      </button>
+                      <button
+                        className="bg-red-500 hover:bg-red-600 text-white px-2 py-1 rounded text-xs font-medium touch-manipulation"
+                        onClick={(e) => {
+                          e.stopPropagation();
+                          deleteItem(item.id);
+                        }}
+                      >
+                        Del
+                      </button>
+                    </div>
+                  </div>
+                </div>
+              </div>
+            ))}
+          </div>
+        )}
       </div>
 
-      {items.length === 0 && (
-        <div className="text-center text-gray-500 mt-8">
-          No inventory items found. Add your first item above!
-        </div>
-      )}
+      {/* Checkout Basket Modal */}
+      <CheckoutBasket
+        isOpen={showBasket}
+        onClose={() => setShowBasket(false)}
+        selectedItems={getSelectedItemsData()}
+        onCheckout={() => {
+          fetchItems(); // Refresh the list after checkout
+          setSelectedItems(new Set()); // Clear selections
+          setShowBasket(false); // Close basket
+        }}
+      />
     </div>
   );
 }
diff --git a/src/components/CheckoutBasket.tsx b/src/components/CheckoutBasket.tsx
new file mode 100644
index 0000000..e2b41b1
--- /dev/null
+++ b/src/components/CheckoutBasket.tsx
@@ -0,0 +1,322 @@
+'use client';
+
+import { useState, useEffect } from 'react';
+
+interface InventoryItem {
+  id: number;
+  name: string;
+  quantity: number;
+  value: number;
+  location: string;
+  created_at: string;
+  updated_at: string;
+}
+
+interface CheckoutItem {
+  item: InventoryItem;
+  requestedQuantity: number;
+}
+
+interface CheckoutBasketProps {
+  isOpen: boolean;
+  onClose: () => void;
+  selectedItems: InventoryItem[];
+  onCheckout: () => void;
+}
+
+export default function CheckoutBasket({ isOpen, onClose, selectedItems, onCheckout }: CheckoutBasketProps) {
+  const [checkoutItems, setCheckoutItems] = useState<CheckoutItem[]>([]);
+  const [newLocation, setNewLocation] = useState('');
+  const [markAsUsedUp, setMarkAsUsedUp] = useState(false);
+  const [isProcessing, setIsProcessing] = useState(false);
+
+  // Initialize checkout items when basket opens
+  useEffect(() => {
+    if (isOpen && selectedItems.length > 0) {
+      setCheckoutItems(
+        selectedItems.map(item => ({
+          item,
+          requestedQuantity: 1 // Default to 1
+        }))
+      );
+    }
+  }, [isOpen, selectedItems]);
+
+  // Update requested quantity for an item
+  const updateQuantity = (itemId: number, quantity: number) => {
+    setCheckoutItems(prev =>
+      prev.map(checkoutItem =>
+        checkoutItem.item.id === itemId
+          ? { ...checkoutItem, requestedQuantity: Math.max(0, Math.min(quantity, checkoutItem.item.quantity)) }
+          : checkoutItem
+      )
+    );
+  };
+
+  // Remove item from checkout
+  const removeItem = (itemId: number) => {
+    setCheckoutItems(prev => prev.filter(checkoutItem => checkoutItem.item.id !== itemId));
+  };
+
+  // Process checkout
+  const processCheckout = async () => {
+    if (!newLocation.trim()) {
+      alert('Please specify a new location');
+      return;
+    }
+
+    if (checkoutItems.length === 0) {
+      alert('No items to checkout');
+      return;
+    }
+
+    setIsProcessing(true);
+
+    try {
+      // Process each item
+      for (const checkoutItem of checkoutItems) {
+        const { item, requestedQuantity } = checkoutItem;
+        
+        if (requestedQuantity > 0) {
+          const remainingQuantity = item.quantity - requestedQuantity;
+          const newStatus = markAsUsedUp ? 'used-up' : 'active';
+          
+          if (remainingQuantity > 0) {
+            // Partial checkout: Update original item with remaining quantity
+            await fetch(`/api/inventory/${item.id}`, {
+              method: 'PUT',
+              headers: { 'Content-Type': 'application/json' },
+              body: JSON.stringify({
+                name: item.name,
+                quantity: remainingQuantity,
+                value: item.value,
+                location: item.location, // Keep original location
+                status: 'active' // Remains active
+              })
+            });
+            
+            // Create new item for checked-out portion
+            await fetch('/api/inventory', {
+              method: 'POST',
+              headers: { 'Content-Type': 'application/json' },
+              body: JSON.stringify({
+                name: markAsUsedUp ? `${item.name} (Used Up)` : `${item.name} (Moved)`,
+                quantity: requestedQuantity,
+                value: item.value,
+                location: newLocation,
+                status: newStatus
+              })
+            });
+          } else {
+            // Full checkout: Update the entire item
+            await fetch(`/api/inventory/${item.id}`, {
+              method: 'PUT',
+              headers: { 'Content-Type': 'application/json' },
+              body: JSON.stringify({
+                name: item.name,
+                quantity: requestedQuantity,
+                value: item.value,
+                location: newLocation,
+                status: newStatus
+              })
+            });
+          }
+        }
+      }
+
+      // Success
+      alert('Checkout completed successfully! Items have been properly tracked.');
+      onCheckout();
+      setCheckoutItems([]);
+      setNewLocation('');
+      setMarkAsUsedUp(false);
+    } catch (error) {
+      console.error('Checkout failed:', error);
+      alert('Checkout failed. Please try again.');
+    } finally {
+      setIsProcessing(false);
+    }
+  };
+
+  // Calculate total value
+  const totalValue = checkoutItems.reduce(
+    (sum, checkoutItem) => sum + (checkoutItem.requestedQuantity * checkoutItem.item.value),
+    0
+  );
+
+  if (!isOpen) return null;
+
+  return (
+    <div className="fixed inset-0 bg-black bg-opacity-50 flex items-center justify-center p-3 sm:p-4 z-50">
+      <div className="bg-white rounded-lg p-4 sm:p-6 w-full max-w-4xl max-h-[90vh] sm:max-h-[80vh] overflow-y-auto">
+        <div className="flex justify-between items-center mb-4 sm:mb-6">
+          <h2 className="text-xl sm:text-2xl font-semibold">Checkout Basket</h2>
+          <button
+            onClick={onClose}
+            className="text-gray-500 hover:text-gray-700 text-2xl p-1 touch-manipulation"
+          >
+            ×
+          </button>
+        </div>
+
+        {checkoutItems.length === 0 ? (
+          <div className="text-center text-gray-500 py-8">
+            No items in basket
+          </div>
+        ) : (
+          <>
+            {/* New Location Input */}
+            <div className="mb-4 sm:mb-6 p-3 sm:p-4 bg-blue-50 rounded-lg">
+              <label htmlFor="newLocation" className="block text-sm font-medium text-gray-700 mb-2">
+                New Location (where items will be moved to):
+              </label>
+              <input
+                id="newLocation"
+                type="text"
+                className="w-full px-3 py-2 border border-gray-300 rounded-md focus:outline-none focus:ring-2 focus:ring-blue-500 text-sm"
+                value={newLocation}
+                onChange={(e) => setNewLocation(e.target.value)}
+                placeholder="e.g., Office Desk, Storage Room A, etc."
+                required
+              />
+            </div>
+
+            {/* Items List */}
+            <div className="space-y-3 sm:space-y-4 mb-4 sm:mb-6">
+              {checkoutItems.map((checkoutItem) => (
+                <div key={checkoutItem.item.id} className="border rounded-lg p-3 sm:p-4">
+                  {/* Mobile Layout */}
+                  <div className="sm:hidden">
+                    <div className="flex justify-between items-start mb-3">
+                      <div className="flex-1">
+                        <h3 className="font-medium text-gray-900 text-sm">{checkoutItem.item.name}</h3>
+                        <div className="text-xs text-gray-500 mt-1">
+                          Available: {checkoutItem.item.quantity} | 
+                          ${checkoutItem.item.value.toFixed(2)} each
+                        </div>
+                        <div className="text-xs text-gray-500">
+                          From: {checkoutItem.item.location || 'Not specified'}
+                        </div>
+                      </div>
+                      <button
+                        onClick={() => removeItem(checkoutItem.item.id)}
+                        className="text-red-500 hover:text-red-700 px-2 py-1 text-xs touch-manipulation"
+                      >
+                        Remove
+                      </button>
+                    </div>
+                    <div className="flex items-center justify-between">
+                      <div className="flex items-center space-x-2">
+                        <label className="text-xs font-medium text-gray-700">Qty:</label>
+                        <input
+                          type="number"
+                          min="0"
+                          max={checkoutItem.item.quantity}
+                          value={checkoutItem.requestedQuantity}
+                          onChange={(e) => updateQuantity(checkoutItem.item.id, parseInt(e.target.value) || 0)}
+                          className="w-16 px-2 py-1 border border-gray-300 rounded text-center text-sm"
+                        />
+                      </div>
+                      <div className="text-sm font-medium text-green-600">
+                        ${(checkoutItem.requestedQuantity * checkoutItem.item.value).toFixed(2)}
+                      </div>
+                    </div>
+                  </div>
+
+                  {/* Desktop Layout */}
+                  <div className="hidden sm:flex sm:items-center sm:justify-between">
+                    <div className="flex-1">
+                      <h3 className="font-medium text-gray-900">{checkoutItem.item.name}</h3>
+                      <div className="text-sm text-gray-500 mt-1">
+                        Available: {checkoutItem.item.quantity} | 
+                        Value: ${checkoutItem.item.value.toFixed(2)} each | 
+                        Current Location: {checkoutItem.item.location || 'Not specified'}
+                      </div>
+                    </div>
+                    
+                    <div className="flex items-center space-x-4">
+                      <div className="flex items-center space-x-2">
+                        <label className="text-sm font-medium text-gray-700">Quantity:</label>
+                        <input
+                          type="number"
+                          min="0"
+                          max={checkoutItem.item.quantity}
+                          value={checkoutItem.requestedQuantity}
+                          onChange={(e) => updateQuantity(checkoutItem.item.id, parseInt(e.target.value) || 0)}
+                          className="w-20 px-2 py-1 border border-gray-300 rounded text-center"
+                        />
+                      </div>
+                      
+                      <div className="text-sm font-medium text-green-600">
+                        ${(checkoutItem.requestedQuantity * checkoutItem.item.value).toFixed(2)}
+                      </div>
+                      
+                      <button
+                        onClick={() => removeItem(checkoutItem.item.id)}
+                        className="text-red-500 hover:text-red-700 px-2 py-1"
+                      >
+                        Remove
+                      </button>
+                    </div>
+                  </div>
+                </div>
+              ))}
+            </div>
+
+            {/* Summary */}
+            <div className="border-t pt-3 sm:pt-4 mb-4 sm:mb-6">
+              <div className="flex justify-between items-center text-base sm:text-lg font-semibold">
+                <span>Total Value:</span>
+                <span className="text-green-600">${totalValue.toFixed(2)}</span>
+              </div>
+              <div className="text-xs sm:text-sm text-gray-600 mt-1">
+                {checkoutItems.reduce((sum, item) => sum + item.requestedQuantity, 0)} item(s) selected
+              </div>
+            </div>
+
+            {/* Status Options */}
+            <div className="mb-4 sm:mb-6 p-3 sm:p-4 bg-yellow-50 rounded-lg">
+              <div className="flex items-start sm:items-center space-x-2">
+                <input
+                  id="markAsUsedUp"
+                  type="checkbox"
+                  checked={markAsUsedUp}
+                  onChange={(e) => setMarkAsUsedUp(e.target.checked)}
+                  className="h-4 w-4 text-red-600 rounded border-gray-300 focus:ring-red-500 mt-0.5 sm:mt-0"
+                />
+                <div className="flex-1">
+                  <label htmlFor="markAsUsedUp" className="text-sm font-medium text-gray-700 block">
+                    Mark items as "Used Up" (consumed/disposed)
+                  </label>
+                  <div className="text-xs text-gray-500 mt-1">
+                    {markAsUsedUp 
+                      ? "Items will be marked as 'Used Up' and won't be available for future checkout" 
+                      : "Items will remain 'Active' and available for future checkout from their new location"
+                    }
+                  </div>
+                </div>
+              </div>
+            </div>
+
+            {/* Actions */}
+            <div className="flex flex-col sm:flex-row gap-2 sm:gap-3">
+              <button
+                onClick={processCheckout}
+                disabled={isProcessing || !newLocation.trim() || checkoutItems.length === 0}
+                className="flex-1 bg-green-500 hover:bg-green-600 disabled:bg-gray-300 text-white px-4 py-3 sm:py-2 rounded font-medium text-sm touch-manipulation"
+              >
+                {isProcessing ? 'Processing...' : 'Complete Checkout'}
+              </button>
+              <button
+                onClick={onClose}
+                className="flex-1 sm:flex-initial px-4 py-3 sm:py-2 bg-gray-300 hover:bg-gray-400 text-gray-700 rounded font-medium text-sm touch-manipulation"
+              >
+                Cancel
+              </button>
+            </div>
+          </>
+        )}
+      </div>
+    </div>
+  );
+}
diff --git a/src/lib/database.ts b/src/lib/database.ts
index ff1bd2d..66918f1 100644
--- a/src/lib/database.ts
+++ b/src/lib/database.ts
@@ -18,6 +18,7 @@ export function initializeDatabase() {
       quantity INTEGER NOT NULL DEFAULT 0,
       value REAL NOT NULL DEFAULT 0,
       location TEXT,
+      status TEXT DEFAULT 'active',
       created_at DATETIME DEFAULT CURRENT_TIMESTAMP,
       updated_at DATETIME DEFAULT CURRENT_TIMESTAMP
     )
@@ -40,6 +41,23 @@ export function initializeDatabase() {
   db.exec(createInventoryTable);
   db.exec(createAuditLogTable);
 
+  // Migration: Add status column if it doesn't exist
+  try {
+    const checkColumn = db.prepare("PRAGMA table_info(inventory)");
+    const columns = checkColumn.all() as any[];
+    const hasStatusColumn = columns.some(col => col.name === 'status');
+    
+    if (!hasStatusColumn) {
+      console.log('Adding status column to inventory table...');
+      db.exec("ALTER TABLE inventory ADD COLUMN status TEXT DEFAULT 'active'");
+      // Update all existing items to have active status
+      db.exec("UPDATE inventory SET status = 'active' WHERE status IS NULL");
+      console.log('Status column added successfully');
+    }
+  } catch (error) {
+    console.error('Error during migration:', error);
+  }
+
   console.log('Database initialized successfully');
 }
 
@@ -51,6 +69,12 @@ export const inventoryQueries = {
   // Get all inventory items
   getAll: db.prepare('SELECT * FROM inventory ORDER BY name ASC'),
   
+  // Get active inventory items only
+  getActive: db.prepare("SELECT * FROM inventory WHERE status = 'active' ORDER BY name ASC"),
+  
+  // Get items by status
+  getByStatus: db.prepare('SELECT * FROM inventory WHERE status = ? ORDER BY name ASC'),
+  
   // Get inventory item by ID
   getById: db.prepare('SELECT * FROM inventory WHERE id = ?'),
   
@@ -58,16 +82,19 @@ export const inventoryQueries = {
   searchByName: db.prepare('SELECT * FROM inventory WHERE name LIKE ? ORDER BY name ASC'),
   
   // Create new inventory item
-  create: db.prepare('INSERT INTO inventory (name, quantity, value, location) VALUES (?, ?, ?, ?)'),
+  create: db.prepare('INSERT INTO inventory (name, quantity, value, location, status) VALUES (?, ?, ?, ?, ?)'),
   
   // Update inventory item
-  update: db.prepare('UPDATE inventory SET name = ?, quantity = ?, value = ?, location = ?, updated_at = CURRENT_TIMESTAMP WHERE id = ?'),
+  update: db.prepare('UPDATE inventory SET name = ?, quantity = ?, value = ?, location = ?, status = ?, updated_at = CURRENT_TIMESTAMP WHERE id = ?'),
   
   // Delete inventory item
   delete: db.prepare('DELETE FROM inventory WHERE id = ?'),
   
   // Update quantity only
   updateQuantity: db.prepare('UPDATE inventory SET quantity = ?, updated_at = CURRENT_TIMESTAMP WHERE id = ?'),
+  
+  // Update location and status
+  updateLocationAndStatus: db.prepare('UPDATE inventory SET location = ?, status = ?, updated_at = CURRENT_TIMESTAMP WHERE id = ?'),
 };
 
 // Audit log operations