What inventory system do you use and why? What are its advantages and disadvantages?
There are two systems of managing inventory. That is the: perpetual system and periodic system. The most preferred system of managing and locating the perpetual inventory system. It involves entering data which is usually updated continuously over a given period of time. This system is made easier with the use of computers as well as other technologies.
Merits Of Perpetual inventory.
(i) This system of inventory recording provides more accurate and up-to-date information. Gadgets such as the bar code scans and radio frequency identification are usually used in managing the inventory.
ii) With current trends and changes in business practice, there is a need of computerizing the inventory recording system so as to keep track on the inventory change. This helps monitor the changes in inventory and consequently avoid much overstock