Preview

Inventory Systems Paper

Better Essays
Open Document
Open Document
1366 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Inventory Systems Paper
Inventory Systems Summary

Inventory control systems are used so that companies can track materials or products. Before technology was so readily available, employees of companies had a harder time tracking inventory. Today one can go into a large retailer and ask an employee to check if an item is in stock and all the employee would have to do is check a little hand held device. The four types of inventory systems that Team A decided to research and discuss were: Advanced Tracking System (ATS), Perpetual Inventory System, Periodic Inventory System, and Just-In-Time Inventory System.
Advanced Tracking System (ATS)
Advanced Tracking System, or ATS, is a system that operates standalone or front-end that interfaces with almost any company’s information system. The ATS automates data collection and provides a fast and easy place to view important and critical inventory activity in real time. ATS have been designed to help improve customer service, boost productivity, and provide accurate management information. ATS automate data collections tasks and provide accurate inventory status, bar code labeling, put-away, picking and kitting, shipping, cycle counting and physical inventory, and historical data. The collection of data is fairly fast and easy. Depending on what type of ATS is used, transactions are quickly and accurately captured in real-time without hand writing out forms and manual keyboard entry (Business By Design).
Perpetual Inventory System A perpetual inventory system is one where a business “updates the quantity and availability of its inventory on a continuous basis, after each purchase or sale” (Meehan, 2010). Products are attached to a point of sale (POS) system or aided by the presence of RFID checkers. This allows the sale of products to be immediately updated in a perceptual inventory system. Inventory in a perpetual inventory system is constantly updated and watched as opposed to a periodic inventory system which tracts the inventory



References: Atkinson, C. (2005). Inventory Management Review. Retrieved Nov 14, 2010 from https://www.inventorymanagementreview.org/justintime/ Beard, L., & Butler, S. (2000). Introducing JIT Manufacturing: It 's Easier Than You Think. Business Horizons, 43(5), 61. Retrieved Nov 14, 2010, from Business Source Complete database. BusinessDictionary.com. (2010). Periodic Inventory Method. Retrieved from http://www.businessdictionary.com/definition/periodic-inventory-method.html. H., K. (2009). What are the Benefits of a Computerized Inventory System?. Ehow. Retrieved from http://www.ehow.com/facts_5686138_benefits-computerized-inventory-system.html Inventory. (1995). In Wiley Dictionary of Economics. Retrieved from http://www.xreferplus.com.ezproxy.apollolibrary.com/entry/wileyecon/inventory. Kulkarni, A. (2010). Perpetual Inventory System. Buzzle.com. Retrieved from http://www.buzzle.com/articles/perpetual-inventory-system.html Meehan, C. L. (2010). Define Perpetual Inventory System. eHow.com. Retrieved from http://www.ehow.com/about_6567961_define-perpetual-inventory-system.html#ixzz15Jj04iHj Purpose of Management. (n.d.). Retrieved November 12, 2010, from Indian of Institute of Materials Management: http://www.iimm.org/knowledge_bank/6_purpose-of-inventory- management.htm. White, T. (2010). The Disadvantages of an Inventory Control System. Ehow. Retrieved from http://www.ehow.com/list_6661908_disadvantages-inventory-control-system.html Wikipedia. (2010). Inventory Control System. Retrieved from http://en.wikipedia.org/wiki/Inventory_control_system

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Scope And Delimitations

    • 345 Words
    • 2 Pages

    An inventory control system is a process for managing and locating objects or materials. In common usage, the term may also refer to just the software components…

    • 345 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Inventory System

    • 3584 Words
    • 15 Pages

    Moreover, the inventory system promotes effective inventory control which ensures stocking the in demand and correct items in the correct quantities. This system can help the company to avoid overstocking. When an organization overstocks, money is wasted since procuring, storing, and accounting for unneeded items require time, space, and money which could have been used on more critical assets. Likewise, when under stocking occurs the organization will more likely to only partly meet their mission or possibly not meet the mission at all. Also, a weak inventory control system is more prone to errors and fraud.…

    • 3584 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Thesis

    • 1009 Words
    • 5 Pages

    Inventory system tracks purchases, incoming shipments, stored inventory and sales transactions throughout an organization. Inventory System can be as simple as a pen-and-paper system, or as complex as an enterprise software package connecting accounting databases, inventory information and point-of-sale terminals across several branches. Business owners deploy these systems to accomplish a number of general objectives. Automated inventory is a system of keeping track of inventory on a perpetual basis. This type of inventory control ensures items are accounted for and that inflow and outflow status is updated on a continual basis. Automated inventory may be implemented through things like inventory management companies. Based on controlling costs, automated inventory systems track each item or product used in production or retail sales through an inventory software system. When the minimum quantity of an item is reached, an order can be placed immediately and automatically to restock that item. This process takes into account the time needed for an order to be placed and for the company to receive and restock the item.…

    • 1009 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    The aim of the thesis writing is to analyze the current system and design new system ... Provides computerized inventory system that cover inventory , purchase ...…

    • 321 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Accouncting

    • 290 Words
    • 2 Pages

    2. Which type of system provides better internal control over inventory and why? Perpetual is better because it allows you to know the balance in your inventory account at any point in time.…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Term paper abstract

    • 437 Words
    • 3 Pages

    There are two focal inventory control systems that fall under Supply Chain Management: the perpetual review system and the periodic review system. The perpetual review system helps control inventory management by way of tracking the inventory amount on a continuous basis. There is usually a reorder point calculated that when inventory dips below a certain level, a new order is placed to increase the on-hand inventory. The periodic review system is set up so that after a certain time interval has passed, inventory is reviewed and an order is placed at the end in varying amounts.…

    • 437 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    week 7 cost of goods

    • 258 Words
    • 1 Page

    that a business uses. A business uses one or two systems they use either a perpetual inventory system…

    • 258 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Simplicity

    • 318 Words
    • 2 Pages

    A disadvantage of manual inventory systems is that they can be highly labor-intensive to operate. They require continuous monitoring to ensure that each transaction is accounted for and that products are maintained at the appropriate stocking levels. It is also more difficult to share inventory information throughout the business, because the lack of computerization makes accessing inventory records a more cumbersome process. The time spent monitoring inventory levels could be used on more productive activities for the business.…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The advantages of a perpetual inventory system are that inventory is quickly updated in real-time, which gives a constant picture of the inventory status. With this data, inventory counts…

    • 595 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Google

    • 393 Words
    • 2 Pages

    The following statements given are related to our study about the inventory system which is found very useful for the proponents in making the system.…

    • 393 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Im Steel

    • 4930 Words
    • 20 Pages

    Inventory management, or inventory control, is an attempt to balance inventory needs and requirements with the need to minimize costs resulting from obtaining and holding inventory. Inventory may be kept “in-house,” meaning on the premises or nearby for immediate use; or it may be held in a distant warehouse or distribution center for future use. With the exception of firms utilizing just-in-time methods, more often than not, the term “inventory” implies a stored quantity of goods that exceeds what is needed for the firm to function at the current time…

    • 4930 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    Inventory System

    • 398 Words
    • 2 Pages

    * Computers and bar codes allow for a more efficient management of inventory levels and provide a clearer view of inventory movement. More businesses are using transactional review systems because computerized systems can link to the point of sale with automatic debiting of inventory occurring in real time when the sale occurs. Inventory software can also link to other business systems to integrate more fully all aspects of the business process.…

    • 398 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Inventory Systems help companies with huge inventories to easily and accurately monitor their stocks. With the use of a database, information will be readily available to the user and can be easily updated without having to scroll through spreadsheets.…

    • 656 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    | Inventory Management Systems is an application to track the sales and available inventory. This system communicates with suppliers in near real-time and receive and incorporate other data, such as seasonal demand. System is flexible enough, allowing for a merchant's intuition and shows the owner when it's time to reorder and how much to purchase. This system has following modules:…

    • 522 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    multifunctional apps

    • 704 Words
    • 3 Pages

    The inventory system applied in the past is done manually and the process takes a lot of time. A disadvantage of manual inventory systems is that they can be highly labor-intensive to operate. They require continuous monitoring to ensure that each transaction is accounted for and that products are maintained at the proper stocking levels. It is also more difficult to share inventory information throughout the business, because the lack of computerization makes accessing inventory records a more cumbersome process. The time spent monitoring inventory levels could be used on more productive activities for the business. A manual inventory system relies heavily on the actions of people, which increases the possibility of human error. People might forget to record a transaction or simply miscount the number of goods. This results in needless additional orders that increase the business inventory carrying costs and use up precious storage space. Inaccurate physical counts could also result in not ordering enough of a product, meaning the business could run out of a crucial item at the wrong time. Keeping track of daily purchases is another difficult controlling measure with manual inventory systems. While technological inventory systems scan the item and subtracts the item from the inventory, a manual inventory system requires the employees to write down the items sold during a single work day. This can be a difficult task, as one employee may lose the list of items sold or another may forget to write down a sale.…

    • 704 Words
    • 3 Pages
    Satisfactory Essays