Overview of the Current State of Technology

Topics: Inventory, Inventory control system, Supply chain management Pages: 1 (256 words) Published: June 19, 2012
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 continents. No matter the scale, 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 vending machines or with 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.

An inventory system of this type can ensure enough product is available for sale so that customers do not go elsewhere to buy it. This inventory management tool can also help prevent an excess or back stock of products that don't sell quickly. Excessive purchase of products leads to a higher cost of inventory, which in turn lowers profits. The costs of overstocking and under stocking items can be virtually deleted, increasing profits.
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