Dollar Tree Inc. is a chain of discount variety stores that sells an assortment of items for $1 or less. Dollar Tree Inc. uses a point-of-sale inventory scanning system. A point-of-sale inventory system is a fully automated, computerized inventory reordering system. The system collects daily merchandise sales and other transactions to prepare sales and inventory reports. The information that is obtained provides information on product sales allowing stores to order the products customers want. The point-of-sale system provides automatic updates to inventory when consumers make purchases. The company’s bar code system electronically transfers information through the company allowing real-time purchase decisions and cost management relating to inventory. Point-of-sale inventory systems help organizations maintain appropriate inventory levels by controlling the flow of incoming and outgoing merchandise. The inventory system can also identify sales trends based on consumer purchases. It is essential for retailers, such as Dollar Tree to have an ample supply of products to meet consumer demand. The point-of-sale inventory system helps the company meet those demands while increasing sales and customer service. The point-of-sale inventory system reduces liabilities and loss created by overstock. Identifying declining sales and getting rid of excess inventory are also advantages of point-of-sale inventory systems. Point-of-sale inventory systems allow companies to customize the system according to the needs of their industry. They also provide consistency for organizations that have more than one location by streamlining operations. Point-of-sale inventory systems require an Internet connection, which can become a disadvantage because of the possibility of interruption. Hardware, servers, and data centers are a necessity when using a point-of-sale inventory system, and the costs associated with these items can be overwhelming.