Inventory System Summary
Many companies are using inventory systems for their success and growth. Inventory systems have a variety of functions purposes in businesses. Promoting the sales and shrinkage control are two main functions of inventory system. Promoting the sales function deals with availability of sufficient products for the customers where as shrink age control function deals with monitoring the occurrence of damage loss, or theft, etc. of the products. Another very important function of inventory control systems is asset valuation; that establishing the value of the products on the shelf for tax purposes at the end of the tax year. According to the Small Business Administration, all inventory systems strive to strike a balance between managing costs and the business advantages of a broad selection of goods to offer to customers. All inventory systems, regardless of technology, require some element of visual inventory management. Point of sale, bar code, or stub control systems will all require manual verification periodically.
Radio frequency identification inventory system is a system considered an IT tool that can meet the needs of both mobility and timeliness is radio frequency identification (RFID). Radio signals are used to tag a product with radio frequency identification and then place it in memory. This system can count the total amount of products and perform the required order, to supply the products of low stock before the stock will be empty. This technology helps to increase sales and streamline managing inventory by making sure the products are available in the correct place at correct time. With the aid of technology, the manual orders can reduced and product delivery can be enhanced using radio frequency identification. In this system electronic product code (EPC) are used to store objects from a worldwide perspectives. Generation two tag has the capability to...
References: Brown F & Lin P,.The CPA Journal. Retrieved August 18, 2010, Radio Frequency Identification and How to Capitalize on
It. What CPAs Should Know About RFID Technology. ://
Budding, J, Inventory Management, United States Small Business Administration, retrieved August 18, 2010, from http://www.sba.gov/idc/groups/public/documents/sba_homepage/pub_mp22.pdf
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