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Questions and Answers
What is the periodic inventory system?
What is the periodic inventory system?
- A method of assigning a unique number to each product for tracking
- An accounting method that takes inventory only at the end of a period
- A system that wirelessly transmits the identity of a product to track items
- A method of inventory valuation involving physical counts at specific intervals (correct)
What data can be associated with the number in barcode inventory management?
What data can be associated with the number in barcode inventory management?
- Product price, expiration date, and customer information
- Product category, sales history, and location in the warehouse
- Product color, customer reviews, and manufacturing date
- Supplier, product dimensions, weight, and stock quantity (correct)
How does RFID inventory management improve warehouse operations?
How does RFID inventory management improve warehouse operations?
- By assigning a unique number to each product for tracking purposes
- By performing physical counts of inventory at specific intervals
- By wirelessly transmitting product identity to track items and provide detailed information (correct)
- By deducting ending inventory to derive the cost of goods sold
What disruption does a surplus of product in inventories create?
What disruption does a surplus of product in inventories create?
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What happens if there isn't enough product in inventories?
What happens if there isn't enough product in inventories?
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Study Notes
Inventory Management Systems
- Periodic inventory system: a method of inventory management that updates inventory balances periodically, often monthly or quarterly.
Barcode Inventory Management
- Data associated with barcode numbers:
- Product information (name, description)
- Quantity
- Location
- Expiration date
- Batch number
- Serial number
RFID Inventory Management
- Improves warehouse operations by:
- Automating inventory tracking
- Increasing accuracy
- Reducing labor costs
- Improving inventory visibility
- Enhancing supply chain efficiency
Inventory Management Challenges
- Surplus of product in inventories:
- Creates inventory storage and handling challenges
- Increases maintenance costs
- Reduces cash flow
- Can lead to obsolescence
- Insufficient product in inventories:
- Leads to lost sales and revenue
- Damages customer relationships
- Requires emergency shipments
- Increases costs due to expedited shipping
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Description
Learn about inventory management and its various methods such as periodic inventory management. Understand how periodic inventory system works for financial reporting purposes, including inventory valuation and cost of goods sold (COGS).
