5 Questions
What is the periodic inventory system?
A method of inventory valuation involving physical counts at specific intervals
What data can be associated with the number in barcode inventory management?
Supplier, product dimensions, weight, and stock quantity
How does RFID inventory management improve warehouse operations?
By wirelessly transmitting product identity to track items and provide detailed information
What disruption does a surplus of product in inventories create?
It creates a disruption to the overall flow and knocks the supply-demand balance out of order
What happens if there isn't enough product in inventories?
The end customer suffers
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
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).
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