How Do You Use The Perpetual Inventory System?
A perpetual inventory system reflects real time inventory data. For this system to operate, the movement of inventory must be recorded and tracked each time the inventory is touched or moved. This is most often accomplished with RF (radio frequency) equipment used in every area of the warehouse from receiving to shipping. By doing this the inventory numbers reflected in the system are as close to live data as possible. Review the inventory in order to set purchasing schedules and quantities. A perpetual inventory will reflect the on-hand inventory totals as well as the amount of inventory on order, on customer order, and reserved inventory levels. This data, when combined with sales history, allows the purchasing department to make critical decisions on when and how much to order. Without this data there is the risk of low inventory levels which can result in lost sales. There is also the risk of excess inventory which can become obsolete inventory and will be reflected as a loss on th
