What Is the Inventory Control Multiple Period System?
Inventory Control Inventory is the amount of a given product or the total amount of all products a particular business has available to sell. Selling more products decreases inventory, ordering more products increases inventory. When a company has more inventory than it can sell, it loses money. When a company does not have enough products in inventory to meet demand, the company loses customers (and therefore money). Inventory control helps balance between these two extremes. Multi-Period Inventory Control Multi-period inventory control addresses one form of the inventory control problem. Let’s say a company produces one product. During a certain time period, the company has a certain number of items in inventory, ships a certain number of items, and receives a certain number. There are costs involved in receiving, retaining and shipping the items. These costs are realized over many similar time periods, creating a control problem. Solutions Businesses must maintain inventory and bala
