Inventory Systems Summary

Abstract

This report reviews inventory controls, cost evaluation methods as well as inventory techniques in order for Learning Team A to decide on an inventory system most feasible for our company. With many options to choose from, our learning team conducted an in-depth fieldwork by comparing and contrasting various inventory systems such periodic, perpetual, FIFO, UPC, and order point inventory system. In terms of inventory control, we have concluded that perpetual inventory system is the best method to maintain true and real-time inventory information. Furthermore, our company will maintain two sets of book using both FIFO and LIFO methods to evaluate our cost. Last, our company will make use of both order point and UPC inventory technique to attain the Just-In-Time Inventory, a preferred method widely used by the world’s most successful companies such as Walmart and Toyota.

Inventory Systems Summary – Team A

The purpose of this paper is to review the use of multiple inventory systems and techniques. Through research, known knowledge, and general understanding, Learning Team A identified five inventory techniques. Discussion in this paper will focus on summarizing, comparing, and obtaining an excellent understanding of the five inventory systems. The inventories are Universal Product Code (UPC), Order Point Inventory System, Periodic Inventory System, First In First Out (FIFO), and Perpetual Inventory System.

In addition to summarizing and comparing the inventory systems, Learning Team A will discuss the advantages and disadvantages of each system. According to CommerceDictionary.com (2011) the word inventory means, “to count and record the quantity of each item in a warehouse or shop” (para.1). This is very important for businesses and organizations functionality. Inventory is not one standard practice but many systems and techniques all accomplishing goals.

UPC Inventory System

In the early 1970s, the evolution of information technology, market...