Inventory Systems Paper
Inventory control systems are used so that companies can track materials or products. Before technology was so readily available, employees of companies had a harder time tracking inventory. Today one can go into a large retailer and ask an employee to check if an item is in stock and all the employee would have to do is check a little hand held device. The four types of inventory systems that Team A decided to research and discuss were: Advanced Tracking System (ATS), Perpetual Inventory System, Periodic Inventory System, and Just-In-Time Inventory System.
Advanced Tracking System (ATS)
Advanced Tracking System, or ATS, is a system that operates standalone or front-end that interfaces with almost any …show more content…
Some advantages include: (1) help improve operations and productivity; (2) all inventories are tracked in real-time; (3) saves money by keeping updates of damages and updates of new and old goods; (4) the contains very few errors; (5) can be used by either a small or bog company; and (6) it helps the finance office keep track of anything of a financial manner (e.g. - non inventory items: time and money being paid to employees) (H.K., 2009). With any type of inventory system, there are some disadvantages as well. Some disadvantages include: (1) start-up costs can be a little overbearing and is expensive to maintain; (2) depending on what type of ATS is used, information has to be entered manually into the system which is time consuming; (3) since the system is very complex, extra time and effort may be needed to train; and (4) if there is a stock overage, productivity may suffer (White, 2010).
Perpetual and Periodic Inventory Systems A perpetual inventory system has several advantages over a periodic inventory system. A perpetual system keeps an accurate account of inventory by maintaining “constant, detailed and precise records of each purchase or return” (Meehan, 2010). Precise records help a company to be correctly stocked and less likely to run short on any particular item. In turn this could increase customer satisfaction. In