Inventory management is a specific function that focuses on controlling the movement of products through a company’s various business systems. Business owners and managers typically setup systems or processes to aid them with this function. Using a computerized inventory system is quite common in the business industry.
Computerized inventory systems help companies order, count, sell and maintain different products in an organization. Companies often implement bar code systems--computers and scanners that electronically transfer information through the company. This allows for real-time purchase decisions and cost management relating to inventory.
Inventory security is a key feature of computerized inventory systems. Business owners and managers can install tracking devices to ensure inventory is not stolen or is traceable if taken from the company. These systems are found at both the retail and wholesale level of the inventory chain.
Companies often use computerized inventory systems to prevent running out of inventory stock. These systems can provide a report on needed inventory or place preapproved electronic orders to suppliers for more inventories, creating a smooth flow of inventory in the company.
- "Essentials of Inventory Management"; Max Müller; 2003
- Masao Nakamura, Sadao Sakakibara and Roger Schroeder. "Adoption of Just-in-Time Manufacturing Methods at U.S.- and Japanese-Owned Plants: Some Empirical Evidence," pages 230-231. IEEE Transactions on Engineering Management, 1988.
- Electronic Code of Federal Regulations. "Regulation S-X, 17 CFR Part 210: Sec. 210.5-02 Balance sheets." Accessed Aug. 1, 2020.