Which inventory system,periodic or perpetual,would you use for:
a a large supermarket such as Pak'nSave
b a small corner dairy.
State 3 reasons why for each.

Question

Quizplus · Accepted Answer

The Answer is a Perpetual system.
• The large volume of sales would justify and offset the cost of setting up barcode scanners and electronically linked tills.
• The manager cannot physically keep an eye on all stock and monitor the various stock levels,so would rely on computer-generated reports.
• The computer records could be compared with physical counts of inventory to determine if any stock is lost,damaged or missing.
b Periodic system.
• The cost of setting up barcode scanners etc.would not be justified by the level of sales.
• The manager does not need a computer to tell him/her what his/her stock levels are - the manager can walk around the dairy and count them.
• Likewise,the manager can probably tell if stock is lost,damaged or missing,as he/she views it all each day.

Which Inventory System,periodic or Perpetual,would You Use For