[PIMS]

 Perpetual Inventory Management System [PIMS]

PIMS-PK

The perpetual inventory system is a method of managing inventory where real-time tracking and recording of inventory levels occur.

In a perpetual inventory system, each time a product is bought or sold, the inventory records are immediately updated to reflect the change.

This system provides businesses with accurate and up-to-date information about their inventory levels, allowing for better inventory control and planning.

With a perpetual inventory system, companies can easily identify low stock levels and reorder products in a timely manner to avoid stock outs.

The perpetual inventory system enables businesses to track the cost of goods sold (COGS) more accurately by providing real-time data on inventory movements.

By continuously monitoring inventory levels, the perpetual inventory system helps reduce the risk of overstocking or understocking, leading to improved efficiency and cost savings.

This system allows for better inventory valuation as the costs associated with inventory are tracked in real time, providing more accurate financial statements.

Perpetual inventory systems often rely on technology, such as barcode scanners and inventory management software, to automate the tracking and recording process.

One of the key advantages of the perpetual inventory system is its ability to quickly identify and address issues like theft, spoilage, or inventory shrinkage.

Overall, the perpetual inventory system is a valuable tool for businesses of all sizes, providing them with enhanced visibility and control over their inventory, leading to improved decision-making and operational efficiency.