The types of inventory control system include manual and barcode systems. Radio frequency identification is also a type of inventory control system. The choice of the system that a company adopts depends on how valuable the system is to the company.Continue Reading
A manual inventory control system is suitable for small businesses that sell small amounts of products. To use this system, a business owner can use spreadsheets to monitor the purchase and sale of goods. For instance, a shop owner can quantify his monthly opening stock in the shop by manually counting and recording the value in the spreadsheet. He compares the available stock with the monthly customer orders that are pending to determine the quantity that customers are likely to buy during the month and then records the quantity in the spreadsheet. These two entries act as the basis upon which the shop owner decides whether or not to add the stock for the month.
A barcode inventory control system is an accurate and efficient system that is suitable for major retailers and involves the use barcode technology to manage the inventory. In this system, a computer reads a barcode on each item that the company sells and then saves the data. Through analysis of the data company personnel know whether or not there is need to add more stock.Learn more about Managing a Business