Marketing Essentials

Section 2: Inventory Control

After You Read Online Action

Key Terms and Concepts

1. A perpetual inventory system tracks the number of items in inventory on a constant basis. Under a physical inventory system, stock is visually inspected or actually counted to determine the quantity on hand.
2. Three different methods include physical inventory, cycle counts, and visual control.
3. Dollar control: planning and monitoring total inventory investment. Unit control: merchandise quantities handled in a period of time.

Academic Skills

4. $15,000 ÷ $3,000 = 5. The answer (5) means that the average inventory was sold and replaced five times during the selected time period.
5. Reports should show an understanding of radio frequency identification RFID tags.