Inventory Management System

Inventory management is a component of supply chain management that involves supervising non-capitalized assets, or inventory, and stock items. Specifically, “inventory management gwankhosupervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.” Thus, inventory management hinges on detailed records of products or parts as they enter and leave warehouses and points of sale.

Inventory Management Works

A company's inventory is one of its most valuable assets. In retail, manufacturing, food service, and other inventory-intensive sectors, a company's inputs and finished products are the core of its business. A shortage of inventory when and where it's needed can be extremely detrimental. At the same time, inventory can be thought of as a liability (if not in an accounting sense). A large inventory carries the risk of spoilage, theft, damage, or shifts in demand. Inventory must be insured, and if it is not sold in time it may have to be disposed of at clearance prices—or simply destroyed.

Inventory Accounting

Inventory represents a current asset since a company typically intends to sell its finished goods within a short amount of time, typically a year. Inventory has to be physically counted or measured before it can be put on a balance sheet. Companies typically maintain sophisticated inventory management systems capable of tracking real-time inventory levels. Inventory is accounted for using one of three methods: first-in-first-out (FIFO) costing; last-in-first-out (LIFO) costing; or weighted-average costing.

Inventory Management Methods

Depending on the type of business or product being analyzed, a company will use various inventory management methods. Some of these management methods include just-in-time (JIT) manufacturing, materials requirement planning (MRP), economic order quantity (EOQ), and days sales of inventory (DSI).

More About Inventory Management System

Inventory Management software

• Inventory Management Software is the universal program for Inventory Control & Materials Management Software from simple invoicing to complex inventory control system designed specially to meet the requirements of small and medium sized enterprises(SME).
• Inventory Management Software is basically used for sales and purchase.
• The Inventory Management software is a key component of the Distribution Suite and is integrated with the Financial Suite as well as the Order Management and Purchasing Management modules.
• Inventory Software is an intuitive, easy to use, robust , multi-user inventory business management system and accounting software that includes inventory, customer management, vendor management, A/R, A/P and comes with extensive reporting tools .
• The Inventory Management software provides real-time access to available inventory, inventory in transit, reorder quantities, and inventory costs so you can efficiently manage your distribution process to improve customer satisfaction while maximizing profits.