Inventory Control System Flashcards, test questions and answers

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What is Inventory Control System?

Inventory Control System is a system used to maintain and manage an organization’s stock levels. It helps businesses keep track of what products they have in stock, how much of each product they have, and when to order more to prevent running out. The system can also help optimize the inventory purchasing process by forecasting future demand and ordering supplies in advance. This helps businesses save time and money by avoiding overstocking or running out of necessary items. Inventory control systems are essential for any business that needs to keep track of its physical assets, from raw materials to finished goods.The first step in using an inventory control system is setting up the database. This includes creating records for every item you need to track as well as adding information about the location, quantity, type, cost price and sale price of each item. Once this information is entered into the database, it can be used for a variety of purposes including tracking current stock levels, forecasting future demand and analyzing past performance in order to make decisions about ordering new supplies or adjusting prices accordingly.Another key feature of inventory control systems is their ability to generate reports that show data such as total value of all items in stock at any given time along with trends in sales over time or comparisons between different locations/products/etc. These reports can provide valuable insights into your business operations that would otherwise be difficult or impossible to uncover manually. These systems also often include features such as barcode scanning which makes it easy for employees on the warehouse floor or shop floor to quickly scan items upon arrival or purchase so that the appropriate information is automatically recorded into the database without having to manually enter it each time. By streamlining this process, businesses can avoid common errors such as mis-keying quantities/prices which can lead to inaccurate data which leads to poor decision making further down the line.