MGT220H5 Chapter 8: Chapter 8 (Inventory) - MGT220 (2018)
Document Summary
I(cid:374)ve(cid:374)tory; e(cid:374)di(cid:374)g i(cid:374)ve(cid:374)tory; i(cid:374)ve(cid:374)tory errors; i(cid:374)ve(cid:374)tory cost; perpetual vs. Syste(cid:373)s; cost for(cid:373)ulas; lcnrv; esti(cid:373)ati(cid:374)g i(cid:374)ve(cid:374)tory; a(cid:374)d i(cid:374)ve(cid:374)tory a(cid:374)alysis. Retailers are using radio-frequency identification (rfid), which involves putting special tags on merchandise with antennas & computer chips that track their movement through radio signals. Rfid makes it easier for retailers to switch to a perpetual inventory system, since the tags can keep a constant count of items. It"s also transforming inventory cost formulas, helping stores move to a specific identification method for goods that typically had to be valued based on their average cost. An rfid tag allows a retailer to see exactly how much each item cost & how much it sold for. Whereas traditional inventory counting can be less than 50% accurate, rfid can increase inventory accuracy to over 95%, which significantly reduces stockouts. Rfid also reduces the carrying costs of having too much inventory. Rfid helps retailers locate products on shelves, in the backroom, and in warehouses.
