which type of inventory system will you use: perpetual or periodic? explain your reason.
A perpetual inventory system is superior to the older periodic inventory systems because it allows for immediate tracking of sales and inventory levels for individual items, which helps to prevent stockouts.
Using a perpetual inventory system makes it much easier for a company to use the economic order quantity (EOQ) to purchase inventory. EOQ is a formula managers use to decide when to purchase inventory, and EOQ considers the cost to hold inventory, as well as the firmâs cost to order inventory. Examples of Inventory Costing Systems