Revenue Process Inventory Process Purchasing Process

Mercantile Organization

Receive Merchandise from Vendors and: Inspect for quality Count & compare with packing slip and purchase order Transport to inventory storage Store Merchandise Tanks Shelves Floor Repackage Rotate Pull for shipment Package Merchandise in Appropriate Containers Ship to Customers

Periodic & Perpetual Inventory System Periodic rely on periodic stocktaking Perpetual details of both units and inventory values are automatically maintained on a continuous basis

Inventory Management Problems

Maintaining an economic level of inventory on hand Avoiding obsolete inventory Managing the selection of problems to achieve satisfactory profitability