Materials

Perpetual Inventory System

A method of continuously tracking inventory levels in real time.

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Updated 2025-10-01

Definition

Perpetual inventory systems use technology to automatically update stock levels after each transaction or movement.

Overview

Overview

This system enables businesses to maintain accurate inventory records, reduce stockouts, and streamline warehouse operations.

Features

  • Real-time inventory updates
  • Integration with POS and ERP systems
  • Automated reporting and alerts

Example

A retailer uses barcode scanning and software to adjust inventory continuously as items are sold or received.

Tags

#Perpetual Inventory#Inventory Management#Warehouse#Materials Handling#ERP

Related Terms

Cycle Counting
Inventory Turnover
Stock Keeping Unit (SKU)