An inventory is a detailed classificationof the material and immaterial assets of a person, company or institution.
More about inventories
I’m sure you’ve heard the expression “I have to take inventory” from someone who owns a business. In most businesses this is a very common process that is usually done at least once a year.
There are many types of inventories: beginning or ending (depending on timing); anticipation, batch or consignment inventory (depending on logistics); periodic or perpetual (according to the periodicity); in-process or completed inventories (according to the form).
In the following article we are going to present a series of general advantages and disadvantages of inventories.
Advantages over inventories:
Order and control. It is a process that brings order, something essential for the proper functioning of any company. In addition, what is ordered is easy to locate.
Order and control.
Detects losses and theft. If an inventory is taken frequently, theft or losses due to accidents or mismanagement can be detected.
It offers a wide variety of information. It shows a lot of information about production levels, helps to know the value of a company and offers other data such as information about the demand curve.
Disadvantages of inventories:
Labor-intensive. It requires a large number of workers to perform the process.
Large space. Requires large space to store files and documents.
