Perpetual inventory

Definition

A perpetual inventory system is a method of keeping continuous, real-time records of inventory levels for each product. It updates automatically with every sale or return, using software to track changes and keep accurate counts.

Related terms

Inventory Management:

The practice of overseeing and controlling the ordering, storage, and use of components that a company uses in the production of the items it sells.

Supply Chain Management:

The handling of the entire production flow of a good or service - starting from the raw components all the way to delivering the final product to the consumer.

Just: in-Time (JIT) Inventory - An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs