Future Business Leaders of America (FBLA) Marketing Practice Test

Which type of inventory system provides real-time data about stock levels?

1. Perpetual inventory system

2. Periodic inventory system

3. Static inventory system

4. Alternative inventory system

The correct answer is: Perpetual inventory system

The perpetual inventory system is designed to provide real-time data about stock levels. This system constantly updates inventory records as transactions occur, meaning that each time an item is sold or received, the inventory count is adjusted immediately. This allows businesses to maintain accurate and up-to-date information on their inventory, helping them make informed decisions about purchasing, restocking, and managing their supply chain effectively. In contrast, the periodic inventory system does not continuously update stock levels. Instead, it relies on regular intervals to conduct physical counts of inventory, which can lead to discrepancies and less timely information. Static inventory systems generally imply a fixed level of inventory that does not change unless manually updated, and alternative inventory systems may refer to various methods that don't provide the same real-time insights as a perpetual system. Thus, the perpetual inventory system is ideally suited for businesses that require immediate visibility into their stock levels.