Perpetual Inventory Record

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
View All

The Production Based Inventory Control and Evaluation (PBID) method provides a comprehensive view of the entire Supply Chain for any manufacturing operations. PBID also provides a complete view of the entire production and distribution process. The Inventory management system provides an effective method for tracking all physical movement kinds that affect Inventory. These include facilities for physically verifying, recording and reporting all Inventory product master data.

The definition of "production" is a term that pertains to the whole life cycle of production of a product. The term "supply chain" pertains to the actual physical location where raw materials are collected and used in the production process. In order to understand the importance of this Management System, it is essential to define each of these terms separately. For instance, when discussing the term "supply chain," one should clearly define the meaning of the term to include: the relationships between the various stages of the supply chain, from supplier to factory to retail customer and to ultimate destination.

When referring to the term "perpetual inventory record and evaluation," one should specifically define the above two terms as separate terms with corresponding definitions. In simple terms, a Perpetual Inventory Record and Evaluation is a set of data and information designed to provide a continuous analysis of the supply chain in order to maximize productivity and efficiency at all times. Therefore, in general, this term is used to refer to a system that allows for the recording, collection, and evaluation of data on all forms of physical goods or services for a company's manufacturing, warehousing or distribution. A company may utilize the above definition to ensure that all functions related to manufacturing, warehousing and distribution are properly recorded on a continual basis.

CIOP Webinar Series

Learn the Global Best Practices in Supply Chain Management, Procurement, and Inventory Management.

60 Minutes of Learning + PDU Letter

Register Now

Do Do you want more information on Certified Inventory Optimization Professional?

Fill in the form to download the quote.