Inventory refers to the amount of goods or materials that are placed inside a store or factory at any time. One of the more important responsibilities of store owners is to have a constant knowledge of the exact number of items that are in their stores or warehouse so that they can properly service clients who make product orders. The same can be said for restaurant managers who need to constantly be aware of the stocks of food so that it can meet the demand of the business. In fact, various types of businesses depend on knowing various kinds of inventory in order to work efficiently.
When someone says “inventory” it can refer to both the total amount of goods and also the process of counting these goods. There are many businesses that need to inventory their products or supplies on a fairly regular basis so that they won’t encounter a situation where they run out of certain items, especially those that sell well. Inventory is also done to make sure that the items ordered by a business matches the actual number of items that are delivered. This practice reveals if there are any discrepancies in the amount ordered and the amount delivered, which could reveal problems like faulty accounting practices or even theft.
Retail businesses that make it a point to make frequent inventory of their products or materials can use a ‘par’ system, where a par sheet is used. The par sheet is a master list of all of the products or items in a store or business. The par sheet gives the manager or the person in charge of inventory to know precisely what is the amount needed for different items and from there make accurate orders for items that need to be replenished.