Mechanical Engineering - Industrial Engineering and Production Management - Discussion

The correct answer is the minimum value.

In perpetual inventory control, the material is checked as it reaches its minimum value, also known as the reorder point. This is the point at which the inventory level has fallen to a predetermined minimum, triggering a new order to replenish the stock.

Perpetual inventory control involves:

- Continuous monitoring of inventory levels
- Automatic ordering when the minimum value (reorder point) is reached
- Maintenance of accurate records of inventory transactions

The other options are not correct:

- Maximum value: This would indicate a surplus, rather than a need to reorder.
- Average value: This is not a specific point that would trigger a reorder.
- Any one of these: Only the minimum value (reorder point) is the correct trigger for reordering in perpetual inventory control.

=> Perpetual inventory control helps maintain optimal inventory levels, reduces stockouts, and minimizes excess inventory.

A perpetual inventory system or continuous inventory system is a method of tracking and recording inventory and costs of goods sold on a continual basis, so a current inventory balance can be calculated in real-time.

In other words, a perpetual inventory system records all inventory transactions in real-time, so the accounting system can display the current inventory balance at any point in time.

It follows fixed order quantity System (Q system) wherein the maximum and minimum inventory levels are fixed, and a maximum and fixed amount of inventory can be replenished at a time when the inventory level reaches the auto set reorder point or the minimum stock level.

It should be minimum value.

It should be the minimum value.

A perpetual inventory system is a method of tracking and recording inventory and costs of goods sold on a continual basis, so a current inventory balance can be calculated in real-time. In other words, a perpetual inventory system records all inventory transactions in real-time, so the accounting system can display the current inventory balance at any point in time.

So option D is correct.

Option D is correct.

Ref: RS Kurmi.

It must be checked as it reaches the minimum value.

It's mininum value.

The answer is b) Minimum value.

Yes, it is a minimum value.