Summary
This article is about the recycling industry’s new software which is said to be capable of tracking inventory during the entire procedure: scale house to order fulfillment. In turn, the software will not only be able to track how much given material is on hand, but also the cost as well. Furthermore, bar codes are used for finished goods inventory, and when the items are shipped, they are taken out of inventory. Moreover, by presenting an immediate view of inventories, recyclers will be able to easily analyze the well-being of their business, and expenses that may have an effect on “valuation, gross profit and commissions.” However, as the model is not human and cannot make human judgments. If certain information is not specified, the inventory will not be correct. Nonetheless, software providers are certain that the software which offers various functions will benefit recyclers.
Connections
To begin, in Chapter 11, we are introduced with the new concept of the ‘periodic inventory method’, where at the end of each fiscal period, the cost of inventory is determined. However, business owners (more from larger companies) have strayed from the ‘periodic inventory method’ to the ‘perpetual inventory method,’ where inventory is kept up to date on a daily basis. As technology has advanced greatly from the start of the perpetual inventory method, a majority of business owners are now able to keep their inventory records in computer systems which allow them to see updated inventories at their disposal. With this in mind, this also ties in closely with ‘COGS’, which is calculated simply with the help of the software.
Reflections:
If this software were to be manufactured and customized to any other businesses’ needs, not only would it be convenient for the owner, but also for potential investors and customers. With an updated and immediate view of inventories, the owner can easily, and without delay view the condition of their business. Moreover, an owner would know how to better handle their cash and in addition, when to reorder inventory. This benefits investors since they will be able to see updated work sheets, allowing them to make the correct choice when investing. For customers, they will be able to contact and know if the business has what they are looking for in stock, and how long they might have to wait for what they need. As you can see, this automated system would benefit the business, investors, and also customers.
