Inventory Systems Summary
The principal role of an inventory management system is to report and track inventory in various companies, such as in retail. There are different types of inventory systems that can be used by a company such as First-In-First-Out (FIFO), Last-In-First-Out (LIFO), Just-In-Time (JIT) and the Average Cost method. Team A discussed the types of inventory systems, the pros and cons of each method, and any similarities or differences of the method.
Best Buy Company uses the LIFO method to allocate ending inventory and costs of goods sold. One adva