James keeps a running record of inventory and does not physically count the inventory periodically. he is using a Perpetual system.
A perpetual inventory system is a software that estimates your inventory on a continuous basis based on your electronic records rather than a physical inventory. This system starts with a physical count as a baseline and upgrades centered on purchases made in and shipments made out.
The use of wireless barcode scanners in a grocery store is the most common perpetual inventory system example. It immediately records all digital image transactions on the system. Firms can easily calculate their current and required stockpiles this way.
The perpetual system continuously monitors inventory balances, with updates made instantaneously when an item is received or sold.
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