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Perpetual Inventory system allows us to have a close monitoring on inventory movements and the corrective actions will be done immediately.
Where as Periodic Inventory system we cant trace the complete movements of inventory on regular basis and what ever the shortage/excess we will come to know after a long period where in effect the inventory & supplies will be effected.
In Overall perspective having perpetual inventory system is better.
For any business inventory is the most important factor.
Demand and supply revolve around inventory and hence its very important to maintain inventory at all times.
1) Perpetual Inventory Systems are very important for any firm/company. With the help of perpetual systems movement of stocks can be know. Also its more system driven so reporting becomes very easy.
2) Periodic Inventory is a TDS job. for big company's stock count is done once a quarter or year. it is equally important as it eliminates differences of system stock vs physical stock.
Hence we can conclude Perpetual Inventory System are used regularly in a business over Periodic Inventory.
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