Which of the following methods is typically used for inventory management in a continuous review system?

In a continuous review system, inventory levels are monitored constantly to determine when to reorder stock. Barcode scanning is particularly effective in this context because it allows for real-time tracking of inventory as items are received and sold. This technology enables organizations to accurately assess current inventory levels without the need for lag time associated with periodic audits or physical counts. By integrating barcode scanning with inventory management software, businesses can automate the reorder process, ensuring that stock levels are maintained optimally based on actual demand.

Using barcode systems also reduces the likelihood of human error that can occur with manual records or physical stock takes, both of which can be time-consuming and less accurate. This fosters a more efficient and responsive supply chain, aligning closely with the principles of a continuous review system where timely data is crucial for decision-making regarding inventory replenishment.