(a) Jenga Company limited has been experiencing problems in determining the levels of inventory at a particular point in time. In an effort to resolve this problem they have hired you as a consultant to advise them.Hence, describe the various approaches that can be used by an organization to keep track of the flow of inventory. (10 marks)

The question is asking for various methods that a company can use to monitor and manage its inventory. There are several systems and methods that companies use to track inventory, including:<br /><br />1. Periodic Inventory System: In this system, the inventory is counted at specific time intervals (monthly, quarterly, annually). The cost of goods sold (COGS) and ending inventory are determined at the end of each period.<br /><br />2. Perpetual Inventory System: This system updates inventory records for each purchase and sale as they occur. It provides a highly detailed view of changes in inventory and allows for real-time reporting of the amount of inventory in stock.<br /><br />3. Barcode Scanning: This method uses barcodes to track inventory. When a product is received or sold, its barcode is scanned and the inventory system is updated automatically.<br /><br />4. Radio Frequency Identification (RFID): RFID uses electromagnetic fields to automatically identify and track tags attached to objects. These tags contain electronically stored information that can be read from a distance without requiring line-of-sight.<br /><br />5. Enterprise Resource Planning (ERP) Systems: ERP systems integrate all facets of a business, including inventory management. They provide a centralized system where all data is shared across all departments.<br /><br />6. Just-In-Time (JIT) Inventory System: JIT is an inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs. <br /><br />7. Economic Order Quantity (EOQ) Model: EOQ is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs.<br /><br />8. ABC Analysis: This is an inventory categorization method where items are classified into three categories: A, B, and C. Category A items are the most valuable ones, category B items are less valuable, and category C items are the least valuable. The classification is based on annual consumption value, annual consumption quantity, and dollar value of each item.<br /><br />9. Cycle Counting: This is a method of periodically counting inventory in a cycle, rather than at the end of an accounting period. It helps in identifying discrepancies between the physical inventory and the inventory records.<br /><br />10. perpetual inventory system with barcode scanning: This is a combination of the perpetual inventory system and barcode scanning. It provides real-time tracking of inventory levels and reduces the need for physical counts.<br /><br />Each of these methods has its own advantages and disadvantages, and the best method for a company depends on its specific needs and circumstances.