Question

How does the procedure for determining inventory requirements differ between a basic batch processing system and...

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory?

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Answer #1

The procedure for determining inventory requirements differ between basic batch processing system and batch processing system with real time data input of sales and receipts:

The adjustments have to be made for transactions that occurred between the last batch processing update and the present time in case of basic batch processing system. However, in real time processing no such adjustments are to be made. The inventory accounts are up-to-dated in real time online processing whereas inventory has to be adjusted for all the transactions hat occurred since the latch update of basic batch processing.

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