Final answer:
The common inventory ordering system categories are perpetual and periodic systems, with perpetual systems updating in real-time, while periodic systems do checks at intervals. These systems are part of larger strategies for managing inventories, which include balancing stocking costs and the risk of shortages.
Step-by-step explanation:
The two common inventory ordering system categories are perpetual and periodic systems. A perpetual inventory system keeps real-time data on inventory levels, updating continuously as sales are made and stock is replenished. On the other hand, a periodic inventory system tracks inventory levels at specific intervals, such as weekly or monthly, necessitating physical counts.
In considering the management of inventories, companies must balance the cost of maintaining stock against the risk of supply chain disruptions. The perpetual system is generally suited for businesses with a high volume of transactions or costly items, providing a detailed and ongoing understanding of stock levels. The periodic system might be preferred by smaller enterprises with less frequent sales or those looking to reduce technology infrastructure investments. Both systems are essential components of broader inventory management strategies, which may also include concepts like Just-in-Time (JIT), Economic Order Quantity (EOQ), safety stock, and reorder point strategies.