Final answer:
A system that tracks the actual physical flow for each inventory item available for sale is called a physical flow tracking system or a real-time inventory tracking system. Companies use this system to monitor the movement of their inventory items in real-time and gain insights into their supply chain efficiency.
Step-by-step explanation:
A system that tracks the actual physical flow for each inventory item available for sale is called a physical flow tracking system or a real-time inventory tracking system. This type of system allows companies to monitor the movement of their inventory items in real-time, from the moment they are received until they are sold or used.
By tracking the physical flow of inventory items, companies can gain valuable insights into their supply chain efficiency, identify bottlenecks or delays, and ensure accurate stock levels. For example, if a company notices that certain inventory items are consistently taking longer to reach their destination, they can investigate the cause and take corrective actions.
Furthermore, a physical flow tracking system provides companies with accurate and up-to-date information on the availability of inventory items. This helps in improving inventory management, reducing stockouts, and minimizing both overstocking and understocking situations.