Final answer:
Most companies relied on periodic inventory systems thirty years ago due to technological limitations, which made real-time inventory tracking difficult. Over time, advancements in technology and supply chain strategies like just-in-time delivery have transformed inventory management practices.
Step-by-step explanation:
Thirty years ago, most companies relied mainly upon periodic inventory systems primarily due to the limitations posed by the available technology. In the 1950s, computers like those used by the U.S. Census Bureau required complex data management systems and were not as widely accessible or efficient as modern technology, making real-time inventory tracking challenging. As technology evolved through the century, changes such as Ford's assembly line methods, which maximized efficiency and altered the nature of work, and the adoption of innovations such as intermodal containers, significantly impacted manufacturing and logistics efficiency. In the 1980s, the concept of just-in-time delivery was introduced by Japanese car manufacturers, which further revolutionized inventory management by reducing the need for large warehousing spaces and improving quality control.
However, during that time period, many manufacturing sectors still relied on periodic inventory due to the cost and complexity of implementing more advanced systems. This often meant that inventory was counted and restocked at fixed intervals, rather than continuously tracked, which could only change once companies began to adopt newer technologies that allowed for greater efficiency and frequency in data management and inventory control. The improvement in technology, including computer systems and data management capabilities, has significantly transformed inventory systems over the decades. The transition from periodic inventory system reliance to more dynamic and efficient methods like real-time tracking is closely tied to technological progress in addition to the strategic shifts in supply chain management, such as the emergence of just-in-time delivery and the economic advantages brought about by widespread containerization.