Question

Warehouse managers at Broward, Inc. have been discovering inventory shortages. When they investigate the paperwork transferring the goods from receiving to the warehouse, the evidence indicates that the goods have arrived in the warehouse. What control plan would prevent this?

Answer 1

Implementing a barcode system, conducting regular inventory audits, and using electronic data interchange (EDI) technology can help prevent inventory shortages at Broward, Inc.

Step-by-step explanation:

A control plan that could prevent inventory shortages in Broward, Inc. is implementing a barcode system. This system involves labeling each item with a unique barcode, which is then scanned when the goods are received in the warehouse and when they are transferred. By scanning the barcode, the system can track the movement of goods, ensuring that they are accounted for and reducing the risk of inventory shortages. In addition to the barcode system, Broward, Inc. could also implement regular inventory audits. This involves physically counting and comparing the actual inventory in the warehouse to the records in the paperwork. Any discrepancies can be investigated and resolved promptly, minimizing the chance of inventory shortages going unnoticed. Lastly, Broward, Inc. could consider using electronic data interchange (EDI) technology. This allows for the electronic transfer of information between different systems, reducing the risk of errors or loss of information during the paperwork process. EDI can help streamline the transfer of goods from receiving to the warehouse, ensuring that the correct quantities are recorded accurately.