Final answer:
Perpetual inventory systems help in controlling theft and also enhance production planning by providing real-time inventory levels, assisting in efficient manufacturing schedules and minimizing stock discrepancies.
Step-by-step explanation:
The statement is True. Perpetual inventory systems play a crucial role in both inventory management and production planning. This system provides real-time updates of inventory levels, thereby assisting businesses in maintaining accurate stock records. By knowing exactly how much inventory is on hand at any given time, companies can prevent both overstocking and stockouts. These accurate inventory records help prevent theft, as every item is accounted for regularly, making any discrepancies or losses noticeable quickly.
Moreover, a perpetual inventory system also aids in improved production planning. With a clear understanding of inventory levels, companies can better predict when to reorder products or materials and can optimize their manufacturing schedules to align with demand. This results in more efficient production processes, reduces holding costs, and minimizes the risk of stockouts or excess inventory. Therefore, the integration of perpetual inventory systems into business operations fosters better control and planning overall.