Perpetual inventory provides continuous visibility of stock levels to support which activity?

• A. Warranty tracking
• B. Annual audits
• C. Reordering decisions
• D. Marketing planning

Answer: (C)

Perpetual inventory systems continuously update the on-hand count after every transaction, giving you an exact, real-time view of stock. That visibility drives when and how much to reorder—you can set reorder points, account for lead times, and maintain safety stock so you don’t run dry or overstock. In practice, this keeps purchasing aligned with actual demand, making reordering decisions the natural outcome of having up-to-date stock information. Warranty tracking and annual audits aren’t directly tied to live inventory levels, and marketing planning uses broader data rather than the precise current stock position used for replenishment decisions.