Inventory Control Systems

Inventory control systems are comprehensive frameworks that enable businesses to effectively monitor, organize, and manage their inventories throughout the process from raw materials to final products. These systems have been developed with objectives such as reducing warehouse costs, meeting customer demands on time, ensuring production continuity, and optimizing capital utilization. In modern enterprises, accompanied by technological advancements, inventory control is no longer limited to physical inventory tracking but has evolved into an integrated structure incorporating digital data analytics and decision support systems.

Conceptual Foundations and Historical Development

The earliest examples of inventory control date back to before the Industrial Revolution, when processes were largely conducted through manual records and personal experience. With the emergence of mass production, there arose a need for more systematic and data-driven control mechanisms. Starting from the mid-20th century, the widespread adoption of computer-assisted systems led to the integration of inventory control with software such as Enterprise Resource Planning (ERP) and Warehouse Management Systems (WMS). These digital solutions provide capabilities for real-time data tracking, automated reporting, and performance monitoring.

System Types and Implementation Methods

Periodic and Continuous Systems

In periodic systems, inventory counts are conducted at fixed time intervals. This method is commonly preferred by small and medium-sized enterprises but makes real-time inventory level tracking difficult.

Continuous systems, by contrast, record inventory inflows and outflows in real time, maintaining up-to-date inventory levels at all times. Supported by RFID and barcode technologies, these systems are widely used in large-scale and multi-location operations.

Core Techniques

• ABC Analysis: Optimizes resource allocation by categorizing products into three groups—A (high priority), B (medium priority), and C (low priority)—based on annual consumption value.
• EOQ (Economic Order Quantity): Determines the optimal order quantity that minimizes the combined costs of ordering and holding inventory.
• ROP (Reorder Point): A mechanism that triggers an automatic reorder process when inventory levels fall below a predetermined threshold. This point is calculated using parameters such as average demand rate and lead time.
• JIT (Just-in-Time): Focuses on acquiring materials only in the required quantity and at the exact time they are needed, aiming to reduce waste and lower inventory holding costs.
• (Q, r) Model: A mathematical model that ensures continuous inventory monitoring through a fixed order quantity (Q) and a reorder point (r).

These techniques can be flexibly adapted according to variables such as demand uncertainty, supply chain length, and production cycle time.

Technological Integration and Applications in Türkiye

Integration Technologies

ERP systems enable enterprises to manage all their processes through an integrated platform, storing inventory data centrally. WMS (Warehouse Management Systems) manage product locations, inventory movements, and order picking processes within warehouses. RFID, barcode, and mobile scanning technologies accelerate inbound and outbound operations and reduce manual error rates.

Digital Transformation and Data Analytics

Advanced digital technologies such as artificial intelligence, machine learning, and big data analytics are being integrated into inventory control systems, enabling more accurate demand forecasting and optimizing inventory transportation and order planning processes. With data mining and predictive analytics, inventory holding decisions are now based on future projections rather than historical patterns alone.

Application Areas in Türkiye

The growth of e-commerce and multi-channel retailing in Türkiye has accelerated the adoption of inventory control technologies. Digital inventory management is becoming widespread, particularly in the organized retail, automotive, and food sectors. KOSGEB and TÜBİTAK-supported digitalization projects for SMEs are facilitating access to ERP software and making cloud-based solutions more accessible. The increasing number of logistics centers is also positively impacting the efficiency of regional inventory management.