Companies regardless of the type of business that they are in use some form of inventory system.

An inventory management system tracks purchases, keeps count of goods and supplies in stock, and reorders supplies when levels get low. ReferenceThe two service companies that will be discussed are American Hotel Register Company and US Foods. Both companies use distribution inventory as their type of inventory for their daily business operation. Distribution inventory according to Collier & Evans, (2013) consists of finished goods and spare parts at various points in the distribution system. (Collier & Evans, 2013)US Foods is a food manufacturing company and a leading foodservice distributor with more than 60 locations.

In addition, the company also operates 14 processing facilities, which include 12 Stock Yards facilities, Fresh way Foods, a fruit and vegetable processor, re-packer and distributor; and Save On Seafood, a seafood processor and distributor. (US Foods, 2018) American Hotel Registry is a manufacturing and distribution company with over 70,00 products in their inventory. The company is one of the leading suppliers of hospitality products, and serves hotels, health care facilities as well as government and military services. (americanhotel.com)