What are the disadvantages of perpectual inventory system?

The perpetual inventory system can be costly to implement and maintain due to the need for sophisticated software and technology to track inventory in real-time. It requires constant updates, which can be challenging in fast-paced environments and may lead to inaccuracies if not managed properly. Additionally, the complexity of the system can overwhelm smaller businesses without adequate resources or expertise. Finally, any system failures or data entry errors can result in significant discrepancies in inventory records.