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Background of the Study
According to Spencer (2000) inventory is defined as the stock of goods that commercial firms have no band consisting of raw materials suppliers and finished goals. Inventory denotes to the commodities kept by a company or an organization that are either utilized in the manufacturing, kept for resale, or in the making of the finished goods. Thus, inventory implies money is linked to property that is aimed for resale or utilized in the merchandising business. The inventory would be consisted up generally of finished goods however in a manufacturing setting a major part of the inventory was made up of raw materials and goods that have been particularly processed. There are various benefits to be realized as a result of maintaining large inventory. An efficient inventory system is generally cost related. It should have an efficient way of finding out the satisfactory transaction to improve the productivity of a company.
Statement of the Problem
In order to perform the procedure on satisfactory inventory control system, the stock of different commodities and goods are generally maintained. Maintenance and controlling of inventory is a major task of the store department with contributions from the sales and purchasing departments.
The existing system is only useful to some extent and might not endure the test of time as the company goes into transactions of goods or other accessories. This would fulfill new supply of products to be maintained. Complex sales are considered flexible, lively and resourceful inventory system as explained above necessitates electronic data processing to implement. The computerized systems help in providing the solution to such problems.
Objectives of the Study
The main objective of this study is to create and design a computer based inventory control system, which would include.
1. Facilitate the management to get the data regarding stock levels of different items at the optimal time
2. Guarantee that the quality data is maintained
3. Proposes a type of inventory system that could relate to sales and accounting departments
4. Computerized system should be utilized to handle data, so as to ensure that information would be always correct.
Significance of the Study
All the modern companies are conditional on inventory control systems that help to operate their business efficiently. Inventory control systems contribute significantly in accounting for all commodities or goods. It also showed where a specific goods is in the flow of sales, whether it be in a warehouse or on a store shelf.
Following are some of the salient features of this research proposal.
* The proposed system would help management in realizing important business decisions
* To propose a design for an effective and accurate record keeping methods in terms for efficient inventory control systems in computer accessories.
Creating Inventory Control system
The inventory control system of a company helps to strike a balance of the different expenses. With the aim of minimizing the total cost and achieving profits in an organization, an inventory control management must deal with the following:
* Storage services with sufficient room and environment conditions
* Satisfactory security system to care for the stock from being damaged
* A plan for the disposal of obsolete materials
* Appropriate record keeping
* Skilled salesperson and assistance clerk
Advantages of Inventory Control System
* It removes redundant investments
* It decreases repetition of stock items
* It offers the company with a framework for cost analysis
* It offers a guarantee that the goods created in good condition can fulfill specifications.
The Need for Automation
The computerization of Inventory Control System facilitates the performance of work easily and precisely. Moreover, the computerization of some of the functions in the inventory department would avoid wastage of time. The automation of inventory control system has significant benefits for example security and safety of data accuracy and correctness of regular inventory reports. The following are some of the salient requirements for automation of an inventory/stock control system for a company.
Time
Much time could be wasted in the creation and posting of the ledger, which would create problems between storekeeper and those in charge of requisitions.
Accuracy
Owing to the deficiencies of human nature, there could be no high level of the precise number of manual systems. Automation does not make miscalculations from the human perception.
Data Entry
Inaccuracies could be made in this while entering data and the sales of the ledger card. Stocks received could be incorrectly posted as issues and may be hard to identify thus creating anomalies in the balance, thus there is a need for proper automation.
An efficient inventory control system should help the company attentive of the quantity of each type of goods at hand. An effective system would offer the company with a guide regarding the style, color, size, price and brand. It would decrease the number of lost sales as a result of being unavailable of goods in popular requirements. The inventory control system would also help in locating slow selling items and pointing changes in customers` preferences. The size of the organization and the number of people engaged are influential factors in creating an efficient stock control plan.
With the observation method, unless the people utilizing it have an extraordinarily sharp sense of quantity and sales outlines, it is hard to keep an adequate check on goods depletion. It implies that the company post deficiencies of commodities as the requirements for them takes place in the organization. Without a better checking system, the orders might only be made at the time of the salesman`s usual visit, irrespective of when they are in fact required. Though inventory control system it may be the simple system, it also can generally give rise to lost sales or production delays. Detachable stub or tickets put on goods provided a good method of control. The stubs, having data identifying the items, are eliminated at the time the goods are sold.
A checklist, generally offered by wholesalers, is another counting tool. The checklist offers a space to post the items approved, the selling price, cost price, and small quantities to be ordered for each. It also holds a column in which to note whether the stock on hand is enough and when to rearrange. This is another very simple mechanism that offers the level of data needed to make educated decisions regarding efficient inventory management.
The smaller operations of the company in the modern era, excepting the very smallest, are utilizing some type of a continuing online system to register the movement of inventories into and out of their services. In a retail operation, the clerk at the register merely examines the ticket with a reader, and the system showed the present price and eliminates the goods from the inventory control system. A similar procedure takes place in a manufacturing operation, excepting that the “sale” is in fact a transfer of the inventory of control of production. This can be considered a particularly critical system in a large business store. Generally a seller would offer on-site or automated help required to help their smaller clients maintain a good perception of their own inventory levels and so make them steady. Many key approaches can be utilized for inventory control in any kind and size of business. The actual system chosen would be conditional upon the type of business as well as the amount of goods.
System Analysis & Design
System analysis is a remarkable disciplined process which starts with the creation of user requirement for a specific application and ended with the implementation. The system analysts proceeds to study the present system by asking such questions
* Why did the problem exist?
* Why were some methods of work recognized?
* Do there exists alternative methods?
* What are the development rates of data?
System Implementation & Documentation
The implementation process of inventory control systems begins when the management has approved the new system. The implementation comprises of setting of new systems and clearly recognizable domains that necessitates focus on the implementation of the new system, they comprise of the following stages
* Testing of the program
* Education & training of staff
* System change over plan
Documentation
The documentation of the software for inventory control system is comprised of all of the documents explaining the system itself. It is a written text that comes with the computer software. It explains how to operate and to use the system, or may imply diverse things to the staffs using the software. This is what the analyst suggests when using the expression software documentation. When establishing the software, code alone is inadequate. There must be some transcript to explain various features of its needed operation.
Significance of Implementation of Just-in-Time implementation: An Analysis
There exists a plethora of studies that show the advantage of the implementation of JIT with benefits and drawbacks (Biggart & Gargeya 2002).
Moreover, the studies (Huson & Nanda 1995) have used longitudinal data to assess the advantages of JIT regarding companies` performance.
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