Chapter 1 Inventory System

Research two (2) manufacturing or two (2) service companies that manage inventory and complete this assignment.

According to Investopedia (2014) dictionary, inventory represents one of the most important assets that most business possess, because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company’s shareholders/owners. There are several reasons for manufacturers to hold inventories: one is to meet the demand of production and sales operation; the other is to consider the market price. Generally, we would receive a lower price if we buy large stock of goods than a small amount of goods. However, overstocked inventories not only occupy plentiful funds, but also increase the costs including warehouse cost, insurance fee,

To be successful in today’s business environment, an organization must be able to perform certain fundamentals accurately and efficiently. One of these elements is having an effective and efficient Inventory System Management (ISM). ISM enables one to have the knowledge of where his or her inventory is at every step of the way. This allows one to better interact with consumer and make sales. Choosing the right ISM can lead and pave the ground work for future business success and profitability.

Write a 4-5 page paper in which you create a plan for a low-cost automated inventory system in which

Write a 4-5 page paper in which you create a plan for a low-cost automated inventory system in which

The company that our group has partnered with for this project is CVS Pharmacies. We looked into this company to see if there were any areas for improvement within the organization that would have an impact on external customers. Within this define stage is when we did exactly that, we defined the problem. One problem that we found within the CVS Pharmacy, that would be easy enough to handle given the scope of the project, concerned the stores current inventory (overstock, backstock) system. It seemed that currently there was no formalized process with regard to placing items in overstock, resulting in an unorganized and unconventional overstock area. This created a problem because it made it harder

The Inventory Table contains the components that make up an Item. It is used for managing inventory and

Inventory management can be defined by how it “involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs,” (David Alan Collier, 2017). Inventory management used to be about taking notes on cards. Employees would write down the items on a piece of paper. This process obviously took a lot of time and it was easy for shop keepers to miss items. The idea of electric inventory records first came up during the 1930’s but didn’t really take off until 1948 when the first electronic scanner was built.

The inventory and production departments also have issues. Currently, inventory is done by the receiving area supervisor confirming the shipping documents against incoming orders by hand. This allows for human error and is not a quick or efficient way to do inventory. The same process is used when production takes items from inventory. The inventory system is only updated once daily when new raw materials arrive and then again once daily from production when the raw material is used. The lack of tracking and checking in a timely manner leaves the organization’s processes at a higher risk of failure. The inventory system does not currently communicate with the sales or with the Finance and Accounting applications. This may lead to a

Database systems that will help them keep track of products availabilities. This will also help management to make better decision when to entice customers with discount sales and other technics to help drive down their inventory items.

Accounts payable, accounts receivables can all be updated to a more efficient system eliminating needlessly labor intensive tasks such as compiling invoices at the end of the day and manually putting the information into the computer. Currently much of this is being done with paper invoices that are carried from department to department. Paper invoices are being hand delivered and all data is manually added to the data base at the end of the day. Currently there is a separate system for customer billing and shipping and inventory and inventory is only taken once a month. The delay leaves a greater chance of error and either running low on supplies or having too much. The current inventory management system is different for each plant makes accurate communication between each facility difficult. Having a system in place across all locations will simplify customer billing and

point of sale system. The POS system is a perpetual inventory counting method that electronically records items immediately upon their point of sale (Stevenson, 2015, pg. 552). In other words, as a cashier scans a customer 's groceries, each scanned item is automatically recorded in the system and deducted from the store’s inventory. Implementing a point of sale would benefit a business’s inventory management function in several ways. First, the POS system will provide managers with a continuous flow of updated information (Stevenson, 2015, pg. 552). As a result, the information will provide more accuracy when used for sales forecasts and analysis, which substantially affect inventory decisions. Continuously, this inventory system would also allow greater flexibility in the sense that it can be wirelessly linked to the main company’s inventory system, creating a network of the company’s inventory systems. The POS system is capable of tracking many operations at once and can be modified according to management’s needs (MacCarthy, n.d.). This flexibility would undoubtedly benefit a large company like Wegman’s with many store locations. Lastly, the system is able to help businesses maintain a high level of customer service. Because the system gives customers a receipt with the price and quantity of each item purchased, the customer is able to see exactly what he or she purchased. This practice

Used SAP tools with the project team and created a centralized system for inventory, finance and sales areas within a supply store system.

Tasks:  What should Alison do? o Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization  Identify the functions and forms of inventory  What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation)  Provide training programs for current and new hiring employees 1

Nowadays, in an era that has advanced technology and a place in the world. Everything can be linked only at your fingertips in the times of rapidly developing with the sophisticated technology of today. Therefore, an inventory system is also not lagging behind in introducing a method of keeping an inventory data systematically and safely. The system plays a very important role in improving the competitiveness of a business. Usually, organizations today face too many challenges to achieve the cost, speed and reliability. Efficient inventory system really help in order to make sure the store’s performance and data record is always in good condition and secured from abusers. The system basically to ease the admin to manage the