Inventory Analysis Team C Findings

Inventory System Analysis
Inventory Systems Analysis – Team C
QRB/501
April 2, 2012
Dr. Maryam Bolouri
Inventory Systems Analysis – Team C Inventory systems are something in which practically every
business needs to properly function. From the small business of just a few employees to the large
corporations, inventory systems are a vital part of a business 's success. The types of inventory
systems will vary with the number of businesses that use these different kinds of systems. Team C
will present findings on the research of various businesses and how those businesses use inventory
systems that pertain to a specific industry. The organizations of research include companies, such as
Infigen Energy, T–mobile, Wal–mart (RIM – Retail Inventory Method), Weis ... Show more content
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This system uses the cost to retail ratio calculated against the retail value inventory to establish the
lower cost or market (Target 2010 Annual Report, n.d.). This is due to permanent markdowns in
price. These markdowns are a result of sale, damaged goods, overstocking, and competition. Target
uses a program where venders do not charge the company for the products they stock until they are
sold. These quantities are figured into the sales of the consolidated statements of financial position,
but they are not considered inventory. Using the RIM method of inventorying, there are multiple
components needed to satisfy the equation. It needs the beginning inventory quantity cost and retail
price, current purchases cost and retail price, markups and cancellations, markdowns and
cancellations, and net sales. Using these components, a cost to retail ratio is formed. Once this is
formed, the sales are subtracted. This ends with the result of the inventory. This system tends to be
more popular than the gross profit method because it is based on cost–to–retail percentage rather
than historical gross profit ratio ("Appendix D, Retail Inventory Method", n.d.). The following is
four years worth of quarterly inventories of Target Retail Corporation:
Target Inventory Data 2007–2012 Jan. 31, 2012 | 7.918B | Oct. 31, 2011 | 9.89B | 31–Jul–11 |
7.926B | 30–Apr–11 | 7.696B | Jan. 31, 2011 | 7.596B | Oct. 31,
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Inventory System Sample
CHAPTER I The Problem and Its Settings 1. Introduction Grocery stores are established primarily
for the retailing of food. A grocer or the owner of a grocery store, stocks different kinds of foods
from assorted places and cultures, and sells them to customers. Large grocery stores that stock
products in their inventory, such as clothing or household items, are called supermarkets. Small
grocery stores that mainly sell fruits and vegetables are known as produce markets, and small
grocery stores that predominantly sell snack foods and sandwiches are known as convenience stores
or delicatessens. Manual Inventory System involves all concerns within its transactions, on how the
staff would be able to maintain the ... Show more content on Helpwriting.net ...
Inventory – The storage record/list of goods, merchandise and other materials. Log – The user input
or a record input on an inventory Stock Limits – The actual maximum value of a stock Surplus Fund
– The exceeding profit in a business | | | | | | | | [pic] ––––––––––––––––––––––– Over Stock Storage
Shipment of products Invoice Advertising MANAGER 0 INVENTORY SYSTEM Purchase
(Customer Data) Cash Flow SUPPLIER Sale Item Reorder Reorder CUSTOMER

Vendor Managed Inventory System
In order to fully and efficiently utilize our proposed vendor managed inventory system, we have
performed extensive research of numerous hardware and software configurations. Among the many
obvious requirements of the system are cost, scalability, compatibility, and ease of use. Some
methods for consideration are outlined below.
• Cost – In order to keep costs down, we have decided to utilize the Internet. Vendors would be
responsible for providing their own computer system in order to access the VMI. Our role would
include maintaining a dedicated server, supplying software, and providing access.
• Scalability – In an effort to apply forward–thinking, we are recommending a system that will
provide all of the functionality and ... Show more content on Helpwriting.net ...
This process will involve these steps:
1. Unpacking the equipment .25 hours
2. Verification of shipped materials against packing slip .25 hours
3. Racking the equipment. .50 hours
4. Configuring equipment setup. 2 hours Total 4 hours
Software
For the VMI project it is recommended that the vendor be able to log into our system through a
Virtual Private Network (VPN). VPN will give the vendor secure access through our firewall. Once
they have logged into our network a java applet will be pushed to their desktop. When this applet is
run it will install Oracle 's JInitiator on the vendor 's machine to allow them access to our Oracle
Application database. JInitiator is an Oracle plug–in which Java applets, including the forms applet;
is executed from. The vendor will use this applet to access custom forms, reports and charts
detailing current inventory levels and consumption history on our Oracle system. Figure 1 The
vendor will assigned a vendor

THE PRACTICE IMPLEMENTATION OF JUST IN TIME
INVENTORY...
PRESENTATION ON : THE PRACTICE IMPLEMENTATION OF JUST IN TIME INVENTORY
(JIT)MANAGEMENT SYSTEM IN PROCTER AND GARMBLE LTD. NIGERIA. THE
PROBLEMS AND CHALLENGES
PRESNETED BY :
ADEOYE AKEEM ADEGBENGA.
CENTRE FOR POSTGRADUATE AND RESEARCH,
KULLIYAH OF MAMAULAT,
INSANIAH UNIVERSITY COLLEGE.
TABLE OF CONTENTS.
1. Executive Summary
2. Company's background
3. Introduction – JIT 4.0 Findings and Analysis 4.1 Poor implementation/practice 4.2 Problems and
challenges 5 Recommendations 6 Conclusions.
Executive Summary
This study reflects on the implementation and practice of Just In Time ( ... Show more content on
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For this, the time taken by the raw material to reach the manufacturing facility from the supplier
should be known and secondly, the life of the raw material should be clearly determined beforehand.
Once this information is handy, procedures should be formulated to ensure that the raw material
arrives just in time, before the production starts so that little or no storage time is needed. Another
thing that is needed to properly implement the JIT inventory system is that there should be good
coordination between various points of a production process.
There should be constant transmission of signals from one point to another regarding the status of
production. Due to this clear and constant communication, each point of the manufacturing process
will know when to order for inventory and how much to order so that it arrives just in time and in
the required quantity. This is where the importance of the system lies. It ensures that there is neither
wastage of time during the production process, nor there is any wastage of capital or production
capacity, thus leading to faster production. When the production is fast, the finished goods reach the
market fast too, thereby reducing the "waiting time for the customers.

This research focuses on the case study of JIT implementation in a manufacturing company as a
means of analyzing the positive and negative aspects of

Inventory And Inventory Control System
INTRODUCTION:
The more inventory a company has... the less likely they will have what they need. –Taichi Ohno
What is Inventory?
Inventory is considered to be the raw materials, work–in–process goods or completely finished
goods that are a portion of a business 's assets that are ready for use or will be ready for sale to
customers.
Possessing huge amount of inventory for longer period of time is not considered to be usually good
for a business because of inventory storage, obsolescence and spoilage costs. On the other hand, we
also need to consider that possessing too little inventory isn 't good either, because the business runs
the risk of losing out on potential sales and potential market shares. (1)
In any organization, Inventory Management is a very important concept that is been followed and
there is a dedicated team that looks after the planning, scheduling and flow of inventory. Typically
there are two standard inventory control systems that are followed within organizations for effective
Inventory Management:
Push System: The main ideology of push inventory control systems is forecasting inventory needs to
satisfy customer demands. Here, companies should make a prediction as to which product the
customers would purchase and also determine the quantity of products that will be purchased.
Everything in a push system is decided on basis of a prediction and forecasting and that is the major
flaw in the system. These forecasts are often inaccurate as well as

Inventory Control System Case Study: Kudler Fine Foods
Kudler Fine FoodsUniversity of PhoenixSmith Systems Consulting (SSC) has been contracted by
Kudler Fine Foods to develop a frequent shopper program. Kudler Fine Food's goal with the
frequent shopper program is to develop customer loyalty and penetrate new market shoppers while
tracking their behavior. Smith Systems Consulting has been able to design, host, develop, maintain,
support and program systems development for their clients since 1984. Smith Systems Consulting
employs over 350 employees and has generated over $45 million in revenue. Smith Systems
Consulting was contracted to develop a frequent shopper program by developing a hardware
platform, network connections, software development tools, database information, user interfaces, ...
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Expanding the current database will be the most effective method for completing the tasks set forth
by Smith Consulting.
User InterfaceThe user interface will include new computers in each location and will have vibrant
colors utilized on the web design to attract new frequent shoppers. The barcode hardware will be
something the user must become familiar with to ensure that information about customer buying
habits are tracked and the inventory controls checks and balances are documented. The web design
will attract new customers by making the frequent shopper program desirable.
The objective of the customer input screen is to keep things simple. Smith Systems Consulting will
allow each customer to provide his or her full name, address and phone number with the ease of the
tab bar or click of the mouse. Customers will have to provide all information or the page will not
advance. Dialogue boxes will pop up until the information is entered correctly.
Once the customer complete the entry form and all information is received correctly the customer
will receive a printed version of the information provided to ensure all records were correctly
entered. If for some reason the was an error in the information inputted the customer will have a
chance to correct the information and reprint the document.
ControlsThe frequent shopper program will be accessible in–stores and

The Controlling Inventory System By Mis
1. ABSTRACT
Ameliorating the Controlling Inventory System by MIS, A Case study of AR Enterprises, Medicines
& Medical Equipment's Business Organization, the Management Information System is the use of
computer and computer resources both hardware and software in organization to improve business
activities resulting in the running of business accurately, timely and effectively. General purpose
software is available in market and solved general purpose issues but don't assist the specific
business process or problem. This study focus to have software to control and manage all the major
and minor business processes, for the purpose some specific purpose software needs to be
developed. Understudy Organization would be able to get a complete package with software and
management system.
2. Introduction
2.1. Background
It is intimidating task to setup and manage a newly developed system for business, available
software only a package for the process of setting up accounts and posting daily transactions. These
Accounting software such as Peachtree, SAP, QuickBook also assists managers and organization
process by creating informative reports and financial statements includes income statements,
balance sheet, cash flow statement, retain earning and all other financial reports to increase
decision–making effectiveness. (Dave Ingram, 2009) Inventory Volume controlling system is the
most important for better management of an organization. Such system must determine the
Inventory

Inventory Management Systems
JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL
JÖNKÖPING UNIVE RSITY
IMP ROV ING INV E NTO RY M ANAGEME NT IN SM A LL BU S INESS
A CA SE ST UDY
Master Project in International Logistics and Supply Chain Management Authors: Lining Bai Ying
Zhong Tutor: Jönköping Jens Hultman 2008–01
Master Thesis in International Logistics and Supply Chain Management
Title: Authors: Tutor: Date: Subject terms: Improving Inventory Management in Small Business: A
Case Study Lining Bai and Ying Zhong
Jens Hultman
2008–01 Supply Chain Management, Inventory Management, Purchasing, IT, Small Business.
Abstract
Introduction: The growth of small business is fast and their impact on the economy is becoming
bigger. How to manage the inventory effectively and ... Show more content on Helpwriting.net ...
..................................................................................................17 How much to order?
...........................................................................................19 2.1.1.8 Warehousing
........................................................................................21 Three Basic Functions of
Warehouse.................................................................21 Types of Warehouse
...........................................................................................21 Warehouse Layout

Risks of Just in Time Inventory Systems Essay
The Risks of Being Just–In–Time
The following is a guest article written by Nick Koletic, an economics specialist at UCLA. In
addition to giving a brief background on Just–In–Time inventory system's benefits, the article's main
focus is the risks that JIT systems face.
Just–In–Time inventory (JIT) is part of a production system whereby a firm vastly reduces
inventory from its production processes so that utilization of production inputs and delivery of
finished products are accomplished without incurring significant holding costs. While JIT inventory
systems are quite attractive for this reason, they are a double–edged sword. And though a JIT system
might even be a necessity given the inventory demands of certain business types, ... Show more
content on Helpwriting.net ...
Shipping the same quantity of a product to different retail outlets, for example, might not make
much sense if the demand for that good is significantly greater at one location relative to another.
This approach to delivery cost savings also facilitates decreases in aforementioned holding costs by
not overstocking certain locations with a product. The same principle holds for inputs in production;
parts are not delivered and held at production centers where they might lay idle.
Some positive externalities may also result from a firm's decision to implement a JIT system.
Suppliers of such a firm, for example, might then be able handle larger orders but fulfill them with
smaller shipments. That is to say that for any given order size, supplying a customer that utilizes JIT
is typically easier to do because individual shipments tend to be smaller for these customers and
thus tend to be less demanding of the supplier. So it might be possible for suppliers, merely by the
nature of their customers' JIT system, to greatly expand their ability to fill larger orders without
having to increase production capacity.
Several factors, however, make JIT systems a risky proposition. A key concern here is the extent to
which firms are dependent upon particular suppliers under such an inventory system. For example,
if a firm were to commission a highly proprietary product to a single supplier (single suppliers being
common in JIT), a JIT

Inventory System
1. Introduction:
This document helps you to understand the complete functionality of how the inventory Updation
takes place in the Inventory Management System for the products (both online and club) which are
purchased from the eCommerce shopping site.
Also this document will help you understand how the Inventory Management System is integrated
with other applications in order to maintain the inventory level.
2. Overview of IMS:
Global Inventory Management System is otherwise called as IMS. IMS is a single resource/entity
where the inventory for all kinds of items is maintained/monitored. The different kinds of items
available in the eCommerce shopping site are Online, Club and Auctions.
The three important terms used in IMS are ... Show more content on Helpwriting.net ...
On cancelling the order the demand and available gets back to the normal state. Note that the order
should be cancelled before the order reaches OMS. 5.2) Order Cancellation from Customer Service
Application:
Once an order is placed from eCommerce site, the demand and available gets updated in IMS. On
cancelling the order from CSC by CSR, the demand and available gets back to the normal state.
Note that the order should be cancelled before the order reaches OMS. 5.3) Order Cancellation from
Fulfillment Application:
Once an order is placed from estore, the demand and available gets updated in IMS. In sometime the
order will reach OMS. When the order is released, it goes to fulfillment application for fulfillment.
On cancelling the order from the fulfillment application the demand and available gets back to the
normal state.
5. Order Modification and Inventory Validation in IMS:
When an order is placed from eCommerce site, a reservation is made to IMS and the ordered
quantity is reserved. At the same time when the order is modified, the demand and Available gets
updated accordingly.
For Example;
Before Placing the Order:
Supply – 10; Demand – 0; Available – 10

After placing the order for 5 qty:
Supply – 10; Demand – 5; Available – 5
After

Inventory Systems And The Inventory System
Merchandise Inventory
Merchandise Inventory has two types of Inventory systems, Perpetual and Periodic. The perpetual
inventory system is based on a running total of units as well as using point–of–sales (POS) registers
and scanner (Price, Haddock, & Farina, 2015). The perpetual inventory system on the other hand is
based on a periodic count of goods that are on hand, requires that a physical count of the inventory
be performed when creating the financial statements of a company. There are also different methods
that are used when assigning costs to products, these are: Specific Identification Method, Average
Cost Method, FIFO Method (First In–First Out), and LIFO Method (Last In–First Out). When
getting ready to choose a method it is ... Show more content on Helpwriting.net ...
The gross profit method will assume that the rate of gross profit on the sales and the ratio of the cost
of goods sold to the net sales are relatively constant for each period (Price, Haddock, & Farina,
2015). Whereas the retail method will estimate the inventory cost by applying a ration to the cost to
selling price for the current accounting period (Price, Haddock, & Farina, 2015). Finally there are
also inventory controls that each company should implement these can include but are not limited
to: limiting access to inventory, requiring documents for inventory to leave the warehouse, taking a
physical count, and including technology upgrades such as bar scanners (these depend on company
size) (Price, Haddock, & Farina, 2015).
Property, Plant, and Equipment Property, Plant, and equipment will include real property and
tangible personal property (Price, Haddock, & Farina, 2015). Real property includes items such as
land and land improvements, while tangible personal property will typically include: machinery,
furniture, computers and vehicles etc. (Price, Haddock, & Farina, 2015). When recording these it is
important to remember that there are certain costs which are associated to each of these. Included in
the cost of tangible personal property are; gross purchase price less the discount, transportation cost,
installation cost, as well as costs of adjustments or modifications which are needed for the assets
that are

Sales and Inventory System
TABLE OF CONTENTS – CHAPTER 11
I. CHAPTER 11 – INVENTORY 1
II. OVERVIEW AND OBJECTIVES 1 A. Overview 1 B. Objectives 1
III. DEFINITION OF INVENTORY 1
IV. INTERNAL CONTROLS 2
V. ESTABLISHING AND MAINTAINING AN INVENTORY 2
VI. VALUING THE INVENTORY 4 A. FIFO 5 B. Weighted Average 6
VII. YEAR–END PHYSICAL INVENTORY 7
VIII. EXHIBITS 8
CHAPTER 11 – INVENTORY
The purpose of this chapter of The Guide is to explain the concept of inventory and to discuss the
policies, guidelines, and procedures associated with inventory on the Boulder campus.
OVERVIEW AND OBJECTIVES
1 Overview
Each department's purchases of goods for consumption or resale may represent inventory.
Departments that hold inventory ... Show more content on Helpwriting.net ...
Selection of the specific account codes is determined by the type of inventory.
030000: Inventory–Sales External to University This account presents the value of inventories on
hand that are expected to be sold to customers outside of the university.
040000: Inventory–Internal Sales/Consumed This account is similar to account 030000, above, but
consumption takes place inside of the university, and is charged as an expenditure.
040001–0400xx: User Defined Inventory Accounts Accounts within this range are similar to
account 040000. Consumption of the goods takes place within the university and is charged to
supplies or other appropriate expense accounts. For a complete list of user defined inventory
accounts, go to the Chart of Accounts, accessible from the System Controller's website.

The value of a department's inventory normally fluctuates due to purchases and sales that occur
during each accounting period. The Balance Sheet Statement Detail reports the inventory value. The
Revenue and Expense Statement Summary presents the amount of sales and provides the amount for
cost of goods sold.
Inventories increase when purchases are made or when goods are returned by customers. Inventories
decrease as a result of sales, consumption of goods, or when goods are returned to vendors.
Each department with an

Venture Motorcycle Sales Corporation Online Sales and...
Chapter I
Introduction
I. Statement of the Problem and its Background
Information Technology is the area of managing technology that spans a wide variety of areas that
include computer software, information systems, computer hardware, programming languages and
are not limited to things such as processes, and data constructs.
Anything that renders data, information or perceived knowledge in any visual format whatsoever,
via any multimedia distribution mechanism, is considered part of the IT domain. IT had already
crept in every nook and crannies of our lives, from e–commerce up to mobile banking and social
networking sites and indeed information technology is an undisputable part of our social and
economical life today.
Inventory ... Show more content on Helpwriting.net ...
It is a Web application framework developed and marketed by Microsoft to allow programmers to
build dynamic Web sites, Web applications and Web services.
Carrier. It is a service provider of telecommunications services such as telephony and data
communications access.
Flow Chart. It is a type of diagram that represents an algorithm or process, showing the steps as
boxes of various kinds, and their order by connecting these with arrows.
Information System. It is any combination of information technology and people's activities that
support operations, management, and decision making
Information Technology. It is concerned with technology to treat information. The acquisition,
processing, storage and dissemination of vocal, pictorial, textual and numerical information by a
microelectronics–based combination of computing and telecommunications are its main fields
Innovation. Innovation is the creation of better or more effective products, processes, services,
technologies, or ideas that are accepted by markets, governments, and society.
Input. Input is the term denoting either an entrance or changes which are inserted into a system and
which activate/modify a process. It is an abstract concept, used in the modeling, system(s) design
and system(s) exploitation
Inventory. Inventory means a list compiled for some formal purpose, such as the details of an estate
going to probate, or the contents of a house let furnished.
IPO Model. The Input–Process–Output

Inventory Systems Summary
Inventory Systems Summary: Learning Team A
Michelle Grace, Scot Breland, Marie J. Charles, and Nate Kirkland
QRB/501 Quantitative Reasoning for Business
1 July 2010
Dr. Robert Kalle Inventory Systems Summary: Learning Team A
Learning Team A met to discuss details of the assignment to analyze, compare, and contrast four
inventory systems in preparation for future assignments (Breland, Charles, Grace, & Kirkland). The
analysis presented describes four inventory systems as described and analyzed by each team
member. Also included in the inventory systems analysis are four comparisons presenting the
advantages and disadvantages of each inventory system with an overall ranking provided in
summary. Learning team interactions via ... Show more content on Helpwriting.net ...
Vendors use Electronic Data Exchange software packages to determine quantity sold, quantity on–
hand, quantity on order, quantity received, and forecast quantity (Murray, 2010).
Advantages. One of the main benefits of VMI is that the vendor is responsible for supplying the
customer. Because the vendor supplies the customer, the customer requires less stock and
warehousing requirements. Lower inventories can equate to lower costs for operations. Additionally,
since the vendor receives data and not purchase orders purchasing departments experience
significant operational costs savings. Finally, purchase order reconciliation is also removed (Murray,
2010).
Disadvantages. The main disadvantage to VMI is that significant control is relinquished to the
vendor. Customers are reliant on an outside party to successfully manage supply transactions
removing significant oversight. A lesser disadvantage is that since VMI is managed through
electronic means exclusively, VMI is subject to compute and other electronic malfunctions.
(Murray, 2010).
Inventory System Three: Perpetual Inventory Method
Description. Perpetual Inventory Method (PIM) is known to be used by many financial institutions.
PIM system maintains an up–to–date record of accurate level of goods at hands by ensuring that
stocks are accounted for at all times (Dey–Chowdury, 2008). The process includes details of all
recording purchase and sales receipts, and issues and

Essay on Inventory Systems Comparison
Running head: INVENTORY SYSTEMS
Derrick Abrams, Lasonya Jewell–Antoine, Kristin Bachman, Marcia Rhoden–Mccatty
University of Phoenix
QRB 501
August 1, 2011
The principal role of inventory management systems is to ensure that stores are adequately stocked.
Companies use various methods to track and report inventory. Retail companies are perhaps the best
entities to examine when attempting to understand inventory management systems. The type of
inventory a company has determines the method they use. Retail companies use the retail inventory
method as a base system. Last–in–First–Out (LIFO) and First–in–First–Out (FIFO) are the two
systems that appear to be used more ... Show more content on Helpwriting.net ...
The high demand in products requires the company to sustain a large inventory; however unsold
products are costly to a company. An ideal situation is to market and sell products as quick as
possible or at least keep a balance of production and the sale of products as close as possible.
Target Corporation
Target Corporation is a retail organization that specializes in the sales of goods such as clothing,
house wares, small electronics, furniture, music, pharmaceuticals, toys, and groceries. The company
also makes many of its products available on their online store. Target Corporation uses the retail
inventory method (RIM) to account for inventory. Target uses last in–first out (LIFO) method under
RIM. "Under RIM, the valuation of inventory at cost and the resulting gross margins are calculated
by applying a cost–to–retail ratio to the retail value inventory. RIM is an averaging method that has
been widely used in the retail industry due to its practicality. The use of RIM will result in inventory
being valued at the lower of cost or market since permanent markdowns are currently taken as a
reduction of the retail value of inventory" (Target Corporation). The disadvantages to using this

method include: (1) "damaged goods may have less value than what the store paid for them", (2)
"changes in market prices

Pharmacy Inventory System
Copyright © 2008 by National Community Pharmacists Association All rights reserved. No parts of
this Document may be reproduced or transmitted in any form, or by any means or by any
information storage and retrieval system, without permission in writing from the National
Community Pharmacists Association.
Managing the Pharmacy Inventory
Efficient Inventory Management (EIM) is essential to the profitability of your pharmacy. Don't let
profit sit on your shelves or expensive brand name drugs go out of date due to improper inventory
levels. Inventory is the amount of stock or merchandise that is available for sale to present and
future clientele. Adequate inventory is generally defined as basic stock + safety stock. Too much
inventory is ... Show more content on Helpwriting.net ...
They include such costs as obsolescence (outdates), deterioration, storage, inventory taxes, and
insurance. The problem with high carrying costs is the lost opportunity to use the capital invested in
inventory elsewhere. –The opportunity cost of any investment is equal to the amount that could have
been made by investing in the next–best alternative of comparable risk. Carrying costs are usually
expressed as a percentage of average inventory value. Most sources estimate annual carrying costs
to be between 20% and 30%. So, for a pharmacy with an inventory valued at SR 225,000 inventory–
carrying costs would amount to SR 45,000 to 67,500 per year. –Procurement costs (ordering costs)
are costs associated with actually ordering and receiving goods. They include the costs of placing
the order, receiving goods, and processing payment.
Tip – improved procurement/ordering technology and next day deliveries should limit the size of
orders and keep carrying costs down
–This Out of Stock (TOS) costs are the costs associated with being out of an item a customer
needs or wants. The size of TOS costs are difficult to estimate. At minimum they represent the
embarrassment and frustration of explaining to a customer or prescriber that the pharmacy is out of
what is needed. At maximum they represent the cost of losing all of a customer 's future purchases
or, in the case of life–saving emergency drugs, causing physical

Simulation of Inventory System
University of Dhaka
Department of Management Information systems
MBA (Evening) Program
Semester : Summer, 2015
Course Name : Simulation and System Modeling (EMIS 521)
Instructor : Dr. K. M. Salah Uddin
Designation : Associate Professor
Prepared by a group consisting of following members: Name | ID No. | Nakib H. Khan | :17–030 |
Rokshana Akter | :17–018 | Taslima Parvin | :19–059 | Rezaul Hasan Bhuiyan | :19–075 | Md Anisur
Rahman | :20–021 | Md Shahriar Shaon | :21–071 |
Date of Submission and Presentation: August 30, 2015
Letter of Transmittal
August 30, 2015
Dr. K. M. Salah Uddin
Associate Professor
Department of Management Information Systems
University of Dhaka
MBA (Evening) Program ... Show more content on Helpwriting.net ...
Limitations
To prepare a term paper various aspects and experiences are needed. But we have faced some
barriers for making a complete term paper on the given topic. These barriers or limitations, which
hinder our work, are as follows:
* Unfamiliarity with real life and business applications of such models. * Inadequate class
discussion on this topic. * Non–Availability of study materials. * Lack of direct support in making
the term paper.
We were placed for only around twenty days of time & with other class work, study and
inadequate dedicated time from group members in some cases hindered the preparation of the term

paper. The time span was not sufficient enough to learn the entire concept regarding the topic.
Therefore, it was a tricky task to carry out the work.
TABLE OF CONTENT
1 INTRODUCTION 8
2 ELEMENTS OF INVENTORY MANAGEMENT 8 2.1 THE ROLE OF INVENTORY 8 2.2
DEMAND 9 2.3 INVENTORY COSTS 9 2.3.1 Carrying costs 9 2.3.2 Ordering costs 10 2.3.3
Shortage costs 10
3 INVENTORY CONTROL SYSTEM 10 3.1 CONTINUOUS INVENTORY SYSTEM 11 3.2
PERIODIC INVENTORY SYSTEMS 11
4 ECONOMIC ORDER QUANTITY MODELS 11
5 THE BASIC EOQ MODEL 12 5.1 CARRYING COST 13 5.2 ORDERING COST 14 5.3 TOTAL
INVENTORY COST 15
6 EOQ MODEL 16 6.1 THE EOQ MODEL WITH NON INSTANTANEOUS RECEIPT 16 6.2
THE EOQ MODEL WITH SHORTAGES 19
7 QUANTITY DISCOUNTS

Rfid Inventory System
Running head: RFID Inventory System
Riordan Manufacturing Inventory System: RFID–based Tracking
Executive Summary
The primary weak–link in the value chain of Riordan Manufacturing is the manufacturing process of
raw materials inventory tracking. Currently the raw materials arrive and a series of written reports
are produced for the Inventory Clerk who then re–produces those reports during a data entry process
into the Inventory Office PC (see Figure 1). This system continues through the chain of
manufacturing from the point the raw materials arrive until the final product has been assembled
and shipped. This method yields a system that is data redundant, prone to human error on the data
entry level, and presents an opportunity ... Show more content on Helpwriting.net ...
The final two stages of the manufacturing process, final product additions and shipping orders, also
have separate data collections and data entry stages.
For Riordan Manufacturing to make the inventory process more efficient, the data collections
process and data entry are going to have to be combined in the form of a digital document that can
be easily stored in a database. Additionally, technology purchases will need to be made to enable the
manufacturing staff to quickly collect and enter the data into the system.
Feasibility
A new computer–based system is feasible because the staff and basic procedures for collecting data
are already in place. The staff is already trained to inspect shipments, document inventory usage,
and process orders. The procedures for all staff will be similar with the only changes being to how
the data is collected and entered. Additionally, the inventory PC is already in place allowing the new
digital system a higher degree of realistic implementation. Already having a computer–based data
entry point will allow for easier integration of a new system because the data is already being stored
digitally.
Benefits
Implementing a new system that reduces data entry redundancy provides the benefits of reduced
labor, and more reliable data entry. The new system will reduce labor because fewer staff will be
required for data entry. The new system will enable the manufacturing staff to quickly collect the
data and enter

Inventory Management Systems And Methods Essay
Inventory Methods
Inventory Management Systems and Methods
Inventory management is an important part of running a business. Having an accurate count of
inventory along with how you record the inventory is important, especially when preparing financial
documents. Inventory is considered an asset on the balance sheet, but information that is related to
inventory, such as cost of goods sold, are also tracked on other financial reports such as the income
statement. This data is factored into the information that is used when determining a company's
fiscal health. The type of inventory cost method a company chooses can have a significant impact
on reported profits and tax liability. Without proper utilization of inventory management systems
multiple issues could arise including misstated gross profits and net income.
According to the article The Changing LIFO–FIFO Dilemma and its Importance to the Analysis of
Financial Statements, no other fact affects the analysis of financial statements more than the method
that is used to allocate costs between the inventory that is sold and the inventory remaining unsold
at the end of the reporting period. How inventory is treated has an effect on the financial statements
produced by companies which is why it is important for management to make an informed decision
about which type of inventory cost allocation system the company uses. Management needs to take
into account what is more important to them, income tax liability limitation,

How Wegman 's Inventory Management Practice Is The Point...
Another proposed method for improving Wegman's inventory management practice is the 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

Vending Machine Inventory Control System Proposal
CIS/319: University of Phoenix
April 2, 2008
The ever rapidly advancing technology of this day and age causes many changes throughout the
world. Businesses are no exception; the introduction of new technology within a company effects
numerous departments. The purpose of our business is to discover ways of saving our company
money, time and resources. By implementing a Vending Machine Inventory Control System, the
Maintenance department will experience the greatest impact by implementing new hardware and
software. By utilizing reusable tracking devices for each vending machine, we can have an accurate,
up–to–date inventory. This will ... Show more content on Helpwriting.net ...
Hardware and Software Options The Just–in–time system is able to be carried out efficiently due to
the usage of bar coding. Bar coding has streamlined the inventory process in all sectors of the
economy. Numerous retailers now use automatic scanning computer registers to record sales and
track inventory immediately. These innovations have had the power of providing instant marketing
information regarding the rate of sale or use of products. Once our system is fully implemented, a
single employee will be able to check inventory at any machine serviced in seconds. How will this
impact our business? Let's find out. Proper Inventory Tracking hardware and software is imperative
to the continued success of a company when choosing to install a Vending Machine Inventory
Control System. Installing a Vending Machine Inventory Control System will allow the company to
save on money, time and resources. By utilizing reusable tracking devices for each vending machine
it is possible to have an accurate up–to–date inventory. Due to installation of this control system,
software updates will need to take place in order to allow the full benefits of the system to occur.
Software that features an inventory module an inventory module and provides the ability to track a
single item in a group of millions would be beneficial for this type of installation. Our

Designing A Inventory System For Nike
My company, partners with businesses and present systems that contributes to their overall
effectiveness. Recently, I had the privilege of attending a Microsoft conference that introduced
Nike's Chairman, President and CEO, Mark Parker as the guest speaker. Apparently, due to, demand
fluctuations and stiff competition, Nike possess an abundance of excess inventory. Upon hearing
this startling revelation, I immediately thought about the Adapting Supply Chains to Tough Times,
case study I read the other day. However, the problem that I discovered with Nike is that it has
multiple locations, that all have different inventory needs. For instance, the Air Jordan X Retro
"OVO" might sell well on the west coast, but not as well in the east. Therefore, my dilemma was to
incorporate components of inventory management that would fit every location. Obviously, I had
already begun envisioning an effective inventory system for Nike before being asked to do so.
Luckily, after the conference, Microsoft supplied lunch, which was a Godsend since my stomach
was emitting embarrassing sounds. At any rate, since I have an affiliation with Bill Gates, I was
assigned a seat at his table. By chance, Mark Parker was also assigned to the table, as a matter of
fact, he sat right next to me. Clearly, it would not be proper etiquette for me to start discussing
business after introducing myself. Therefore, I took the time to learn a bit more about Mark. First,
he joined Nike in 1979 and from that point

Advantages And Disadvantages Of Inventory Management Systems
3.2 Inventory Management Systems
Inventory management system is a system that combines the use of desktop software, barcode
scanners, barcode printers, and mobile devices to streamline the management of inventory. This
system involves procurement, storage, identification, retrieval, transport and construction methods.
Each is indelibly linked to safety, productivity and schedule performance. There are some inventory
management problems that can occur in the companies.
3.2.1 Too much distressed stock in inventory
Distressed stock is materials or products in inventory that has or will soon pass the point where it
can be sold at the normal price before it expires. This situation usually happens in grocery stores.
For instance, when a food production ... Show more content on Helpwriting.net ...
The job order costing system determines the cost of a product or service based upon three
components of price. They include direct materials, direct labour and manufacturing overhead such
as the electricity used to run machines on a production line. There are some weaknesses of using
job–costing system in the calculation of the cost in the companies.
3.3.1 Combination of Actual and Estimated Cost
One of the main problems of using job order costing is the incompatible between when the
quotation is made and when the costs actually become known. Generally, prices need to be quoted
before production starts, but by using this system, the costs are known only after completing the job.
The companies are able to calculate the actual cost of labour and material charges but for the
overhead cost, only able to estimate. Therefore, there is an inaccuracy because the companies may
take a loss if they quote too low or will loss customers if they quote too high. The construction
industry and ship building industry always face these problems as the companies' works on
individual projects rather than standardized

Stockpile Inventory System
Stockpile Inventory: Now Is a Good Time to Rotate and Update
Everything has a life expectancy, food, water, medicines, and even equipment and gear. Even if you
have a substantial stockpile the work is not done, because now you have to make sure all food is
edible, medicines are safe to take, and all gear and equipment is serviceable.
The damp and cold weather over the winter may have affected your electronics, medicines, and food
storage, so they do have to be checked while at the same time you have to protect your supplies
from the summer heat.
The cold and the heat can wreak havoc on your supplies and few people have a climate controlled
storage area, so you will have to inspect everything for signs of damage/deterioration. In addition to
... Show more content on Helpwriting.net ...
You do not want to be caught off guard. You may think you have enough food and water for 30
days, but if you or others borrow this or that and not replace the items then over time your supplies
will obviously decrease. Staying organized and inspecting frequently will keep you up to date.
It is a good idea to keep a master list of all items so you can do a quick scan before purchasing
something to make sure you are not doubling up on items. Having multiples of the same things is
not a bad idea in some cases, but if finances are tight, you could spend the money on an item you do
not currently have.
The master list should show the date of purchase, adding what the item cost is an option as well.
Then notate the expected shelf life of foods, medicines and certain medical supplies, so a quick look
would tell you that an item needs to be rotated into daily use before it is wasted. With this
information you could then budget and plan when to replace what was taken away.
Batteries whether in a device or not would have to be inspected for leakage and charge. Often times
the manufacturer will state on the package what the expected shelf life is if stored in the

JIT Manufacturing and Inventory Control System Essay
JIT Manufacturing and Inventory Control System Since the dawn of human existence evolution in
all sectors of society has occurred due to Economic factors. This has mainly happened due to the
fact that all technological achievements have occurred in favor of money.
Specifically we can admit that Economy is the main reason for growth and development. By these
means it is in our interest to establish strong economies either as societies (macroeconomics) or as
individuals (microeconomics). For these reasons several techniques and methods have been initiated
in order help modern individuals to develop. Such techniques are usually Accounting or ... Show
more content on Helpwriting.net ...
By these means the company is never overstocked and that has as an affect that the company will
never have a liquidity problem since assets as stock of goods are smaller and cash is bigger. Another
reason for this to happen is the fact that Just in time manufacturing "is a philosophy of eliminating
non value added activities and increasing product quality throughout the manufacturing process"
(Meigs, Bettner, p. 804).
But how can we control if our Just in time manufacturing system is efficient? The answer to that is
given by Meigs and Bettner : "A widely used measure of efficiency in a Just in time system is the
Manufacturing Efficiency ratio" (p. 805). This ratio is given by the Value Added Activities time over
the Cycle time. The cycle time is the time of processing, storing, moving and inspecting that is spent
on the material before their usage. If the ratio is equal to one then we have the perfect
Manufacturing efficiency ratio. This means that the smaller the number the less efficient is our Just
in Time manufacturing method and the larger are the Value added activities.
Finally we can conclude that if we perform the Just in

Home Depot Rapid Deployment Center's Inventory Tracking...
The Home Depot Rapid Deployment Center's inventory tracking system is based on a star network
configuration. Each employee uses a Radio Frequency (RF) scanning gun to create labels placed on
all inventory as it is received into inventory. Then, the labels on the inventory are scanned and
located to predetermined locations in the building, tracking the inventory's movement through the
building. This tracking ensures that no inventory is lost while transitioning from receiving until it is
placed on the correct trailer for shipment to our stores. Another function of the RF guns are to track
the work being performed by the employees to compare against a predetermined set of standards.
This data tells a story of how effectively each person is completing

Inventory System
1.0 INTRODUCTION
1.1 Background of the Study
Inventory is basically the total amount of goods and materials held in stock by a factory, store and
other business. An inventory system is a process whereby a business keeps track of the goods and
material it has available. In its simplest sense it can be done manually by a count at the end of each
day. In this way it is possible to keep a record of the goods coming in to the business and goods
being sold. The same case applies in Kuya's Lumpiang Sariwa and as a result, the inventory system
becomes prone to human error and would be more time consuming and security is also being risked.
Since manual inventory consumes a lot of time and is susceptible to errors, it would be helpful to
build a ... Show more content on Helpwriting.net ...
Computerized Inventory system has many advantages over the manual inventory system. Some of
the features are as follows:  The new system is more efficient as compared to the old system. 
Data entry task is easier and fast.  There is no chance of entering wrong data, because there are all
possible checks, which have been built in the system.
Automated Inventory System|
3
 The new computerized system is user friendly. A user having little knowledge about computer
can run this system effectively.
Moreover, the new system is designed in such a way as it can provide the user with facility of
updating the data whenever required.
1.5 Scope and Limitation
The authors' of this study is centrally focused on the proposed inventory database system and does
not include any other systems such as ordering system. Scope  Data Manipulation such as adding,
updating and deleting of data in the database to a more user friendly system.  All reports can be
generated automatically, at the press of a button.  Ability to handle huge volumes of transactions
without compromising on speed or efficiency.  Monitoring of Stocks
Limitation  Tracking and Storing of received payments are not part of the system.  Employees'
Number and Information is not covered on the system.

2.0 METHODOLGY OF THE STUDY
Authors of this study have a clear outset that the goal is to find a company where their system is
manually mandated. They agreed that manual inventory system is their

Inventory Systems Paper
Inventory control systems are used so that companies can track materials or products. Before
technology was so readily available, employees of companies had a harder time tracking inventory.
Today one can go into a large retailer and ask an employee to check if an item is in stock and all the
employee would have to do is check a little hand held device. The four types of inventory systems
that Team A decided to research and discuss were: Advanced Tracking System (ATS), Perpetual
Inventory System, Periodic Inventory System, and Just–In–Time Inventory System.
Advanced Tracking System (ATS)
Advanced Tracking System, or ATS, is a system that operates standalone or front–end that interfaces
with almost any ... Show more content on Helpwriting.net ...
It is also well suited for the type of industries where there isn't much processing to do, so the
inventory exists at only one level (for sale) rather than at three levels (raw materials, work in
progress and for sale)" (Kulkarni, 2010).
Periodic Inventory System A periodic inventory control is a system with no continuous record of
changes. Inventory is only tracked periodically instead of per the transaction. At the end of a
specific period, usually an accounting period; quarterly or monthly, the ending inventory is found by
a physical count. The cost of each item is computed and deducted from the sum of purchases and the
beginning of the inventory to calculate cost of goods sold (Business Dictionary, 2010). The periodic
inventory system keeps the inventory balance at the same value that it was at the beginning of the
period. The inventory level is not updated after purchases, for accounting purposes; this system uses
an account called purchases at the end of the period, rather than debiting inventory.
Just–In–Time (JIT) Inventory System
Just–In–Time inventory system known as JIT is one of inventory systems used in companies to
deliver a finished product to customers quickly to reduce the overall ordering and inventory holding
cost (Atkinson, 2005). The system proves to be most effective for companies that lose money for
holding a product in its inventory for an extended period of time and

Papa Goose Inventory System
Scope and Purpose
Purpose
We will be observing one of the restaurants located in Melbourne, named Papa Goose Restaurant &
Bar. The main purpose of this project is to know about the inventory system of this restaurant. The
purpose is to look at the issues in the inventory, and to provide them with the best possible solution.
Target System Inventory Management
Papa Goose is both a restaurant and bar so it is necessary that the inventory of both the ingredients
of the restaurant and the liquor of the bar. They are currently using a manual setup for holding the
records of the inventory of both the restaurant and the bar. It is necessary that they use proper
inventory system and keep it computerized.
Perpetual Inventory System/Weekly Based
I would prescribe them to do a weekly control on their ingredients and the liquor. The weekly
inventory check would give the manager a weekly check of the requirements needed in the
inventory. This would help in identifying and solving the potential or upcoming problems of relating
to the inventory. Perpetual inventory system would be necessary in the case of Papa Goose
Restaurant & Bar, the amount of the raw material such as meat and all the other important
ingredients required could be collected and then all that has been bought could be entered in the
computer, in the spreadsheet the correct quantity could be removed when it is used. ... Show more
content on Helpwriting.net ...
We would provide them with all the basic knowledge of how to keep the data on the computer. The
computerized data would also help them to keep a backup of their data. The perpetual inventory
system would make the work error free, and also less chances of

Inventory System Case Study
In this work, a two warehouse inventory system has been investigated by considering advance
payment and partial backlogging with interval valued inventory cost. In this model, the
corresponding optimization problem with interval objective has been formulated and solved with the
help of different variants of particle swarm optimization (PSO) technique and interval order
relations. Due to interval valued inventory cost, the different variants of PSO algorithm have been
developed by using interval arithmetic and interval order relations. Then the obtained best found
solutions (which is either optimal or nearer to optimal) from different variants of PSO have been
compared and it is observed that all the variants of PSO have produced the ... Show more content on
Helpwriting.net ...
Then arithmetical operations such as addition, subtraction, multiplication of scalar number,
multiplication and division of interval numbers are given below:
(i) Addition:
A+B = [aL , aU] + [bL , bU] = [aL + bL , aU+ bU].
(ii) Subtraction: A – B = [aL , aU] – [bL , bU] = [aL , aU] + [–bU , –bL] = [ aL – bU , aU – bL].
(iii) Scalar multiplication: for any real number .
(iv) Multiplication:
A X B = [min (aL bL, aLbU, aU bL, aU bU), max (aL bL, aLbU, aU bL, aU bU)]
Specially,
(v) Division: , provided 0 [bL , bU]
Definition A.2 : Integral power of an interval
According to Hansen and Walster [43 ], the definition of positive integral power of an interval is
given by
Definition A.3: –th root of an interval
According to Karmakar, Mahato and Bhunia [44], the –th root of an interval is given by where being
the empty interval.
Order relations of interval numbers
Let us consider two interval numbers and . Then these two intervals may follow any one of the
following three types:
Type–1: Two intervals are disjoint i.e., either or
Type–2: Two intervals are partially overlapping i.e., either or
Type–3: One of the intervals contains the other one i.e., either or
The definitions of interval order relations between two interval numbers have been proposed by
several

Inventory Control And Its Effect On The Performance Of The...
An inventory management system, inventory control, and inventory accuracy are paramount to a
mass production manufacturing facility, especially when multiple part types and multiple product
types are being produced. Raw component inventory can account for millions of dollars of an
organizations' cash, which is not contributing to profitability until converted to a product and sold.
Therefore, it is essential for an organization to have an inventory management system and an
inventory control process to account for the value associated with each part and ultimately to return
value to the operation.
Inventory inaccuracy can negatively impact the performance of the production control system (Chan
& Wang, 2014). It is difficult to account for raw materials at every stage of the manufacturing
process with complete accuracy, thus, an error between the actual inventory level and the supply
chain management systems record of inventories cannot be completely avoided. However, when an
inaccuracy exists in the raw materials inventory it creates a negative effect on the material
requirement planning (MRP) systems. The inaccuracy of the material requirement planning systems
has a negative impact on the performance of production planning and scheduling, which contributes
to a less than optimal production output, potentially disappointing customers with lack of
manufactured goods.
A traditional inventory management system assumes that the raw material stock in the organizations'

Walmart Inventory System
Wal–Mart is a brand that is universally recognized by everyone as a place where you can get what
you need when you need. They stand by their name and reliability of their products. I personally
believe they are the most diverse organization and best run company's doing the most business right
now. They are also known as the best place to save money and is essentially an all in one shop.
There are many different factors that play a major part in transportation for any company. The price
of fuel is a major factor that determines some of the decisions that companies utilize. The weight of
the freight in which they are carrying and how frequently they will be doing so. All these different
things affect the price. This is single handily the biggest aspect that affect companies, and the
primary way they make decisions. Wal–Mart right now is the best and they ... Show more content on
Helpwriting.net ...
This summer my unit went and visited a distribution center ran by Wal–Mart. Although when you
first walk in it looks like complete chaos. They are actually very organized and with the amount of
business they are doing you understand why it looks that way. The big take from the inventory
process is what is known as cross–docking, we also use this in the military. What this does is allow
Wal–Mart to get their products out quickly. For example, if you have a truck of 20 washers and
dryers that need to go to a specific place. Cross–docking will allow that truck to be processed as is
and shipped to the location without having to download and see if you have those quantities etc.
This will allow them to get that product out on the same truck. Another thing that was unique to
Wal–Mart was the use of their own unique ERP software specific to their operation, instead of an
commercial of the shelf software most companies can use. In my opinion this puts them a step
above their

Management Of Inventory Management System
Management of inventory is one of the hectic tasks that face most of the owners of retail shops.
Most of their record keeping rely on paperwork that is cumbersome and almost impossible to
generate reports from, hence a hindrance to decision–making. Since the introduction of technology
in the early 20th century, retailers, and stock managers have benefitted from it the most, (Davis,
1989). The introduction of IT has seen the formation of complex and sophisticated software that
manages stock at the real time and gives regular notifications on the level of stock. The software
also produces sales reports at regular intervals that enable management to make informed decisions.
Several companies have placed their best in producing these robust ... Show more content on
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The design 's capability should have a real time notifications function on the level of stock and
provide advice in case of any restocking needs. It should be able to produce reports that can be
analyzed by the management in order to make decisions that bind the company.
System Requirements and Equipment
Since this is a single shop, the desktop software will be sufficient since entry will be from a single
point. It will not necessitate the need for a hosting package for an online system that would
otherwise create more unnecessary expenditure for the retail shop struggling with a small budget.
Therefore, this system will be based on access database that is provided by Microsoft. It will
necessitate that the following equipment is available for use at the retail shop.
i. Desktop computer – this computer should have a Windows operating system installed, either
Windows 7 or 8 to ensure that it gets recent updates from Microsoft. It should also have Microsoft
Office installed to provide the capabilities of access and excel software. This computer should have
essential features that can support the stated operating system. ii. Matrix printer – this is the printer
that will be used by the system to produce receipts whenever a sale is made. iii. Barcode scanner –
to make the input of items into the system simple in the case of supply of new items or a sale. It will
quicken the process and make the whole process automatic

Inventory Management Systems and Their Descriptions
Description of each inventory system
An inventory control system is important for any business in ensuring quality control of consumer
goods and as such, a good inventory system is essential. There are numerous inventory management
systems, and examples include Systems Application Programming (SAP) System and JD Edwards
inventory systems. SAP is an Enterprise Resource Planning (ERP) system that facilitates how
businesses run their supply chains. SAP provides businesses and their supply network a quick access
to supplier information, building a patent supply network that promotes a resourceful relationship
for a more supple and receptive supply network. SAP supply–chain management (SCM) has several
components that let the system to follow, to record and communicate inventory information among
all partners in a supply chain network. These components include the SAP Inventory Control Hub
for sharing inventory, auditing transactions, and logging communications for orientation through the
internet. SAP also has a Vendor Management Inventory solution, which the vendor can use to
manage supply concerns. SAP uses tailored automatic alerts with the involved parties having to
agree upon the criteria to apply. SAP allows the transmission of these alerts through various
communication channels such as cell phone, email, and pagers among others. Vendors can also use
email or a web browser to update the SAP installation. On the other hand, SAP in–place system
works on inventory levels

Inventory Management And Inventory System
2.1 Inventory systems
A good inventory management represents the organisation with the right amount of product, at the
right time, at the right place, and at the right cost. Inventory system is a guideline to monitor and
control the inventory level, and determine the optimal amount of stock that the company needs to
hold in order to satisfy customer demand. There are three aspects of manage inventory system,
which are inventory planning, inventory management, and inventory control.
Inventory planning is determining the optimum level to hold and the cost implications. Inventory
management is to identify the correct inventory management process for different types of
supply/demand patterns. And lastly, inventory control is integrity of the stock.
There are four types of inventory, the first type is row material, and these are basic parts of final
product but not processed. The second type is work–in–process, the basic parts undergone some
change but not completed. The third type is maintenance/repair, it is necessary to keep machinery
and processes productive. And the last type is finished goods, these are completed products awaiting
for shipment.
2.11 Importance of inventory management
Inventory represents as much as 50% of total invested capital, it is necessary for operational
managers to balance between investments in inventory and service level that they provide.
Therefore, it is important for the company to hold the right amount of inventory in order to reduce
the

An Inventory Management System For A Mass Production...
An inventory management system, inventory control and inventory accuracy are paramount to a
mass production manufacturing facility, especially when multiple part types and multiple product
types are being produced. Raw component inventory can account for millions of dollars of an
organizations' cash, which is not contributing to profitability until converted to a product and sold.
Therefore, it is essential for an organization to have an inventory management system and an
inventory control process to account for the value associated with each part and ultimately to return
value to the operation.
Inventory inaccuracy can negatively impact the performance of the production control system (Chan
& Wang, 2014). It is difficult to account for raw materials at every stage of the manufacturing
process with complete accuracy, thus an error between the actual inventory level and the supply
chain management systems record of inventories cannot be completely avoided. However, when an
inaccuracy exists in the raw materials inventory it creates a negative effect on the material
requirement planning (MRP) systems. The inaccuracy of the material requirement planning systems
has a negative impact on the performance of production planning, scheduling and control, which
contributes to a less than optimal production output and potentially to disappointing customers with
lack of manufactured goods.
In a traditional inventory management system, it is assumed that the raw material stock

The Importance Of Inventory Management Systems Of Asda Essay
"To critically evaluate the importance of inventory management systems of Asda, UK"
Abstract
The topic has been chosen for research is to critically evaluate the inventory management systems
of retail industry in UK. This industry is continuously growing up with pleasure of customers even
the fluctuation in customer choices. Moreover, this sector has been hugely impacted from 2008 to
2010 by the economic crisis, when customer did not have enough money to spend. As a result some
retail businesses have incurred a loss and shut down their operation. Though some of the retailer
took the challenge and continued their business to see the future success. But inaccuracy of stock
count leads to poor availability in store level stock. Moreover employees' inadequate level of skills
and improper management clue to poor control of inventory management. As a result decrease the
customer satisfactions therefore fall in revenues and ultimately collapse in profitability level.
(Lussier, 2012)
In addition increases the costs due to out of date and damage lots of inventory, which are also
leading to high shrinkage level for the retailer. It is possible to overcome these barriers and enhance
the company's reputation, increase customer satisfactions including high level of profitability by
practising good inventory management system in place (Warren, Reeve, & Duchac, 2013).
Literature Review:
Inventory management plays a significant role in the retail industry for succession the

Walmart Smart Inventory System Essay
Arnold Zio
BUS 362 Spring, Miller
Wal–Mart S.M.A.R.T System
I live close to a walmart in Burtonsville MD, so I decided to write this Paper on their Inventory
System. Wal–mart, the wholesale retail monopoly, focused on developing an RFID–based electronic
product code, or EPC. The electronic code would allow businesses to track shipments and inventory
automatically through a system of tags and sensors. It was a potential replacement for the manual
scanning of bar codes, a technology that itself revolutionized retail two decades earlier. Given the
nearly non–existent cost of bar codes relative to RFID, several in the industry said, the EPC was a
solution in search of a problem. Wal–Mart view RFID technology in their SMART system as a ...
Show more content on Helpwriting.net ...
With the Telxon, price changes for each item can be implemented only three times a day with the
current system and processes. Wal–Mart is testing LCD shelf tags from NCR that are powered and
controlled by infrared light units on the ceiling and can be changed in real time, concurrent with
changes at the point–of–sale registers.
The Strengths of The SMART Inventory System are, the actual database has to be enormous. There
are so many products that the Wal–Mart keeps track of. All of which must be in the same database
because products they don't carry will still scan and give all the detailed information of those
Products. This is helpful because it allows people to return products from a "Mega Wal–Mart" that
carries a much larger stock than a regular Wal–Mart. Other Strengths are that the SMART system is
linked to the cash registers. When a product is sold, inventory is updated automatically. On hand
counts are updated and on some products they are reordered automatically, depending on how many
are left. With in addition to the RFID technology.
Wal–mart uses smart tag sensors on garments to track better inventory controls, Wal–Mart workers
will be able to quickly learn, which size of a particular brand product is missing, with the aim of
ensuring shelves are optimally stocked and inventory

Designing A Inventory System For Nike
My company, partners with businesses and present management systems that help companies
become more efficient. Recently, I had the privilege of attending a Microsoft conference that
introduced Nike's Chairman, President and CEO, Mark Parker as the guest speaker. Apparently, due
to, demand fluctuations and stiff competition, Nike has an abundance of excess inventory. Upon
hearing this startling revelation, I immediately thought about the Adapting Supply Chains to Tough
Times, case study I read the other day. However, the problem that I discovered with Nike is that it
has multiple locations, that all have different inventory needs. For instance, the Air Jordan X Retro
"OVO" might sell well on the west coast, but not as well in the east. Therefore, my dilemma was to
incorporate components of inventory management that would fit every location. Obviously, I had
already begun envisioning an effective inventory system for Nike before being asked to do so.
Luckily, after the conference, Microsoft supplied lunch, which was a Godsend because my stomach
was emitting the most embarrassing sounds one would ever hear. At any rate, since I have a good
relationship with Bill Gates, I was assigned a seat at his table. By chance, Mark Parker was also
assigned to the table, as a matter of fact, he sat right next to me. Clearly, it would not be proper
etiquette for me to start discussing business after introducing myself. Therefore, I took the time to
learn a bit more about Mark. First, he

Inventory Analysis Team C Findings

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Inventory Analysis Team C Findings