Inventory Systems Paper

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.

→ customized systems – engage in collaborative design efforts with clients and engineers; once designed, system built by manufacturing alliances then installed and supported by FII

There are three types of inventory models primarily used by organizations, these include the economic order quantity model (EOC), production

I have taken it upon myself to test two inventory management systems and have found a system that will yield the least cost to Parts Emporium Inc. The two systems I have tested are the Continuous Inventory System and the Periodic Inventory System. Using data that I have gathered from the products DB032 and the EG151, I have compiled calculations and have concluded a continuous inventory system would be best for our corporation. Attached you will find said calculations; I would like to take this moment and present the continuous inventory system and recognize all of the relevant costs. The following is an explanation of each calculation under the continuous inventory system:

While operating a manufacturing company one can expect to encounter different types of methods of inventory costing. The four methods I will be discussing are, first in first out, last in first out, average cost methods, and specific identification method. I will also be discussing the pro and cons of utilizing each method.

The data in the reports produced by the inventory system can be used to support

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

A continuous inventory review system is a system that tracks each item and updates inventory every time an item gets removed from inventory, for example if Bokomo uses barcodes and scanners to record customer purchases and updates inventory counts every time a barcode is scanned. A periodic inventory review system is a system that involves doing a stock take at specified times like at the end of every month. For example if Bokomo counted all the stock in their warehouse at the end of every month.

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

     Anybody who knows something about business had heard the term Just-in-time (JIT) inventory. It involves producing only what is need, when it is needed. The principle of Just in time is to eliminate sources of manufacturing waste by getting the right quantity of raw materials and producing the right quantity of products in the right place at the right time.(1) In this way, manufactures receive parts and materials “just in time” to meet the day’s manufacturing quota with hardly any extra.(3)

“Inventory exists at every stage of the supply chain as raw materials, semi-finished or finished

Regular inventory control improves accuracy in products that are stored in the company. Employees will know what products are available and what product will need to be restocked. Inventory control can prevent a shortage and overstock of products. There is also a reduction in time spent on counting inventory because regular audit reports will have product information in real-time.

The inventory system is used to register the inventory that comes into the store through direct shipping and from distribution centers through the warehouse data they use this to have a safe amount of stock.

According to [5], Just-in-Time (JIT) inventory management enables an organization to gain competitive advantage by not having a large or excessive amount of inventory in warehouse. The organization only needs to order the parts when they are actually needed and new materials are produced only when old materials have finished. One advantage of adopting this strategy is that there will be no excess of inventory that needs to be stored and hence the inventory levels will be reduced as well as the cost of carrying and storing goods. One major disadvantage of this is that the organization will expose it in the risk of ordering problems for example a supplier is not able to provide parts on time. The result of this is that the organization cannot fulfill the order and contributes to customer dissatisfaction.

There are many other definitions such as “a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check” or “all functions related to the tracking and management of material”, and in business management, the management of ”a list of goods and materials held available in stock”. Inventory Management is necessary in order to provide continuous