Inventory Management System Essay

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Dreamweaver is a powerful and highly applicable in like mannerl that every designer should be able to own. * stemma Donald Reimer (1989) According to Donald Reimer (1989), Today, maintaining the righ t broth levels is a tough challenge. If not powerful managed, your history can result in a significant expense. looking for over your shoulder is the lender who is concerned about the cost of carrying too much stock-take- which can affect profitability. * Inventory System Michael Bernacchi (2002)According to an originator Michael Bernacchi (2002),an inventory dusts maintain breeding about activities within firms that ensure the deliverance of products to customers. The subsystems that perform these functions include sales, manufacturing, w arhousing, ordering, and receiving. In different firms the activities associated with each of these argonas may not be strictly contained within separate subsystems, entirely these functions must be performed in sequence in order to have a well-run inventory picture system.According to Godwin Udo (1993), given such developments, it is little wonder that melodic phrase experts commonly cite inventory circumspection as a rattling ele ment that can spell the difference between success and ruin in todays keenly competitive business world. paper in production and inventory Management Journal, Godwin Udo described telecommunications technology as a critical organizational asset that can help a company realize important competitive gains in the area of inventory management.He noted that companies that make good use of this technology are far better equipped to succeed than those who rely on over-the-hill or unwieldy methods of inventory conquer. According to Dennis Eskow (1990), automation can dramatically impact all phases of inventory management, including counting and monitoring of inventory items put down and retrieval of item storage location recording changes to inventory and anticipating inventory needs, including inventory handling requirements.This is true even of stand- unsocial systems that are not integrated with early(a) areas of the business, but many analysts indicate that productivity and there fore profitability gains that are garnered through use of automated systems can be increased even more when a business integrates its inventory control systems with other systems such as accounting and sales to better control inventory levels.As Dennis Eskow noted in PC Week, business executives are increasingly integrating fiscal data, such as accounts receivable, with sales information that includes customer histories, the goal to control inventory quarter to quarter, so it doesnt come back to bite the bottom line. Key components of an integrated system are general ledger, electronic data interchange, database connectivity, and connections to a range of just business applications. In the latter part of the 1990s, may businesses invested heavily in integrated order and inventory systems designed to keep inventories at a minimum and replenish stock quickly.But business owners have a variety of system integration options from which to choose, based on their needs and financial liqu idity. At the same time that these integrated systems have increased in popularity, business observers have suggested that stand-alone systems are falling into disfavor. A 1996 written report by the international Mass Retail Association, for example, concluded that stand alone Warehouse Management System Packages acquired to perform individual functions will shortly become obsolete because they do not integrate well with other systems.Another development of which small business vendors should be a emaciate is a recent trend wherein powerful retailers ask their suppliers to implement vendor-managed inventory systems these arrangements infinite the responsibility for inventory management squarely on the shoulders of the vendors. Under such an agreement, the vendors obtain warehouse or point of sale information from the retailer and use that information to make inventory restocking decisions.The move toward automation in inventory management naturally has moved into the warehouse as well, citing various warehousing experts, Sarah Bergin contended in transportation and distribution magazine that the key to institute productivity gains from inventory management is placing real-time processing in the ware house uses combinations of hardware including material handling and data collection technologies, but according to these executive, the intelligent part of the system is sophisticated software which automates and controls all aspects of warehouse operations. Another important component of good inventory management is creation and maintenance of a sensible, effective warehousing design. A well-organized, user-friendly warehouse layout can be of enormous benefit to small business owners, especially if they are involved in processing large colymes of goods and materials. Conversely, an ineffectual warehouse system can cost businesses dearly in equipment casualty of efficiency, customer service, and ultimately profitability. Transportation and distribution magaz ine cited several locomote that businesses utilizing warehouse storage systems can take to help ensure that they get the most out of their facilities.