Inventory Management System Proposal
Billy Lacey
IT/205
April 5, 2015
Jayson Sayers
Inventory Management System Proposal The new system proposal that will be introduced to Riorden manufacturing is an inventory management system. An inventory management system is used to control inventory for the products that are sold to the customers and the supplies that are used to help serve the customers. This new system will avoid mistakes as the inventory system will eliminate the need of manual inventory control and manual ordering of the products and supplies. This inventory management system will help the growth of the company by increasing the inventory to accommodate for the customers’ needs as outage of products and supplies will be eliminated and over the limits of products and supplies that are not needed will not be wasted if expired or never used.
The process that is currently used at Riorden manufacturing will be changed as less time will be needed to receive products or supplies which means productive payroll will not be wasted and cause overages in the payroll each week. As of now Riorden manufacturing has been overspending on staffing and having under production that is not meeting payroll budget. Riorden manufacturing has been completing all inventory practices manually or by hand. Receiving products and supplies are counted and kept track by an outdated method of hand written record. As Riorden manufacturing gain customers with excellent service mistakes will be made as products and supplies are forgotten to be taken out of the manual inventory keeping way. The process of the new inventory management system will include having a way of scanning all shipments that are received electronically instead of hand written. In order for this process to work to initialize the system or start the process all current inventory or the products and supplies must be entered as the starting count so there after new shipments will be added and products sold will be deducted from the
IT/205
April 5, 2015
Jayson Sayers
Inventory Management System Proposal The new system proposal that will be introduced to Riorden manufacturing is an inventory management system. An inventory management system is used to control inventory for the products that are sold to the customers and the supplies that are used to help serve the customers. This new system will avoid mistakes as the inventory system will eliminate the need of manual inventory control and manual ordering of the products and supplies. This inventory management system will help the growth of the company by increasing the inventory to accommodate for the customers’ needs as outage of products and supplies will be eliminated and over the limits of products and supplies that are not needed will not be wasted if expired or never used.
The process that is currently used at Riorden manufacturing will be changed as less time will be needed to receive products or supplies which means productive payroll will not be wasted and cause overages in the payroll each week. As of now Riorden manufacturing has been overspending on staffing and having under production that is not meeting payroll budget. Riorden manufacturing has been completing all inventory practices manually or by hand. Receiving products and supplies are counted and kept track by an outdated method of hand written record. As Riorden manufacturing gain customers with excellent service mistakes will be made as products and supplies are forgotten to be taken out of the manual inventory keeping way. The process of the new inventory management system will include having a way of scanning all shipments that are received electronically instead of hand written. In order for this process to work to initialize the system or start the process all current inventory or the products and supplies must be entered as the starting count so there after new shipments will be added and products sold will be deducted from the
References: University Of Phoenix. (2005). Riorden Manufacturing. Retrieved from University Of Phoenix, IT205 website.