Preview

inventory system introduction

Good Essays
Open Document
Open Document
1116 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
inventory system introduction
A inventory system starts with a manual system. A manual system gives a small business owner a greater sense of control. Rather than relying on a computer to indicate when it's time to reorder, the owner can manage the process on his own. The need to view his merchandise on a regular basis, such as when counting stock before placing an order, gives him the opportunity to assess the condition of his merchandise, reducing the chance of a customer receiving damaged goods. For a very small business that carries a limited amount of inventory or that turns over inventory slowly, a mechanized inventory system is unnecessary. The business owner can easily keep track of how much merchandise is on hand with a manual system, or simply by applying the "eyeball test" to see if it is time to order more. The owner won't need to spend money on inventory software or take the time to learn how to operate it.
A manual inventory system relies heavily on the actions of people, which increases the possibility of human error. People might forget to record a transaction or simply miscount the number of goods. This results in needless additional orders that increase the company's inventory carrying costs and use up precious storage space. Inaccurate physical counts could also result in not ordering enough of a product, meaning the business could run out of a crucial item at the wrong time. manual inventory systems is that they can be highly labor-intensive to operate. They require continuous monitoring to ensure that each transaction is accounted for and that products are maintained at the appropriate stocking levels. It is also more difficult to share inventory information throughout the business, because the lack of computerization makes accessing inventory records a more cumbersome process. The time spent monitoring inventory levels could be used on more productive activities for the business.

manual inventory systems is that they can be highly labor-intensive to operate. They

You May Also Find These Documents Helpful

  • Good Essays

    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 frequently. Other systems used are the Just in Time or JIT method and the Average Cost method. The following paragraphs will describe different companies and the type or types of inventory systems they use. Also the advantages and disadvantages of their systems are discussed.…

    • 1893 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    CIS 210 Assignment 1

    • 386 Words
    • 2 Pages

    Automated inventory systems provide instant notifications of sale, purchases, in-stock requirements etc and may help a small business to flourish through proper guidance.…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Ltb Inventory Systems

    • 1749 Words
    • 7 Pages

    Inventory Systems are the software used to plan and track inventory balances and activities (Investopedia, 2012). There are many inventory systems, which can be used in an organization to track products sold or used. Team B’s team members will describe his or her organization and the current inventory system he or she uses. Each member will discuss the advantages and disadvantages of his or her inventory system. Team B will also do a comparison between each organization to identify the strengths and weaknesses. Below one will find the discussion to the topics mentioned above.…

    • 1749 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Cis 210

    • 312 Words
    • 2 Pages

    In today’s “tech” and competitive world, businesses are in transformation from manual inventory system to automated inventory system, including small businesses. Automated Inventory systems can reduce costs, retain the existing customers and gain profits. It can replace the time consuming manual process by providing more accurate data. Every business should have a proper inventory system in order to track whether the store is running out of the stock of an important item or there are some items that are obsolete. Nowadays, automated system is used almost by all the retailers, grocery stores and manufacturing companies. A good inventory control system will alert the retailer when it is time to reorder (www.barcodesinc.com). Automated inventory system will keep the competitive advantage of your company and increase the value of your business.…

    • 312 Words
    • 2 Pages
    Good Essays
  • Better Essays

    In today's business environment, even many smaller businesses have come to rely on computerized inventory management systems. Automated systems can replace the cost and time consuming processes that were once completed by hand while providing companies with more accurate data. Inventory control is important to ensure control in businesses that handle transactions revolving around consumer goods. Without proper inventory control, a store may run out of stock on an important item. A good inventory control system will alert the retailer when it is time to reorder (www.barcodesinc.com). It will also aid in the prevention of theft and product loss. Overall, a good inventory system will increase the value of your business, satisfy your customers and create more freedom in your life. In this paper, I will describe all the necessary equipment for a low-cost automated inventory system for a small clothing store. I will also explain the costs involved in the creation of the system, describe the ongoing maintenance that will be required and provide a workflow diagram to illustrate how the system will work.…

    • 973 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Inventory systems are the methods by which businesses keep track of their stocks, goods, and services. Through these systems, managers are able to determine shortages in their goods and put in orders to replace those that have been sold, finished from the shelves, or sold out.…

    • 662 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    AIDS is a rapidly growing, and almost uncontrollable, problem in society today. AIDS starts out as a virus, HIV, and then turns into AIDS when one 's body can not fight the virus anymore. What started out as a small scare in the 1980 's has grown into a full blown epidemic that any sexually active person has the right to be scared of. AIDS did not seem like a very big issue at first, but it is now visible in our rear view mirror, and it does not look like there is much people can do to make it go away. Although the problem is of national proportions, there are things that can be done locally to educate the people in our community, because AIDS is a problem that affects people everywhere. Informational sources like pamphlets and websites are always helpful, and they can be even more helpful if new ways are found to implement them, or put them into effect. Donations are also very helpful for raising awareness about a certain situation, but many people may feel that their donations either go unnoticed, or that they are pointless. Raising local awareness of AIDS is not that hard of a problem, but to get more people interested, there has to be more efficient and interesting ways of getting the message around.…

    • 1434 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    The benefit of Point of Sale with Inventory system is that this system makes a business much more efficient, lowering the costs of running the business while improving customer service and making the business more pleasant to work in while Computerized inventory system helps management control the inventories, in turn lowering overall operating costs in the areas of labor, facilities and logistics. A computerized inventory system also improves customer-service metrics and fulfilment rates.…

    • 3433 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    In today's business environment, even small and mid-sized businesses have come to rely on computerized sales and inventory systems. Certainly, there are plenty of small retail outlets, manufacturers, and other businesses that continue to rely on manual means of inventory tracking. Indeed, for some small businesses, like convenience stores, shoe stores, or computer shops, purchase of an electronic inventory tracking system might constitute a wasteful use of financial resources. But for other firms operating in industries and features high volume turnover of raw materials and/or finished products, computerized tracking systems have emerged as a key component of business strategies aimed at increasing productivity and maintaining competitiveness. Moreover, the recent development of powerful computer programs capable of addressing a wide variety of record keeping needs—including inventory management—in one integrated system have also contributed to the growing popularity of electronic inventory control option.…

    • 1287 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Basically Inventory is the total amount of goods and materials held in stock by a factory, store and other business. That means Inventory system is a process whereby a business keeps track of the goods and material it has available. There are many types of business that can benefit from using an inventory system. Retail outlets which stock and sell goods, warehouses that have goods and materials passing in and out on a daily basis and manufacturers that produce and sell products are just a few of this. It can be essential for companies that have a high turnover of stock and need a simple way of keeping track of this to ensure their business runs smoothly and efficiently.…

    • 1096 Words
    • 5 Pages
    Satisfactory Essays
  • Powerful Essays

    The benefit of Point of Sale with Inventory system is that this system makes a business much more efficient, lowering the costs of running the business while improving customer service and making the business more pleasant to work in while Computerized inventory system helps management control the inventories, in turn lowering overall operating costs in the areas of labor, facilities and logistics. A computerized inventory system also improves customer-service metrics and fulfillment rates.…

    • 1210 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Leaders Born or Made

    • 1781 Words
    • 8 Pages

    Efficiently tracking inventory is an imperative component to a small business’ successful operation. By having up-to-date data regarding all needed office supplies, raw manufacturing materials and merchandise for sale, an organization will drastically increase its bottom line. In addition to the money saved by not reordering unnecessary goods, an enterprise will be better positioned to services customers quickly, as well as navigate any unexpected changes in business, such as a supplier abruptly going out of business. Although many companies maintain this information manually, there are benefits to using a computerized inventory system.…

    • 1781 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    An inventory system is a process whereby a business keeps track of the goods and material it has available. ... Since manual inventory consumes a lot of time and is prone to errors, it would be helpful to build a ... Statement of the Problem.…

    • 484 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Aug 20, 2010 – This thesis is trying to propose an enhanced inventory control system for a small organization like MDC. Establishing policies and procedures is ...…

    • 321 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Inventory Control System

    • 1758 Words
    • 8 Pages

    For most retailers and manufacturing companies, the right inventory control system can help an organization maximize profits while reducing inventory costs. These systems are widely sought after by large, medium, and small size organizations in the assistance relating to timing and quantity production. Retailers and manufacturing companies need to decide when to order product from suppliers to satisfy the demand by the consumers. In the next paragraphs readers analyze three inventory systems: Total Quality Management; Work in Progress; and Just-in-Time Inventory. In the process, aside from providing definitions, readers will identify advantageous and not elements important when assessing the appropriate system for an organization. Ultimately solidifying the importance of an inventory control system, but most important what is at stake.…

    • 1758 Words
    • 8 Pages
    Powerful Essays