Inventory Systems Summary
Inventory Systems Summary
QRB/501
September 21st, 2010
Inventory Systems Summary Inventory systems are used in different companies today as a tool to make sure that the company strives into success. Inventory systems serve several functions for businesses; one purpose is promoting the sales function by ensuring that a sufficient amount of product is available for customers. Another purpose is shrinkage control that is monitoring the frequency of loss, theft, or breakage of products received. Another very important function of inventory control systems is asset valuation; that is establishing the value of the products on the shelf for tax purposes at the end of the tax year. According to the Small Business Administration, all inventory systems strive to strike a balance between managing costs and the business advantages of a broad selection of goods to offer to consumers. All inventory systems, regardless of technology, require some element of visual inventory management. Bar code and stub control systems will all require manual verification periodically. The learning team-A members did research on “Radio frequency identification system,” “Just-in-time production and inventory,” “First in first out,” and “Vendor managed inventory system.” In this paper, team describes each of these systems and provides a comparison to summarize the advantages and disadvantages of these systems. Radio frequency identification inventory system We are familiar with a barcode system that has been widely used so far for inventory and property identification. This system helps for a fast checkout but has a limitation of sequential data processing. This means that one item is processed at a time. Radio Frequency Identification system is tremendous improvement over barcode because it can identify up to 1000 tagged items per second concurrently via wireless transmission. For example, this system will be able to price all the items in a customer’s cart at once and
QRB/501
September 21st, 2010
Inventory Systems Summary Inventory systems are used in different companies today as a tool to make sure that the company strives into success. Inventory systems serve several functions for businesses; one purpose is promoting the sales function by ensuring that a sufficient amount of product is available for customers. Another purpose is shrinkage control that is monitoring the frequency of loss, theft, or breakage of products received. Another very important function of inventory control systems is asset valuation; that is establishing the value of the products on the shelf for tax purposes at the end of the tax year. According to the Small Business Administration, all inventory systems strive to strike a balance between managing costs and the business advantages of a broad selection of goods to offer to consumers. All inventory systems, regardless of technology, require some element of visual inventory management. Bar code and stub control systems will all require manual verification periodically. The learning team-A members did research on “Radio frequency identification system,” “Just-in-time production and inventory,” “First in first out,” and “Vendor managed inventory system.” In this paper, team describes each of these systems and provides a comparison to summarize the advantages and disadvantages of these systems. Radio frequency identification inventory system We are familiar with a barcode system that has been widely used so far for inventory and property identification. This system helps for a fast checkout but has a limitation of sequential data processing. This means that one item is processed at a time. Radio Frequency Identification system is tremendous improvement over barcode because it can identify up to 1000 tagged items per second concurrently via wireless transmission. For example, this system will be able to price all the items in a customer’s cart at once and
References: Atkinson, C. (2005). Inventory Management Review. Retrieved September 24, 2010, from http://www.inventorymanagementreview.org/justintime FIFO (n.d.). First In, First Out. Retrieved Sept 26, 2010 from http://www.investopedia.com/terms/f/fifo.asp Hedrick, F., Barnes, F., Davis, E., Whybark, D., & Murray, K. (n.d.). U.S. Small Business Administration: Inventory Management. Retrieved September 24, 2010, from http://www.sba.gov/idc/groups/public/documents/sba_homepage/pub_mp22.pdf Inventory Using FIFO Method (n.d.). Retrieved Sept 26, 2010 from http://www.ehow.com Just In Time. (2010). Value Based Management, (), . Retrieved from http://www.valuebasedmanagement.net/methods_jit.html Materials and Inventory Costing Method (n.d.). First In First Out (FIFO) – Materials and Inventory Costing Method. Retrieved Sept 26, 2010 from http://www.accountingformanagement.com/fifo_method_of_materials_costing.htm Murray, M. (2010). Vendor Managed Inventory (VMI). About.com: Logistics/Supply Chain, (), . Retrieved from http://logistics.about.com/od/forsmallbusinesses/a/VMI.htm P. Paul Lin, Kevin F. Brown (2006), What CPA should know about RFID technology. http://www.nysscpa.org/cpajournal/2006/706/essentials/p34.htm Vendor managed Inventory. (2010). 12 Manage: the Executive Fast Track, (), . Retrieved from http://www.12manage.com/methods_vendor_managed_inventory.html