Rachel Ericson ~ Savanna Millen ~ Renee Smith Ezequiel Alva ~ Manny Valdez

How the 5 Component Framework is incorporated in Inventory Management Systems

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Main System Server Where all data is stored between server stations and individual computers within the management system network Can be individually owned or provided by external sources. Workstations Individual computers that can manage inventory

Bar code scanners Scan in/out inventory PDA Portable, handheld computer systems that are able to access the inventory management systems

Inventory Control Software Requires a great deal of mapping and thinking before it can do any good and reduce inventory levels. Online Inventory Software Solutions for inventory control runs on a remote server and is delivered to clients via the internet. The advantage is lower start-up costs and flexible scalability so as the business grows, so can the inventory control solutions.

Oracle Optimum Performance Solutions Infor SmartTurn Ranges anywhere from $500+, usually depending on the number of users needed.

Current inventory levels- provides a company and their suppliers with up-to-date information regarding an organizations stock. Trends for preceding periods- insight for a company and suppliers not only for past performance for supply and demand of the product but for prices as well. Forecast future needs- projections for a company and supplier with respect to future needs. The ability to match supply with demand will lead to efficient capital management.

Manual Inventory Management- periodic physical count of inventory utilizing manpower. Typically utilized by smaller business entities. Costly, time- consuming, dated inventory, and higher degree of human error Automated- an advanced computer method of controlling inventory through use of bar codes, and RFID (Radio-Frequency Identification). Study of Wal- Mart reduced out-of-stocks by 30%, reduced labor costs and inventory inaccuracies, and simplified business process.

Each company has their own procedures in how they manage their inventory Frequency- The regularity varies based on the size of the company, and the inventory being managed. Workers- Number of employees assigned to inventory management Labor hours- Amount of time allocated to maintain and control inventory. Teams- Groups of employees teamed up to efficiently manage and check the work of others Outside Inventory Consultants- Brought in to either manage a company’s inventory, or to perform a checks and balances of the company’s Vendor Involvement- A company can shift the responsibility to its vendors to maintain their respective product inventories.

Most small business manage their inventory manually whereas larger companies are automated. Larger companies are managing their inventory on a daily basis and there greater amount of inventory turnover Managers play a significant role in controlling inventory regardless of company size

What is the most important component? When considering Inventory Software we determine that even the upscale systems must have management and other employees controlling and over looking the inventory. Information is transferred by people to the computer side. Entering new inventory, Decision making People must be able to understand and work with the different software.

All the businesses that we interviewed used people to double check the systems information. Taking inventory manually was however the most common over all.

The major advantage of Inventory Software is to keep track of high-traffic inventory and measure turn overrate while cutting human work. Larger businesses benefit more because they can keep track better of what items are coming in and going out. However human work is still vital. What other research can be done? Determine the transition time that would take to change from a manual system to a software system Does benefit out weigh the cost?