Inventory Management Systems, Research Paper Example

Introduction

Over the past 10 years inventory management technology has advanced and customization of these tools show that substantial improvement in sales can be established. These newly devised tools also demonstrate that new levels of efficiency and productivity can be achieved in sales. Inventory management technology enhances the ability of retailers to implement smoother transactions of consumer goods by keeping track of products available in inventory, products that are out of stock, and monitoring of those products soon to be out of stock. An effective inventory management system is intuitive with the necessary efficiency to predict when products will be out of stuck and provide the necessary precautions to prevent down time.

The Required Equipment’s

The inventory management system used in this proposal combines software and hardware to produce a reliable system that reduces theft and facilitates accounting activity. Each item is applie an RFID tag that assists users in recognizing the product type, shipment number, costs and other supporting information. Software inventory management is an effective answer to many of the complications created by pen-and-paper management systems. The budget for this system will be minimal and cover the cost of two laptops, bar-code scanners, bar-code printers, and the internet service provider. Archon Systems will be the inflow inventory handler software. Utilized effectively, this software will enable users to see the products in greatest demand. The following equipment is identified as key minimum criteria for an inventory management system to be operative and function effectively.

Internet Router – The ideal use of the router is to allow the computer system to be mobile. This means a wireless system is most preferred. outer will assure wireless access point for the laptop or computer. This modifies laptop to be mobile for inventory goals.

Bar-code scanner and Label Printer– A bar-code scanner is the actual device used to retrieved RFID data from product bar-codes. The label printer prints out price labels and other data on retail. All data is streamed between the computer system.

Computer System –  The computer system can be setup through a standard PC or Laptop. If a wireless connection is established, this will also work well with a wireless system.

Computer Dell Inspiron 15.6 inch laptop with an  Dual Core processor, 2.2 GHz speed, 8GB DDR  RAM, 250 GB 5400 rpm Hard Drive and Windows Vista Professional 64-bit operating system at a cost of $400.00.

Router – Will be provided by the wireless internet provider, Verizon.

RFID Scanning System – A Tao Tronics TT-BS007 would be the ideal model for this system wireless cordless RFID code reader. By ensuring that the system is wireless, it guarantees the system is efficient.

Maintenance:

Maintenance protocol is designed to be as timely and efficient as the system itself. The most important safety precautions are those that involve corruptions in the software or system malfunctions that could occur to virus or other technical issues. There can also be maintenance concerns that might stem from hardware malfunctions. For example, the electronic devices used to read RFID barcodes can malfunction from overuse. Proper monitoring and maintenance can reduce this risk as many of the devices will have to be switched out in a timely fashion or maintenance monthly, which can call for a the use of an ongoing maintenance budget set aside specifically for malfunctioning hardware. This will also save on the cost of purchasing new equipment. Protocol to secure against major setbacks of the system is to require the assistance of an external vendor in the case that there are more than two equipment failures in a given month.

Software:

Software is essential for managing product archive data and inflows inventory. By implementing a software based system, it will allow the retailer to increase volume 10 to 100x or more. This is due to the efficiency provided by bar-code scanners and ultimately the savings it will produce on the back end in regards to costs like loss in sales, or hiring more managers to oversee transactions. Also a full history of transactions can be archived making the company significantly more organized. The system also utilizes more advanced work-flow to keep track of shipping information, specific details for delivery, unique invoices for customers. The reorder and reshipment of products can also be automated. The system can also project estimates and visual representation of data revealing company performance over time as well as estimating predictions for the future.

System Cost

The overall cost of the system must be assessed equally with the amount of money which it will save the company. The system is setup on a cloud computing network which allows all employees the ability to interact with one another using the program. The system also allows for multiple-uses simultaneously. There are also security measures setup to only allow specific uses of the system or to designate administrative controls to certain users while limiting other users. Premium inflow inventory management software can also be easily integrated with financial applications that product professional reports in spreadsheet formats. This will be essential when calculating taxes  or performing financial audits. This system will ultimately over a three year period cost the company less than the amount of profit it will produce if it can result in an increase in volume. Costs for this system are minimal with all of the hardware and software and maintenance ranging below $5,000 for a small business (Rosenblatt, 2012).

Conclusion

In sum, the main benefit of this system is that it makes operations that were previously handled by hand and exposed to greater potential risk of human error, more efficient and secure. The system also reduces costs due to the fact that there is no need for software upgrades of any kind. Internet service used to sustain data flow for the system will be supplied by Verizon, including phone usage, for an estimated $75 a month. Ultimately this system makes company operations more affordable. As the work flow diagram demonstrates, the system starting point originates with the user and the hand held scanner. Data retrieved by the scanner through the wireless connection to the program on the computer system enables the user to identify the necessary steps to label a particular product. Labels for products are in tern printed out of the printing system. The USB fax printer allows the company to fax materials to customers or suppliers as needed. Costs for this system are minimal. Archiving all products within the system reduces the possibility of human error and improves efficiency.

References

Gregorich, S. E., & Wilhelm, J. A. (1993). Crew resource management training assessment. In E. L.Wiener, B. G. Kanki & R. L. Helmreich (Eds.), Cockpit resource management (pp. 333–380). San Diego, CA: Academic.

Shelly, Rosenblatt. (2012). Systems Analysis and Design (9th ed.). Boston: Thomson Course Technology.

Systems Analysis. (2009). General format. Retrieved from http://www.systemsanalyst.com/.