ABSTRACT

Inventory control problems often result in record and physical count discrepancies
which may ultimately lead to higher than preferred inventory levels. Conversely, accurate
inventory records result in lower inventory investment and are the foundation for
forecasting, ordering, tracking, vendor evaluation, and dead stock administration
programmes. Guidelines, based on general systems theory, to identify the presence of
inventory control problems in both physical operations and information systems areas are
presented. Next, procedures to correct control problems are discussed. These include
the formation of a permanent taskforce, corporate‐wide education on the importance of
record accuracy, and the development of a general management plan based on sound
principles for effective inventory control. Recent experiences within a telecommunications
company having inventory control problems are used as a case example to illustrate
specific points.

INTRODUCTION

An inventory management system, also known as an inventory control system, is

usually a software application that tracks every aspect of the items your company keeps
in stock to sell. It can assist with purchasing and receiving on the front end, track and ship
within your company, manage inventory in retail locations, then track turnover and assist
with reordering. While a very small business can use a manual system, most
organizations either leverage software-based systems themselves or have their vendors
do it for them.

Inventory management systems come with a range of different functions. Some

are just a simple desktop computer-based database or spreadsheet. More advanced
software typically comes in one of two style resident software that gets run on your
company's server or cloud-based packages that are sold as a service, freeing you from
purchasing, maintaining and upgrading them. One way to look for the right system is to
try to find one that meets your business's basic needs without worrying too much about
additional features that can be added in the future.

Implementing an effective inventory management system starts with having good

inventory management practices in place such as consistent stock locations and a set
procedure for counting and verifying inventory. Once you have those practices, you can
work with a vendor to implement its chosen solution. To have the system implementation
become successful, training for every employee that will have to work with your system
is crucial to increase their buy-in and to reduce the risk of errors.
 METHODS

RESULTS

These study shows that there’s a result you can expect upon completing and
having this system. First is it will help a company to lessen the waste. If you order too
many devices, for example, the certain device is low on demand and the money you spent
on them will be wasted. Lean inventory management, means you have very little room for
error. You can’t afford to hold onto products that don’t sell well or that you simply don’t
need. Second is faster operation, when you dedicate yourself to making your business
lean, you’ll have to turn your inventory management system to operate well. Inventory
software can do wonders for speed and accuracy. The faster the stockroom manager
gets accurate data, the faster he can make smart decisions. Third is the flexibility, a “fat”
stockroom can’t move as swiftly as a lean one. Your stockroom needs to be flexible and
adapt to changing conditions. If stockroom A needs more of a product that stockroom B
has, then the stockroom manager needs to know that stockroom B can fill the need and
transport the inventory in a timely manner. Your stockroom needs to be a lean and mean
“supply and demand” machine. Last on is the lower cost, stockpiling surplus goods is lazy
inventory management and wastes the company’s money. A lean inventory management
approach keeps reorders accurate and lowers costs by preventing inventory overstocks.
DISCUSSION
 REFERENCES

Lander, Steve. "How to Implement Inventory Management Systems." Small Business -

Chron.com, http://smallbusiness.chron.com/implement-inventory-management-systems-
80459.html. Accessed 13 August 2019.

Harrington, T., Lambert, D. and Vance, M. (1990), "Implementing an Effective Inventory

Management System", International Journal of Physical Distribution & Logistics
Management, Vol. 20 No. 9, pp. 17-23. https://doi.org/10.1108/EUM0000000000376