Sales and Inventory System

Powerful Essays
Related Literature-Inventory System
Inventory control systems maintain information about activities within firms that ensure the delivery of products to customers. The subsystems that perform these functions include sales, manufacturing, warehousing, ordering, and receiving. In different firms the activities associated with each of these areas may not be strictly contained within separate subsystems, but these functions must be performed in sequence in order to have a well-run inventory control system.

In today's business environment, even small and mid-sized businesses have come to rely on computerized inventory management 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 nurseries, purchase of an electronic inventory tracking system might constitute a wasteful use of financial resources. But for other firms operating in industries that feature

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 options

Given such developments, it is little wonder that business experts commonly cite inventory management as a vital element that can spell the difference between success and failure in today's keenly competitive business world. Writing in Production and Inventory Management Journal, Godwin Udo described telecommunications technology as a critical organizational asset that can help a company realize important competitive gains in the area of inventory management.

You May Also Find These Documents Helpful

  • Powerful Essays

    The purpose of this group assignment is to collaborate as a team to compare different inventory systems and describe the advantage and disadvantages of each system in comparison to the others. Management of inventory is important to any business that wants to succeed. Companies purchase inventory systems to help manage the inventory of an organization. Team A reviewed the following companies and their inventory management programs: Best Buy, , and . This Inventory System Summary includes a description of the chosen companies and their inventory systems, and a comparison describing the advantages and disadvantages of each system. Best Buy…

    • 2054 Words
    • 59 Pages
    Powerful Essays
  • 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

    Inventory systems are tracking systems that provide companies with the ability to trace the supplies and raw materials needed to attain needed products to meet customer demand. Some organizations still operates manual inventory system, from stocks, products, ordering, purchases and etc recorded in a book. This is faced with errors, incompleteness, and insufficient data for analysis. Information regarding stocks, products, sales and purchases are still in black and white which is not properly organized and managed. From the wholesalers to retailer bills, tickets, vouchers, receipts of products are recorded in a book but further operations are not being properly handled. As a result, it is difficult in processing, updating and managing.…

    • 344 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

    One role of computers in marketing is inventory control. Computers are now used to keep records of inventory. Inventory keeping allows Inventory control systems maintain information about activities within firms that ensure the delivery of products to customers. The subsystems that perform these functions include sales, manufacturing, warehousing, ordering, and receiving. Softwares like Simple Inventory, Microsoft Access, MessLess Inventory Management System and JumpBox facilitate automated inventory management. It makes it easy to retrieve, save and change stocks, customer details, market niches, and sales.…

    • 513 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Business Analytics

    • 4792 Words
    • 20 Pages

    Inventory management is one of the most important operational activities that determine the success or failure of any business. Whether it’s a neighborhood bakery keeping enough doughnuts on hand for a construction crew working nearby or a…

    • 4792 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    Currently inventory and control is a paper based inventory management system that has become outdated and obsolete. The system is a seven step process that includes a separate document for each step. These steps or processes are expensive and time consuming, and hinder future growth toward expanding into a global organization. The seven steps are; 1) Receiving documentation; 2) Scheduled orders documentation; 3) Orders received documentation; 4) Raw materials/sub-assemblies documentation; 5) Sub-assembly/final product documentation; 6) Sales order form documentation; 7) Shipping documentation. Along with each of these steps an inventory technician is responsible for putting the information into a computer, which could conceivably be seen as 14 separate steps.…

    • 841 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Qrb 501 Week 2

    • 1899 Words
    • 8 Pages

    In today’s economic recession, business owners are constantly looking for opportunities that would enable them to remain competitive through lowering their overhead cost. Kehrer (2010, ¶ 1) explained, “Bloated overhead is one of the major threats to small business competitiveness”. For this reason, it can be determined that business analysts are evaluating the different types of inventory management systems that could be applied to help reduce the cost of overhead and increase product turnaround. “Dell has achieved a system that at times leaves them with average inventories for long enough to last only three days. Instead of incurring holding costs, Dell doesn’t order until the demand is in place” (Atkinson, 2005, ¶6). Dell refers to this system as the Just-In-Time inventory system. The Vendor Managed Inventory system, a concept pioneered by Wal-Mart, is another inventory system that is paving the way for the future with its ability to communicate the demand of the customers directly to the supplier (Wal-Mart’s Focus on EDI, 2010). The summary will briefly describe the Just-In-Time and Vendor Managed Inventory Systems. Following the brief description, will be a comparison that indentifies both the advantages and disadvantages of each inventory system.…

    • 1899 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Inventory Management System

    • 5099 Words
    • 21 Pages

    According to an author Michael Bernacchi (2002),an inventory systems maintain information about activities within firms that ensure the delivery of products to customers. The subsystems that perform these functions include sales,…

    • 5099 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    Spreadsheets or QuickBooks might be adequate for a business just starting out, but growth will quickly outpace their capabilities for inventory management. How can you ensure your inventory management solution scales with your business as you increase your market share and penetration, handling more products, more volume, more customers, more suppliers and more locations over the next two years, five years, 10 years and beyond?…

    • 1067 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    How to develop a Computer Based Sales and Inventory System for MySolutions Inc. that will help to enhance their current sales and inventory transaction.…

    • 1227 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Nothing

    • 815 Words
    • 4 Pages

    Efficiently tracking inventory is an imperative component to a small business & successful operation. By having up-to-date data regarding all needed supplies, raw materials and goods for sale, an organization will increase its bottom line. In addition, the money saved by not reordering unnecessary goods can be used in other commodities needed by the establishments; an enterprise will be better positioned to services customers quickly.…

    • 815 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Automation can draidatically affect all phases of inventory management, including counting and monitoring of inventory items; recording and retrieval of item storage locations; recording changes to inventory; and anticipating inventory needs, including inventory handling requirements. This is true even of stand-alone systems that are not integrated with other areas of the business. But many analysts indicate that productivity—and hence profitability—gains that are garnered through use of automated systems can be increased when a business integrates its inventory control systems with other systems, such as accounting and sales, to better manage…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Chap2

    • 1159 Words
    • 5 Pages

    It is little wonder that business experts commonly cite inventory management as a vital element that can spell the difference between success and failure in today's keenly competitive business world. Writing in Production and Inventory Management Journal, Godwin Udo described telecommunications technology as a critical organizational asset that can help a company realize important competitive gains in the area of inventory management. According to Udo, companies that make good use of this technology are far better equipped to succeed than those who rely on outdated or unwieldy methods of inventory control.…

    • 1159 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    inventory system

    • 932 Words
    • 4 Pages

    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.…

    • 932 Words
    • 4 Pages
    Powerful Essays