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Recommendations on Implementing Automated Inventory Management Systems at Al-Baldani Trading Contracting Establishment.

In: Business and Management

Submitted By as2079
Words 1447
Pages 6
Recommendations on Implementing
Automated Inventory Management Systems at Al-Baldani Trading Contracting Establishment.
(BBA-604)

Synopsis submitted by: Arifa Jamil Syed BBA (General) 541110506 Table of Content Executive Summary 3
Part 1: Understanding the industry & company 4
Part 2:
Introduction 6
Objective 6
Methodology 7
Conclusion 8 5. Recommendation 8
Part 3:
1. Appendix 9

(Part 1) EXECUTIVE SUMMARY
The goal of this project is to apply systems based engineering principles for the requirements development, tradeoff analysis, and verification and validation of an automated inventory management system.
The system will be based on an automated data acquisition whose backbone which will include tags, transmitters, receivers, pre processor, and a database to reduce inventory management time. An automated inventory management system is helpful nowadays with the move toward improving operating efficiency, at all levels, of those industries providing services and goods.
Most likely, business expansion will drive the economic development and choice of technology for this system. For example, as a company increases its warehouse inventory during company growth, either additional people will be needed to track inventory or an automated system that can easily handle expansion will need to be installed. Obviously, the latter is more desirable due to decreased life cycle costs, as long as the technology utilized is feasible.
This research work is concise and generally summarizes the activities duly carried out in the design and implementation of an automated inventory control system for a manufacturing organization. The system will be designed to efficiently handle the movement and tracking of goods through the replacement of human workers by technology. The manual method or intervention is labor intensive, costly, and error prone and cannot ensure the inventory remains up-to-date due to oversight and internal shrinkage. With the proposed new system, inventory will be updated in real time without product movement, scanning, or human involvement. The automated system will allow inventory status to be determined and shipping and receiving documents to be generated automatically triggering automatic orders for products that are low in inventory. The study outlines the main concepts of the analysis and design methodology of the proposed system, compares it to the existing and goes further to explain the design and implementation of the system using Visual Basic 6.0 for the database. The fact finding techniques employed is interview, observation, online and library research.

(Part 2) UNDERSTANDING THE INDUSTRY AND COMPANY
Inventory refers to stock, materials and goods, that a business holds in its possession to resale it in order to generate profit. Inventory consists of raw material, work in progress, captive consumables and finished goods. Examples of inventory in major industries surrounding us today are: Cars and their spare parts (automobile industry), goods like packets of wheat flour and cans of edible oil (Consumable goods), Television, computers and mobiles (electronic industry) etc.
Investment in inventory and management of inventory is one of the crucial activities involved in a business. It affects a business’s liquidity.
Inventory management is a science which deals with specifying the shape and the percentage of stocked goods. Inventory management is the process of efficiently and effectively monitoring flow of goods into and out of an existing inventory. This process generally includes controlling the movement of units in order to prevent the inventory from becoming too high, or dwindling to levels that could put the operation of the company into jeopardy. If an inventory management system is efficient it will help to control the costs driven by the inventory, both from the perspective of the total value of the goods included and the tax burden generated by the cumulative value of the inventory.
Some kind of inventory management system is required even by the smallest businesses to assist keeping an accurate count of merchandise, as well as for accounting purposes. Business owners generally have a choice between using a computerized and a manual inventory system.
We will be working on implementing an automated inventory management system and we will be replacing the manual inventory management system currently running in our company. Al-Baldani Trading and Contracting Estabishment
Al-Baldani trading and contracting establishment was established in 1962 and is one of the major suppliers of stationery & office supplies products in Kuwait. The headquarter is located in Al-Murgab, Kuwait City. They have been dealing with “Pilot” based in Japan as their suppliers and are currently supplying their goods in Kuwait to different clients such as stationery shops, schools, hospitals etc. Their products include pen, highlighters, correctors etc of various kinds.
Pilot is the leading writing instruments and stationery manufacturer in Asia, with exports to more than 50 countries all over the world. Pilot’s stationery has attained the status of a heritage brand and a household name in Japan. Persistent innovation coupled with an ever expanding range, have earned PILOT an enviable brand loyalty among all walks of life and in all age groups. Excellent product performance, exceptional reliability & continuous improvements have developed a blind consumer faith in Pilot products.
BUSINESS OBJECTIVES of Al-Baldani trading and contracting establishment:
Offers all customers full ranges of stationery & office supplies products
Delivery high quality products at competitive prices to all customers
Provides the best service to all customers.

(Part 3) INTRODUCTION
An inventory control system contains a list of orders to be filled and then prompts workers to pick the necessary items, and provides them with packaging and shipping information. Inventory control may be used to automate sales order fulfillment process and also manage in and outward material of hardware. Automation is the replacement of human workers by technology. For optimal sales and inventory management process, robust functionality is needed for managing logistics facilities. Warehouse management functions for inventory control cover internal warehouse movements and storage and its support helps in the recording and tracking of materials on basis of both quantity and value. This application takes care of all supply orders reducing cost for warehousing, transportation while improving customer service. It significantly improves inventory turns, optimizes flow of goods. It also improves cash flow, visibility and decision making providing efficient execution of tasks using this fast and reliable computerized method

OBJECTIVES
To carry out a detailed study in order to obtain knowledge about the manual inventory management system that is operating currently.
To point out and explain the limitations of the manual inventory management system that is operating currently.
Development of an automated inventory management system.
Testing, approving and implementing of the newly developed automated inventory management system.

METHODOLOGY
The research methodology for this project will be based on scientific method.
Scientific Method: this is a systematic rational approach to seeking facts. It is objective, precise and arrives at conclusions on the basis of verifiable evidences. Project Methodology used-
Observation: Observation means viewing or seeing. Observation may be defined as a systematic viewing of a specific phenomenon in its proper setting for the specific purpose of gathering data for a particular study. Observation is classical method of scientific study. Hence I will be observing the operations involved in managing the inventory.
The observation for this venture can be further classified as Non- participant direct observation, in this method; the observer stands apart and does not participate in the phenomenon observed. Naturally, there is no emotional involvement on the part of the observer.
Schedules: A schedule is similar to a questionnaire the difference being questionnaires are mailed to the respondent whereas schedules are carried by the investigator himself. A questionnaire is filled by the respondent himself whereas the schedule is filled by the investigator.
Interviewing: Interviewing is one of the prominent methods of data collection. It may be defined as a two way systematic conversation between an investigator and an informant, initiated for obtaining information relevant to the study.
The research for this project will also be based on internet research. This involves the collecting of data from the internet and using it to specifically use it in our learning for the development of an automated inventory management system.

RECOMMENDATIONS
There already exists an inventory management system at Al-Baldani trading and contracting establishment, but as it is a manual system, it lowers the efficiency of the business, in terms of time, labor and funds. In order to enhance the existing operations an automated inventory management system will be helpful in increasing the efficiency and avoiding stock-outs, excess inventory, maximizing profits. CONCLUSIONS
After the implementation of an automated inventory management system it is hoped efficiency in the inventory operations will increase. Stock outs will be avoided before hand, time will be saved, funds invested in labor will be well utilized elsewhere.
An efficient automated inventory management system will be established and result in the economic betterment of the company.

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