Inventory Management Systems
Inventory management is considered as a significant influencer of competitiveness. It is also a primary operational performance measure for both Micro Small and Medium Enterprises (MSMEs) in inventory concentrated business. Chang (2016), states that a business does not need to be a massive company so that to use technology to expand its inventory management practices. In fact, for a small firm, it is more convenient to regulate even the most trivial expenses (Kumar, Anzil, Ashik, James, & Ashok, 2017). Therefore, a well-designed control system can save the business money, improve customer service and decline stress for the business’ warehouse and manufacturing staffs. Consequently, an inventory management system mainly that which use barcode technology, can be an essential instrument to the successful control of a business inventory (Terziovski, 2010). Nonetheless, this is not the initial step, before connecting the system, it is wise to come up with a well-designed process of moving inventory out and in the business for it to work efficiently. The chief objective of inventory management system is to ensure satisfactory quantities of high-quality inventory capable of serving customer needs and at the same time curtailing on the cost of carrying inventory (Dumas, 2008). In light of the above statements, this paper provides a plan for creating a low-cost automated inventory system.
Necessary Equipment for the Creating the Inventory System
Technology in Inventory management is a blend of equipment and software intended to add unwavering quality to stock bookkeeping, decrease episodes of robbery and encourage stock reviews (Chang, 2016). Singularly, inventory items or groups of things can be furnished with RFID labels that recognize the type of item, cost, value, shipment number, date of shipment and other helpful data (Takeda, Kitaoka, & Usuki, 2016). Inventory management solution is a software add-on pen-and-paper frameworks, which decrease the time needed to represent stock augmentations and subtractions (Bahrom, Roslin, Razak, & Rahman, 2015). The Inventory system demands a standard spending plan to deploy its framework. This will require two PCs, a wireless access point, two barcode scanners, barcode printer, and a printer. Starting up will utilize the inflow and outflow stock framework from Archon Systems (Chang, 2016). The product will aid the service provider to accept orders and validate items in the stock with a single computer click. Likewise, the system will generate reports, one of which will demonstrate the interest for a given item. Most of the inventory systems currently must have such modules (Kumar, Anzil, Ashik, James, & Ashok, 2017). The PCs will be linked with wireless access to the internet to enable the service provider to lead sales and perform inventory with similar hardware using the wireless barcode scanner.
To set up a precise inventory management framework, it demands absolute equipment which includes:
• Workstation or PC with a wireless network adapter to permit the service lender to interact with the sales and make or oversee inventory items.
• Wireless Access Point – The remote switch guarantee connectivity between the workstation and remote PCs within the firm. This allows the workstation to become more portable for inventory objectives.
• Printers/Faxes – This supplies can be utilized for making orders, to send faxes, print receipts, and financial reports.
• Barcode scanner – This is an electronic gadget for perusing printed standardized identifications. It will be utilized with the portable PC for inventory and sales.
• Barcode name printer – It is used for printing standardized identification marks or labels that will be appended to the stock.
Despite a, majority of this tools being expensive and costly to the business initially; the good news is that it will ensure satisfactory quantities of high-quality inventory capable of serving customer needs, and at the same time curtailing on the cost of carrying inventory will in the end help increase business returns. The standard spending plan costs for the hardware requirements include:
1) Laptop or workstation (Nowadays no one needs to utilize a desktop PC) – The company can purchase a Toshiba Satellite 15 inch PC with a core i3 processor, speed of 2.4 GHz, 4GB Random Access Memory, 1TB Hard Disk and Microsoft Windows 10 Professional 64-bit working framework at the cost of $439
2) A wireless access point – A Media link wireless N broadband router at Amazon goes for at least $46. This media interface will give quick network and internet speed and dependable assortment. It will interface PCs, cordless printers, and other Wi-Fi gadgets at speeds of up to 149 Mb per second. An internal antenna technology will give comprehensive access to a wireless network all through the workspace.
3) Barcode Label printer – It is also advisable that we purchase a DYMO label printer from Amazon at an average of $60. A less expensive one can be bought at around $20 as well. Version 8 software for DYMO label will empower you to make and print out addresses, shipping details, document folders, organizer and barcode names/labels.
4) USB Barcode Scanner –Purchasing the most current model Tao Tronics cordless handheld standardized barcode scanner and reader costs approximately $180 at Amazon will be efficient. This device will Increase the application outline adaptability to meet the user’s particular needs. Wireless and anti-obstruction scanning having a secure remote transmission of information enable clients to expand profitability and cut expenses while giving free movement all through the clothing store workspace. It contains an incorporated non-volatile memory which keeps information secure notwithstanding when it is out of signal, or it has been switched off.
5) Printer – The business has purchased a Brother MFC-J6935DW Wireless Color Printer with Scanner, Copier & Fax with Dash Replenishment Enabled. It can utilize it for many different reasons, for example, printing reports; additionally, it can use a fax machine.
The maintenance of the inventory system shouldn’t be deferred for any reason as these sorts of electronic gadgets can be destroyed effortlessly (Wild, 2017). This equipment can break due to some reasons such as in the event of constant working leading to overheating. All things considered, one is supposed to purchase new hardware for the sake of such maintenance operations. The device takes at least two times or over 10% of its yearly projected upkeep spending plan for maintenance. On the off chance that equipment falls flat at least once after three years, maintenances should be performed by other third party personnel. If that hardware comes up short less than three times each year, equipment expenses of under 2% of its annual maintenance spending plan can be assigned to have it overhauled at a later date. The costs for maintaining the system is projected at $1,000 after every six months.
Information System – Inflows Inventory oversees items and stock (Chang, 2016). It keeps items sorted out with pictures, costs, and classifications. Inflow can without much of a stretch handle more than ten thousand items on an all-purpose PC. It utilizes standardized barcode scanners to manage stock and all the more rapidly and precisely generation of financial reports (Son, & Shin, 2015). The system tracks the stock in numerous areas by utilizing sub-areas to correctly follows the numbers, canister numbers, and so forth. It gives a full history of any inventory developments or changes so as find any issues or robbery. The software is able to provide a diagramed course of events, benefits or stock levels to perceive how the business is getting along (Son, & Shin, 2015). Accordingly, customized reports comprise the point by point data like aggregate sales, add up to charges, best-selling items, items on the shelves, and to the extent to which the stock can last.
The software can allow everybody working on similar information to use a multi-client mode progressively. The system administrator can restrict persons that interact with the system. Inflow enables the system administrator to make distinctive login clients, each with an alternate arrangement of access rights, for example, who can reorder stock, who can influence a sale or who can do an inventory. Inflow enables the operator to rename any marks or messages inside the product. Inflow incorporates with Excel or QuickBooks through importing and exporting information in the business standard CSV (Takeda, Kitaoka, & Usuki, 2016). The inflow is offered in three unique versions basic, standard and premium. The business should prescribe the standard version at the cost of $280. This will permit boundless item posting and up to five client permissions. It likewise gives the operators access to one of the fundamental reports which can give information on items on high demand. The aggregate cost to set up this procedure is estimated to cost $ 1400.
Cost involved in the creation of the inventory system
The table below displays a summary of the cost involved in the creating the inventory. It also outlines the expenses used to maintain the system.
Necessary Equipment Estimated Cost
2 PCS @$500 $1,000.00
Fax Machine $70.00
Wireless Access Point $46.00
Work Station $439.00
Barcode Label Printer $60.00
USB Barcode Scanner $180.00
Business Standard CSV $280.00
Implementation Expenses $ 1,400
Maintenance Costs $1,000
This workflow diagram was created using the Visual Paradigm.
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Son, S., & Shin, Y. (2015, November). Design of Smart Shopping Application Using Barcode Scanning and Location Based Coupon Service. In Grid and Distributed Computing (GDC), 2015 8th International Conference on (pp. 5-8). IEEE.
Takeda, H., Kitaoka, M., & Usuki, J. (2016, January). Inventory Management for Irregular Shipment of Goods in Distribution Centre. In IOP Conference Series: Materials Science and Engineering (Vol. 105, No. 1, p. 012009). IOP Publishing.
Terziovski, M. (2010). Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource-based view. Strategic Management Journal, 892-902.
Wild, T. (2017). Best practice in inventory management. Routledge.
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