Importance Of Inventory System
Inventory system is a guideline to monitor and control the inventory level, and determine the optimal amount of stock that the company needs to hold in order to satisfy customer demand. There are three aspects of manage inventory system, which are inventory planning, inventory management, and inventory control.
Inventory planning is determining the optimum level to hold and the cost implications. Inventory management is to identify the correct inventory management process for different types of supply/demand patterns. And lastly, inventory control is integrity of the stock.
There are four types of inventory, the first type is row material, and these are basic parts of final product but not processed. The second type …show more content…
Therefore, it is important for the company to hold the right amount of inventory in order to reduce the inventory cost.
The organisation can minimise inventory by using appropriate management system in manufacturing, which can significantly eliminate the inventory levels. To keep a certain amount of stock is also important to the company, without inventory the company cannot deliver the products or service to customers on time, thus customer dissatisfaction increases. The first function of inventory is to decouple or separate different parts of the production process. For example, manufacturing plant of distribution centre, if there is no inventory storage in between those two units, then if the plant shut down the distribution centre is out of inventory, however, if there is certain amount of inventory at the distribution centre, it can continue to supply customers. In this situation, the inventory would be decoupled into two parts, the first part is manufacture plant and the second part is retailers who would need supplies for their customers. And the second function is to take advantage of quantity discounts, this is when placing an order will receive discounts, and also the managers need to take consideration of investment in inventory is less than …show more content…
2.42 Point of sale
Traditionally, a cardholder or a customer delivers a payment for a product or service at a point of sale, older point of sale used manual devices, such as cash register to organise payments collected. Nowadays, point of sale use scales, scanners and other newer technology include tablets and smartphones allow merchants to collect card information whenever they wish through payment service provider.
The new software developed in point of sale system include Intuit QuickBooks point of sale system, this system developed for customer managing, inventory tracking and sales ringing. Intuit QuickBooks point of sale is a perpetual inventory system that keeps the inventory up-to-date in real time, as a result, inventory can be easily monitored and controlled.
In conclusion, inventory is a major asset in a company, a good inventory management process will minimise the cost as a result of increasing operational efficiency. A computerised software can be useful in inventory management, as company expand, thousands of stock need to be controlled and monitored. The company needs to identify the best control system according to their