AUTOMATED STOCK LEVEL ALERTING SYSTEM FOR INVENTORY MANAGEMENT

AUTOMATED STOCK LEVEL ALERTING SYSTEM FOR INVENTORY MANAGEMENT

 

 

INTRODUCTION

1.0 Introduction

Stock management is the function of understanding the stock mixed of a company and the different demands on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. Stock in the store represents solid cash and as such, it must be carefully protected and checked to similar ways as cash. Must be protected against fraud, theft and also high storage costs because stock have to be stored in certain conditions depending on the items involved e.g. warm, dry and cool these must be taken into account in order to prevent trust or evaporation deterioration which can lead to reduction in value of the materials concerned.. Stocks otherwise referred to as inventories by enterprises usually comprise, raw materials; and supplies used in Production work-in-progress and finished goods stocks also include livestock awaiting safe supplies to be consumed in the production of goods or the rendering of services [1].

Inventories occupy the most strategic position in the structure of working capital of most business enterprises. It constitutes the largest component of current asset in most business enterprises. In the sphere of working capital, the efficient control of inventory has passed the most serious problem to the cement mills because about two-third of the current assets of mills are blocked in inventories. The turnover of working capital is largely governed by the turnover of inventory. It is therefore quite natural that inventory which helps in maximize profit occupies the most significant place among current assets. In dictionary meaning of inventory, it is a “detailed list of goods, furniture etc.” Many understand the word inventory, as a stock of goods, but the generally accepted meaning of the word ‘goods’ in the accounting language, is the stock of finished goods only. In a manufacturing organization, however, in addition to the stock of finished goods, there will be stock of partly finished goods, raw materials and stores. The collective name of these entire items is ‘inventory’.  The term ‘inventory’ refers to the stockpile of production a firm is offering for sale and the components that make up the production [1].

1.1 Statement of Problem

The following problems were identified in the old system:

It was difficult to know when stock was reduced to be re-stock. They loose funds because of not knowing when a stock is finished. There was no effective system to update stock level. No means of alert when the stock is reduced.

1.2 Aim and Objectives of the Study

Objectives to realize the aim of this project work are as follows:

To develop a database application to register stocks. To monitor stock level by updating the database as they are being sold. To alert users of the application when the stock level of any registered stock is low To aid the presentation of inventory report of stocks.

1.3 Significance of the Study

It will help to avoid over stocking It will enable easy updating of stock level It will aid avoid disappointing customers It will provide a means of alerting about stock level of registered items The study will serve as a useful reference material to other researchers seeking related information.

1.4 Scope of the Study

This study covers automated stock level alerting system for inventory management using Beverly Hills supermarket Ikot Ekpene as a case study. It is limited to the monitoring of the stock level of registered stock as they are sold.