CHAPTER ONE
INTRODUCTION
A households total investment in current asset is called gross working capital whereas the difference between current assets and current liabilities is the networking capital. These marketable securities, current receivables (debtors) and inventory. Inventory forms a substantial part of the current asset hold in most industries, household and organization up to the fun of about 70%. Thus, the call for a very careful husbanding of materials Harry (2005). The term “inventory varies from establishment to establishment and household to household and hence can be defined in three different ways.
Inventory and hold for the household daily transaction In the ordinary course of business and expenditures Are used in the process of consumption record keeping.In other words, it does not necessarily refer to tangible merchandize on a shelf. The system then help to checks if the desired household items are in stock. If theare, the items made available for adequate use and consumption. The number of item inventory balance. The daily transaction consumption are recorded by the transaction – processing system which must account for the fact that a business transaction has just taken place. Besides monitory controls system automatically, almost all inventory control system generate an assortment of report for management. The report may perhaps include, Rubin (2007).
(a) Ordering of goods in economic quantity prevention of large build up to non-essential goods.
(b) Reduction of losses due to inadequate inspection, damage of material, deterioration and obsolescence pilferages.
(c) Provision of accurate base for costing accounting to the tediousness for the management and control of inventory.
Moreso, extra care should be pilferage, clerical errors and manipulations. The possibility of taking this lies on the fact that unlike other asset whose value are desirable from book of account. The value of all classes of inventory are derivable by physical check held on balance sheet data. The are stated at lower cost or net reliable values. Many household including peaceful hotel maintained a high level of stock which is the prerequisite for the discharge of their function at the balancing level. It is essential for the survival of a household, yet efficient control of that supply and its accompanying cost is equally crucial to success. Efficient management of inventory can mean the difference between profit and loss, success and failure. As the country is presently facing galloping inflation there is absolute need for the control of inventory in each household to ensure optimal result.
1.1 Theoretical Background
This is being studies to proper solution to the lingering problem of manual inventory control system in household with special concern on peaceful hotel, Uyo. However, these problem range from inaccuracy to under stocking or overstocking. This problem has actually affected the growth of some household as they cannot dictate item that have fallen beyond the minimum re-order level. The system therefore provides economic order quantity. This research work is expected to evaluate the problem of pilferage and obsolescence. Because of over dependent in paper work, many household suffer unnecessary financial and items loss and misappropriation of their items Zenz (2004). It is hoped that the study will discover absolute or imbalance of the financial record. This study will also provides a report that is suitable for quick decision making.
1.2 Statement of the Problem
As a result of the manual approach, a lot of problem or negative development arises and hence Automated Computer Based Household Inventory System is being develop to reduce the problem, some problem are being involved in these automated inventory control system. This problem includes:
1. Lack of Finance: For this automated inventory control system to be made complete a lot of money is involved, and lack of this money will lead to the inability to carryout this project successful.
2. In-depth Knowledge of Computer:For any supplier to be able to use these automated inventory control system, he/she need a little knowledge on how to operate the computer.
3. Increase in Price: Since the automated system makes use of computer, for this to be made firm, a computer is needed for operation. And these tend to increase the transportation fee in order to meet up with computer requirement.
4. Power Failure: Since the computer use light or electricity to carryout this operation, the failure to provide this electricity means that the computer will not carryout their operation. Hence, failure in power is also another problem involved in it.
1.3 Purpose of the Research
The purpose of this research work is to provide and promote the level of the automated inventory system through the use of machine or computer instead of people doing the loading that is, using the computer to control the work without the need of people to do it. The study is aimed at developing or designing a software on a personal computer in such a way that when a supplier enters the control room, he goes to the computer and type in inventory detail.
1.4 Aim and Objectives of the Study
The aimed of this study is to developed or designing a software on a personal computer in such a way that when a supplier enters the control room, he goes to the computer and type in inventory detail.
The objectives are as follows:
Ø To examine the need for inventory in the hotel
Ø To examine the challenges faced by the families in the management of manual inventory
Ø To determine the means of improving the standard of living in the household through automated inventory system.
1.5 Research Questions
Ø What is the need for household inventory system?
Ø What are the challenges faced by the families in the management of manual inventory?
Ø How can the standard of living of the family be improve through the introduction of the automated household inventory system?
1.6 Significance of the Study
Obviously, the designing of this computer based inventory system is expected to enhance efficiency in household and peaceful hotel as a case study. It will help to guide against pilferage. This means that some stock keepers who may have the intention of defrauding the store may be discourage since every items is regulated by the computer screen. The automated of stock control will help to restore clients goodwill about the store. Every information is stored in the computer memory so that a press of the button provides all the necessary information. This study will no doubt evaluate all problems of overstocking and understocking which are very rampant with manual inventory control. The computer system will determine “when” and “how much” to order a minimum quality (ordering quantity) and a maximum quantity (ordering point) should be established for each item in the house. Furthermore, this study will help to alleviate the problem of inaccuracy of financial accountancy, this problem of result due to the unreliability of human brain couple with clerical errors. Human intelligent can never be compared to computer’s brain in terms of accuracy and speed. Moreso, this research work will solve the problem of overcrowded working environment associated with some household and peaceful hotel. It was discovered that the majority of problems encountered by household are cause by the inability of having an inventory control system. Therefore, the use of stock control automated certainly solves this problem.
1.7 Organization of the Study
The research work is organized into five chapters, chapter one is the introduction, theoretical background, statement of the problems, objectives of the study, significance of the study, organization of the research, scope and limitations of the study and definition of terms. Chapter two contains the review of related literature, chapter three is about the system design and methodology used in gathering information for the research work, chapter four elucidates about the implementation of the system and the last chapter talks about the summary, conclusion and recommendations.
1.8 Scope of the Study
The scope of the research work focus on the automated computer based household inventory system using peaceful hotel as the case study. These scope is covered from developing a software that will carryout the operation.
1.9 Definition of Terms
Automated: These are program that control the operation of the computer system.
Computer: An electronic devices which is capable of accepting data through its input unit and given its result through its output unit.
Manual: The use of human effort in carrying out a specific process.
Loading: his is the process of putting people or luggage’s in a given system.
Software: These are program the control the operation of the computer system.
