CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
A household inventory is a documentation of every item in your home so that you have this in the event of disaster, such as burglary or fire outbreak. It usually consists of a list of the items and/or a videotaped walk through of your home which captures images of the items. Household inventory can be very useful when dealing with insurance companies, as it provides documentation of the items that you own, thus helping your case for an insurance settlement. Computerized household inventory system today encompasses either directly or indirectly, a field of activity both private and public that revolves around the ownership possession and use of the inventory system. The term “inventory varies from establishment to establishment and household to household and hence can be defined in three different ways;
· Inventory 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 merchandise on a shelf. The system then help to checks if the desired household items are in stock, if the items are available for adequate use and consumption and the number of items of 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 monitoring control system automatically, almost all inventory control system generates an assortment of report for management. The report may perhaps include;
(a) Ordering of goods in economic quantity and prevention of large build up to non-essential goods.
(b) Reduction of losses due to inadequate inspection, damage of material, deterioration, obsolescence and pilferage.
(c) Provision of accurate bases for cost accounting for the management and control of inventory (Rubin, 2007).
More so, extra care should be taken to avoid pilferage, errors and manipulations. The possibility of any of these happening lies on the fact that unlike other asset whose values are visible from book of account. The values of all classes of household inventory are derivable by physical check on balance sheet data. They are stated at lower of cost or net reliable values. Many household 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.
1.2 STATEMENT OF THE PROBLEM
The importance of household inventory system cannot be readily appreciated unless its value is clearly stated by a figure. Although the value of any household inventory differs from place to place and time to time but the basic of each valuation is relatively the same at the same instance and time. The problem of manual household inventory ranges from inaccuracy to under stocking or overstocking which has actually affected the growth of some household as they cannot dictate item that have fallen beyond the minimum re-order level. Because of over dependent in paper work, many household suffer unnecessary financial and items loss and misappropriation of their items (Zenz, 2004).
1.3 OBJECTIVES OF THE STUDY
The research study is aimed at eliminating the manual system of household inventory system; specifically, the study sought to;
1. Design and implement computer based household inventory system.
2. Enhance effective management information system in most computer based enterprises through computer based household inventory system.
3. Examine the need for household inventory system.
4. Examine the challenges faced by the families in the management of manual inventory.
5. Determine the means of improving the standard of living in the household through automated inventory system
1.4 RESEARCH QUESTIONS
1. How can manual system of household inventory be eliminated?
2. Can computer based household inventory system enhance the effectiveness of management information?
3. What is the need for household inventory system?
4. What are the challenges faced by the families in the management of manual inventory?
5. How can the standard of living of the family be improved through the introduction of the automated household inventory system?
1.5 SIGNIFICANCE OF THE STUDY
Obviously, the designing of this computer based inventory system is expected to enhance efficiency in households, companies and industries. 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 under stocking 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. More so, this research work will solve the problem of overcrowded working environment associated with some households. It was discovered that the majority of problems encountered by households are caused by the inability of having an inventory control system. Therefore, the use of stock control automated certainly solves these problems.
1.6 SCOPE OF THE STUDY
This study is on design and implementation of computerized household inventory system using selected hotels in Lagos as a case study.
1.7 LIMITATIONS OF THE STUDY
1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.8 DEFINITION OF TERMS
Automated: These are program that control the operation of the computer system.
Computer: An electronic device 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: This 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.
