Information Technology System in Inventory Management - Research Paper Example

Table of Contents Table of Contents 2 Executive Summery 3 Overview 4 Information technology Support for Inventory management system 4 Benefits of IT based inventory management system 7 Dell Inventory Management 7 Conclusion 9 Bibliography 9 Student Name Professor Name Subject 27 June 2009 The use of information technology system for efficient and effective management of inventory Executive Summery This research paper presents a detailed analysis of using information technology system for efficient and effective management of inventory. This is the age of new and modern technology and technology is taking part in each field of life. The area of business is also extremely influenced through the technology. At the present time, there are more enhanced ways of carrying out business activities, management, and handling of resources through effective information technology implementation. Inventory management is essential for each company that desires to sustain a supply service for rapid spin to make sure entire client fulfillment. Inventory is managed through inspecting the potential necessities of the clients. Manually administration of the inventory is a massive job for administration. Inventory management allows us to serve the clientele through providing them better services and ease of purchasing. Overview This research provides a deep and more enhanced overview of the inventory management by making use of new and innovative information technology based solutions. The key action of an inventory management system is to preserve and keep track of the products, goods and further elements that are going out, approaching in and order releasing. The novel system is intended on the foundation of the obtainable system as well as through studying a number of systems previouslyput into practice (Nagen N. Nagarur). Inventory management is a complicated trouble area due to the assortment of real life circumstances. Flourishing inventory administration necessitates refined techniques to manage by means of the incessantly altering atmosphere. This offers an abstract root for the area of inventory management as well as creates it one of the majority developed fields of information technology and computerized management system. Despite the fact that, the practical accomplishment of inventory models wraps at the back the improvement of inventory modeling. In this research, I will present the detailed analysis of the DELL information technology based solution for the inventory management. I will present detailed analysis of the DELL effectively established inventory and management system. Information technology Support for Inventory management system According to (Laudon and Laudon, p.55), “Supply chain management incorporates the supplier, distributor, and customer logistics requirements into a particular consistent way”. The supply chain is a faction of organizational departments for instance, industrialized plants, giving out centers, conveniences, retail outlets, personnel and information, which are associated from side to side departments such as procurement or logistics, to deliver goods or services from starting place through operation. Goods or services begin as unprocessed materials and advancement all the way through the organizational logistics and manufacture system in anticipation of they arrive at customers. To deal with the supply chain, an organization struggles to get rid of impediments and engrave the amount of resources engaged along the way (Laudon and Laudon, p.55). Organizational Inventory handling and management has long been one of the commanding aspects at the back dealing in SCM (supplychain management) systems. Maintaining overload finished goods or components on hand generates redundant warehousing expenditures as well as negotiates the organization’s money flow, as a result, inventory administration is frequently thought as a speedy accomplishment for supply chain management arrangement, also as individual roll outs or as fraction of broad venture supply planning systems or we can say ERP. Information technology supported inventory management and handling systems are intended for a company that needs an intact command in excess of supply levels as well as supply following. This IT supported inventory management software can be employed moreover as a clear-cut inventory management system or an entire developed solution. Computerized inventory management system proffers realistic time information for the product and order like that when the product order is given as well as when to send off it. This assists in organization inventory handling professionally and enhancing client service through offering on time product or goods delivery. These systems are as well able to help in dropping capital expenditures through running the stock as well as time spent on administration of the inventory. In view of the fact that, by means of computers and barcode printers’ electronic inventory management system builds the good organization through recording and presenting accurate inventory data and information (Laudon and Laudon). Now I will talk about the new technology implementation in the areas of the inventory management system. Here, I will talk about the new AI (artificial intelligence) technology incorporation in the inventory management system. Customary database management systems or DBMS efficiently store as well as arrange massive quantities of data. At the present, the use of expert systems (ES) and artificial intelligence (AI) is rising in the inventory management control systems that hold control of information as well as data. Incorporation of expert systems and database management system leads to smarter data and information management systems regarding the inventory control and management. As a result, we have an intelligent management and control system for the inventory management that holds the databases that are developed as a consequence of corresponding nature of knowledgebase and database applications. With the advancement in technology, we have intelligent expert systems that manage the online inventory control and guides against the customer requests and process the product purchase orders (Suresh Subramoniam). A modern and up-to-date technology in the inventory management is the network based inventory management information systems (NIMISs). This technology based system provides the help for the effective information and data and product management through the integration of inventory administration transversely networked associations. For this new technology of the networked inventory management, IS or (information systems) are primary resources, for the reason that massive quantities of composite information have to be modified, stored as well as conversed within the collaborating associations. This technology provides a great advantage regarding the massive inventory management of the products in the collaborating organizations and customer (Martin Verwijmeren). Benefits of IT based inventory management system In this section I will discuss the main benefits of the IT based inventory management system. The main benefits are given below (Nagen N. Nagarur): Diminution in entirety inventory expenditures Superior data management Accomplishment of the similar demand pattern Truth and perfect information Enhanced report for the on the whole transaction Less data entry mistakes On time stock information A smaller amount paper work Fast data error handling The process speeded up for managing the inventory Fewer work forces needed Better organizational quality management for inventory management Dell Inventory Management In this section I will present a detailed analysis of the DELL inventory control and management system. Dell is dedicated to make straightforward the supervision of information resources thus clients are able to draw attention to, what is the majority significant to them increasing their business, acknowledged by senior vice president of Dell Product Group Mr. Brad Anderson. At the present time, they have employed a wonderful dive ahead in corporate inventory management systems. Currently Dell has established a superior partnerships with Microsoft, Altiris, Novell as well as other business leaders in the IT market place, clients get hold of additional command, alternatives as well as closure of mind in their venture through the accomplishment of the IT and digital inventory management environments (Dell Sets New Standard in Systems Management). Dell has established a system that has great management of and handling of the on the whole organizational products and departments. As an alternative of acquiring investment costs, Dell Inc. does not order a product in anticipation of its need is in place. The inventory management system of the Dell is also acknowledged as the JIT system or Just in Time system. Just in time system is planned to maintain accounts as small as probable through manufacturing merely what is required as well as when it is obtainable. This superior inventory management system permits clients to put a product order on Dell’s online website as well as take delivery of their computer in few days (Dell Sets New Standard in Systems Management). The online facility of the inventory management system that is accessible at the Dell’s official website is connected to their EDI system or electronic data interchange system that permits dealers to monitor what elements Dell necessitates without delay. The buyer orders the online established computer system. The dealers, who put together numerous deliveries to Dell every day, bring Dell by means of the elements they require when, as well as merely when, they necessitate them. At the same time as the software is luxurious for Dell, as compared to a number of various other organizations, the outcome of that investment is viable benefit. On the other hand, Just-In-Time system of Dell Inventory management system is a tremendously hard system to create that necessitates years of work out, practice and tremendously supportive suppliers to grow to be an ideal organization for better inventory management system (Dell Sets New Standard in Systems Management). Above all, this inventory management system is not intended for products that have an enormously huge backorder cost (Todays Inventory Management). The Dell model for online inventory management is basis on carrying on no record, in turn for Dell to uphold that they paying attention on segmenting their clients into scalable industries that can be examined for their intensity of demand. Dell sales managers make use of communication expertise to draw out data and information from clients that would additionally hold up the demand estimation plans at the corporation. As well, Dell derived reviews to clients to further identify the liking level using the services offered through Dell as well as get used to its goods and services lines and services accordingly (Dell Sets New Standard in Systems Management). Conclusion In this research I have presented a detailed analysis of the use of information technology system for efficient and effective management of inventory. I have investigated the main utilization of the information technology for the better management and handling of the organizational inventory and products. I have outlined the main benefits of implementation of information technology based inventory control system for the organization. This research has also outlined the DELL’s Inventory Management System. Here I have talked about its main working model and structure. Bibliography Dell Sets New Standard in Systems Management. 2008. 2009 06 29 . Laudon, Kenneth. C. and Jane. P. Laudon. Management Information Systems, Sixth Edition. New Jersey: Prentice Hall , 1999. Martin Verwijmeren, Piet van der Vlist, Karel van Donselaar. "Networked inventory management information systems: materializing supply chain management." International Journal of Physical Distribution & Logistics Management (1996): 16-31. Monk, Ellen and Brett Wagner. Concepts in Enterprise Resource Planning, 3rd.ed. Boston: Course Technology Cengage Learning, 2009. Nagen N. Nagarur, Tai-san Hu,Nirmal K. Baid. "A Computer-based Inventory Management System for Spare Parts." Industrial Management & Data Systems (1994): 22-28. Shelly, Cashman and Vermaat. Discovering Computers 2005. Boston: Thomson Course Technology, 2005. Sock Hwa Chung, Charles A. "ERP adoption: a technological evolution approach." International Journal of Agile Management Systems (2000): 1465-4652. Suresh Subramoniam, K.V. Krishnankutty. "EDSIM: expert database system for inventory management." Kybernetes (2005): 721-733. Todays Inventory Management. 18 November 2008. 24 06 2009 . 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