Relationship between information technology and inventory management

relationship between information technology and inventory management

It has a bigger impact on inventory control in terms of efficiency, ease of accessing information and accuracy thereby affecting organization performance. Inhalt. Introduction and Background of Study. Literature Review Information Technology Systems Supply Chain Management The relationship between IT. Jul 31, The association between information system and inventory control at the firm level in the supply chain (SC) has only been the subject matter.

These benefits include the advanced supply chain quickness, achieve higher efficiency, reduce cycle time and deliver products to customers in timely manner Shore.

6. Information Technology Systems Inventory Management | Board of Supervisors

The researchers also found that the use of IT is not a guarantee of better performance of firm Lucas Jr. The use of IT in supply chain management SCM enables the firm to maintain record of inventory, suppliers and customers. But it does not mean that there is no outlet using the manual inventory management system. In fact, the use of computerized inventory management system for small retail outlets, convenience stores, shoe stores and small manufacturers might be a waste of financial resources.

The use of these advance level of computerized inventory management systems for large industries that have high volume of raw and finished products have appeared as major and important element of business strategies that aimed the increasing level of productivity and maintains the competitiveness. The new powerful computer programs manages the great volume data and keep the records that needs, including inventory control systems. Information technology is the key source of competitive power for a number of companies.

It plays the vital role especially in service provider industries like big retailers, airways companies and transportation companies.

What is the role of IT in inventory management?

The cost can be reduced by timely information for supply chain management. A number of companies are offering competitive and innovative technologies to their customers in order to sustain the long term relationships and gain the competitive advantage over other firms.

The innovative service that is offered by a single firm makes its obligation to other firms in the same industry. According to the research conducted by Subramanithe relationship-specific intangible investments play a mediating role linking SCM systems use to benefits. This study will examine the relationship between the information technology and inventory management.

relationship between information technology and inventory management

This is a descriptive research. This study will use the logistic enterprises as the sample. The primary data will be gathered through questionnaire. The advance econometric techniques will be used for analysis and interpretation of data.

This study will determine the integration of technology on inventory management. This study will determine the impact of technology one procurement of inventory.

The findings of study will help the employees of firms to adopt the new technologies and contribute the better performance in the firm. The findings will also help to managers of firms to gain the customers confidence and can increase the growth rate and profitability of the firm. First section deals with the background and introduction of the study. In this overview of the desire study is explained. Section 2 deals in depth literature review of the study.

  • The Role of Information Technology in Inventory Management
  • The Uses of Computers in Inventory Control

Variables are also defined in this section. Section 3 deals with the problem statement of the study. In section 4, the research questions are defined. Section 5 deals with theoretical framework and hypothesis of the study.

Next section deals with research design and methodology of the study.

The Uses of Computers in Inventory Control |

Proposed model for this study is also included in this section Last section deals with significance of study with support of previous literature 2. Both will automatically enter the correct price at the register and prevent data entry errors.

They also can create a perfect real-time record of how much stock remains on the shelves, how much is available in on-site storage, and whether a new shipment is necessary from the warehouse.

Combine this information with warehousing data, and your business can create additional alerts to key management when a bottleneck occurs.

6. Information Technology Systems Inventory Management

For example, if a dozen retail stores anticipate needing restocking, but the warehouse does not have sufficient goods on hand, your business can place a rush order to fill the need. Stock Management and Cost Reduction The process of moving goods through a company pipeline is always economically inefficient.

The purchase of the goods represents an investment of company capital, which your business cannot recoup until you sell your inventory. Warehousing of goods before sale introduces the possibility of inventory shrinkage in value from theft, damage, deterioration or changes in customer taste. Moving goods from warehouses to the point of sale involves shipping costs, especially if the shipment is incorrect, or if the internal shipping process is inefficient.

relationship between information technology and inventory management

Computerization provides a real-time picture of this entire work flow process, and allows managers to reduce purchasing costs through minimizing inventory, increase the efficiency of internal shipping systems, and reduce the possibility of theft or damage by being able to track each item down to the individual staffer who takes responsibility for it.

MIS are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.