ABSTRACT
This project work is meant
to design an automated inventory control system for Guinness Nigeria Plc.
According to Kower (2011), who defined inventory as “an asset that
is owned by a business that has the express purpose of being sold to a customer.
This includes items sold to end customers or distributors. It includes raw
materials, and finished goods. The need for this automated system was to solve
the problems that were associated with the manual system of inventory control
in the company; some of these problems were traced to strenuous paper
work and calculation in taking down stock after and during sales or purchase of
new products or raw materials. In other to solve this problem, there was an
analysis that was carried out on the old system so as to know how to automate
the new system to perform more than the conventional system that was used in
the company. From the analysis, the system will be designed to achieve the
following: Enable the management to get the information about stock levels of
various items in the least possible time, Provides a kind of inventory system
that can link to sales and accounting departments. The new system was designed
with Microsoft visual basic 6.0
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Kower (2011) defined inventory as “an asset that
is owned by a business that has the express purpose of being sold to a
customer. This includes items sold to end customers or distributors. It
includes raw materials, and finished goods. The management of inventory is a
key concern of all businesses. Inventory generally refers to the
materials in stock. It is also called the idle resource of an enterprise.
Inventories represent those items which are either stocked for sale or they are
in the process of manufacturing or they are in the form of materials,
which are yet to be utilised. The interval between receiving the purchased
parts and transforming them into final products varies from industries to
industries depending upon the cycle time of manufacture. It is, therefore, necessary
to hold inventories of various kinds to act as a buffer between supply and
demand for efficient operation of the system. Thus, an effective control
on inventory is a must for smooth and efficient running of the production cycle
with least interruptions in companies using Guinness Nigeria Plc as case study.
Spencer (2000) defined inventory as
the stock of goods that business firm has no band including raw materials
suppliers and finished goals.
Inventory refers to the goods kept by
a firm or an organization that are either used in production kept for resale,
or in the process of being manufactured to the finished products.
To the entire three definitions,
inventory means money tied up in property that is intended to sale or used in
merchandising concern, the inventory will be made up mostly of finished goods
but in a manufacturing environment, a major part of the inventory was made up
of raw materials and goods that have been particularly processed. The former
belongs to raw materials inventory while the later one is classified as work in
process inventory. There are other items, which though used up in the
production process so does not form part of the final product. Examples are
lubricants, pencil etc. are called supplies.
There are some advantages to be
derived from keeping large inventory. A good inventory system is cost
associated with this: a good inventory system should have an effective way of
determining the acceptable trade off to enhance the profitability of the firm.
These method and term relating inventory are
discussed in chapter two.
1.2 STATEMENT
OF THE PROBLEM
In other to carry out the process of
adequate inventory control system stock of various products is usually kept. Keeping
and controlling of inventory is a primary duty of the store department with
inputs from the sales and purchasing departments.
Guinness Nigeria Plc is still at a
development phase of its system including the inventory system to meet up with
the current time. The inventory system being used currently is wholly manual
and involves a lot of paper work and calculation, which hopefully will be standardized
with time.
The present system is only effective
to some extent and may not stand the test of time as the company goes into
selling and buying of products or other accessories. This will meet new stock
of product to be kept. Complex sales are in fact flexible, dynamic and
efficient inventory system as outlined above requires electronic data
processing to implement. The computer provides the solution to such problem.
1.3 OBJECTIVES
OF THE STUDY
The main objective of this study is to
device and design a computer based inventory control system, which will among
other things.
i. Enable the management to get the
information about stock levels of various items in the least possible time.
ii. Ensure that the quality information in
(i) above is maintained
iii. Provides
a kind of inventory system that can link to sales and accounting departments.
iv. Has an
in-built learning system on re-order level to avoid expenses stock out.
v. Computer
system should be used to replace the manual process of handling information, so
as to ensure that information will be always accurate.
1.4 SIGNIFICANCE OF THE STUDY
All businesses rely on inventory
control systems to be able to run their business. Inventory control systems
play this significant role by accounting for all goods or products. It also
shows where a particular item is in the flow of sales, whether it be in a warehouse
or on a store shelf.
Below is some of the
significance of the research work
I.
The system will assist management in
making important business decisions.
II.
To design an effective and accurate
record keeping techniques in terms of the stock of Guinness products.
1.5 SCOPE
OF THE STUDY
Sales and accounting inventory system
are all embarking in nature, however, all the areas can not be covered at once
the work is therefore limited in the computerization of items or products
inventory and monitoring of machinery, products and equipment in Guinness
Nigeria Plc.
1.6 DEFINITION
OF TERMS
STOCK: This is the total value of money, equipment building
etc. of a business company
INVENTORS: A person or organization that uses money to
buy share or property develops a business enterprise in order to make profit.
ORGANIZATION: This is the
state or condition of being organized
PROGRAM: These are
series of instructions in code that control the operation of the computer
HARDWARE: These are the entire physical device found
in the computer system
SOFTWARE: This is a term used to describe all the
various programs that may be used in a computer system together with their
associated documentation
DATA
PROCESSING: It
is the collection and manipulation of item of data to produce meaningful
information.
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