Inventory Systems

Inventory Systems Summary

Toni Lomax, Kim Asher, Carriann Bingham, Sherrie White

ORB/501

October 11, 2010

Michael O. Minor, EdD

Inventory Systems Summary

Managing a business as well as managing inventory is highly influential to one another in today’s work environment. Inventory control systems are excellent aids that help monitor products within the company’s possession, recently sold goods, and products necessary to reorder when running low.

Patterson Dental Supply provides equipment and multiple supplies used regularly in offices. Because of the vast variety of products offered to the professionals of the dental field, Patterson Dental Supply follows the perpetual inventory system and chooses to use the barcode system as a means to monitor inventory.

The Winter Historical Inventory Data uses seasonal inventory data. Uses of seasonal inventory are for any forecasted demands, promotional programs, seasonal demand purposes (such as the holidays), plant shutdowns, vacations, and etc. (UCF College of Business Administration, 2010). It shows any pattern of change in a time series within a year (Lial, Hestwood, & McGinnis, 2010). In the case of the winter historical data, it is assumed that the forecasted levels are needed for Thanksgiving and Christmas Holidays. The winter months in this data are November through March.

At D&B Diamond Earrings Deluxe a manual system is used to track inventories on hand and determine appropriate ordering times and quantities. As new inventory arrives the store’s inventory logs are updated. Our supplier has committed to a seven-day lead time with no minimum order and no bulk discount. Orders are placed by telephone when store inventories approach the seasonal two-week level. Order quantities are typically four to six weeks of anticipated sales. Despite the suppliers reliability, maintaining a backup inventory allows for brief, unforeseen delays in diamond production or distribution. When a change...