Inventory Control

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Date Submitted: 09/17/2012 05:15 PM

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Inventory Control

Bus 644 Operations Management

August 6, 2012

Dr. Jon Webber

Inventory Control

Harvey Industries is a company that sells to the consumer and to other businesses. Being that they have a market to sell products and services to but still taking loses means that they are doing something incorrectly or there can be improvement made somewhere. An inventory issue is identifiable with this example “There were 973 different part numbers purchased for stock last year and those purchases amounted to $314,673. An analysis of inventory records shows that $220,684 was spent on just 179 of the part numbers.” There are some improvements that can be made in the supply chain as well. The supply chain is defined as a sequence of organizations, their facilities, functions and activities that are involved in the production of services or goods. (Stevenson, 2012) Inventory is defined as a stock or store of goods. (Stevenson, 2012)

Inventory Management

As aforementioned in the introduction there are some apparent errors in which the way inventory is managed. Harvey Industries is said to use an inventory system in which they use paper to record changes. This method only keeps track of certain transactions regarding the inventory. There are numerous systems that should be used to better handle inventory. To improve the management of inventory I would suggest a variety of tactics be used. The usage of UPC which is a bar code printed on a label that contains information of product is essential. The other systems that should be used are point of sales system, which electronically records sales, which would help now when an item is low in inventory. (Stevenson, 2012) A system needs to be implemented in which associates use hand held computers to remove inventory from its location in the backroom in which it was scanned into; this will help keep more accurate counts as opposed to the inaccuracies they currently experience. In order to attach these items to the...