Design and implementation of computer based inventory control system (A case study of Nigeria brewery)
ABSTRACT
This
research work is concise and generally summarizes the activities duly carried
out in the design and implementation of a computerized inventory control system
for a manufacturing organization. The system is designed to efficiently handle
the movement and tracking of goods through the replacement of human workers by
technology. The manual method or intervention is labour intensive, costly, and
error prone and cannot ensure the inventory remains up-to-date due to oversight
and internal shrinkage. With the proposed new system, inventory can be updated
in real time without product movement, scanning, or human involvement. The
automated system allows inventory status to be determined and shipping and
receiving documents to be generated automatically triggering automatic orders
for products that are low in inventory. The study outlines the main concepts of
the analysis and design methodology of the proposed system, compares it to the
existing and goes further to explain the design and implementation of the
system using Visual Basic 6.0 for the database. The fact finding techniques
employed is interview, observation, online and library research.
TABLE OF CONTENTS
Title page
Approval Page
Certification Page
Dedication
Acknowledgement
Abstract
Table of Contents
List of Figures
List of Tables
CHAPTER ONE i
1.0 Introduction 1
1.1 Background of
the Study 2
1.2 Statement of
the Problem 3
1.3 Purpose of the
Study 4
1.4 Significance of
the Study 4
1.5 Objectives of
the Study 4
1.6 Scope of the
Study 5
1.7 Limitations of
the Study 6
1.8 Definition of
Basic Concepts 6
CHAPTER TWO
2.0 Literature
Review 9
2.1 Comprehensive
Overview 9
2.1.1 Purpose 10
2.2 Types of
Inventory Control Systems - - - - 10
2.2.1 Four types of
inventory control systems - - - - 11
2.2.1.1 Manual
Inventory Management System - - - 11
2.2.1.2 Barcode
Technology 12
2.2.1.3 Radio
Frequency Identification (RFID) - - - 13
2.2.1.4 Warehouse
Management System - - - - 14
2.3 How Inventory
Control Systems Really Work - - 16
2.4 What Industries
Use Inventory Control Systems - - 19
2.4.1 Application of
Inventory Control Systems - - - 20
2.4.2 Importance of
Inventory Control Systems - - - -
21
2.5 Warehouse
Management Systems - - - - 22
2.5.1 Warehouse
Management Rules Engine - - - 24
2.5.1.1 Rules
Workbench 25
2.5.1.2 Warehouse
Management System Strategy - - - 25
2.5.2 Importance of
Warehouse Management Systems - - 25
2.5.3 Inventory Control
Systems vs. Warehouse Mgt Systems - 27
2.6 Automated
Inventory Control System Software - - - 28
CHAPTER ONE
1.0
INTRODUCTION
An inventory control system contains a list of orders to be
filled and then prompts workers to pick the necessary items, and provides them
with packaging and shipping information. Inventory control may be used to
automate sales order fulfilment process and also manage in and outward material
of hardware. Automation is the replacement of human workers by technology. For
optimal sales and inventory management process, robust functionality is needed
for managing logistics facilities. Warehouse management functions for inventory
control cover internal warehouse movements and storage and its support helps in
the recording and tracking of materials on basis of both quantity and value.
This application takes care of all supply orders reducing
cost for warehousing, transportation while improving customer service. It
significantly improves inventory turns, optimizes flow of goods. It also
improves cash flow, visibility and decision making providing efficient
execution of tasks using this fast and reliable computerised method
1.1
BACKGROUND OF THE STUDY
The Nigerian Breweries PLC was established in the year 1946.
It aims at providing satisfaction and nourishment to the Nigerian population
through the distribution of drinks like beer, coca-cola, fanta, sprite etc. It
is second to none and for this reason, the demand is high and the company
responds to the increasing demand by stabilizing supply to strike a balance.
Justifiably, the company has the problem of keeping adequate
record of goods transfer and since it is done manually, associated problems of
insecurity, high cost of operation and delay in supply arise. Data processing
in Nigerian Breweries PLC is presently carried out using people, pens, and
paper to control stock and inventory.
The design and development of a computerizedinventory control
system for the Nigerian Breweries PLC will no doubt bring immeasurable relief
from the problems associated with the manual system.
1.2
STATEMENT OF THE PROBLEM
The Nigerian Breweries PLC is to an extent manually operated
and reveals a number of problems.
The recording of sales and cash received are done manually on
a book that appears rough. Thus, the books are exposed to physical damage,
information can be lost and dust particles are accumulated.
The long
list of supply orders waiting to be attended to on daily basis.
The control
system is time consuming, less accurate and less efficient, and the environment
is not user friendly.
Inaccuracies
often ensue from human error.
The manual system is quite tedious and can be reduced or
eliminated with the introduction of the proposed system.
1.3 PURPOSE
OF THE STUDY
The purpose of this study is to improve current operational
process in the Nigerian Breweries PLC to its full capacity by developing
efficient computer software that can handle inventory in a computerised
fashion.
1.4
SIGNIFICANCE OF THE STUDY
This study is primarily aimed at increasing efficiency in
operations, reducing maintenance and running cost, monitoring the supply of
goods and its distribution and increase profit in the Nigerian Breweries PLC by
introducing a computerizedinventory control system.
1.5
OBJECTIVES OF THE STUDY
The main objective of this study is to develop a computerised
inventory control management system. Others include;
i. It provides
total asset visibility.
ii. It allows
reduced inventory stocking levels giving full inventory history.
iii. It reduces
lead time, shelf space, and errors due to damage, fatigue of staff and overall
cost of operations.
iv. It
facilitates “just in time” deliveries.
v. It provides
full process control for products.
vi. It provides
higher level security as the system would be passworded to prevent unauthorised
access.
vii. It shortens
cross docking time and speeds up sort/pick up rate.
viii. It helps the
management plan, monitor, optimize resources and ascertain their financial position
at any time.
1.6 SCOPE
OF THE STUDY
The scope of this study covers the Nigerian Breweries PLC as
a whole, and its customers which include retailers, distributors and the
general public.
1.7
LIMITATIONS OF THE STUDY
This project was constrained by the following factors:
(a) Financial
Constraints
Bearing in mind the economic state of the nation, it was
found difficult in making both ends meet, because of the exorbitant nature of
things nowadays in travelling for the collection of data needed for the project.
(b) Time
Constraints
Looking at the interval between the resumption and vacation
of the final semester for the project to be completed, the time given seemed to
be short for the collection of required information for better work to be done.
(c) Non-Availability
of Material
During this project, it was noticed that the required
materials needed for the project are not documented. Those that were documented
lacked storage facilities where they can be reached.
1.8
DEFINITION OF BASIC CONCEPTS
Automation: This is the use of technology or computers to
control and process data reducing the need for human intervention.
Database: This refers to a large store of related data on a
computer that a user can access and modify.
Password: This is a secret code that must be entered into a
computer to enable access to its applications. It is made up of numbers,
letters, special characters or a combination of any of the above categories.
Inventory Control System: A list of orders to be filled, and
prompts workers to pick the necessary items and provides them with packaging
and shipping information.
Computerization: This is the conversion of a manually
operated system to a controlled, organized and automated system.
Research: A careful study of a subject to discover facts,
establish a theory or develop a plan of action based on the facts discovered.
System: A set of computer components functioning together.
Technology: The study of techniques of mobilizing resources
such as information for accomplishing objectives that benefit man and his
environment.
Software: A computer program or set of instructions that
direct a computer to perform processing functions.
Information System: A collection of procedures, people,
instructions and equipment to produce information in a useful form.
Processing: This is dealing with something according to an
established procedure.