DESIGN AND IMPLEMENTATION OF A COMPUTERIZED INVENTORY CONTROL SYSTEM

By

Author

Presented To

Department of Computer Science

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

10      Introduction                        1

11      Background of the Study                         2

12      Statement of the Problem                       3

13      Purpose of the Study                    4

14      Significance of the Study                         4

15      Objectives of the Study                4

16      Scope of the Study                        5

17      Limitations of the Study               6

18      Definition of Basic Concepts                   6

CHAPTER TWO

20      Literature Review               9

21      Comprehensive Overview                       9

211  Purpose                    10

22      Types of Inventory Control Systems     -           -           -           -           10

221  Four types of inventory control systems         -           -           -           -           11

2211          Manual Inventory Management System -      -           -           11

2212          Barcode Technology                     12

2213          Radio Frequency Identification (RFID) -           -           -           13

2214          Warehouse Management System         -           -           -           -           14

23      How Inventory Control Systems Really Work            -           -           16

24      What Industries Use Inventory Control Systems      -           -           19

241  Application of Inventory Control Systems -    -           -           20

242  Importance of Inventory Control Systems -   -           -           - 21

25      Warehouse Management Systems       -           -           -           -           22

251  Warehouse Management Rules Engine           -           -           -           24

2511          Rules Workbench               25

2512          Warehouse Management System Strategy - -           -           25

252  Importance of Warehouse Management Systems -            -           25

253  Inventory Control Systems vs Warehouse Mgt Systems - 27

26      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

11 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 computerized inventory control system for the Nigerian Breweries PLC will no doubt bring immeasurable relief from the problems associated with the manual system

12 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

13 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

14 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

15 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

16 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

17 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

18 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