Computer assisted inventory control system

Abstract

The basic purpose of holding inventories is to provide an essential decoupling between demand and unequal flow rate of materials in a supply chain. Therefore. a major issue in supply chain inventory manugement is to coordinate inventory policies adapted by the different supply chain actions. This includes integration of information coming from vendors. manufacturers and distributors, so as to smooth up the flow of materials in, through and out of a manufacturing firm in a more responsive way to customer's demand. The main drawback for effective inventory management is the lack of accurate and timely information. e.\pecially at the operational level. The materials information system enables management to use the inventory classification scheme for tighter control. to determine material requirements. to handle schedule changes, to evaluate vendors, and to utilize material exchanges more effectively. The information system in business and manufacturing organizations is better organized with the help of computers. In a computer based system, the flow of information within the different departments of an organization and with the external environment can easily be maintained. A computer based decision support system may possess additional decision-aiding tools like selective inventory control techniques, EOQ determination, demand forecasting, statistical analysis etc. This paper briefly presents an integrated and systematic approach towards the management of independent demand inventories using computer database systems.