Computerised inventory management for a manufacturing industry: A case study in Nigeria

Abstract

IntroductionWe all hold money, and one wonders if we all know the reasons we hold it. Economics objectively gave us three reasons why we keep money, and they are: the precautionary motive, the transactional motive and the speculative motive (Keynes 1923). Like money, companies keep inventory for these reasons stated above and even more. Inventory management is the act of keeping track of the quantity of material and number of item that should be and are presently in inventory at any time; supplies data required by other diameters of manufacturing cycle and links manufacturing to costing, book-keeping and general manufacturing. Inventory management, also often referred to as inventory control, can be referred to as the actual steps taken to maintain proper stock level in raw materials and finished goods (Adejuyigbe 2002).Over the years, inventory managers have been faced with the questions of how to monitor the inventory, how much should be ordered and when orders should be placed. This has led to the development of various models aimed at providing viable answers to the questions of inventory managers. The methodology for modelling inventory situations is straightforward and three simple steps are involved (Adam and Ebert 1982): 1. Examine the inventory situation carefully, listing characteristics and assumptions concerning the situation. 2. Develop the total annual relevant cost equation. 3. Optimise the cost equation to find the optimum for how much to order (order quantity) and when to reorder (reorder point).

Inventory management effectiveness of a manufacturing company – Malaysian evidence

“…In managing inventory, several costs must be considered in determining optimum inventory levels. Owoeye et al (2014) concurred that the cost of purchasing and holding inventory can account for as much as 60 to 80 per cent of the total cost of a product or service. According to Gourdin (2005), three types of costs must be considered: holding, ordering and stockout cost.…”

Management of inventory for firms’ efficiency – a study on steel manufacturing industry

“…With the implementation of software, computerized inventory management practices employed used in manufacturing firms' offer a systematic and sequential record of transactions. The platform provides effective and efficient control of inventory of manufacturing units by using Malinvent software (Owoeye et al, 2014). IA technology is more useful for measuring job productivity, a reduction in the counting process and record process, above all, a significant contribution to improved quality and rapid supply chain of accuracy concerning products (Afrifa et al, 2020).…”

“…With the implementation of software, computerized inventory management practices employed used in manufacturing firms’ offer a systematic and sequential record of transactions. The platform provides effective and efficient control of inventory of manufacturing units by using Malinvent software (Owoeye et al. , 2014).…”

Arena Simulation of Spare Parts Inventory Management: A Case of A Telecom Managed Service Provider

“…A number of factors must be taken into consideration when evaluating the optimal inventory levels in inventory management. According to Owoeye et al (2014), the cost of acquiring and maintaining inventory may account for as much as 60 to 80 percent of the entire cost of a product or service. The holding, ordering, and stockout costs, according to Gourdin (2005), are the three categories of expenses that must be taken into consideration.…”