Service Request Sr-Rm-001 Processes Evaluation from Riordan Manufacturing

Planning and Forecasting is a vital function of management especially as it is related to inventory management. Planning has four processes associated with it. They are establishing goals, formulating strategies, implementing the plan and evaluating its success. The planning process of inventory will assist the organization choose the correct inventory system resulting in reduced costs and increased efficiency. For any business, having large amounts of inventory could prove to be expensive. In most company’s the management team will forecast sales on a monthly basis in order to keep enough inventories to fill customer orders in a timely fashion but not have an overflow of stock. There are various types of

To be successful in today’s business environment, an organization must be able to perform certain fundamentals accurately and efficiently. One of these elements is having an effective and efficient Inventory System Management (ISM). ISM enables one to have the knowledge of where his or her inventory is at every step of the way. This allows one to better interact with consumer and make sales. Choosing the right ISM can lead and pave the ground work for future business success and profitability.

My inventory control procedures provided both increased revenues and cost savings. Quite simply, I ordered adequate levels of products which were in high demand, I was able to better meet customers’ needs, and my revenues increased. The cost savings I experienced as a result of my inventory control procedures were a bit more complex. First, in establishing a routine schedule for ordering, I was able to reap the benefits of lower shipping costs. Because I had a routine schedule, I could

The manufacturing cost can be lower as the rearrangement of the production line to meet urgent order can be minimize or even eliminated.

This is an executive summary of business processes and requirements for computer system enhancements. Riordan Manufacturing needs these enhancements to improve its inventory and manufacturing processes.

Finally creating better processes as well as assigning staff responsibilities to help maintain stock will create positive steps towards cost reduction. Also, managing supply reorders will decrease supply costs with the use of a perpetual inventory system. This approach continuously tracks supplies on hand and will automatically reorder when the stock reaches its predetermined par threshold. Establishing better control over supplies is rather a detailed and labor-intensive process but it can significantly reduce supply spending. Although this can be labor intensive the cost savings is well worth it (Surgical Directions, 2013, p. 4).

Using design for logistic will reduce shipping and inventory cost because handling cost, space per product usually decrease; revenue per square foot usually increase.

Second, excess inventory will be reduced on items that have a lower demand. Third, there should be enhanced credibility with customers due to the better availability of product. Forecasting should also benefit scheduling and labor needs for production. Ultimately, there should be an increase in inventory for products with high demand, a decrease in overall inventory, and reduced operating expenses.

This reduces the need for warehouse space, decreases the risk of obsolescence and improves stock control (Hann, 2010).

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Inventory management has two sections: stock picking / inventory replacement and shipping / receiving. Both will require inventory software as well as a tie-in to the customer database. Hardware requirements are: Bar code scanners, permanently mounted for the shipping and receiving area and mobile RF scanners for the stock pickers and inventory replacement personnel. Additional shipping/receiving hardware includes standard PC I/O terminals, and printers for shipping labels.

The company also reduces inventory management cost by maintaining low inventory or just-in-time inventory which is a good technique to gain competitive advantage.

Manual Inventory System involves all concerns within its transactions, on how the staff would be able to maintain the

Nowadays, in an era that has advanced technology and a place in the world. Everything can be linked only at your fingertips in the times of rapidly developing with the sophisticated technology of today. Therefore, an inventory system is also not lagging behind in introducing a method of keeping an inventory data systematically and safely. The system plays a very important role in improving the competitiveness of a business. Usually, organizations today face too many challenges to achieve the cost, speed and reliability. Efficient inventory system really help in order to make sure the store’s performance and data record is always in good condition and secured from abusers. The system basically to ease the admin to manage the

Acknowledgement This master’s thesis is written as a final part of the Master of Science program in Industrial Engineering and Management at Lund University, Lund Institute of Technology. The project corresponds to 30 ECT credits and was performed during a period of 20 weeks in the summer and fall of 2009. The idea to perform a study on inventory control on IKEA came from Paul Björnsson, Process Leader for “Plan and Secure Capacity” at IKEA of Sweden. The suggestion to