Introduction
Keeping the business’s essentials such as supplies, stocks, and other materials that are related in the production or processes were already established. The efforts of the entire management with regards to the standard approach on the inventory processes need further improvement.
Background of the Study and Problem Statement
Inventories are part of the strength and weakness of the business and can be applied as the firm’s own strategy in building its competencies. Through their application of the traditional counting, weighing, and recording system, the inventory is never been the same in the intervention of the technologies that can provide additional competency. However, how can the improvement of the inventory system of the food companies and factories affects their performance on their respective industry?
Research Objectives
The objective of the study begins with in acknowledging the application of the system in the determination of the businesses to improve their inventory processes. Prior to that objective is the recognition of the use of technology towards the overall improvement in the inventory processes. These two objectives are important factors that can help the completion of the study
Research Questions
Based on the provided background of the study, the paper prepared several questions that are related in the main topic and can be the engine to achieve the objectives of the study.
1. What are the common goals or objectives of the inventory processes?
2. What are the inventory policies that an employee or the manager should remember?
3. What are the areas or procedures of inventory that needs to be address and therefore, be improved?
Literature Review
The inventory processes is identified by the company as control in the company’s acquisition of materials, requisition processing, inventory management, purchasing, and reconciliation of the inventory stocks. The inventory management is design to promote the competency of the business. The control over the inventory is same as using the master system in its transactions with the documents where in the long run can help meeting the objectives of the entire firm. Through the use of the systemized inventory system, the business can ensure the sufficient quantities of goods are on hand to meet anticipated needs; inventories are safeguarded from loss due to deterioration, obsolescence, and pilferage; and supplies and materials are acquired in economic lots and maintained at the lowest cost commensurate with the risks of loss. The company should learn that through the inventory control system, people should work together according to the standards. All supplies and materials received by an agency must be counted and inspected upon receipt, with any discrepancies promptly reported. The Issuances from inventory must be supported by signed requisitions. In addition, a periodic physical count must be taken of all items in inventory, the perpetual inventory records should be maintained; and the storage areas should be properly secured to restrict unauthorized access.
Methodology
The applied methodology of the business is the use two common methods, the use of the secondary data and the interview. First, the secondary data will allow the study to cite important factors in which the area of inventory is related. In addition, the secondary data are utilized to gain other point of views based on the comparison of the related evidences or literatures reviews. On the other hand, the use of the interview is based on the given opportunity to the study to conduct the observation or idea with regards to the inventory processes. Most of the participants are the employees and managers that usually handle the inventory process. The participants’ age, gender, working experience, and current position are also identified that might play significant factor in the result of the study.
Conclusion
Through the use of the system all items scheduled for inventory have been counted or verified as nonexistent, the quantities counted are legibly recorded and compatible with related units of issue, all locations of the materials are applicable to the inventory segment have been checked, the added items are adequately identified and legibly recorded, the items are documented and secured in the National Item Identification Number sequence, and documents are dated and initialed.
Works Cited:
Asset Control and Management: Policies and Procedures (2009). Supplies and Material Inventory. [Online] Available at: http://www.doa.virginia.gov/Admin_Services/CAPP/CAPP_Topics/30515.pdf [Accessed 16 Feb 2010].
Physical Plant Operating Policy and Procedure (2003). Inventory Procedures. [Online] Available at: http://www.state.ky.us/agencies/adm/mars/advantage/users/Mug11Inventory.htm [Accessed 16 Feb 2010].
Stock Inventory Procedures (n.d.). [Online] Available at: http://www.tpub.com/corpsman/305.htm [Accessed 16 Feb 2010].
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