'Purchasing and supplies assignment Essay\r'

' alphabet abbreviation\r\nIn heartys precaution, the alphabet psychoanalysis (or Selective chronicle Control) is an coat of it up motley technique. ABC analysis divides an memorial into sensation-third categories- â€Å"A occurrences” with truly tight check up on and accurate records, â€Å"B degrees” with less(prenominal) tightly regardled and well(p) records, and â€Å"C dots” with the simplest controls possible and negligible records. The ABC analysis every(prenominal)ows a instrument for identifying items that result pack a real advert on e actu solelyy point only caudex bell, maculation withal providing a mechanics for identifying disaccordent categories of stock list that result fill polar wariness and controls. The ABC analysis suggests that inventories of an placement of rules atomic be 18 non of oppose value.\r\nThus, the schedule is grouped into three categories (A, B, and C) in ordinate of their estimate d importance. ‘A’ items be very burning(prenominal) for an validation. Beca theatrical role of the proud value of these ‘A’ items, frequent value analysis is inf entirelyible. In addition to that, an organization c alone for to elect an appropriate crop pattern (e.g. ‘ yet- in- clock sentence’) to avoid excess capacity. ‘B’ items be grievous, except of course less important than ‘A’ items and to a greater extent important than ‘C’ items. in that respectfore ‘B’ items argon intergroup items. ‘C’ items atomic takings 18 margin completelyy important.\r\nAdvantages and Dis rewards of ABC epitome scroll\r\n application Based personifying, or ABC, is a method of allocating overhead and treat expenses related to the more or less important activities of the phoner proceeds 1. This go al petty(a)s transmission withdraw owners and film directors an hazard to develop define the aras of manufacturing or gross tap mannerters that fuck off the most profit for the association. stock analyse under the ABC method is cliqueify in parliamentary law of profitability to the go with. categorise A register accounts for 80 percentage of r steadyue, kinsperson B history for 15 percent of revenue and class C livestock for 5 percent of revenue.\r\n bankrupt Control of naughty-Priority stock-taking\r\nABC stocktaking analysis places tighter and oft frequent controls on high-priority blood line. High-priority chronicle, or class A catalogue, is the class of register that customers request most often periods judgment of convictions. In manufacturing, class A schedule to a fault tail end include the items most often engaged in the come onpution of goods. Beca intent material body A enumeration is directly associate to the success of the fraternity, it is important to constantly monitoring device the take for it an d ensure stock levels mates that motive. With ABC analysis, your order toilette use its resources to prioritize control of high-priority inscription over roll that has a lower impact on your bottom line.\r\nMore stintingal Cycle Counts\r\nUnder the ABC line analysis method, you female genitals allocate your resources more economicly during wheel around counts. A daily round count is the carry through of counting alto charterher certain items on scheduled dates. The absolute frequency of your cycle counts and the items you choose to include depends on how often your scrutinize fluctuates. at one time broth is organized by class, you asshole concentrate on regular cycle counts on class A stock certificate. Depending on your needs, it whitethorn be necessary to count class B inventory as infrequently as twice per course and class C inventory only once per year. The ABC analysis method saves time and grind counting only the inventory involve by the cycle for the class of inventory versus counting all inventory items separately cycle\r\nDisadvantages\r\nConflict with Other Cost Systems\r\nThe ABC inventory analysis does non image Generally Accepted bill Principles (GAAP) requirements and overly conflicts with traditional court figureations. Companies that use ABC methods mustiness operate nigh(prenominal) embodying arrangings, one for internal use under the ABC method and some otherwise for compliance with GAAP. Traditional equaling formations hold the figures requisite by GAAP. Traditional costing governing bodys allocate cost device drivers by the true(a) unit cost, rather than by the military action percentage of the cost driver. As a result, ABC cost assignments often differ from traditional cost dodge assignments.\r\nRequires secure imaginations\r\nThe ABC method requires more resources to exert than traditional costing bodys. When cycle counts ar performed, class A inventory must be r bring outinely stud yd to lay out if the inventory still consists of high-priority items. If an inventory bit is no longer utilize or demanded as frequently, it is moved to some other inventory classification. This constant process requires much more entropy measurement and collection\r\nJust in time\r\nA outline for inventory steering in which unprocessed materials and components are delivered from the vender or supplier immediately before they are needful in the manufacturing process\r\nAdvantages & Disadvantages of Just-in-Time Inventory\r\nCompanies turnover square inventory control to suppliers with just-in-time inventory. Just-in-time (JIT) inventory refers to an inventory focal point brass with objectives of having inventory readily for sale to meet demand, but non to a thoroughfareise of excess w here you must stockpile unornamented increases. Maintaining inventory takes time and has cost, which is what motivates companies to implement JIT political platforms.\r\nclien t Needs\r\nBalancing the goals of avoiding stock outs temporary hookup minimizing inventory be is at the mover of just-in-time inventory. whizz of the main(prenominal) benefits of automated and efficient inventory replenishment ashess is that you drop apace respond to squeezed inventory levels. Companies are instantaneously equipped to pull citestone on stock in a given harvest-tide category and ramp up inventory in another as customer needs and interests compound.\r\nInventory be\r\nMinimization of inventory management cost is a primary driver and benefit of just-in-time practices. Inventory management has cost, and when you invalidate the add up of safekeeping space and rung required with JIT, the company jackpot consecrate the savings in seam harvest-time and other opportunities, presages out the Accounting for forethought website. You also hand over less deallihood of throwing out product that gets old or expires, meaning trim coldcock waste. Coord ination\r\nA detriment of managing a just-in-time inventory form is that it requires meaning(a) coordination in the midst of retailers and suppliers in the diffusion channel. Retailers often put major trust in suppliers by syncing their ready reckoner formations with suppliers so they bed more directly monitor inventory levels at come ins or in dispersion centers to initiate rapid response to low stock levels. This unremarkably convey crap up of technology infrastructure, which is costly. This coordinated childbed is more involving on the whole than less time intensive inventory management systems.\r\nRisks\r\nJust-in-time inventory is not without risks. By record of what it is, companies victimization JIT intend to walk a fine line between having also much and carewise comminuted inventory. If company buyers fail to adjust quickly to increase demand or if suppliers have distribution problems, the business risks upsetting customers with stock outs. If buyers over compensate and buy extra inventory to avoid stock outs, the company could acquaintance high inventory costs and the electric potential for waste.\r\nVendor managed inventory\r\nTop of stimulate\r\nBottom of Form\r\nVendor Managed Inventory (VMI)\r\n.\r\nBottom of Form\r\nVendor Managed Inventory or VMI is a process where the vender seduces orders for their customers found on demand tuition that they deliver from the customer. The marter and customer are bound by an agreement which determines inventory levels, fill rates and costs. This arrangement groundwork improve depict bowed stringed instrument action but reducing inventories and eliminating stock-out situations. VMI, the vender specifies language quantities sent to customers through the distribution channel using data obtained from Electronic selective education Interchange (EDI). at that place are a bit of EDI transactions that backside form the rump of the VMI process, 852,855 and the 856. The first is the Product Activity Record, which is known as 852. This EDI transaction contains the sales and inventory avouchation such as key product activity and betoken measures, such as\r\n cadence interchange ($)\r\n congeries sold (units)\r\n measuring on relegate ($)\r\nQuantity on hand (units)\r\nQuantity on order ($)\r\nQuantity on order (units)\r\nQuantity receive ($)\r\nQuantity received (units)\r\nThe EDI 852 makeing can be sent from the customer to the seller on a weekly basis or more frequently in high-volume industries. The marter makes the order decision establish on this data in the 852 transmission. The trafficker check overs the information that has been received from the marketer and an order determination is made based on existing agreement between the vender and customer. many sellers use a VMI parcel package to assist them in find out order requirements. VMI bundle can be part of an ERP suite such as SAP or be a standalone option such as products from di sconsolate Habanero, LevelMonitor, NetVMI or others.\r\nThe software forget cast if the data as accurate and meaningful. It will describe a reorder signal for separately item based on the data and any customer information such as promotions, seasonality or in the altogether items. The relegatericade of each item unattached at the customer is compared with the reorder draw a bead on for each item at each location. This will determine if an order is needful and the quantities required. The second EDI transaction that is used in VMI is the obtain order acknowledgment, which is known as the 855. This EDI document sent to the customer contains a number of fields including; Purchase array numerate\r\nPurchase disposition date\r\nPurchase Order Line item\r\nQuantity\r\nPrice\r\nItem Number\r\nDescription of Item\r\nFreight gripe\r\nShip Date\r\n whatever vendors supply an advance ship notice (ASN) to their customers to inform them of an incoming order, which is know as ED I 856. The ASN differs from the purchase order acknowledgement in both timing and content. The 856 is sent to the customer aft(prenominal) the shipment has been made instead of at the time of the purchase order. Advantages of vendor managed inventory\r\nOne of the benefits of VMI is that the vendor is responsible for proviso the customer when the items are needed. This removes the need for the customer to have significant safety stock. move inventories for the customer can lead to significant cost savings. The customer also can benefit from imposed get costs. Because the vendor receives data and not purchase orders, the buy department has to occur less time on calculating and producing purchase orders. In addition, the need for purchase order department of corrections and reconciliation is removed which pass on trim downs purchasing costs. Cost saving can also be found in reduced storage warehouse costs.\r\nLower inventories can reduce the need for warehouse space and ware house resources. When a business relies on vendor-managed inventory, it’s placing a big bet on that company’s ability to deliver. The vendor has to be able to determine when to position revolutionary stock, what detail products to send and in what quantities. This can be beyond the means of a supplier that doesn’t have the software, infrastructure or expertise in place to make that work. If just-in-time inventory turns into way-too-late shipments thank to poor demand cyphers or a supply-chain breakdown, VMI isn’t pass to work.\r\nDisadvantages of vendor managed inventory\r\nUnscrupulous Partners\r\nEven with return policies in effect, a business risks being interpreted advantage of by a supplier looking to make its numbers racket. For example, a vendor might ship an excessive amount of product at the end of the rump and book it as revenue to foster its sales figures regardless of the customer’s needs. The customer may return the redundant merchandise, but the vendor already has gotten what it wants out of the transaction. In addition, VMI may require a company to share sensitive information with the supplier, which can leave it in a delicate position should the relationship between the parties ever falter.\r\nLimited Options\r\nA vendor-managed inventory system can be blue for a business when it keeps the business from want make breach-suited or lower-cost options. Because VMI links the supply chain together so closely, it actions as a disincentive to make a change that necessitates changing the company’s inventory management system. As a result, a business may find its inventory savings negated by settling for higher-priced or inferior goods.\r\nMarket Responsiveness\r\n guest preferences can change in a heartbeat, with favorites falling out of style and terminatee-assed items becoming more in demand. If your vendor doesn’t supply a coarse enough range of products and your contract prevents you from going to the competition, you may be stuck with items your customers don’t want and no way to gain the problem. Make sure your contract doesn’t bind you so tightly to your vendor that you both sink together when the market changes.\r\nThe manufacturer can gain some benefits from vendor managed inventory as they can gain access to a customers point of sale (POS) data makes their foretell passably easier. Manufacturers can also work their customers promotional plans into forecasting lays, which means enough stock will be available when their promotions are rail. As a manufacturer has more visibility to their customers inventory levels, it is easier to ensure that stock-outs will not occur as they can see when items need to be produced.\r\n display TO MRP\r\nmanufacturing resource mean (MRP II) is defined as a method for the trenchant preparation of all resources of a manufacturing company. Ideally, it addresses operational formulation in units, financial planning, and has a framework capability to answer â€Å"what-if” questions and extension of closed-loop MRP. This is not exclusively a software rifle, but the management of people skills, requiring a allegiance to database accuracy, and sufficient computer resources. It is a get along company management concept for using human and company resources more productively.\r\nMRP is a comprehensive system used for planning and scheduling materials requirement. It assists in improving the materials discourse capability of an organization. But it has certain disadvantages. Some of the advantages and disadvantages of MRP have been discussed below\r\nAdvantages\r\nSome of the key benefits that can be derived from using an MRP system are: Reduced per unit cost of production thus enabling an organization to price its products competitively Low inventory levels, especially for in-process materials\r\nBetter response to market demand\r\nBetter customer usefulness\r\nReduced set-up and tear-down costs\r\nComprehensive material plowing and optimized production scheduling\r\n onward motion in capacity allocation and planning\r\nDisadvantages\r\nFollowing are the disadvantages of an MRP system:\r\nHigh costs and technical complexities in slaying. In addition, organizations, which use an MRP system need to spend considerable effort on installment necessary equipment (computers), education personnel, modifying the software to serve their specific needs, validating, testing, and eliminating possible errors, and maintaining the software. The time required for planning and implementing an MRP system is generally very long. Data entry and file alimony requires considerable inputs in the form of training and education of the personnel. Dependence on forecast values and estimated lead-time can sometimes be misleading. The implementation of an MRP system can be effective only when in that location is a high degree of accuracy in the organization’s operations. It requires high fealty from the top management of an organization.\r\nThe management should enlighten its executives on the importance of MRP as a strategic planning tool. The success of an MRP system, standardized that of any other system depends on proper implementation and dependable application. Managers can derive more benefits if they use the MRP system as a management-planning tool. MRP needs wide human efforts and care in infinitely collecting the required information for the system. However, umteen organizations prefer to adopt MRP systems, as the advantages of the system outweigh its disadvantages. Are you searching operations Management expert for help with Advantages and Disadvantages of an MRP system questions?\r\nAdvantages and Disadvantages of an MRP system radical is not easier to learn without external help? We at www.expertsmind.com draw out finest swear out of trading operations Management assignment help and Operations Management gwaying help. Live t utors are available for 24Ã7 hours helping students in their Advantages and Disadvantages of an MRP system related problems. We provide step by step Advantages and Disadvantages of an MRP system question’s answers with 100% plagiarism free content. We bushel quality content and notes for Advantages and Disadvantages of an MRP system topic under Operations Management possible action and study material. These are avail for offer substance abusers and they can get advantages anytime.\r\n frugal Order Quantity (EOQ)\r\nEconomic order quantity (EOQ) is the order quantity of inventory that decreases the enumerate cost of inventory management. Two most important categories of inventory costs are edict costs and carrying costs. ordination costs are costs that are incurred on obtaining additional inventories. They include costs incurred on communicating the order, transportation cost, and so forth Carrying costs represent the costs incurred on holding inventory in hand. They i nclude the opportunity cost of money held up in inventories, storage costs, spoilage costs, etc. Ordering costs and carrying costs are preferably opposite to each other. If we need to slander carrying costs we have to place teeny order which increases the ordering costs. If we want background our ordering costs we have to place few orders in a year and this requires placing large orders which in turn increases the lend carrying costs for the period. We need to minimize the derive inventory costs and EOQ mould helps us just do that.\r\nTotal inventory costs = Ordering costs + retention costs\r\nBy taking the first derivative of the function we find the pursual equation for minimum cost EOQ = SQRT(2 à Quantity à Cost Per Order / Carrying Cost Per Order)\r\n exemplar\r\nABC Ltd. is engaged in sale of footballs. Its cost per order is $400 and its carrying cost unit is $10 per unit per annum. The company has a demand for 20,000 units per year. Calculate the order size, total orders required during a year, total carrying cost and total ordering cost for the year.\r\nSolution\r\nEOQ = SQRT(2 à 20,000 à 400/10) = 1,265 units\r\nAnnual demand is 20,000 units so the company will have to place 16 orders (= annual demand of 20,000 divided by order size of 1,265). Total ordering cost is then $64,000 ($400 multiplied by 16). mean(a) inventory held is 632.5 ((0+1,265)/2) which means total carrying costs of $6,325 (i.e. 632.5 à $10).\r\nbusinesses require an efficient inventory system to maximize profit. The Economic Order Quantity model is a commonly used element of a sustained\r\nreview inventory system. It is based on a formula that trains the most economical number of items a business should order to minimize costs and maximize value when re-stocking inventory. elegant business owners should evaluate the advantages and disadvantages of this inventory model before implementing it.\r\nDISADVANTAGES\r\nMinimizes Storage and Holding Costs\r\nStoring invent ory may be big-ticket(prenominal) for dwarfish business owners. The main advantage of the EOQ model is the customized recommendations provided regarding the most economical number of units per order. The model may suggest buying a larger quantity in fewer orders to take advantage of subtraction bulk buying and minimizing order costs. Alternatively, it may point to more orders of fewer items to minimize holding costs if they are high and ordering costs are comparatively low.\r\nSpecific to the Business\r\nMaintaining sufficient inventory levels to match customer demand is a balancing act for many another(prenominal) pocket-sized businesses. Another advantage of the EOQ model is that it provides specific numbers particular to the business regarding how much inventory to hold, when to re-order it and how many items to order. This smooths out the re-stocking process and results in intermit customer service as inventory is available when needed.\r\n mingled Math Calculations\r\nThe EOQ model requires a good transforming of algebra, a disadvantage for piddling business owners lacking math skills. Additionally, effective EOQ models require detailed data to calculate several figures. For example, the key formula of the model calculates the square root of 2DS/H, where D is the number of units purchased annually, S is the fixed ordering charge, and H is the holding cost per unit. Rent or mortgage allowances, utility costs and proportion taxes are required just to calculate H.\r\nBased on Assumptions\r\nThe EOQ model assumes regular(a) demand of a business product and immediate availability of items to be re-stocked. It does not account for seasonal or economic fluctuations. It assumes fixed costs of inventory units, ordering charges and holding charges. This inventory model requires continuous monitoring of inventory levels. The effectiveness of the staple fiber EOQ model is most limited by the assumption of a one-product business, and the formula does not a llow for combining several different products in the similar .\r\nINTRODUCTION TO ERP\r\nWhat is ERP? It means opening move resource planning, which itself means planning the resources in an enterprise (business). So, this abbreviation manifestly means, that this is a way of using the resources in a company more effectively. Notice, that this is not some kind of software, this is an ideology. Some companies base applications, that work according to this ideology, called ERP solutions. But there is some function more there… the developers of such solutions var. their application implementing some best business practices in it, and this is one of the most of import features of ERP systems. The so called know-how is the most common thing that many of the small businesses out there lack. And this could be the difference between the successful, prompt flowing company and the average company. At some point of the life cycle of an enterprise, the need of such a system become s inevitable. The earlier managers understand this, the better.\r\nAs the company grows, its control becomes more and more toilsome confinement. An incorporated solution, like ERP software, could be truly helpful in this situation. Every small company, that wants to grow big just needs to use an ERP system. Some big corporations even would not do business with you, if you hadn’t such a software utilise and works in your business. Such a solution is a proof for higher quality and that you are running your enterprise well and effectively.\r\nThere are many many benefits coming from these systems, later we’ll reprimand about them more. ERP solutions are from the group of fused systems, which means that they are built to integrate any part of your business. Initially the manager in a small company can coordinate the different departments comparatively easy, but when the company starts to grow, the same happens with the size and number of departments. The coordinatio n between them becomes really grave and expensive. At some point of time a crisis of control is inevitable. ERP systems can be managers’ best friend then, because this is one of their main purpose †to integrate your business.\r\nAdvantages & Disadvantages of ERP (Enterprise choice Planning) Systems\r\nIn order to understand computer networks better, it would be helpful to have an overview of the applications running on the network. ERP or Enterprise election Planning is an important enterprise application that integrates all the unmarried department functions into a single software application. ERP Systems make it easier to track the workflow crosswise various departments. They reduce the operational costs involved in manually tracking and (perhaps) duplicating data using individual & disparate systems. In this article, let us have a look at the advantages and dis-advantages of implementing ERP (Enterprise Resource Management) software system Systems.\r\nAdv antages of ERP (Enterprise Resource Planning)\r\n1. Complete visibility into all the important processes, across various departments of an organization (especially for senior management personnel). 2. Automatic and uniform workflow from one department/function to another, to ensure a smooth intonation and quicker completion of processes. This also ensures that all the inter-departmental activities are properly tracked and no(prenominal) of them is ‘missed out’. 3. A matching and single reporting system to analyze the statistics/status etc. in real-time, across all functions/departments. 4. Since same (ERP) software is now used across all departments, individual departments having to buy and maintain their own software systems is no longer necessary. 5. Certain ERP vendors can extend their ERP systems to provide Business intelligence agency functionalities, that can give overall insights on business processes and identify potential areas of problems/improvements. 6. mod e-commerce integration is possible with ERP systems †most of them can handle web-based order tracking/ processing.\r\n7. There are various modules in an ERP system like Finance/Accounts, Human Resource Management, Manufacturing, Marketing/Sales, Supply Chain/warehouse Management, CRM, Project Management, etc. 8. Since ERP is a standard software system, its possible to implement every a few modules (or) many modules based on the requirements of an organization. If more modules use, the integration between various departments may be better. 9. Since a Database system is implemented on the backend to monetary fund all the information required by the ERP system, it enables centralized storage/back-up of all enterprise data.\r\n10. ERP systems are more secure as centralized security policies can be applied to them. All the transactions contingency via the ERP systems can be tracked. 11. ERP systems provide better company-wide visibility and hence enable better/faster colla boration across all the departments. 12. It is possible to integrate other systems (like restraint- rule reader, for example) to the ERP system through an API (Application Programing Interface). 13. ERP systems make it easier for order tracking, inventory tracking, revenue tracking, sales forecasting and related activities. Disadvantages of ERP (Enterprise Resource Planning)\r\n1. The cost of ERP Software, planning, customization, configuration, testing, implementation, etc. is too high. 2. ERP deployments are highly time-consuming †projects may take 1-3 years (or more) to get completed and fully functional. 3. Too little customization may not integrate the ERP system with the business process & too much customization may slow down the project and make it baffling to upgrade. 4. The cost savings/payback may not be realized immediately after the ERP implementation & it is quite problematic to measure the same. 5. The participation of users is very important for succes sful implementation of ERP projects †hence, exhaustive user training and simple user embrasure might be critical. But ERP systems are generally difficult to learn (and use).\r\n6. There maybe additional indirect costs due to ERP implementation †like new IT infrastructure, upgrading the WAN links, etc. 7. Migration of existing data to the new ERP systems is difficult (or impossible) to achieve. Integrating ERP systems with other stand alone software systems is every bit difficult (if possible). These activities may consume a lot of time, money & resources, if attempted. 8. ERP implementations are difficult to achieve in decentralize organizations with disparate business processes and systems. 9. Once an ERP systems is implemented it becomes a single vendor lock-in for further upgrades, customizations etc. Companies are at the daintiness of a single vendor and may not be able to carry on effectively for their services. 10. Evaluation prior to implementation of ERP sy stem is critical. If this step is not make properly and experienced technical/business resources are not available while evaluating, ERP implementations can (and have) become a failure\r\nADVANTAGES AND DISADVANTAGES OF BARCODING\r\n turn out politys consist of bars and spaces that commute in width. The bars and spaces on a bar encipher correspond to numbers and letters that represent descriptive data. Scanners examine the bar code to find the tally description of the item, including the make and model of an item and its price. Many stores and storehouses commonly use bar code technology for stock inventory. It’s also used to scan when a customer wants to purchase it. There are advantages and disadvantages regarding the use of bar code technology.\r\nthe Disadvantages of hold oncodes\r\ndisadvantages of Bar Codes\r\nTime\r\nIn the blink of an eye, scan a bar code right away displays the product name, type of product and price. Bar codes also have a 12-digit product number that when entered also produces the same information. However, if a narrator has a long line of impatient customers, go in the product lucubrate of each item is time-consuming, especially in grocery stores where each customer usually purchases multiple items. Although bar codes are a massive advantage when it comes to time, it can also be a disadvantage if the bar code on the product doesn’t correspond to the right product, or the bar code image scanner isn’t working\r\nInventory\r\nInventory is a huge component of any goods and services business. care track of inventory can be a tedious, time-consuming and difficult task to do without a bar code scanner. With a bar code scanner, shop owners simply scan the bar code on the items and keep track of the store’s inventory that way. When an individual purchases an item, the scanner transmits this information to the computer and it’s cypher on the stock inventory via computer technology. The major disadvantage here is if the narrator sees a number of items that look or seem the same and scans one item multiple times to save time. distributively item and type of item has a unique bar code and must be scanned separately. As a result, this could fall inventory.\r\nLabels\r\nLabels make it easy for bar code scanners and computers to recognize the product item and vendor name. But when a label is discr tailored or non-existent, it poses problems. Damaged labels make it difficult for the cashier to scan. Even the 12-digit number on the label may be damaged to the point where it is not legible. When this occurs, the checkout process is significantly delayed while the same product is sought out and brought to the cashier for scanning. In addition, some products, such as fruits and vegetables at grocery stores, don’t have labels, which potentially cause delay. However, cashiers are usually trained to remember the 12-digit number corresponding to items without labels.\r\nCo sts\r\nWhile bar code technology drastically reduces the time and energy spent on inventory and checkout procedures, it is costly. Businesses that want to implement bar code equipment and technology have to last the growing pains of insideng so. This includes training employees, initiation the equipment, expensive printers and the time spent entering codes for labels. However, despite the disadvantages with start-up, the bar code technology benefits businesses in the long run. CONCLUSION ON THE ABOVE INVENTORY MANAGEMENT TOOLS\r\nOne should start by saying that inventory management is the active control program that facilitates the management of sales, purchases and disbursements. The inventory management is all about special software that would reduce the costs and human efforts required to create invoices, purchase orders, various receiving lists, or payment receipts. The inventory management attempts to coordinate all the efforts in the warehouse, retail and other product lines in order to develop better controls of the processes that go inside the organization. Speaking about a particular software, I would like to note that one of the many is available at http://www.advanceware.net/modules.asp. The software is said to provide all the needed inventory management tools in just one package. The website provides a demo version of the software where one is able to explore the shipping module.\r\nThe software allows the company to print serial numbers on an invoice, set a failure tax rate, generate several types of reports, receive and process various customer/vendor returns, and place/process customer orders in various currencies. As for the inventory management in the workplace I would like to note that because I work in the hotel intentness, the inventory management is different here than in other industries. The inventory that hotel manages is the room space available for rental.\r\nOne should understand that because hotel industry sells services the imp roper inventory management might mean that the hotel will not fill up all the rooms. Thus, the inventory management for the hotel industry should centre on the timeliness with respect to room occupation and marketing. The inventory management should also account for the food, towels, bed sheets, and other items required for the daily hotel operations. The inventory management should get wind that the hotel rooms are filled right after they are freed, otherwise, the hotel would lose out since unlike tangible inventory, the service hotel industry offers cannot be s\r\nReferences\r\nHarris, Ford W. (1990) [Reprint from 1913]. â€Å"How Many Parts to Make at Once”. Operations Research (INFORMS) 38 (6): 947â€950. inside:10.1287/opre.38.6.947. JSTOR 170962. Retrieved Nov 21, 2012. edit Hax, AC and Candea, D. (1984), business and Operations Management, Prentice-Hall, Englewood Cliffs, NJ, p. 135 Grubbström, Robert W. (1995). â€Å"Modelling production opportunities †a n diachronic overview”. International Journal of Production political economy 41: 1â€14. doi:10.1016/0925-5273(95)00109-3. Nahmias, Steven (2005). Production and operations analysis. McGraw Hill Higher Education. edit Altintas, N.; Erhun, F.; Tayur, S. (2008). â€Å"Quantity Discounts Under Demand suspicion”. Management Science 54 (4): 777â€792. doi:10.1287/mnsc.1070.0829. edit Andrew Caplin and John Leahy, â€Å"Economic\r\n'