1.0 Introduction
1.1 Background of the Study
There have been some controversies about what entails the needs for the application of computer system some years ago in inventory management, the word of computer is basically a friendly one and no special credentials is needed to become part to it. It is true that modern computer system involves complex technologies and theories their use is becoming easier all the time. Computer has a general purpose nature which makes them versatile.
These controversies arose planners students inventory management executives top management and so other people.
Those who recognize the computer system have concluded that it has been in existence the evolution of management witnessed a remarkable development of data processing equipment used in aiding the recording of complex business system. Uzor quoting leaders and fearon (1997) stated
- Computerization in inventory management means converting the manual system into a computer system for efficient operations and much procurement organization are now using computer system.
- Thousands of requisition are received and process daily why request for quotation are set to suppliers, many quotations are received from suppliers and also analyzed and the volume of work involved in inventory management is large so to say and required computer to make it fast and easier to manager.
The application of computer system in inventory management is to ensure that the immediate availability of much more complete data for use in making purchase and related inventory's decision because of its fantastic speed, the computer can supply management with virtually instancous reports which fights other wise take an army of clerk weeks to north's to prepare and to update. They do a more effective and economic job of purchasing and managing the flow of inventory throughout the operation in Nigeria bottling company plc Owerri.
1.2 Statement of Problems
The basic and critical problems of research usually appear on the surface. It is therefore necessary to probe beneath the surface. In other to find out the nature and gravity of the problems, this is vital and must be done correctly to guide the research on work. Meanwhile, any mistake at the first step will lead to committing first degree error, that is selecting wrong problems and this will result to subsequent mistakes and errors.
Generally, a lot of private and public establishments are yet to recognize the need for the application of computer system on their various companies. As a result of this they encounter a lot of problems in their business operations. Therefore a research of this nature will identify so many of the problems encountered hence the following statement of problems are developed which will be empirically tested in chapter 4.
- The problems of non computerization of inventory management such as loss of files for major document and inability to ascertain where and when vital dates for major purchase work etc.
- The problem of the use of internet facilities in searching for potential suppliers abroad who can abundantly meet the requirement of right quality, price and quantity etc.
- What about the problem of analysis of quotation and raising of purchase orders the use of computer will fast analysis of quotation and rising of L.P.O
- The inability of transactions and business process that support selling and supply management activities on the world wide wed (B2 B and B2C) as a result of non use of computer system (internet facilities) has a dramatic effects on companies.
1.3 Objectives of the Study
This emphasizes on the impact of computer system in inventory management and its contributions towards the computer systems as playing strategic role in inventory management are convert to automated system and all the records that are maintained in the company in difference files will now be stored in disc or tape files that are used by the computer central processing unit (CPU) it is then imperative to determine the following.
- To find out whether the view of existing literacy work in any department exposure has been made in this direction.
- To conduct an important finding or research into the existing industries and institution to determine their level knowledge and shortcomings, with a view of bringing this focu vice cersa the computer system in inventory management.
- To explore area of computer system which are akin to inventory management activities.
- To investigate the impact of computer in inventory management through the use of data collected
1.4 Research Question
To test the ascertained collecting responses from a group of question hidden in various parts of the questionnaire with the following questions.
- What are the problems facing the operating of computer system?
- Is it true computer cost time wastage and the volume of work involved?
- Does the operation of computer system depend on the management policies?
- Does the existing organization structure permit computer system approach?
- Are these facing the operations of computer syste, in confronting with inventory management?
1.5 Scope of the Study
The need for impact of computer system inventory management is a wide area of study. But project will focus attention on computerization system in inventory management as related to Nigeria bottling companies plc, owerri.
The study embraces all the activities that are involved in the inventory management in an organization like stock control, design engineering and other activities which involved inventories.
1.6 Significance of the Study
This research intends every organization to gain from it in as much that computer system are encouraged to be used in the right manner order to improve and up data the management activities.
The impact of computerization in system will prove the method of issuing purchase order, purchase requisition and reduce time waste cost and volume of work involved furthermore.
It is believed that the study will help the company to identify its draw backs and how to alleviate them which will ultimately contribute to profitability of the organization thereby reducing number of staff, cost and obsolesce.
This in a nut shell bill help to expose the student who is prepared to enter into the field, challenges he is likely to face and what would be his contributions. It will equally help our industries or the company in question the Nigeria bottling company plc, owerri plant and other big companies to utilize their contributions of profitability and correct the abnormalities cause by the use of unformed general in carrying out management duties.
More so, the research is signification to the researcher as it serve as a pre- requisite for the award of national diploma (ND) as well as other researcher to continue where one stop (researcher page)
1.7 Limitations of the Study
While carryout this research was confronted with various limitation which include:
a. Research Bases:
Most respondents although knowing the aim of this research refused to co-operate with the researcher has to waste sometime persuading them to answer one question or the other.
b. Financial Constraint:
Due to hard economic realities enough finance that should have allowed a most diversified research was not available.
c. Time Constraints:
The researcher combined his class work with the researcher . this made the researcher to experience a very tight schedule . as he has no transport of his own.
d. Transportation:
transportation posed a big traits to the project the research wasted much time due to transportation delays thereby getting to the research place very late at times, interviews arranged will miss and reputing the journals becomes inevitable.
e. Other Factors:
other factors that limited this work project was the fact that there is scarcity of inventory management textbooks by Nigeria authors in this country even our lecturers.
1.8 Definition of Terms
1. Computer System:
Uzor quoting leaders and fearoning (1997) the analysis of procedures used in performing the purchasing and supply function have been based largely on the use of traditional officer equipment and clerical (manual methods) the computer is an electronic mechanical device which has the ability of accepting data (inputs) processing the data to generate information (output) storing information of retrieving some for further usage under the control of a step wise set of instructing called the programmers.
2. Data Control:
The need for timely and adequate information has held to the development of information system which is a set of organization procedures with when executed provide information for planning, decision making and controls in organization.
3. Management Control:
Anthony defined management control as ensuring the resources are obtained and used effectively and efficiently in the accomplishment of the organization objectives.
4. Electronics Fund Transfer:
The described a system where by a computer user can use his computer system to transfer funds. E.g ins employees bank account. (e.g deposit account to current account by sending electronic data to his bank)
5. Sourcing:
According to bail and farmer (1979-1130) said to be the identification of suitable sources of supply.
6. Quality:
This is seen as the totality features and characteristics of a producer or a services the bears on the ability to satisfy of implies needs.
7. Specification:
Are detailed description of the inventory parts and components used in making a produce.
8. Procurement:
This is defined as the requisition of goods and services by firms industries government and the subsidy agencies such as prostates Uzor (204-422)
9. Lead Time:
According to Oyeoku (2001-48) defined leads times as the internal between when a need is perceived and that of the buying company.
10. Fax Machines:
This has been the first choice in a large organization that is used to reduce the purchase gave time nd provide an easy speed which is essential for survival and growth in the present business environment.
11. Data:
It is defined as the gathering of information either from primary or secondary sources.
12. Alternative Hypothesis:
The specified a population parameter that is different from the status (what has been or the past)
13. Null Hypothesis:
This is an assertion that the population parameter is not different from what's the have been in the past. It represents status quo- situation or an existing believed normally assume that the null.
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