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1.1 Background of Study
An inventory control system contains a list of orders to be filled and then prompts workers to pick the necessary items, and provides them with packaging and product information. Inventory control may be used to automate sales order fulfillment process and also manage in and outward material of hardware. Automation is the replacement of human workers by technology. For optimal sales and inventory management process, robust functionality is needed for managing logistics facilities. Warehouse management functions for inventory control cover internal warehouse movements and storage and its support helps in the recording and tracking of materials on basis of both quantity and value.
manufacturing or service organisation keeps in hand for efficient running of its office or manufacturing activities. Inventory consists of raw materials, component parts, tools, spares, suppliers & finish goods. Inventories cost money in terms of storage space, equipment, personnel insurance, deterioration and above all, the cost of the capital required in financing stocks. Inventory management is crucial function in construction industry for better productivity. Material Management is defined as the process to provide right material at right place at right time in right quantity so as to minimise the cost of the project. Principal item of inventories are as follows:
1. Raw material are those basic materials from which components, parts & product are manufactured by the company.
2. Finish Parts are those parts which are manufacturedat company's own plant from the basic raw material.
3. Work in progress comprises of items or materials in partially completed condition of manufacture. Raw Material become work in process at the end of first operation and remain in that classification.
4. Finish Goods are the final products ready to be supplied.
An inventory control system is to be engineered to achieve the basic purpose for which the inventories are created. The fundamental objective of a good inventory control system is to be able to determine What to order, When to order, How much to order, and How much to carry in stock so as to gain economy in purchasing , storing, manufacturing and selling. These fundamental objective may be amplified into following objectives, to be considered by the analyst, while designing the system.
• Continuity of productive operation Effective use of capital.
• Reduction of administrative workload.
• Service to the customers
• Economy in purchasing
• Reduction of risk of loss
• Practical system
• Zero discrepancy between physical stock and book balance
This application takes care of all supply orders reducing cost for warehousing, transportation while improving customer service. It significantly improves inventory turns, optimizes flow of goods. It also improves cash flow, visibility and decision making. It provides efficient execution of tasks using this fast and reliable computerized method.
Arab Contractors O.A.O Nig. Ltd. The Arab Contractors (AC) is one of the leading construction companies in the Middle East and Africa. Employees work in collaboration with our customers, partners, and suppliers in more than 29 countries. Our experience is widely diversified and covers a wide spectrum of the construction industry and its ancillary services including: Public buildings, bridges, roads, tunnels, airports, housing, water & sewage projects, wastewater treatment plants, power stations, dams, hospitals, sports buildings, restoration of monuments, irrigation, producing ready-mix concrete, shipbuilding, electromechanical projects, engineering consultancy, manufacturing and assembly of steel structures,. etc. It is second to none and for this reason, the demand is high and the company responds to the increasing demand by stabilizing supply to strike a balance.
Justifiably, the company has the problem of keeping adequate record of goods transfer and since it is done manually, associated problems of insecurity, high cost of operation and delay in supply arise. Data processing in Arab Contractors O.A.O Nig. Ltdis presently carried out using people, pens, and paper to control stock and inventory.
The design and development of a inventory control system for the Arab Contractors O.A.O Nig. Ltd will no doubt bring immeasurable relief from the problems associated with the manual system.
1.2 Statement of Problem
Arab Contractors O.A.O Nig. Ltd basically operates manually and have several problems facing them and which reveals a number of problems.
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