Computer application in warehousing and inventory management

Manisha Vaghela

Computer Application in Warehousing and Inventory Control

vaghela_manisha13

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Flow of Presentation1.)Introduction of Computer application and

warehousing2.) Definition of warehousing3.) What is Warehousing ? 4.)Types of warehouses 5.)Computer application in warehousing

6.)Introduction of inventory control7.) Definitions of inventory control8.) What is an Inventory Control System?

9.) Inventory Control Software: What It Is ?10.) Computer application in inventory control11.) Inventory control procedures in

computer application Conclusion12.)Review of the Topic13.)Bibliography

Introduction of Computer application

•Finding computer applications for various aspects of a company's operations has, in recent years, become an increasingly vital task of many small business owners.

• Indeed, computers are an integral part of the business landscape today, in part because they can be an effective tool in so many different aspects of a business's daily operations.

•Computer systems are now relied on for a broad spectrum of duties, including bookkeeping, business communications , warehousing , product design, manufacturing, inventory control, and marketing.

• Indeed, a 1997 survey conducted by Sales & Management magazine indicated that 85 percent of respondents felt that technology was increasing the efficiency of their sales force, while another 62 percent concluded that it was helping them increase their sales.

Introduction of warehouse

•A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks.

•Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks.

•Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce.

Warehouse IMAGES

What is Warehousing ?

•Warehousing is the management of materials while they are in storage . It includes storing ,dispersing , ordering , and accounting for all materials and finished goods from the beginning to the end of the production process warehousing facilities may range from small stockrooms to large , highly mechanized facilities.

There are a number of types of inventories that must be warehoused:

1. Raw materials inventories2. Work-in-process inventories3. Finished goods inventories4. Distribution center inventories

• The inventory management within a warehouse involves much planning and organization . the flow of materials through the warehouse and the method of movement are important.

• Warehouse activities include receiving , putting away , storing ,order picking, packaging and pricing ,sorting ,and shipping . In a hospital warehouse , for example ,materials management workers receive supplies from shippers . They check the packing slip for completeness and attach it to a copy of the purchase order .Then , they “put away” the product in a preassigned warehouse location for storage . The order picking takes place when a hospital units requests the product.

• Then ,packaging takes place, if necessary , and codes are placed on the product for pricing and inventory scanning . The products are sorted according to delivery destination within the hospital and then “shipped” to the unit.

• A retailer would go through a similar process. Best buy ,for example ,receives plasma television sets from pioneer , matches the invoice to the purchase order , and places the sets in a warehouse location with an attached bar code for pricing and location . when a set is ready to be delivered to a customer ,it is “picked” and shipped.

•Automated guided vehicles (AGVs) for inventory require a major capital investment . Tracks are laid along the warehouse floor . If an inventory picker wants a box of nails ,he or she specifies that box on a computer ,and an AVG moves to the correct location and extends a crane to the location and retrieves the box of nails , tip-ping it into a bucket.

• Bar codes have been integrated into retailing and supermarket information systems , so that in a supermarket when the cashier scans an item it not only deducts it from the inventory but may actually trigger a reorder of the item.

• Other mechanized materials-handling systems include forklifts , Ryder trucks ,towlines that may be either in the floor or mounted ,tractor trailers , conveyors , and carousels.

1.)Automation and optimization Some warehouses are completely automated,

and require only operators to work and handle all the task. Pallets and product move on a system of automated conveyors, cranes and automated storage and retrieval systems coordinated by programmable logic controllers and computers running logistics automation software.

Types of warehouses

2.)Modern trends• Traditional warehousing has declined since the last decades of

the 20th century, with the gradual introduction of Just In Time (JIT) techniques. The JIT system promotes product delivery directly from suppliers to consumer without the use of warehouses. The distance between the manufacturer and the retailer (or the parts manufacturer and the industrial plant) grew considerably in many domains, necessitating at least one warehouse per country or per region in any typical supply chain for a given range of products.

• Recent retailing trends have led to the development of warehouse-style retail stores. These high-ceiling buildings display retail goods on tall, heavy duty industrial racks rather than conventional retail shelving.

3.)Cool Warehouses/ Cold Storage

• Cold storages preserve agricultural produce at low temperature. Refrigerated storage helps in eliminating sprouting , rottage and tuber moth damage and in reducing weight loss of the agricultural produce. The edible products are generally not stored for more than one year. Several cold storage store perishable products which require the storage temperature as low as -25°C.

• Cold storage helps stabilize market prices and evenly distribute goods both on demand basis and time basis. The farmers get opportunity of producing cash crops to get remunerative prices. The consumers get the supply of perishable commodities with lower fluctuation of prices .

4.) Internet impact

• Internet-based stores do not require physical retail space, but still require warehouses to store goods. This kind of warehouse fills many small orders directly from end customers rather than fewer orders of many items from stores.

• Having a large and complex supply chain containing many warehouse can be costly. It may be beneficial for a company to have one large warehouse per continent, typically located centrally to transportation. At these continental hubs, goods may be customized for different countries. For example, goods get a price ticket in the language of the destination country. Small, in-warehouse adjustments to goods are called value added services.

•Computer Application in Warehousing

Computer Application in Warehousing 1.) Winmate Rugged tablet PC in warehousing

2.) Mobile barcode scanner in warehousing

3.) RFID Technology and Computer Vision in warehouse

4.) CK3 mobile computer

5.) TPWE new pallet truck scale with ENTERPRISE weight indicator

6.) JLT vehicle-mount computer is warehouse ready straight out of the box

1.)Rugged tablet PC in warehousing

Features include :

• 7" Wide TFT Active Matrix Outdoor-readable Touch Panel• Ultra Low Power Consumption• Fully Rugged Mobile POS for Warehousing/Vehicle

Computer Application• Meets MIL-STD-810F, Whole Machine IP54 Grade, Drop

Resistant from Height of 122cm• High Mobility, Multi-network Connectivity

(Bluetooth/WLAN/HSUPA 3.75G/GPS)• Multi-identification Devices (Barcode, RFID, MSR)• Hot-swappable Dual-batteries, Providing Battery Life up

to 8 Hours• 61-key Keypad

Video of Rugged tablet PC

2.) Mobile barcode scanner in warehousing

Features include :

•Arbor has recognised the need to use mobile computers in everyday demanding environments such as warehouse management and outdoor services and in response has developed a number of Rugged Industrial PC Tablet Systems.

•The systems are designed for low power consumption whilst offering the optimum in processing speed along with multiple I/O functionality and ease of use.

Video of Mobile barcode reader

3.) RFID Technology and Computer Vision in warehouse

• Radio frequency identification (RFID) systems have become an effective way to track inventories . An RFID tag is a device that communicates with a label that contains a computer chip or an antenna .According to sophos (2004), an enterprise architect’s blog.

• The RFID reader may be a fixed antenna or it may be portable , like a bar cord labels you see everywhere today , but with more intelligence. The advantage of these more intelligence. The advantage of these more intelligent systems is that , unlike

•Bar code tracking systems, an RFID system can read the information on a tag without requiring line of sight or a particular orientation . This means that RFID systems can be largely automated , reducing the need for manual scanning.

•An example of an “active” RFID tag is the tollbooth that reads a device installed in your car . an example of a “passive” RFRD is a bar code reader typically used in warehouses.

Video of RFID Technology and Computer Vision in warehouse

4.) ck3 mobile computer • The Intermec CK3 rugged mobile computer was

announced in September of 2008 as an addition to Intermec's lineup of rugged CN and CK Series mobile computers. There is a degree of overlap, so interested parties should carefully study all the offerings to arrive at the one best suited for the job. As is, the new CK3 is a highly adaptable data and image capturing device with various capture methods and secure wireless communications capabilities. The device is primarily targeted towards warehouse operations and retail, though it is suitable for tasks well beyond that.

Features include :

• 1D and 2D barcode scanning, 802.11a/b/g WiFi with Cisco CCX certification, Voice over IP support, speech recognition, integrated Bluetooth, RFID reader option, handheld or "gun" formats, remote device management, and support for various compatible Intermec mobile printers.

• Scanning is one of the CK3's strong sides. You can order the machine with one of three scanners: a 1D linera imager, a 2D area imager, and a 2D near-far auto-focusing area imager.

• The device can also accommodate a field-attachable RFID reader via Bluetooth or USB.

• Overall, the Intermec CK3 is a rugged, handy mobile computer for warehousing and retail applications based on Microsoft's latest version of Windows CE, equipped with wireless communication and a variety of data scanning and data entry options, including RFID. The device communicates with mobile Intermec printers and supports a host of specialized Intermec software such as terminal emulation support packages such as TE2000 and iBrowse, and Intermec SmartSystems.

Video of ck3 mobile computer

5.)TPWE new pallet truck scale with ENTERPRISE weight indicator

• Dini Argeo is pleased to introduce the new TPWE series pallet truck scale fitted with 3590EXP digital weight indicator which integrates all the benefits of the ENTERPRISE range on a true mobile weighing station.

• Ideal for handling goods in the warehouse, logistics’ platforms, formulation, totalisation, and piece counting applications.

Particularly suitable for all those activities that require a continuous use of the instrument, provided by the removable battery kit.

LThe wide range of available interfaces makes the integration easier with the company’s computer system, offering an advanced data management.

ADVANTAGES OF THE ENTERPRISE WEIGHT INDICATOR

•Complete customization of the functions’ keys.

•Standard fitted with alibi memory, for the weighs storage and the approved data transmission to a PC.

•Completely configurable printouts.•Wide range of interfaces, such as radio

modules, Wi-Fi, and Bluetooth, for communicate with PC or other external devices.

6.)JLT vehicle-mount computer is warehouse ready straight out of the box

• An advanced rugged vehicle-mount PC from JLT is set to offer a benchmark for warehouse computers. The tough JLT 1214 is designed to take on any kind of warehouse application, from cold stores to high temperature environments.

• The JLT 1214 is ready for work straight out of the box. The computer can handle voltages from 9 to 72V DC and simply plugs into the vehicle power supply – no special power adapters are necessary. In addition the device can withstand power outages of up to 10 minutes and can be swapped easily between vehicles.

•“With an IP65 water-tight rating and resilience to shock and vibration, the computer is designed for trouble-free operation. In addition, the easy-to-use 12-inch touchscreen display allows use in bright and poor light conditions, which makes it ideal for use on vehicles that move between yards and warehouses,”

Computer application in inventory control

Introduction of inventory control Inventory is an essential part of any production

system. Low inventory may lead to stock outs which result in lost production, inability to meet deadlines, customer dissatisfaction and loss of goodwill. A high inventory level blocks huge capital which is a scarce resource for any enterprise.

It can be concluded that is mandatory to carry certain amount of raw material, semi finished products, and finished products. These, respectively, are known as the raw-material inventory, work-in-process inventory and finished product inventory.

•The ultimate challenge in managing inventory is balancing the supply of inventory with demand for inventory. In other words, a company would ideally want to have enough inventory to satisfy the demands of its customers for its products – no lost sales due to inventory stock-outs. However, the company does not want to have too much inventory supply on hand because of the cost of carrying inventory. Enough but not too much is the ultimate objective!

Definition of inventory control Inventories are stock of materials of any kinds stored for

future use, mainly in the production process. Thus, today’s inventory is tomorrow’s production. However, semi-finished goods awaiting use in the next process or finished goods awaiting release for sale are also included in the broad category of inventories, which are nothing but idle resources. Therefore, inventories are materials or resources of any kind having some economic value, either awaiting conversion or use in future.

Inventory control refers to “ the process whereby the investment in materials and parts carried in stock is regulated within predetermined limits set in accordance with inventory policy established by the management.”

What is an Inventory Control System?•An inventory control system is a set of hardware

and software based tools that automate the process of tracking inventory. The kinds of inventory tracked with an inventory control system can include almost any type of quantifiable good, including food, clothing, books, equipment, and any other item that consumers, retailers, or wholesalers may purchase. Modern inventory control systems are almost exclusively based on barcode technology.

•Though barcodes were initially developed to automate the process of grocery store checkout, their ability to encode a wide variety of alphabetic and numeric symbols makes them ideal for encoding merchandise for inventory applications. Inventory control systems work in real-time using wireless technology to transmit information to a central computer system as transactions occur.

• Inventory Control Software: What It Is ? Inventory control software keeps track of all

information about the items that your company builds, buys, stores or sells. Inventory control software simplifies the management of pricing products and helps maintain the most effective stock levels. Inventory software lets you know exactly what you have on hand and where to find it. A smart inventory control module will also alert you when it's most advantageous to re-order stock.

What Industries Use Inventory Control Systems?• Inventory control systems are employed in a wide

variety of applications, but they all revolve around tracking delivery of goods to customers. Inventory control is crucial in retail stores, especially those with a large number or variety of merchandise items for sale. Inventory control is also used in warehouses to track orders and shipments, and for automated order processing. Other important applications of inventory control systems are in manufacturing, shipping, and receiving.

• For a small business that offers and sells products, problems in inventory might occur from time to time. Fortunately, there are lots of small business inventory control software applications configured to help solve such problems.

• A small business inventory control software handles inventory by checking which products are moving and which are not. In addition to that, it also keeps track of product supply. This lets you quickly verify which items should be replenished and which need to be moved.

• In tracking revenues, a small business inventory control software provides relevant customer related information. This contains the name of the purchaser, the transaction date, the amount ordered, the method of payment used and the like.

Computer application in inventory control

• The software program can, therefore, provide you a sales report at the end of each day. You may additionally choose to print out filtered reports that can be greatly helpful during meetings and in preparing business reports. The computer software can even accomplish the sales tax report in your behalf.

• You wouldn’t have to worry about losing stocks, which typically results to meager sales. It is definitely helpful to try a software that can check inventory to help you secure your small business. What are you waiting for? Go ahead and purchase one right away.

• Accurate, up-to-date inventory software is critical to business success. If you are looking to reduce costly inventory errors, improve your ability to meet customer demands, and lower your operational costs, the right inventory control software program is an indispensable business resource. With so many choices, finding the right program to meet your particular needs can be difficult. Understanding the different features and capabilities available to you is the first step in making sure you make the right decision.

• Many inventory control software programs are available to you. You'll find links to options from this page. Read on to find out more. Or use our matching service to find the inventory software best-suited to your needs.

Inventory Control Software Benefits:

1. Avoid back orders2. Improve customer satisfaction by having

inventory on hand3. Free up cash resources by not having too much

stock4. Improve labor utilization by avoiding waits for

inventory5. Avoid overstocks and liquidation of inventory

below cost or at reduced profits6. Reduce time spent managing inventory

7. It can help a worker locate the items on the order list in the warehouse, it can encode shipping information like tracking numbers and delivery addresses, and it can remove these purchased items from the inventory tally to keep an accurate count of in-stock items. All of this data works in tandem to provide businesses with real-time inventory tracking information. Inventory control systems make it simple to locate and analyze inventory information in real-time with a simple database search.

Inventory control procedures in computer application •Inventory control procedures vary in

complexity and accuracy , from no noticeable control to computerized systems for distribution and production .In between these extremes are simple visual controls , the two –bin system ,and cardex system.

•We briefly examine here two of the systems 1.)A cardex file System 2.) IBM’s

computerized MAPICS(The Manufacturing accounting and Production Information Control System)

1.)A cardex file System • The cardex file system has variations ,but the essential

features are as follows:1.)There is a card for every stock item ; the cards are filed

on a rotating drum or file cabinet in a central location.2.)On the top of each card is the computed operating

doctrine .The supply source(vendor)may be listed here also.

3.)The balance of the card is a ledger stating beginning inventory ,orders ,placed ,orders received , issues from stores , and current inventory levels . Each time a transaction is made ,an entry with the corresponding date is recorded . when physical inventories are taken , cards are adjusted to reflect current actual inventories.

• Even though simplicity is the main advantage , remote-terminal computers hooked into central processing computers have made this cardox procedure all but obsolete for Multilocation distribution and manufacturing firms. Computers are less costly than cardex systems , especially when combined with automated identification such as bar –corders. Cardex file are still useful,however,for small and medium-sized organizations with limited computer access,even though microcomputers offer a good alternative for the progressive ,small business owner.

2.)IBM’S MAPICS The Manufacturing Accounting and

Production Information Control System(MAPICS) is a series of modules for information and control in manufacturing . modules include financial , order processing and accounting , and manufacturing applications as well as a guide for implementation planning .The key module for control includes product management , material requirements planning (MRP) ,

•Inventory management , and production costing and control applications.IBM suggests that the benefits of the inventory management application include improved plant productivity , reduced time required of inventory personnel , reduced inventory investment and storage space, improved customer service , and establishment of the basic inventory data and status reports required for MRP.

•Production/operations managers will find computer and software companies eager to help them find a system that will fit their needs.

Advantages

• There are several advantages to using inventory management software in a business setting.

Cost savings• In many cases, a company’s inventory represents one of its largest

investments, along with its workforce and locations. Inventory management software helps companies cut expenses by minimizing the amount of unnecessary parts and products in storage . It also helps companies keep lost sales to a minimum by having enough stock on hand to meet demand.

Warehouse organization• Inventory management software can help distributors, wholesalers,

manufacturers and retailers optimize their warehouses. If certain products are often sold together or are more popular than others, those products can be grouped together or placed near the delivery area to speed up the process of picking, packing and shipping to customers.

Updated data• Up-to-date data on inventory conditions and levels is also

an advantage inventory management software gives companies. Company executives can usually access the software through a mobile device , laptop or PC to check current inventory numbers.

Time savings• With the aid of restricted user rights, company managers

can allow many employees to assist in inventory management. They can grant employees enough information access to receive products, make orders, transfer products and do other tasks without compromising company security. This can speed up the inventory-management process and save managers’ time.

Disadvantages

• The main disadvantages of inventory management software are its cost and complexity.

Expense• Cost can be a major disadvantage of inventory

management software . Many large companies use inventory management software, but small businesses can find it difficult to afford it. Barcode readers and other hardware can compound this problem by adding even more cost to companies. The advantage of allowing multiple employees to perform inventory-management tasks is tempered by the cost of additional barcode readers.

Complexity• Inventory management software is not necessarily simple or

easy to learn. A company’s management team must dedicate a certain amount of time to learning a new system, including its software and hardware, in order to put it to use. Most inventory management software includes training manuals and other information available to users. Despite its apparent complexity, inventory management software offers a degree of stability to companies. For example, if an IT employee in charge of the system leaves the company, a replacement can be comparatively inexpensive to train compared to if the company used multiple programs to store inventory data.

Conclusion• New developments are continuously modifying the

management of warehousing systems. Advances in computing systems are allowing on-line instantaneous recordkeeping transactions. The use of bar-coding systems is increasingly common as companies try to minimize data entry errors in inventory records . The automatic registering of products and prices at grocery stores is an example of these developments . inventories are automatically adjusted as groceries are bought . managers can remotely query the computing system and obtain instantaneous inventory balances.

• INVENTORY CONTROL Small businesses are increasingly using computers to track all aspects of their inventory, including warehousing, ordering, receiving, and distribution. In addition, many computer systems maintain programs that integrate inventory control needs with other aspects of the business's operations, which helps the company perform in a cohesive and intelligent manner as it negotiates the various obstacles of the business world.

Review of the topic

1.)Introduction of Computer application ,warehousing and inventory control

2.) Definition of warehousing and inventory control3.)Computer application in warehousing and

inventory control4.)Conclusion

Bibliography1.)Supply chain management-theories and

practices indian text edition R.P.Mohanty S.G.Desh - biztantra publication , new delhi

2.)Quality management kanishka bedi - oxford university press

3.)Production and Operations management Dr. chunawala & Dr.patel - Himalaya publishing house

4.)Production & Operations management R . Panneerselvam - Prentice hall of India Pvt ltd. New Delhi

5.) Production & operations management-taxt and cases

Upendra Kachru -Excel books , New Delhi

6.)Production and operations management concepts , models & behavior Everette Adam. jr. Ronald. j. Ebert - Prentice-hall of india private ltd.

7.)Operations management Norman Gaither Greg Frazier -South- Western- Cengage Learning India pvt.ltd. New Delhi

8.) www.google.comruggedpcreview.com

www.youtube.com

•Thank you

Computer application in warehousing and inventory management

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