THE APPLICATION OF COMPUTER TECHNOLOGY ON THE INVENTORY CONTROL SYSTEM AS A PRODUCTIVITY IMPROVEMENT STRATEGY IN NIYYA FARMS NIGERIA LIMITED KADUNA

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ABSTRACT

The primary objective of this research work, the application of computer technology on the inventory control system as a productivity improvement strategy in Niyya Farm Nigeria limited Kaduna is to carry out paper investigation as regards the awareness and reaction of people concerning the project topic, taking Niyya Farm Kaduna as a case study. The write-up center on discussing inventory control system, computer and also the problem of manual inventory control system in an organization. In order to achieve this goal, the researcher uses questionnaire method of data collection to gather information about the subject matter, from general/inventory staff of Niyya Farm Kaduna. Hence the data gathered are presented and analyzed in a tabular form in order to give vivid and clear interpretation. Finally the researcher summaries his findings, draw a conclusion and gave necessary recommendation for Niyya Farm and other companies who have not yet computerized their inventory system.

 

 

CHAPTER ONE

 

INTRODUCTION

 

1.1 BACKGROUND TO THE CASE STUDY

 

The advent of computer technology has boost production of both domestic and industrial activities. Technologically, advance countries are advancing in their research effort to make the global world free for man to live with little or no stress through information technology.

In Nigeria, only few industries are enjoying the benefits of information technology in the area of computer in inventory control system. Among the few industries, not all information that are essential for effective management are documented because the software were developed by foreigners which know little or noting about the socio-cultural background of end users. Apart from this, the cost of inventory of such software is always too high. These set back always prevent them from getting the full benefits of computer in inventory control system but this project tends to develop a more easy and cost effective software that is suitable for Niyya Farms Nigeria limited Kaduna.

Glantier (1999) stated that inventory control is to provide means of exercising close control over the flow of the inventory into production or sales thereby not only preventing loss but also ensuring adequate levels are maintenance. The purpose of these is to focus on the procedures applied to control inventory on a daily basis. It is also a system, which needs to maintain record of both quantities and values, in this aspect, it will be called inventory valuation depending upon physical stock taken combined with valuable base such as unit cost market value.

Confer (2001) defined inventory control as the process of ensuring that stock help by the organization, is supplied to those part of the operation that required the items, that is production, distribution and sales. Engineers bearing in mind the factors of time locations, quality and cost.

Peter (2003) defined inventory control as the making of decision on the level of stocks that may be economically needed to meet all requirements for planning production.

Demsy A. (2001) defined inventory, as activities required keeping the facility in a built condition in order to have its original productive capacity. Inventory activities are a major coat factor in most industries, affecting both returns on capital and production throughout (commission). Inventory management system makes equipment and facilities available at least cost. It makes sure that every facilities in perfect condition to meet its production capacity. It is obvious that down time has to be kept at minimum and a good inventory management system helps to accomplish that at minimum possible cost.

However, the essence of the use of computer in inventory control is to utilize large investment in inventories effectively and to facilitate efficient operation of the organization.

It is basic that scientist allover the word has completely bypassed the stone age syndromes and are now basking in the Euphoria of the computer age, which is a product of technology and ceaseless research. It is also a fact to mention that all sphere of life have been affected by the current computer revolution ranging like a wild fire. This project work is to present a comceptional and practical approach to inventory control system in Niyya Farms Nigeria limited using computer since inventory requires an accurate and constant record keeping.

1.2 STATEMENT OF THE PROBLEM

 

The quality of inventory control has been a major determining factors in the success or failure of competing organization.
The use of manual system showed many symptoms of poor control. Boxes set on the ware house shelves collecting dust and then joined by more of the same item even though the old inventory never moved, one item would be stored in five different places and re-ordered when one of the bin is empty.
Uncounted product/part lots were easy targets for pilfering by employees. A warehouse filled up, when extra spaced was leased no one could keep track of what was in which building.

Once a year, operation was shut down for the tedious and almost unmanageable task of taking a physical inventory. Figuring out what the goods on hand were actually worth became a paper chase for invoices and purchase orders, and finally, not very educated guess.

Inventory control has proven to be one of the clearest examples of the problem of automation. Often inventory control programme have been plagued by two short comings on one hand, inventory packages have been too sophisticated, because of the many accepted methods of controlling inventory, packages have laundry lists of conflicting mathematical formulas understood neither by the users of the system, nor by the programme. The dozens of reports produced not only failed to provide an understandable picture of the current inventory, but made the situation worse by miscalculating or misnaming commonly used indicators. On the other hand, packages have been too simple. Common occurrences often stumped the system. For example due to a physical miscount, there may have been more of an item than was listed by the computer when the item was sold to customer, the computer would reject the transaction because, in theory, miscounts never happen. There was not enough of the items in stock according to the Computer to fill the orders whether because of an inadequate manual system or a poorly automated one, expanding organization have seen their profits margin eaten away by the many different costs of an uncontrolled inventory, that is what this project is made to eliminate.