November 26th, 2012
Inventory Systems Summary
The inventory analysis is important to all companies as the control of inventory is the control of cost. The amount of inventory held at any location is subject to expense factors that are in full control of the business. Each member of the team analyzed the inventory of a company, and found advantages and disadvantages to each inventory system.
The NUKE Company (*name changed for employee protection*)
The inventory system of this company implements the Oracle system. The system accesses a large database that has stored data for over 30 years, and displays the information in a Graphical User Interface (GUI) for all employees. Each employee accesses the system through different modules based on their job criteria.
The Oracle system is the latest inventory system of the company. The database it accesses is a conversion from the AS400 system that has been part of the company for over 30 years. The system had to be converted for compatibility reasons to be integrated for Oracle. The database includes the following data: parts description, parts sales, pricing, description revisions, notes and alerts, possibility of repairs, lead-time of parts from Japan, possibility of exchange credits, and other data.
The most important portion of the system is its optional module that allows for the forecasting of parts so that stock can be plentiful enough for purchases, services, and repairs; and provides the ability to increase or decrease parts based on inventory control measures for supply and demand of the market. The system does this automatically using internal program algorithms based on the database to place orders from Japan as efficiently as possible. The forecasting system is monitored, updated, and controlled around the clock. The database is constantly changing because of the purchases from customers, usage by technical services, and usage by the repair department. These changes will have a direct affect on the forecast module to purchase parts from Japan because of changes in the database.
The system has the advantage to integrate other modules to further help in the forecasting of parts for the company by allowing for other factors that are not being considered. The other factors could be for other departments of the company such as the direct order and express order departments that currently have a different forecasting system. If a system could be implemented for all three departments (which is a strong possibility) it could save the company a significant amount in expenses.
A disadvantage of the system is the inability to customize the system because the company implemented it as an “as-is” solution. If the company had customized the system from the ground-up by understanding, the responsibilities of each department the current system would have cost less and it would be a system to aid in the process of all departments. The system needs constant upgrades and edits to stay functional with any department changes. Each time this is done it costs the company financial resources that could have been saved or used in another area of the company.
Inventory System of Domino’s Pizza Domino’s Pizza employs a perpetual-type, centralized inventory system for its corporate-owned stores. Each Domino’s Pizza in the United States receives its product from one of several strategically placed warehouses across the country. These warehouses are known to store employees as the “commissary,” and commissary trucks make deliveries to the stores two to three times per week depending upon the sales volume of the individual store. Except for a few cleaning supplies, Domino’s Pizza stores receive all of its food and goods through the commissary. When a store receives a commissary shipment, the employees must check the delivered product to ensure that it matches the information on the packing slip. The corporate office uses the information…