Need for the Application of Computer in the Inventory Control

Need for the Application of Computer in the Inventory Control

ABSTRACT

The topic, the need for the application of computer in inventory control has chosen in other to bring into focus the explicit importance of computerization system in any business environment and contribution it makes to organization. Chapter one embraces the introduction, background of the research question, hypothesis, scope and limitation of the study. Chapter two deals with the literature review and the meaning of computer, characteristics computers composition of computer, meaning of inventory, the effective use of computer, the need for the application of computer in inventory control, the role of computer in inventory control, the benefit of computer in inventory control, the problems of computer in inventory control. Chapter three emphasize on research methodology, introduction, research design, questionnaire, sample and selection of respondents, other methods used, its techniques. Observation, data sources which include the primary and secondary sources and data analysis method. Chapter four also emphasis on data presentation and analysis, testing of hypothesis, decision rule and discussion on major findings. Chapter five which is the last chapter of this research work refers to summary, conclusion, and recommendation of the project in a simplest form.

CHAPTER ONE

1.1 INTRODUCTION

Some years ago, there has been some controversy about what entails the need for the application of computer in inventory control. The world of computer is basically a friendly one, and no special credential is needed to become part of it, while its true that modern computer system involves complex technologies and theories, their use is becoming easier all the time. Computer have a general purpose nature which makes them endless versatile.These controversies arose among planners, students those who recognized the need for the application of computer in the inventory control management have concluded that it has been in existence since the evolution of man and witnessed a remarkable development of data processing equipment used in aiding the recording analysis and reporting of information in the operation of complex business system lenders and fearon (1997:102).The areas in which the application of computer in inventory have helps organized includes1 Formally converting the manual system into a computer system and this lead to efficient operations and many procurement organisations are now using computer systems.With the help of computer thousands of requisition are received and processed daily, many request for quotations are sent out to suppliers, and mainly also received from them and also analyzed the volume of work involve in inventory control is large and required computer application to make it fast and easier to manage.

* The application of computer system in inventory control is to ensure that immediate availability of much more complete data for use in making purchasing and related material decisions because of its speed.

1.2 STATEMENT OF PROBLEM

The statement of problems is to reveal the problems to be investigated by the researcher. Sometimes the problems is elaborated in the form of a brief discussion explaining why, and how the phenomenon is considered to be a problem. Mean while any mistake at the first step will lead to committing first degree error that is selecting wrong problems. And this will result to subsequence mistake and errors.Because generally al lot of private and public establishment are yet to recognized the need for the application of computer in their inventory controls.

1. This problems include the followings Some organization like Nigeria bottling company Owerri plant do not make use of computer controlling their inventory because of the high cost involved in the installation of computer systems.

2. A major break down of the computer can obstruct the inventory control of the organisation.

3. Sometimes the application of computer in controlling inventory do not reduce cost and time waited and volume of work that is involved in the organization.

4. Most organisation or companies do not appreciate the need for the application of computer in their inventory controls.

5. Due to the high cost involve in the training of staffs in the application of computer in their inventory control, most organisations do not empower their workers in information communication technology (ICT)

1.3 THE OBJECTIVE OF THE STUDY

The emphasis on the need for the application of the application of computer in inventory control and its contributions towards the dynamic business environment as regards the application of computer is playing an important role in inventory controls of Nigeria bottling company plc Owerri plant.This can only take place when all the manual system are performing activities in the inventory controls are being converted to automated systems and all the records are being maintained in the company in different files will now be store in a diskette or tape that are used by the computer central processing unit (CPU)It is now very important to determine the followings.

1 The research work is to educate the organisation or to make the organisation understand the importance of computer in inventory control.

2 To make the organisations improve in the application of computer in controlling their both in the application of the need for the high speed of the computer in the reduction of volume of works held in the organisations.

3 To educate the organisation on how cost are reduced and profitability increase in the company through the adaptation of application of computer in their inventory controls.

4 to incubate the organisation like Nigeria bottling company on the need to start employing workers who are computer literate, and benefits they are going to derive in the globalization of technologies.

5 To advice the company the (Nigeria bottling company plc Owerri plant) on the need to be employing computer engineers to be handling their computers in terms of servicing so that when there is any clash in the computer they will be able to ratify it easily

1.4 SIGNIFICANCE OF THE STUDY

1 This research on the need for the application of computer in inventory control will help organisation to gain more advantages in their inventory controls in as much that the application of computer is concerned. Therefore computer application are encourage to be used in the rightly manner in order to improve and up data the management activities on inventory controls which include issuing of order, purchasing requisition and that will helps to reduced time wastage, cost, and volume of work involve. This constitute also in solving the problem of mismanagement in the organization (Nigeria bottling company plc,) as it will prove a room for efficiency and effectiveness.

2 To the writer, the topic will give her the knowledge and skills and also to be exposed in her field of discipline after the awardment of higher national Diploma (HND) the student will be able to appreciate the need for the application of computer in inventory control when employ in any organisation.

3 To the organisation Nigeria bottling company Plc Owerri plant and other organisation to appreciate the need for the application of computer in their inventory controls so as to benefit from this contribution, both in profitability and to correct the anomalies cause by the use of “un informed generals” in carryout their management duties or operation and to other firms this will help them too evaluate whether the practice as relate to the topic is right or wrong but with this research they should be able to appreciate the need for the application of computer to their inventory controls and as well correct their mistake they made in previous years.

4 To other students this topic the need for the application of computer in the inventory control will stands as a data bank or a guide to them all who will appreciate the need for the application of computer in their inventory controls. And this will help them on the steps to follow in future.

1.5 THE RESEARCH QUESTION

This is to test the assertion required collecting responses from a group of question hidden in various parts of the questionnaires with the following question.

1 Does your organisation have qualified and professionals to handle their computers in their inventory control;

2 Does the organisation make use of E-purchasing in sourcing their material?

3 Is it true that the application of computer in the inventory reduces cost, time wastage and the volume of work that is involve?

4 Does your organisation achieve maximum advantage with respect to the need for the application of computer in their inventory control system?

1.6 HYPOTHESIS

An hypothesis is a prepositional statement assuming some link or relationship (causal) or otherwise between two variables. The variables of the hypothesis used in any work must of course derive from the research topic or problem. A hypothesis seeks to establish a fact about the assumed relationship. But this is not possible until the hypothesis is tested and found to be either valid or otherwise. Ho: most organisation do not appreciate the need for the application of computer in inventory control.Hi: Most organisations appreciate the need for the application of computer in inventory control. Ho: Many organisations do not use computer in controlling their inventory

Hi: Many organisation use computer in controlling their inventory.

1.7 SCOPE OF THE STUDY

The need for the application of computer in inventory control is a wide area of study, but this project will focus attention on the application of computer in inventory as related to Nigeria bottling company Plc Owerri plant.The study covers all the activities that are involved in the inventory control in the industry which includes stock control, design engineering, specification and other activities which involved in inventory cost.

More so the researcher also carried out an in depth investigation on the reasons why the concept is not being adopted to the fullest, despite the tremendous benefits derived from inventory that are computerized.

1.8 LIMITATION OF THE STUDY

While carrying out this research, the researcher was confronted with numerous limitation which include

a. Research Biases: most respondent although knowing the aim of this research refused to co-operate, the researcher has to waste some time persuading them to answer one question or the other.

b. Financial constraints: due to hard economic realities, enough finance that should have allowed a most diversified research was not available.

c. Time constraints the researcher combined her class work with the research. This made the researcher to experience a very tight schedule, as she had no transport of her own, the problem become even worse.

d. Transportation: transportation posed a big trait to the project the researcher wasted much time due to transportation delays thereby getting to the research place very late. At times interview arranged will be missed and repeated the journal become inevitable.

e. Attitude of Nigerians to research: The tendency of respondents not regarding questionnaire as important as well as non – challant attitude of people to research in the country led to some questionnaire not been returned some that were returned due to complying to instructions of the research questionnaire. This militates adversely on the progress of the research work.

f. Other factors that limited to this project work was the fact that there is scarcity of inventory controls text books by Nigeria authors in this country even our lecturers, this made references to the work project very cumbersome.

1.9 DEFINITION OF TERMS

Computer Butter (1986:2) defines computer as a machine that takes in information (called data) and process it in some way. Processing is the handling, changing and storing of information. A computer can also define as any electronic machine which can accept data in a prescribe form, process the data and supply the result of the processing in a specified format as information or a signals to control automatically some further machines or processor.

DATA CONTROL: Data is a series of system like numbers letters of the alphabets, sound electronic current electromagnetic waves words, mathematical expression. Cheque, deposit, slip, test scores etc. Information is anything that produces a change in person knowledge; information is data that is processed.

MANAGEMENT CONTROL: Anthony defines management control as ensuring that resources are obtained and used effectively and efficiency in the accomplishment of the organisations objectives.

ELECTRONIC FUND TRANSFER (EFF): electronic fund transfer describes a system whereby a computer user can use his computer system to transfer funds. Eg make payment to a supplier or pay salaries in employee’s bank accounts. Eg. Deposit account to current account by sending electric data to his bank.

SOURCING: Sourcing according to bailey and A Farmer (1979:113) sourcing is said to be the identification of suitable source of supply.

QUALITY: this is seen as the totality of feature and characteristic of product or a service that bears on the ability to satisfy a state or implied needs.

SPECIFICATION: Specification according to Lee and Doubler (1981:44) are detailed description of material parts and components used in making a product.

PROCUREMENT: This is defined as the acquisition of goods and service by firms, industries government and their subsidiary agencies such as parastatals Uzo (2004:page 422)

LEAD TIME: According to Oyeoku (2001:48) defined lead time as the interval between a need is perceived and fulfilled of that need.

ENGINEERING PROCESS: Is a situation whereby there will be a co-operation between supplier engineering and that of the buying company.

RESEARCH: A research is a systematic investigation for the purpose of gaining new knowledge in order words it is any study that lead to knowledge the person undertaking the research.

HYPOTHESIS: Is a conditional statement which a research make ahead of his study and which must be subjected to test study and which must be subjected to test be accepted or rejected.

NULL HYPOTHESIS: HO Null hypothesis is an assertion that the population parameter is not different from what it have been in the past. It represent status quo situation or an existing belief use normally assume that the null hypothesis is true until we have sufficient evidence to contrary i.e. until the assumption is mollified.

ALTERNATIVE HYPOTHESIS HO: Alternative hypothesis specified a population parameter that is different from the status quo (what has been on the parts)

DATA MACHINES: This is used to reduced the purchase cycle time and provides an easy relatively cheap means of achieving the speed, which is essential for survival and growth in the present business environment.

VOICEMAIL: This voicemail terms both parties into receptionist who spend their turn at telephone tag.

FAX MACHINES: This has been the first choice in a large organization that is used to reduced the purchase cycle time and provides an easy relatively cheap means of achieving the speed, which is essential for survival and growth in the present business environment.

ELECTRONIC MAIL (E-mail): This is a process in which the users transmit messages back and forth within the organisation and to external parties.

RESEARCH: Research simply means an investigation undertaken in order to discover new facts, get additional information or resolve conflicting ideals of conforms the validity of existing ideals.

QUESTIONNAIRE: This consist of a set of question (or spaces) the answers of design or instructions

DECISION RULE: is a rule that simplify the condition under which a null hypothesis may be rejected.

The observation techniques: It is a fact finding activity designed to recognized and note facts as they occur.

PRIMARY DATA: This is a data collected by the investigator for a particular statistical enquiry.

SECONDARY DATA: Secondary data figures originally collected by someone else.

ACCEPTANCE REJOINS: The acceptance rejoins in a set of sample value that will lead to the acceptance of it while rejection is the set of sample value dealing to the rejection of Ho.