CHAPTER ONE

BACKGROUND OF STUDY

1.1 INTRODUCTION

This project is all about the Design and implementation of a Computerized inventory system for a trading organization which most company that have warehouse are willing to implement. This project is meant to cover all the activities of taking inventory that is record from all the items they have in their store. Inventory, quantity of goods and materials on hand. A manufacturer’s inventory represents those items that are ready and available for sale. Inventory management is the direction and control of activities with the purpose of getting the right inventory in the right place at the right time in the right quantity in the right form at the right cost.

It determines when to order products, how much to order products how much to order, identify source of supply in each stocking location. Inventory management includes all activities of forecasting and replenishment. Since inventory is an important element in operation, activities Controlling the level of inventory generally would affect significantly to a Company. Thus, inventory are held in order to manage and hide 11 from the customer the fact that manufacture /supply delay is longer than delivery delay, and also to ease the affect of imperfections in the manufacturing process that lower production efficiencies if production capacity stand idle for lack of materials.

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