Computerized inventory management system

Includes bibliographical references (page 32)Basically, Inventory Managements deals with the task of maintaining the inventory at certain levels, in order to reduce costs and obtain a better company operation. In the first section, the paper describes the theory about inventory. It covers Economic Order Quantity, Economic Order Point, Safety stock, ABC classification of items and three kinds of costs related with inventory. These concepts will help to solve problems such as "How much to order" and "When to order"; as well as how to classify items in stock and what kind of savings are possible to obtain.\ud In the second section the paper describes the actual manual inventory system of a particular company; with its corresponding advantages and disadvantages.\ud The third section explains the new system (IBM System/3). It shows how to select an appropriate model, describing the different programs. Besides this, it provides the way to calculate the costs without a substantial error in final results.\ud Assuming that the system is already in operation, a brief description of the first steps to implementation is explained. In addition, this section gives the highlights of how to evaluate results obtained with both systems. In summary, this project is the preliminary study for a company that tries to change its old manual inventory system to an automated one.\ud As a result, the company may expect a more reliable stock control, substantial savings in ordering and a more continuous flow in the production area