Improving Efficiency Of Inventory System - A Case Study

Mufidah Dalila, Marof (2013) Improving Efficiency Of Inventory System - A Case Study. Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

An inventory is a stock or store of goods are used in a company. The inventories are one of the important elements that must be control, in order to fulfil customer satisfaction. To reduce the number of shortage in inventory, the company need to monitor the level of inventory more frequent. The aim of the study is to improve the effectiveness of inventory system of chicken meat consumption at Company X. There are three objectives that need to achieve for improve the effectiveness in inventory system at Company X which is: (i) to study the possible causes to the shortage of inventories system at Company X, (ii) to improve the inventory recording system, (iii) to improve the efficiency in the inventory system. In this study, there are four possible causes of shortages that have been identified as no inventory record, human error, product missing, and product damage. In this regard, the standard operating procedure for inventory recording system was developed and implemented which the number of chicken meat shortage had been reduced approximately from 4% to 0%. Furthermore, the implementation of red label SOP has increased the efficiency of inventory system to 100%. In conclusion, a systematic working procedures such as SOP and recording method in inventory system has improved the efficiency of the inventory system at Company X.

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