Inventory Systems Summary
QRB 501- Quantitative Reasoning for Business /MBAA0PUHA2
June 7, 2010

Inventory Systems Summary Inventory characterizes one of an organization’s largest operating cost and the maximum prospect for improving profits. With inventory systems, organizations are able to centralize control of inventory across today’s multi-channel environment. Each team member will describe his or her inventory systems with the advantages and disadvantage of each system.
Description of Each Inventory System
Sage Accpac Inventory System Crossroads is a 501(c) (3) nonprofit public benefit corporation that has served the Sacramento region since 1978 with specialized employment and placement services, and custom-tailored facility management solutions (Crossroads Diversified Services Inc., 2009). Crossroads consist of two divisions: Crossroads Employment Services concentrates on finding employment opportunities, responsible for governmental and commercial services. Crossroads use Sage Accpac for the organization inventory system. Sage Accpac provides the organization with a strong accounting and reporting potential with a flexible, yet affordable system. Sage Accpac inventory system that helps organization manages operational, accounting and customer relationships. The Sage system allows Crossroads accomplish more with few resources, allows Crossroads to grow quicker and saves the organization time and money. Sage manages IT cost, facilitates a secure system with accessible utilization virtualization programs, with a built-in AR inquiry tool to improve cash flow, good management of Crossroads inventory to decrease operation cost, improve workflow to gain accurate view of cash status, improves the organization productivity, reduces the risk of fees and penalties by means of the improve function in payroll.

Advantages • Sage Accpac reaches a larger customer base • Allows for cash-flow improvements • Option for flexibility by web, on-premise or host • Other resources are easily integrated • Customization with ease of development
Disadvantages
• Part of the system requires staff to be trained in administrative, technical and fraud prevention procedures • Must quickly adapt to system to maintain all the features
Point of Sale Inventory System A commonly inventory system used in most retail establishments like Wal-Mart, Kmart, and even in some hospitals is the Point of Sale Inventory system. Point of Sale system t is an electronically scanned system that scans each item at check out. The system can calculate how many items sold between ordering periods and set automatically to order products on a specific date with a little extra for variance. The system used in hospitals in surgery and each item scanned before surgery begins so that each item recorded. Once the surgery ends each item, including sponges and each surgical tool scanned while putting away before the patient surgery is completed. The idea is to keep items from left in patients and causing surgical error, infection and even death. The system here calculates how many sponges and non-reusable items are accounted. The hospitals just have to pull a report for items used, how many are ordered and current supply.

The system connects to QuickBooks, which allows the organization in the retail business to track invoices of incoming shipments of supplies and inventory tracking sheets of items sold. This allows for forecasts of sales to develop by the companies. These forecasts are given to their suppliers and the thus the suppliers know who much demand is needed to be met in the future. Point of Sale has helped to decrease costs by not having a surplus of some items in stock creating inventory costs and shortage of other items with decrease in sales. The point of sale system integrates with most credit/debit card systems, cash registers and even gas stations, which mean easier access for organization to adopt and use the system.
Advantages

Disadvantages

It is a system that runs total of all inventory at cost is kept by regularly add all purchases to and subtracting all sales from the quantity hand. It accurately track medicines in hospital pharmacy and other pharmaceutical companies, it automatically tracks multiple inventory reconcile using bar code technology. It reduce tax and insurance overpayments by eliminating cost damaged or stolen goods. Easy invoicing track sales, expenses that saves time and helps forecast for the next period and gives figure to be subtracted from sales. Patients order on line for in-store to pick up or choose medication to be dropped at residences. The system control operation in connection with quickbook that allow the pharmacy to track how many orders are in and out to patients. So forecasting would be easy by looking at the balance in the system. This help decrease price, give option to patience which brand they can afford. The systems control daily operation accurately, charge insurance automatically, patients are able to use debit, credit, or medicare and so on.
On the other hand the disadvantage is information can be lost if power fail and if the query is done or high level of exposure. Or if the order is not accurate, for example if the patient make mistakes, or typo and wrong prescription dropped it can cost more and less costumer satisfaction.