ROLE OF MANAGEMENT INFORMATION SYSTEM IN THE MANAGEMENT AND CONTROL OF INVENTORY
ABSTRACT
The intention of this project is to provide a good theoretical and practical knowledge which is applicable to organization and government an the role of management information system in the management and control of inventory. It is also design to educate on the importance of proper information to management so as to implement policies and strategies that has a lot of effect on the overall profitability of the organization.
CHAPTER ONE
1.0 INTRODUCTION
In every organization, no matter how small, proper information must be obtain by management for effective control of the organization. The management and control of inventory in an organization through management information system would enable growth in the firm, because without a good information system management is likely to experience difficulties in running the business.
Management information system remains the system that aim at providing management with needed information an a regular basis. This call to mind the time value of information which implies that when the required information is received behind the period it will be used the information becomes useless. Mis tries to inform the manager on home to provide this information. The manager’s skills and trails to effective decision making, also came to bear on the effective and adaptive application of MIS in the management and control of inventory for organizational success.
MIS is not a new concept and the early days, it was essentially operated with a great deal of human efforts (manual) and infact the activities of the organization at the time were less challenging less complex and hence organizations were to that extent small sized.
MIS in all circumstances organize in some meaningful way and can access the information in a reasonable amount of time. Data have remained raw, unanalyzed facts such as numbers names or quantities and as data they are relatively useless to managers. When data are analyzed and processed they becomes information which is used to manage and control inventory in the organization. So an MIS collects data and turns it into relevant information for managers which is used in reaching better and effective decisions. The formal system provided by computer base, MIS add to it rather than replace other sources of information available to managers and have in that direction improved his ability to monitoring and controlling organizational activities. Also adding to the effectiveness of the manger in making decisions, is not only the quality but also the quantity of information. Quantity is expressed in terms of relevance, accuracy completeness, reliability and timeless.
1.1 BACKGROUND OF STUDY
Organized collection of data for instance, an ordinary hand written address book is an example of a simple manually maintained database. Data procession into information upon which is to be used by management. Data is stored, analyzed compared, calculated and generally worked on to produce message in the termed information. Presenting data in a meaning and useful form. This could be by means of various kind of reports including stoical report such as sales analyses and control information such as budget variances reports. These functions, the MIS can performed either manually or with the aid of machines many organizations manually operate their management information system and due to the enormous quantity of data/ information are being used lot paper work is involved. In tray (documents) serve as in put for data while reports and statement sheets form the output. Filling cabinets where in records and files are kept, serve as the device for storing information. However owing to the fact that organization have grown in size the information flow has became so enormous that face- to- face.
Communications and even written memoranda can imager effective adequate communication or effective processing of data. The MIS of these organizations have this in recent times found it difficult to meet with the increasing demand being made on it for information. As a result, the manual means of operation is jam packed with scores data to be processed.
Hence Delng and in accuracies in data collection and analysis. Delng often makes decision making to be an accurate. Also, there is the problem of misappropriation of important documents or even cases of stolen files. These lapses amongst others have put a question make an the manually assisted MIS hence solutions have been sought in the introduction of mechanization with particular inference to the use of management and control of inventory.
