INVENTORY MANAGEMENT

A. RESEARCH
According to (Jay Heizer & Barry Render) Inventory decisions can be optimized only
when customer satisfaction, suppliers, production schedules, and human resource
planning is considered.Raw materials, work-in-process, and finished goods.Inventory
maintains high finished goods inventory primarily to ensure all demands are met.
According to (Benedict 1999), Inventory Control means availability of materials
whenever and wherever required by the stocking adequete number and kind of stocks.
The sum total of those related activities essential for the procurement, storage, sales,
disposal or use of materials can be referred to as inventory management. Inventory
managers have to stock up when required and utilize available storage space
resourcefully, so that available storage space is not exceeded. Maintaining accountability
of an asset is theire responsibility. They have to meet the set budget and decide upon
what to order, and when to order so that stocks are available on time and at the optimum
cost.
B. OBSERVATION
We have observed that the Buffalo Steel Corporation’s counting procedure for their
inventory is manual counting. They use manual counting to ensure if there are any difference
between the amounts counted and the amounts recorded in the inventory records. Their ordering
frequency is monthly and annually. Buffalo Steel Corporation makes sure that their supplies are
sufficient to meet their customers need.
C. RECOMMENDATION
 Annual inventory counts are time consuming and drain resources, that’s why instead of
using annual inventory counts the company should observe the cycle counting. They
should keep cycle count as part of their weekly routine to prevent major disruption to
their warehouse.
 The company should set Par Levels. Par levels are the minimum amount of products that
must be on hand at all times.
 Some products need more attention than others. They should use an ABC analysis to
prioritize their inventory management. They should separate their products that require a
lot of attention from those that don’t.
HUMAN RESOURCES AND JOB DESIGN
A. RESEARCH
According to (Jay Heizer & Barry Render) People are an integral and expensive
part of the total system design. Therefore, the quality of work life provided, and talent
and skills required, and their cost must be determined.Workforce focused on technical
skills. Labor standard can be consistent. Output-based wage system possible.
According to (Isuri Navarathna 2013) Peoples or employee are considered as business
resources for an organization. This includes managing recruiting and hiring employees,
coordinating employee benefits and suggesting employee training and development strategies. In
this way, HR professionals are consultants, not workers in an isolated business function; they
advise managers on many issues related to employees and how they help the organization achieve
its goals. Therefore it is more important have a computer based HRM system which has ability
inthe screening, tracking and reporting on application processes associated with filling vacancies.
With internet integration, job posting, the tracking of open positions and the ability to store
resumes electronically, human resource managers can fulfill recruitment, screening and conduct
all operations from a centralized computer terminal.

B. OBSERVATION
Based on our observation Buffalo Steel Corporation select their employee’s that are
capable and fit for the job. They hire employees with a working experience in order to help their
company to be more efficient and successful. Buffalo Steel Corporation makes sure that their
employee’s undergo proper training. They provide the best benefits for their employees. The
company also provides a narrow and clean workplace.
C. RECOMMENDATION
 We recommend that the company should define the job before hiring an
employee. Hiring the right employee starts with job analysis. They should collect
information about duties, responsibilities, necessary skills, outcome and work
environment of a particular job.
 They should conduct behavioral interview to understand the applicant skills and
experience to determine if those skills are relevant to the skills required for the
position.
 The company should conduct further training to update the knowledge and skills
of their employees.
LAYOUT STRATEGIES
A. RESEARCH
According to ( F. Robert Jacobs & Richard B. Chase) Layout decisions entail
determining the placement of departments, work groups within the departments,
workstations, machines, and stock- holding points within a production facility.
The objective is to arrange these elements in a way that ensures a smooth work
flow or a particular traffic pattern. In general, the inputs to the layout decision are
the specification of the objectives and corresponding criteria to be used to
evaluate the design. The amount of space required and the distance that must be
traveled between elements in the layout are the common basic criteria. Estimates
of product or service demand on the system. Processing requirements in terms of
number of operations and the amount of flow between the elements in the layout.
Space requirements for the elements in the layout. Space availability within the
facility itself or, if this is a new facility, possible building configurations.

According to (Jay Heizer & Barry Render) Material Flows, capacity needs,
peersonnel levels, technology decisions, and inventory requirements influence
layout. Layout can enhance production efficiency, can enhance product as well as
production. Layout supports automated product focused production, and process
focused pracctices.

B. OBSERVATION
Based on our observation the office of the President, Manager and other staff of
the company is in the same area, and they do not have divisions. They maintain
openness in their office. They do not have confidentiality. The other department have
access to the documents of other departments.

C. RECOMMENDATION
 We recommend that they should have cellular office layout or cubicle to have
full confidentiality for their works.
 Individual cubicle should be observe for safekeeping.
 In their productions they should have work cells so that inspection is
immediate, space is more balanced and to enhance communications

BIBILIOGRAPHY
https://www.slideshare.net/isurisk/literature-review-for-human-resource-
management-system
https://www.scribd.com/document/257502831/Literature-Review-
Inventory