The automated system
If the flu virus threat is removed then the inventory levels may be reduced from 100 percent by taking out disfigured notes. The extra number of notes that are issued can always be issued again in future by simply recording their expense in future times. At the present time the Bank is lucky since the total 2008/09 note printing order was greater than required as per the current inventory reserve policy due to the requirement of placing orders of $50 and $100 notes in adequate quantities. Till the end of the current year, the inventory average level will be 70% of notes in circulation.
As opposed to a perpetual inventory contr...
Need essay sample on "The automated system"? We will write a custom essay sample specifically for you for only $13.90/page
...ol system, all banks and other financial institutions follow a perpetual inventory system. This system has become even more immediate and efficient with the use of Electronic Transfer of Funds and ATMs. In a perpetual inventory control system, all transactions are recorded in real time and the organization’s database updated immediately. This is off course important for banks since the account details of clients should be kept updated as and when they happen so as to prevent any overdrafts on the accounts (Dhavale, 2009, pg 44).
Keeping in mind all of the above mentioned factors, Joseph Banks hired an external consultancy firm to develop an integrated inventory control system for the organization. The product has customer support system, financial management system, inventory control system including sales, purchase, bills receivable and payable, income and expense maintenance with various useful reports. The real time inventory level report is generated automatically by the system by recording new orders and the inventory take outs.
The new system can also be used to issue bills to customers as soon as any sales transaction is done by them. The security levels differ for both users and administrators in the system through security forms. Each user can change passwords. If an operator forgets his password, the product has a mechanism where administrator can change it to default password which is defined in this application. The application has log in and log out time which makes the system to be able to determine when an operator has made an entry (Banks, 2003, pg 28).
To take care of future excessive growth in demand, it is expected that the increased cheque processing facility will be helpful. The operations will be more streamlined and efficient and up dation of records will be in real time due to the implementation of the Unisys system. Four part system has been put in place: cheque image processing, archiving, image statement print and signature verification. As per the daily demand, between 4,000 to 8,000 cheques may be processed.
The cost overruns due to repeated documentation of transactions have also been eliminated. Customers can now make inquiries and file complains online using the system also. Detailed audit report and other document generation has also significantly improved due to the Unisys system which has allowed greater security measures to be implemented to protect data. Joseph Banks follow the strictest and most updated form of inventory control that enables it to cater to the needs of its clients in the most efficient way possible.
The recent bank policy to increase the buffer to a 100% of the value of the notes in circulation and the implementation of the new Inventory Control System are steps that will help the bank to compete effectively in the industry. The inventory controls introduced through the software installation also mean there is a far reduced chance for human errors and the security standards have also been upgraded. Considering that the bank is located in the economically unstable environment of Africa, it has to take extra precautions to ensure smooth operations.
The automated system will further help it to keep a better track of all the transactions conducted by the account holders and the all records will be updated automatically in real time. References Aggarwal, S. C. and D. G. Dhavale. (2009). A simulation analysis of a multiproduct multiechelon inventory-distribution system. The Academy of Management Journal 18(1): 41-54. Banks, J. and R. G. Heikes. (2003). Technical aid for EOQ determination. American Journal of Small Business (Spring): 27-30. Beesack, P. R. (2007). A finite horizon dynamic inventory model with a stockout constraint. Management Science (May): 618-630.