CLOUD COMPUTING AND INVENTORY CONTROL

Open Access
Author:
Chiu, Yu-Chuan
Area of Honors:
Industrial Engineering
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Vittaldas V Prabhu, Thesis Supervisor
  • Paul Griffin, Honors Advisor
Keywords:
  • cloud computing
  • supply chain
  • inventory control
  • compiere
  • enterprise resource planning
  • ERP
Abstract:
In this thesis, the feasibility of applying cloud computing for inventory control is studied. The focus of this study is supply chain management for small and medium manufacturing firms. The thesis provides an overview of cloud computing and explores the feasibility of using a cloud computing based ERP software for supply chain inventory control using realistic data from a manufacturing company in Taiwan with a supplier in Thailand which processes materials procured from China. This supply chain is set up to lower material cost and labor cost. However, high initial investment, high hardware maintenance cost and inaccurate inventory level are the major obstacles. These obstacles could be resolved by implementing cloud based ERP system. First of all, little initial investment and maintenance costs are expected since cloud based ERP charges like a utility; firms pay by the amount they use and the physical plant is taken cared by the provider. Secondly, through cloud based ERP implementation, old inventory records will be organized and new inventory policies will be practiced in one universal accessible ERP system. This is expected to increase inventory level accuracy. The above theories are tested through Compiere Online ERP by running a production of one machine. The result shows that cloud based ERP system is feasible in handling the defined supply chain. Also, 100 percent inventory level accuracy is achieved. In sum, through cloud computing, a solution to provide small and medium manufacturing firms to access to supply chain management system is found.