Inventory Management: Operation Management System at AITE, Australia

This report provides an overview of operation management, focusing on inventory management within the context of the Australis Institute of Technology & Education (AITE). It defines operation management and its key areas, such as goods and service design, human resource and job design, supply chain management, inventory management, and sales and operations planning. The report then delves into inventory management, highlighting its benefits, including improved delivery performance, shorter lead times, lower costs, accurate planning, decreased stockouts, and increased inventory turnover. It explains how AITE, a CRICOS Registered Training Organisation, manages its extensive inventory of cleaning equipment, computers, projectors, desks, textbooks, and other materials. The report also discusses advanced inventory systems used by top universities, including standard, serialized, batch-lot, and non-inventory items, and the challenges faced in inventory management, such as manual data tracking, theft, cross-school transfers, obsolescence, and textbook management. The report concludes that effective inventory management is crucial for AITE's operations and recommends focusing on automation procedures.

Operation
Management

Introduction – Operation
Management
■ Operation Management is considered to be an area of management which is
related with various procedures concerning business operations such as
production design and control, supervising the contexts of production and
provision of various services (Kang and Kim, 2010).
■ Effective management of operations can be useful in reducing the costs at
various levels and make business to function more efficient.
Operation
Managem
ent

Introduction – Operation
Management
■ Some of the significant areas in operations management are – (Barratt, Choi
and Li, 2011)
 Goods and Service design
 Human Resource and Job design
 Supply Chain Management
 Inventory Management
 Sales and Operations Planning.

Introduction – Inventory
Management of Australis Institute of
Technology & Education
■ Inventory Management is defined as the process of ordering, storing,
and using of organisation inventory such as raw materials,
components and finished products (Park and Dickerson, 2009).
■ There are various benefits of Inventory management which constitute
an important aspect of OM such as improving delivery performance,
shorter lead times, lower costs, accurate planning, decreased stocks-
out and increased inventory turnover.

Australis Institute of Technology &
Education Inventory Management
■ For effective understanding, inventory management area of OM is
aligned with Australis Institute of Technology & Education as it will
give practical implication and help users to understand the concept of
operation management more explicitly.
■ This institute is a CRICOS Registered Training Organisation (RTO)
established in year 2010 (aite.edu, 2015).

■ Australis Institute of Technology & Education systems have a vast
amount of inventory to administer such as cleaning equipment,
computers, projectors, desks, textbooks and other materials.
■ This inventories can be managed all in one system by the university.
Education Inventory Management
System

■ Universities are needed nearly limitless supplies and books – from
front office supplies to classroom texts and libraries. These inventories
are extremely valuable and without an effective inventory
management system, the information or materials can be over looked
or lost.
■ Australis Institute of Technology & Education inventory systems are
highly productive ensure effective utilization of all necessary
resources related to their inventories.
Australis Institute of Technology &
Education inventory systems

■ The major user that are connected with these systems are -
Inventory management and systems
Facilities
Management
Department
Staff
Administrative StaffSystem
Administrator

■ In most of top universities, advance inventory systems are used in
area of operation management that offers an ability to manage all
sorts of inventory.
■ Some of the significant connected procedures and systems of
advanced inventory system are Standard, serialized, batch–lot,
serialized with quantity, and non-inventories that can be managed all
in one system.
Advance Inventory System in
Universities

Advance Inventory System in
Universities
■ Standard Inventory – Standard inventory items includes printing
paper, ink cartridges in respect with their stock number.
■ Serialised Inventory - University course associated items like
equipment, chemicals within chemistry labs or medication vitals have
contents of each item that need to be quantified in serialized
inventory.

Advance Inventory System in
Universities
■ Batch-lot Inventory – Tracking of inventory with expiration dates
such as chemistry lab chemicals, food, medical supplies, etc. It also
helps to track date codes related with those items.
■ Non-Inventory items – Track and issue man hours and currency.

Advance Inventory System in
Universities
■ Serialized Inventory – It includes quantity that will be consumed or
used while in inventory like such as chemical drums with contents
that get used, medication bottles with pills, rolls of paper with the
material being used up over time.
All these inventory management systems are offers by various
other business organisations like asap systems and technologies, and
provides easy-to-use system to effectively manage inventory all over the
university

MANAGING INVENTORY FOR
EDUCATION
■ As Australis Institute of Technology & Education functions in education
sector, an automated inventory system can be priceless that helps in
making storage in an efficient way and ensure that all time it will be
readily available to all people and staff of university.
■ Choosing of right inventory system requires careful considerations so
that it will be easy for those in education to adopt the system as per
the necessary requirement and demand (Bischak et al, 2014).

Improving University Inventory
Management
■ Australis Institute of Technology & Education are adopting various
significant practises constituting all areas of their operation
management.
■ These practices are –
 Budget control
 Transition to automated solutions
 Converting losses in to millions.
 Building flexible structure in various areas.

Challenges in Inventory
Management
■ Some common challenges faced by universities in inventory
management are –
 Manual tracking of data.
 Theft
 Cross school and district transfer.
 Obsolescence and Lifecycle management.
 Textbooks.

Conclusion
■ Hence, it can be said that inventory management plays an important
role in several areas of operations in relation to Australis Institute of
Technology & Education.
■ Australis Institute of Technology & Education also need to focus on
various automation procedures in area of operation management and
several phases of inventory managment.

References
■Kang, J.H. and Kim, Y.D. (2010) Coordination of inventory and transportation
managements in a two-level supply chain. International journal of
production economics, 123(1), pp.137-145.
■Park, K.W. and Dickerson, C . (2009) Can efficient supply management in
the operating room save millions?. Current Opinion in
Anesthesiology, 22(2), pp.242-248.
■Bischak, D.P., Robb, D.J., Silver, E.A. and Blackburn, J.D . (2014) Analysis
and Management of Periodic Review, Order‐Up‐To Level Inventory Systems
with Order Crossover. Production and Operations Management, 23(5),
pp.762-772.
■Barratt, M., Choi, T.Y. and Li, M . (2011) Qualitative case studies in
operations management: Trends, research outcomes, and future research
implications. Journal of Operations Management, 29(4), pp.329-342.
■aite.edu. (2015) ABOUT AITE [ONLINE] Available from:
https://www.aite.edu.au/index.php/about/about-aite [Accessed 20/01/2019].

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