Chapter 2

REVIEW OF RELATED STUDY

2.1 Review of Related Literature and Studies

This chapter presents a brief discussion of the literature reviewed by the researchers
which further enriched the conceptualization of the study and helped in describing the
cognitive design that guided the conduct of the researcher.

Foreign Literature
Inventory Systems Summary
According to the U.S. Small Business Administration, Inventory refers to stocks of anything
necessary to do business (U.S. Small Business Administration, 2010) The U.S.
Small Business Administration publication describes what constitutes successful inventory
management balancing cost versus benefits of inventory, including Maintaining a wide
assortment without spreading the rapidly moving items too thin, Increasing inventory
turnover without sacrificing service, Keeping stock low without sacrificing performance,
Obtaining lower prices by making volume purchases, Maintaining an adequate inventory
without an excess of obsolete items.
According to Mr.Eugene F. Bridgman, Fundamentals of Financial Management, 5th ed.,
Companies are increasingly employing Inventory System. A computer start with an inventory
counts in memory. Withdrawals are recorded by the computer as they are made, and the
inventory balance is constantly revised. When the recorded point is reached, the
computer automatically places an order, when this new order is received, the recorded balance
is increased. Retail stores have carried this system quite far, each item has a magnetic codes,
and as on item is checked out, it passes over an electronic reader, which then adjusts the
computers inventory balance, at the same time the price is fed to cash register tape. When the
balance drops to the recorder point, an order is place. The researcher aim to develop a
automated inventory system which is technically, operationally, and economically. The method
used by the

Researcher to develop a automated inventory system is Descriptive Method. The

researcher conduct several interviews in order to gather information about the present existing
conditions of the inventory system, knowing its problems and enhancing it by developing an
automated inventory system. Questionnaires were also distributed to all interviewees for
additional information. Using the descriptive method, the researchers also observe the
functionality of
the present inventory system, which help them discover that Electronic Data Processing isAdva
ntageous than other.
Malcolm E. White Published at 2003
; Merchandising means selling products to retail customers. Merchandisers, also called
retailers, buy products from wholesalers and manufacturers, add a mark-up or gross profit
amount, and sell the products to consumers at higher price than what they paid. When you go
to the mall, all the stores there are retailers, and you are a retail customer. Retailers deal with
an inventory, all the goods (products) they have for sale. They account for inventory purchases
and sales in one of two ways. Periodic and Perpetual. As the names suggest these methods
refer to how often the inventory account balances are updated.
Source:
Online Article
(http://www.middlecity.com/ch06.shtml) Companies need Inventory System
According to Eugene F. Bridgman, in the book of Fundamentals of Financial
Management published at year 2000 in the publishing company of Holt, Richard and
Winston Sounders College Publishing; Companies are increasingly employing Inventory System.
A computer start

Wal-Mart Inventory System

Wal-Mart runs its stores on a perpetual inventory system. This system records the quantity
of items sold as items are purchased. The computer system at Wal-Mart constantly keeps up
with additions or deductions from inventory and tells management what items are
onhand. The organization also conducts counts of employee manual counts of inventory periodi
cally. When an item arrives at the Wal-Mart distribution center it is scanned into theinventory
system. When the items are purchased by the consumer, the point-of-sale
systemreduces the inventory from that purchase. According to Wal-
Marts Gail Lavelle, a leaner
Inventory will help clear out store clutter and help Wal-Mart focus on specific brands
and products that consumers want (The Associated Press, 2006)

With an inventory counts in memory. Withdrawals are recorded by the computer as they are
made, and the inventory balance is constantly revised. When the recorded point is reached, the
computer automatically places an order, when this new order is received, the recorded balance
is increased. Retail stores have carried this system quite far, each item has a magnetic codes,
and as on item is checked out, and it passes over an electronic reader, which then adjusts the
computers inventory balance, at the same time the price is fed to cash register tape.
Inventory System Consist
An inventory control system is used in many warehouses to track the location, quantity, and
status of goods that are to be sold. Shipping and receiving of products is scheduled by an
inventory control system. Inventory control uses barcodes and RFID tags to track specific items.
An audit, or a physical count of inventory, is used to find out how many items are in an
inventory. Inventory taking is often required in order to get an accurate count for accounting
valuation purposes. Some inventory items have barcodes attached to them or imprinted on
them. These barcodes can be read during an audit by barcode reading devices.
Source:
Online Article
(http://www.nationalbarcode.com/articles/inventory-control-system.htm)

Steps for Inventory Management

This section of the paper looks at fundamental definitions and explanations relating to
Inventory Control, Management and Planning. Typical conflicts within the organization that
may affect inventory and what can be done to resolve and avoid these. According to article of
Dr Geoff Reply, Week Brzeski and Gail Brad bear, published at year 2003; A simple stock
classification method is discussed that gives details about the ABCtechnique, Pareto distribution
and takes a look into further class level and part level analysis. There is a worked example of an
ABC classification with valuable information about creating alternative scenarios and varying
parameters for class boundaries and order frequency per class. The results are shown in a
series of statistical tables.
Source:
Online Article
(http://www.inventorymatters.co.uk/portfolio/the-first-steps-to-
inventorymanagement?type=publication)

Advantages of Inventory System

According to Kj Henderson, they have a three major advantages by using of inventory system
these are (Time savings, Accuracy, and Consistency) which helps a lot for a businessman to
increase the sales of their business.

Time Savings
As the old saying goes, time is money. The amount of time that can be saved by
a business is, perhaps, the biggest benefit of using a computerized inventory system. A great
example of this benefit is the retail industry. In cases where a shop maintains all data manually,
its manager must reconcile each sales receipt with every piece of physical

Inventory. Depending on the size of the establishment and how many different products are
sold, this can be a daunting and time consuming task. If that same store, however, used a
computerized point of sale, POS, system, the master inventory list would be updated
electronically each time a sale is made. The only thing a manager would have to do each day is
print out the report highlighting the inventory to be restocked.

Accuracy
An additional benefit of using a computerized inventory system is the accuracy it ensures.
Eighteenth century English poet Alexander Pope is often quoted as having said,
To err
Or
Is human. When an inventory list is maintained by hand, the margin of error
Widens with each update. If one mathematical calculation is wrong or one typo is made,
disaster may occur. For instance, if a clerk accidentally adds a zero to the end of
a purchase order, a business could potentially end up paying for 10,000 units of merchandise as
opposed to the 1,000 that is actually needed.

Consistency
A small business operates most efficiently when its processes are executed in a consistent
manner. By using a computerized inventory system, a business owner can ensures that all
orders, reports and other documents relating to inventory are uniform in their presentation,
regardless of who has created them. This will allow ease of reading. In addition, uniformity
creates a professional appearance, which can go a long way to impress associates, such as
potential investors.
Source:
Online Article
(http://smallbusiness.chron.com/benefits-using-computerized-inventory- system-2044.html)

Disadvantages of Inventory System

According to Neil Kokemuller, by using of Inventory system they have some disadvantages by
using of this. These are (Customer Needs, Inventory Costs, Coordination, and Risks).

CustomerNeeds
Balancing the goals of avoiding stock outs while minimizing inventory costs is at the heart of
just-in-time inventory. One of the main benefits of automated and efficient inventory
replenishment systems is that you can quickly respond to reduced inventory levels. Companies
are now equipped to pull back on stock in a given product category and ramp up inventory in
another as customer needs and interests change.

InventoryCosts
Minimization of inventory management costs is a primary driver and benefit of just-in-time
practices. Inventory management has costs, and when you reduce the amount of holding space
and staff required with JIT, the company can invest the savings
in business growth and other opportunities, points out the Accounting for Managementwebsite
. You also have less likelihood of throwing out product that gets old or expires, meaning
reduced waste.
Coordination
A disadvantage of managing a just-in-time inventory system is that it requires significant
coordination between retailers and suppliers in the distribution channel. Retailers often put
major trust in suppliers by syncing their computer systems with suppliers so they can more
directly monitor inventory levels at stores or in distribution centres to initiate rapid response to
low stock levels. This usually means build-up of

Technology infrastructure, which is costly. This coordinated effort is more involving on the
whole than less time intensive inventory management systems.

Risks
Just-in-time inventory is not without risks. By nature of what it is, companies using JIT intend to
walk a fine line between having too much and too little inventory. If company buyers fail to
adjust quickly to increased demand or if suppliers have distribution problems, the business risks
upsetting customers with stock outs. If buyers over compensate and buy extra inventory to
avoid stock outs, the company could experience higher inventory costs and the potential for
waste.
Source:
Online Article
(http://smallbusiness.chron.com/advantages-disadvantages-justintime-inventory-
21407.html) Professional Inventory Management
According to Dr Geoff Relph,Witek Rzewski and Gail Brad bear; Inventory can be call as
Professional Inventory Management if they meet the terms; (Good Inventory, Extending
Stock Classification for Greater Control, A worked example showing the impact of moving from
3 to 6classes, Buffer Stock Methodology, Simple buffer stock, Stochastic buffer stock, A worked
example showing the impact of simple safety stock and stochastic safety stock.)
Source:
Online Article
(http://www.inventorymatters.co.uk/portfolio/professional-inventory-
management?type=publication)

High-level Inventory Management

According to Johnson and Kaplan author of the book of Relevance Lost, (Book published year
1997; Publishing Company, Harvard Business School Press) It seems that around1880 there was
a change in manufacturing practice from companies with relatively homogeneous lines of
products to horizontally integrated companies with unprecedented diversity in processes and
products. Those companies (especially in metalworking) attempted to achieve success through
economies of scope - the gains of jointly producing two or more products in one facility. The
managers now needed information on the effect of product-mix decisions on overall profits and
therefore needed accurate product-cost information. A variety of attempts to achieve this were
unsuccessful due to the huge overhead of the information processing of the time. However, the
burgeoning need for financial reporting after 1900 created unavoidable pressure
for financialaccountingof stock and the management need to cost manage products became
overshadowed. In particular, it was the need for audited accounts that sealed the fate of
managerial cost accounting. The dominance of financial reporting accounting
over managementaccountingremains to this day with few exceptions, and the financial
reporting definitions of 'cost' have distorted effective management 'cost' accounting since that
time. This is particularly true of inventory. Hence, high-level financial inventory has these two
basic formulas, which relate to the accounting period. (First the Cost of Inventory at the start of
the period +inventorypurchaseswithin the period + cost of production within the period = cost
of goods available. Second the
Cost of goods available cost of
inventory at the end of the period=cost of goods sold). The benefit of these formulas is that the
first absorbs all overheads
of production and raw material costs into a value of inventory for reporting. The second formul
a
then creates the new start point for the next period and gives a figure to be subtracted from
the sales price to determine some form of sales-margin figure. Manufacturing management is
more interested in inventory turnover ratio or average days to sell inventory since it tells them
something about relative inventory levels. (Inventory turnover ratio (also known asinventory
turns)= cost of goods sold / Average and Inventory =Cost of Goods Sold / ((Beginning Inventory
+ Ending Inventory) / 2)) and its inverse Average Days to Sell Inventory = Number of Days a Year
/ Inventory Turnover Ratio = 365 days a year /Inventory Turnover Ratio. This ratio estimates
how many times the inventory turns over a year. This number tells how much cash/goods are
tied up waiting for the process and is a critical measure of process reliability and effectiveness.
So a factory with two inventory turns has six months stock on hand, which is generally not a
good figure (depending upon the industry),whereas a factory that moves from six turns to
twelve turns has probably improved effectiveness by 100%. This improvement will have some
negative results in the financial reporting, since the value' now stored in the factory
as inventory is reduced. While these accounting measures of inventory are very useful because
of their simplicity, they are also fraught with the danger of their own assumptions. There are,
in fact, so many things that can vary hidden under this appearance of simplicity that a variety
of 'adjusting' assumptions may be used. These include:(Specific Identification,WeightedAverage
Cost,Moving-Average Cost,FIFO and LIFO).
Inventory Turn is a financial accounting tool for evaluating inventory and it is not necessarily a
management tool. Inventory management should be forward looking. The methodology
applied is based on historical cost of goods sold. The ratio may not be able to reflect the
usability of future production demand, as well as customer demand.
Source:
Book
(Relevance Lost, p. 126)

Introduction to model of the Perishable Inventory

According to the book of Timothy S. Vaughan, that published in year 1994 (Book of Book (A
model of the Perishable Inventory System with reference to consumer-realized product
expiration; Publishing Company, Operational Research Society Ltd). The introduction of
unit perishability has significant effect on inventory policy for a large number of commodities. A
significant amount of research has been presented which addresses the trade-offs between
ordering, carrying, shortage, and outdate costs for perishable inventory. A model of
the perishable inventory system which incorporates the effects of consumer-
realized productexpiration. This model represents a synthesis of two distinct directions in the
perishable inventory literature, and addresses the simultaneous determination of inventory
ordering and outdate policy for a perishable item with random demand and random lifetime.
Source:
Book
(A model of the Perishable Inventory System with reference to consumer-realized product
expiration, Vol. 45, No. 5, p. 519)
The Advantages of a Computerized Inventory Management System
According to Bonnie Conrad, Computerized Inventory Management System give advantage to
the business like first, the Speed and Efficiency. A computerized inventory management system
makes everything from inputting information to taking inventory easier. Doing a hand count of
inventory can take days, but with a computerized inventory management system, the same
process can be done in a matter of hours. Second the Document Generation, once the
computerized inventory management system is in place, managers and workers can use it to
automatically generate all kinds of documents, from purchase orders and checks to invoices
and account statements. Managers can also use the system to automatically order products
when they run low. Third, the Timely Data with a manual system, the data is only as accurate
and up to date as the last hand count. With a computerized inventory management system, the
management team can pull a report and instantly see how many units are on the floor, how
many have sold and which products are selling the fastest.
Source:
Online Article
(http://smallbusiness.chron.com/advantages-disadvantages-computerized-inventory-
management-system-22513.htmll)

Disadvantages of a Computerized Inventory Management System

According to the article of Johnson Braham if they have advantages by using of Inventory
System, they have also Disadvantages in using a computerized Inventory. First the Reliance on
Technology, with a computerized inventory management system, the company is at the mercy
of its technology. Outside factors like a power failure or the loss of Internet or
network connectivity can render the system temporarily useless. Second the Accuracy Issues, a
Computerized system alone does not ensure accuracy, and the inventory data is only as good as
the data entry that created it. Companies that plan to use a computerized inventory
management system need to have a system in place to validate their data and check the
numbers reported by the system. A select hand count or targeted audit may be necessary to
ensure the integrity of the system. Third the Risk of Fraud, any computerized system carries the
risk of intrusion, and with a computerized inventory management system comes the risk of
fraud as well. A dishonest vendor could hack the system to receive payment for products never
delivered, or a dishonest employee could redirect checks to themselves.
Source:
Online Article
(http://smallbusiness.chron.com/advantages-disadvantages-computerized-inventory-
management-system-22513.html) Types of Inventory Management Systems
According to Kenneth Hamlett they have different types of Inventory Managmentsystems, first
the Manual which is many small business owners, especially if the business has very few
products, keep track of inventory manually. The easiest way to perform manual inventory
management is to use a spreadsheet. For example, a small bakery might use a spreadsheet to
keep track of inventory purchases and usage. The owner can also set up the spreadsheet to
calculate when ingredients need to be reordered. At the start of each week, the owner
manually counts the raw ingredients and components she has on hand. She enters these values
in the spreadsheet. She also enters her expected usage based on existing orders. Using the
appropriate spreadsheet formulas, she determines if she has enough materials for the week or
if
Shell need to purchase more. Manual systems allow the small business owner to manage

Inventory with very little investment in systems or training. Maintaining data integrity is a
major downside to managing inventory using a spreadsheet. A single data entry or formula
error can cause major inaccuracies in the data output. Second the Barcode, Inventory
management systems that use barcode technology increase the accuracy and efficiency of
managing inventories. All major retailers use barcode technology as part of an overall inventory
management program. Barcode technology facilitates the movement of inventory within the
confines of the warehouse (from one location to another) or from the supplier to the
warehouse (receiving) and from the warehouse to the customer (picking, packing and shipping).
Third the Radio Frequency Identification, Companies that use RFID typically move thousands of
pieces of inventory through their doors. RFID uses two types of technology to manage
inventory movements--active and passive technology. Active RFID technology uses fixed tag
readers assigned throughout a warehouse. Anytime an item with an RFID tag passes the reader,
the movement of the item is recorded in the inventory management software. Active systems
work best in environments that require real-time inventory tracking or where inventory security
problems exist. Passive RFIDtechnology requires the use of handheld readers to monitor
inventory movement. Just as in an active system,
Once an inventory items tag is read, the movement data are transmitted to the companys
inventory management software. Because RFID technology has a reading range of up
To 40 feet using passive technology and 300 feet using active technology, it greatly increases
the accuracy of moving inventory around a warehouse.
Source:
Online Article
(http://smallbusiness.chron.com/types-inventory-management-systems-2195.html

Use of Inventory System

According to the article of Pete Abilla that published in November 16, 2011; they tackle the
different cause of using inventory system. First to Stop products from spoiling, if you have too
many products in your warehouse, you increase the risk that they will become obsolete,
Damaged, spoiled or stolen before you can sell them all. Depending on which industry youre in,
youre probably more worried about some of these risks than others. For example, if youre in
the technology industry, you dont want your
Expensive products to become outdated, damaged
Or stolen, but you probably dont care about their freshness date. Food producers, on the
other
Hand, put product spoilage high on the list of inventory management concerns. Second to
stop paying hidden costs, h
Having too much inventory doesnt just increase your risk of paying more in
The future; it costs you more money all the time. Where will you store the extra inventory? You
may need to buy a larger warehouse than you really need or rent trailers if your way
Rehouse
isnt big enough. Plus, you have to provide security to prevent theft. And dont forget about the
money thats tied up in inventory that you could have used to hire personnel or grow your
Business in other ways. Third to stop disappointing customers, on the other end of
the inventory spectrum, if you have too few products in your warehouse, you face a whole
other set of risks.
Your customers dont want to wait too long to get their orders shipped to them. So if you run
out of the products theyre lo
oking for or if your picking, packing and shipping processes are too slow, you could drive
customers away. Fourth to stop wasting time, inventory management can be time-
Consuming, especially if youre trying to do it by hand or in Excel spreadsheets. Speed
Is everything in business? How fast you reorder products, ship customer orders and update
your
Inventory records could make or break your company. Thats why an automated inventory
Management system is so important. Scanning product barcodes and setting up automatic
record
Points can save valuable time by streamlining complex processes. Fifth the Start planning ahead
you cant afford to be purely reactionary in your inventory management. You need to start
Planning ahead and being proactive. Instead of being unprepared for sudden spikes in sales, try
to notice these trends ahead of time by monitoring social media channels for mentions of
certain products and looking at historical records to spot seasonal upticks in sales. All of this is e
asier said than done. It goes back to having a powerful inventory management system to free
up your time and do most of the data analysis for you.
Source:
Online Article
(http://www.shmula.com/why-use-an-inventory-management- system/9501/) Perpetual
Inventory System
According to article of Rosemary Peavler, a perpetual inventory tracking system is a method of
immediately accounting for inventory sales in the inventory account, if there is no theft or
spoilage. It is an inventory management system where store balances of inventory are recorded
after every transaction. It eliminates the need for the store to close down constantly
for inventory stock-taking as perpetual inventory systems allow for continuous stock-taking.
Perpetual inventory systems keep a running account of the company's inventory.

Perpetual inventory systems involve more record-keeping than periodic inventory systems.
Every inventory item is kept on a separate ledger. These inventory ledgers contain information
on cost of goods sold, purchases, and inventory on hand. Perpetual inventory management
systems allow for a high degree of control of the company's inventory by
Management. Perpetual inventory management is generally used by companies who have the
ability to scan the inventory items sold and who use point-of-sale inventory systems.
Source:
Online Article
(http://bizfinance.about.com/od/Inventory-Management/a/perpetual-or- periodic-inventory-
which-should-your-company-use.html) Periodic Inventory System
According to the article of Michelle McKinley, a periodic inventory system does not require day-
to-day tracking of physical inventory. Purchases, cost of goods sold, and inventory on hand
cannot be tracked until the end of the accounting time period when a physical inventory is
performed and ending inventory is compared against the sum of beginning inventory
and purchases. Cost of ending inventory can be calculated by using the LIFO or FIFO
inventoryaccounting methods,or other less common methods. Periodic inventory management
allows accompany to know beginning inventory and ending inventory but it does not track
inventory on a daily basis. This means there is lost information. Business owners cannot tell if
inventory was sold or if it was stolen, lost, or spoiled. If you own a start-up business without
much money, periodic inventory management is definitely better because you can get by with
just a cash register and a simple accounting procedure. If you sell services rather than
products, you may not need an inventory management system unless you own arestaurantor
you are in the hospitality business. As your business grows, you will probably want to switch
over to a perpetual inventory management system as it allows you to know the balance in your
inventory account at any point in time. Large businesses
Typically have perpetual inventory systems rather than periodic inventory systems since the
rest of their financial and accounting systems are computerized.
Source:
Online Article
(http://bizfinance.about.com/od/Inventory-Management/a/perpetual-or- periodic-inventory-
which-should-your-company-use.html)

LocalLiterature
Computer-based system is a complex system wherein information technology plays a major
role. It makes the work easier, faster and more accurate. Due to that fact, the automated
scheme has become essential to small and big companies for they are expected to give the best
services possible. Nevertheless, some businesses still prefer sticking with the system that is not
integrated with technology. Probable causes are computer illiterate staff and lack of funds.
Companies, especially the big ones are recommended to switch from manual to automated
systems because this will improve the efficiency and productivity of the business which
willuplif
t the industrys reputation.
One of the most sought after automated systems of different companies is a purchasing and
inventory system which comes hand in hand. A purchasing and inventory system is very
important in every organization because a good purchase and inventory management can
create excellent productivity. Primarily, i6nventory work consists of input, output and restock.
Input is a process of buying new products into the inventory and replacing the old products
with the new ones. Meanwhile, output is a procedure of taking out the products from the
inventory for sales or usage and refill is a process of increasing the number of existing products
in the inventory in order to fulfil the insufficient products or escalating demands. Most of the
retailing market is
Using traditional way in the inventory management system where a person is assigned to
check and record the stock by hand using pen and paper. It is where operations with regards to
all the stock will be archived.
(2010, 09). Computer-Based Inventory System. StudyMode.com. Retrieved 09, 2010,
fromhttp://www.studymode.com/essays/Computer-Based-Inventory-System-401903.html
Lopez(1978)
conducted a study on a restaurants in baguio city and found out that: 1.Restaurants are largely
sole proprietorships in organization, they are mostly owned by Filipinos, although many others
are owned by Chinese and Americans; 2. Most restaurant personnel are male, single and
predominantly high school graduates; 3. In terms of available facilities
and practices, the following are found: a) on service facilities, entrance and exits are properlysit
uated, good furniture and fixtures, parking space available, good lighting and ventilation; b0on
control of operations, promotion of the
Lewis(2002)
stated that the reason for using computers vary from person to person. Some of the computers
in business are to perform accuracy, to be as productivity, to decrease bottle necks or hassles
to alter cash flows or to simples elevate your status.
SybexInc(1999)
stated that visual basic provide a graphical environment in which the users usually designed the
forms and control that become the building block of tour application .Visual Basic support many
useful tools that will help the user more productivity. The hardware of a POS system is also
distinctive and important. A typical system includes a display screen for the clerk, a customer
display, a cash drawer, a credit card swiping system, a printer, and a bar code scanner, along
with the computer loaded with the POS software.

Custom features may be added or removed, depending on the industry. A restaurant POS
system, for example, may have a feature which prints order tickets directly in the kitchen, or a
grocery store may have an integrated scale for weighing goods. Most small
businesses underestimate the importance of managing their inventory. They do not realize that
many headaches and fire drills are caused by the lack of control and knowledge of their
inventory. Whether it is a lack of knowledge of the quantity or specs of a certain
product, businesses too frequently use outdated inventory systems. Insufficient systems do not
allow them to get the most out of their inventory, because when used properly, inventory
management systems allow businesses to make a concise, real time analysis of products and
markets that help them make better business decisions. Inventory management systems also
allow businesses to better serve their customers since they keep a detailed and accurate record
of purchase histories and trends so they can reorder products more efficiently restaurant busin
esswas primarily through tie-ups with travel agencies, while advertising through radio was
utilized only by some establishments. The mission of hotel and restaurant education school is to
educate future workers and leaders of the industry; however, there is a prevailing
apprehension that teachers will become too academic in their approach and lose contact with
reality. Thus, there is a need for schools to select faculty,
Students and curricula that produce reflective practitioners and not scholars clark
1989. Some define fast food restaurants as limited mean restaurants that do not have table
service (eherts and gisler, 1989). Most fast food restaurants are parts of large well known
chains. There are also small chains of just a few restaurants as well as single unit operation.
Naturally, fast food restaurant, as their name implies, serve food much faster. These
restaurants often boast

Of getting food to their customers in less than a minute after an order is taken. They also have
fewer choices of mean items, furthermore, fast food restaurants, the hamburger has has
remaindering. There are more hamburger chains compared to any other category of fast food
chains such as those that specialize in chicken, seafood, roast beef sandwiches, Mexican food,
Chinese food, pizza, spaghetti and dozens more.
Janes(2001)
stated that computers are extremely reliable device and very powerful calculators with some
great accessories applications like word processing problem for all of business
activities, regardless of size, computers have three advantages over other type of office
equipment that process information because computer are faster, more accurate more
economical.
Reyes(2005)
task would be time consuming to accomplish manually and more practical with the aid of
computers field in cabinet.
Dioso(2001)
stated that computer assist careful intelligent planning, organizing,actuating and controlling
.This maybe observed from the past that they monitor production activities, solve scientific
problem and help arrive in tentative answer to a multitude of involve conditions.
RalphM.Stair(1999)
Emphasized that the development of technology through the years have enabled us to do more
with less effort. From the orientation of the light bulb to the industrial revolution and beyond,
we have continuously tried to in a more efficient means of doing tasks.
(
2011, 11). Review of Related Foreign Literature. StudyMode.com. Retrieved 11, 2011,
fromhttp://www.studymode.com/essays/Review-Of-Related-Foreign-Literature-823615.html
It is without a doubt that one of the major roles played by today in almost every area in the
society particularly in business and marketing is the computerized system. This system enables
us to make very detailed work and follows accurate directives without error. This study is
prepared for the implementation of the Sales Inventory System in Borderless Hub
Philippines,Inc. located in Rm. 306-307 Pink Walters Building Quimpo Boulevard, Davao City. In
order to know the problem, we conducted an interview with the managing team for sales,
billing, and inventory. This led us to problems like the manual time-consuming record of
documents, billing errors and difficulty in data retrieval. The basic advantages of the proposed
system are to make the process fast and well-organized which means that they can process
much more quickly than humans. Data retrieval has to be searched in lots of registers slowly
and it wastes a lot of time. The current system that the company uses is manual receipt
recording. It makes the data not reliable enough as it is handwritten and there is a high
probability of errors to occur. Data recording consumes a lot of space since it is stored in
cabinets and folders. It is also prone to data loss where it could be missing because of improper
file management.
Inventory is a companys merchandise, goods and materials that are contained in the store
Factory at any given time. The employees need to know how many units of their products are
available for reservation and sales and the items that are sold. All of these rely on the inventory
system to present solutions. The sales inventory system would provide service to the user,
input information to the database, summarize the inquiry of bills, and manage the product
releases and storage. This would generate a faster improvisation of work given less time and
effort.
(2012, 10). Sale Inventory System. StudyMode.com. Retrieved 10, 2012,
fromhttp://www.studymode.com/essays/Sale-Inventory-System-1117762.html

Inventory control systems maintain information about activities within firms that ensure the
delivery of products to customers. The subsystems that perform these functions include sales,
manufacturing, warehousing, ordering, and receiving. In different firms the activities associated
with each of these areas may not be strictly contained within separate subsystems, but these
functions must be performed in sequence in order to have a well-run inventory control system.
In today's business environment, even small and mid-sized businesses have come to rely on
computerized inventory management systems. Certainly, there are plenty of small retail
outlets, manufacturers, and other businesses that continue to rely on manual means of
inventory tracking. Indeed, for some small businesses, like convenience stores, shoe stores, or
nurseries, purchase of an electronic inventory tracking system might constitute a wasteful
use of financial resources. But for other firms operating in industries that feature high volume
turnover of raw materials and/or finished products, computerized tracking systems have
emerged as a key component of business strategies aimed at increasing productivity and
maintaining competitiveness. Moreover, the recent development of powerful computer
programs capable of addressing a wide variety of record keeping needs

Including inventory management

in one integrated system have also contributed to the growing popularity of electronic
inventory controloptionsGiven such developments, it is little wonder that business experts
commonly cite inventory management as a vital element that can spell the difference between
success and failure in today's keenly competitive business world.
http://www.studymode.com/essays/Sales-And-Inventory-System-784556.html

Studies rely on information researched by the proponents. Related literature and studies help
the researcher understand the topic better because this may clarify vague points about
the problem. It also guides the proponents in making comparisons between his findings with th
efindings of other similar studies. We research and gather this all information by internet,
magazines and books. According to the article in Clean touch Class Management System it
stated that, to provide complete computerized operations in any school. Students can be
managed through Bio-Data (GR No. Allotment), Attendance, Fees, Examination, Leaving
modules. Staff records can be computerized by Bio-
Data > Staff Salary > Leaving modules. Accounting module isintegrated with all other modules
to getting rid of transaction duplication.
Asen, Judith. 2008. Differential Object Marking: Iconicity 17:673-711.
According to the articles in SKG Computer Solutions it stated that, handling this study
enter/school/college very well, is very tedious task to manage. The data on registers or
maintain the database manually. Therefore, the School Management System software is
provided for you. It is errorless and appropriate version. It is the computerized system to
manage the data of study enter/school/college.
[software.techrepublic.com.com/abstract.aspx?d, 2008]According to Eleonora Aleksey kina, she
stated that Reliable and fast school management software with the great customers support.
It'll help you with your daily school management routines and deliver you from your
paperwork.
[http://download.cnet.com/School-Management-System/3000-2065_4-10538769.html, 2009]

Inventory is one of the most important in monitoring a stock that take place in business activity.
The inventory system does the entire task in computing the value with inventory (cost and
quality) and handling data or information. Inventory System maintains an orderly flow
of supplies, raw materials, or finished goods through an office shop/factory because of items in
any inventory. Represents cost, they need to be controlled. The purpose of inventory system
for management are to keep inventory levels and cost at desire minimums while maintaining
to proper safeguards over materials to places and people who need them. Inventory review
refers to the time interval between counting inventories. Periodic review systems have a set
schedule for conducting an inventory count. Transactional review systems update the inventory
count after each transaction. Periodic review is less resource intensive but more prone to
creating shortages and inventory discrepancies while transactional review is more accurate but
requires more resources. Inventory costs can be broken into several categories: the actual cost
of the
inventoried product, the cost of storage and the cost of unmet demand if inventory is not availa
ble to fillorders. Additional costs include transportation and ordering costs incurred when
replenishing inventory. Each of these costs is unique to individual businesses and can vary
widely.
(Warren R. Planret, 2002)
Inventory means goods and materials, or those goods and materials themselves, held available
in stock by a business. This word is also used for a list of the contents of a household and for a
list for testamentary purposes of the possessions of someone who has died. In accounting,
inventory is considered an asset.
http://www.studymode.com/course-notes/Inventory-System-1128684.html

It is little wonder that business experts commonly cite inventory management as a vital
element that can spell the difference between success and failure in today's keenly
competitive business world. Writing in Production and Inventory Management Journal, Godwin
Udodescribed telecommunications technology as a critical organizational asset that can help
accompany realize important competitive gains in the area of inventory management.
According to-do, companies that make good use of this technology are far better equipped to
succeed than those who rely on outdated or unwieldy methods of inventory control.

Automation can draidatically affect all phases of inventory management, including counting and
monitoring of inventory items; recording and retrieval of item storage locations; recording
changes to inventory; and anticipating inventory needs, including inventory handling
requirements.
http://www.studymode.com/essays/Review-Of-Related-Studies-Inventory-732920.html
ForeignStudies
Automation can draidatically affect all phases of inventory management, including counting and
monitoring of inventory items; recording and retrieval of item storage locations; recording
changes to inventory; and anticipating inventory needs, including inventory handling
requirements. Effective Inventory Analysis. Get Data Related to Effective Inventory Analysis. For
many distributors, inventory is the largest and perhaps the most important asset. Inventory
Ties up more money than buildings or equipment, and is often less liquid. It is crucial, then,
that distributors develop and use a comprehensive set of tools that allows close monitoring of
the

Performance of inventory investments. Read more about simple measurements that can
help you maximize your investment in inventory. According to the study of Edwin Bello and his
fellow researchers of Computerized Monitoring and Inventory of Stock with Warning Level
dated March 2005, many firms have thousands of items of inventory which require some form
of control. The usage calculations and record keeping chores would soon become
overwhelming were it not for the computer and its unique information storage and retrieval
capabilities.
http://www.studymode.com/subjects/related-studies-in-pos-page2.html (2011, 09). Chapter
Ii: Related Literature and Studies of Inventory System.StudyMode.com. Retrieved 09, 2011, from
http://www.studymode.com/essays/Chapter-Ii-Related-Literature-And-Studies-767850.html
LocalStudies
According to the study of Anna Marie Beltran Distor of Proposed Sales Monitoring System
issued 1995, the accelerated work structure of the company proper monitoring is
Essential in order to keep track of the companys sales activities. Her system
m aims to come up with an efficient, and accurate mechanized system of preparing invoices
that will keep track of the daily transaction and generate reports. Important information will be
provided by this studying order to prove that the computerization o
f the companys operation and achieve a more
Reliable and efficient means of monitoring day to day activities. Her system focuses on the
analysis and design of the sales monitoring system which will monitor the stacks inventory of
the sales departments. This system of hers is somewhat related to our study but our system
focuses more on the inventory monitoring system of a trading company.

Popular author of Accounting, Waldo T. Passion (1990) in his book stated that, to improve their
efficiency and reduce their cost of operation. Reports are timelier and accurate. Computers
have large capacity to store data and tremendous speed to manipulate and recall data to the
format a user wishes to use which the introduction of microcomputer computation of business
is more affordable.
Synthesis
The proponents believe that every literature and every studies stated in this research is similar
on the present study. The proponents relate and differentiate the research based on the flow of
their transaction from the proposed study. The transaction and process and also the design
specialization will easy help to acquire and accommodate and communicate with the user. The
proponents get and use other research in this chapter, in which it helps to them, because they
get knowledge during creating the systems. This Review of Related Literature and Studies,
illustrate the specific and general task of the Inventory Management System, also the types of
Inventory that gives a lot of knowledge for everyone before entering into business and using
Inventory. In this chapter the proponents put a different opinion of others in terms of
Inventory, the Literatures and studies should get on the Book articles on the internet. Inventory
Management system, tackled how you manage your inventory whether manual or
computerized, both of that having advantages and disadvantages for the business, this chapter
gives an idea also for the reader to review whats use of Inventory to the business