CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

Foreign Literature and Studies

According to Audra Bianca and Demand Media “Using this type of system

(sales and inventory system), a company makes strategic business decisions

regarding raw material purchases, production scheduling, pricing, logistics and other

decisions in the supply chain.” Sales & Inventory Monitoring Systems publication

describes sales and inventory data enables the company to increase or decrease

production in the factory so the company won't have too many finished goods stored

in its warehouses.

According to Eskow (2010) for the study, Development and Evaluation of a

Computerized Sales and Inventory system of Mother’s Best Company (CSISMBC)

with SMS Confirmation, an integrated inventory system, may range in platform

complexity. Researchers believe that inventory systems are made not in same

faces.

Inventories have different faces because it varies upon use and it depends

upon the user’s need.

technologies you have opportunity to design the process that best utilize the

strength of each to offset inherent weaknesses as said by Piaseki(2009) from his

book entitle, Inventory Accuracy : People Process and Technology.

Technology literate person with a high and technology makes a process minimal.

Tice (2011) in the article “Maximize your Efficiency by Automating Inventory

system”, many small businesses think automation is too expensive or not worth

the trouble. But prices have fallen considerably on both software and hardware,

bringing them within reach of most small business budgets.

Having a computer based inventory system can help to minimize the

expenses on the long run and it can also help to have more organized stocks in

order to eliminate out of stocks.

The company need to look at inventory management as part of their

preliminary plays when they are preparing to open a business. The customers do

not care if the business is manually counting the inventory or have access to an

automated system like the one that fulfilment centres provide. The only thing that

is of concern to customers is the ability of the company to have supplies on hand

to take care of their need inn a reasonable amount of time. The importance of

efficient inventory management may not be understood by those people who have

never worked in the business sector as stated from the Southern Fulfilment (2010)
from the thesis book of Cruz, E et al, entitled Sales and Inventory Management

system for fix & Care Ref and Aircon Repair Services.

Inventory management must be taken into consideration when a company

is planning to start a business. Through it, they could be able to supply the needs

of their customers in a reasonable amount of time.

Inventories are usually the largest expense incurred form business

operations, thus inventory management is an important part of a business. In order

to accurately record consumer sales, the inventory management system helps

businesses in their Inventory. In order to properly record several type of good the

companies need to implement the computerized inventory management system

as stated by Vitez (2010) form the thesis entitle Sales and Inventory Management

system for fix& Care Ref and Aircon Repair Services.

Computerized inventory management system is really important in

businesses for it helps them in recording consumer sales.

According to Hold (2010) article, “Inventory refers to stocks of anything

necessary to do business”. 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

sacrificing service; Keeping stock low without sacrificing performance; Obtaining

lower prices by making volume purchases; and Maintaining an adequate inventory

without an excess of obsolute items.

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 the 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 proponent aim to

develop an automated inventory system which is technically, operationally, and

economically. The method used by the proponent to develop an automated

inventory system is Descriptive Method. The proponent conduct several interviews

in order to gather information about the present existing conditions of the inventory

systems, 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 proponent also observe

the functionality of the present inventory system, which help them to discover that

Electronic Data Processing is Advantageous than other (Isn’t this part of the Data

Gathering Procedure?).

On an article written by White (2003), merchandising means selling of

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 a 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.

Based on Henderson (2008), Inventory System Consist: An inventory

control system is used in many warehouse to track the location, quantity and status

of goods that are to be sold. Shipping and receiving of products is scheduled by

and 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.

According to the article of “Paperless Receipt Solution (PRS) System”, by

James Dyson Foundation (August 9, 2015), Configure One’s Web-based E-

Catalogue software called Concept E-Catalogue, is easy to implement and easy

to use. Designed for both B2B (business to business) and B2C (business to

consumer) operations, it fully integrates with Configure One’s configurator and

CPQ software. The combined solution of Concept E-Catalogue, Concept E-

Commerce, and Concept Enterprise Product Configurator provides you with a

complete storefront solution that drives incremental revenue for your company.
 Featuring extensive content management tools, the E-Catalogue software may be

administered and maintained without programming skills, freeing up your IT team.

According to Oludare O., et. al (2013), SMS is an acronym used in the world

of communications technology. It stands for Short Messaging Service which is a

protocol used in communications that gives way to the exchange of short text

messages from one mobile telephone device to another. SMS or text messaging

largely dominates today’s means of communication since seventy-four percent of

all cell phone users send and receive text messages nowadays. The technology

behind SMS has paved the way for the rapid growth of improvement of text

messaging that has now allowed users to broadcast SMS text messages not just

from mobile phones but also from computers with the use of SMS software and

through public SMS gateways. The link between text messaging to SMS

technology now conotates the terminology of “SMS” as the act of texting or sending

text messages even with the use of a different communications protocol.

Local Literature and Studies

According to Globe Business Philippines a leading local telecommunication

in the country “The cost-effective and highly innovative inventory management

system gives you instant access to stock levels, allowing for timely orders and

zero wastage.” The publication describes that what the inventory system does

is allow you to order supplies based on the most current data. This minimizes
 overstocking and at the same time, frees up resources for more urgent needs.

The Inventory Ordering System gives you better control over your supply chain,

affording you the convenience of being able to place orders online or via SMS.

And because the system automatically generates inventory and sales reports,

your employees will have less paperwork to file and more time to focus on

operations.

Perfect for businesses with franchise operations, this user-friendly

inventory management system can be customized for any multi-site company,

commissary, or warehouse backend ordering operation.

According to Riley (2008), from his book How Sales Forecasting Sales are

the lifeblood of a business. It is what helps you pay employees, cover operating

expenses, buy more inventory, market new product and attract more investors.

Sales forecasting is crucial part of the financial planning of a business. It is a self-

assessment tool that uses past and current sales statics to intelligently predict

future performance.

In this citation, sakes are considered as the life of the company, because without

it the company, because without it the company’s life will be dry out.

Stated In an article about Decision Support Systems – A brief Introduction

(2011) Mr. Musarrat sheikh stated that DSS’s serve the management planning
 and operations levels of an organization and help to make decision that may be

rapidly changing and not easily specified in advance.

With the help of technology companies can be assisted in making decision

by the decision support system which is adaptive to rapid change.

According to Villanueva (2011), from the book The Importance of Sales

Monitoring with Your Cable TV, Monitoring of sales whenever it comes to doing

business online is very vital. To be able to make sure that everything is in order, it

has to practice monitoring. It is because monitoring is important in a business one

must hire a person who is loyal and trustworthy. Otherwise the online business will

fall apart in a matter of time. One of the modus operandi commonly practiced is the

falsification of sales and revenue reports by the person trusted by the owner. A part

of the total sales might be pocketed. You cannot have a hundred percent assurance

that the sales reported back to you are valid.

In this citation it says that monitoring of sales is essential in every business.

Without proper monitoring a business my fall apart due to falsification of sales and

revenue reports. Monitoring of sales helps the owner of the business to keep track of

sales and ensure that the sales reports are valid.

This is a simple inventory system that computers the running balance of an item.

It records the item received and item issued. As stated by Pabuaya(2010) from his
book entitled, “Supplies and Inventory System”. Inventory system is a simple system

that keeps track of the item received and items issued.