Presentation, Analysis and Interpretation of Data

This presents the data gathered from the series of interviews, observation and visitation. Thus, this
illustrates the current inventory system by the management. In line with this, it also illustrates the
problems that the researchers encountered during the data gathering process as well as the solutions
that are developed by the researchers.

Business Characteristics

The business was founded by Mr. John A. Moreno on October 2013. It caters Japan surplus retail
products for the masses. For six years the business is open from 8:00 AM to 6:00 PM everyday except
from holidays. They also offer their products through social media platforms and have the customers
pick up their item in the store. The owner categorizes the inventory into Furniture (big and small),
Kitchenware, and display items such as vases, figurines, etc. Items from the main store are shipped from
their warehouse to the store.

Current Exiting Inventory Practices

Recording

When the researchers were conducting the study during the last quarter of 2018 , there is no existing
documentation of inventoriable products by the management. Thus, they often rely on an estimation
method to value their current inventory. In the start of 2019. They implemented a manual inventory
system in which the only forms they have is a delivery receipt from the warehouse and an inventory
sheet. The problem with this is employees often forget to record the items. Thus, the recording of
inventoriables are not as effective as the manager says.

Classification and Measurement of Inventory

The management classifies its inventoriables into classes, namely ABC. Class A are the inventoriable
items which are the most expensive throughout the whole inventory which composed of designer
kitchenware, furniture and paintings. Class B are the inventoriables that holds a lesser value than class a
in which non-designer kitchen ware and display items. While class c are the items are the generic type of
items the cheapest amongst the inventory.

The management measures their inventory through an estimation technique for they have no idea on
how many their inventory is. The management doesn’t exactly know how many peces of each item is
delivered before. But within implementing the manual inventory system, they are knowing their
inventory count in the store little by little.
Receiving and Dispatching of Items

Receiving

After receiving the delivery receipt the staff matches the inventoriables received to the receipt, the
delivery receipt is accompanied with a readymade inventory sheet. The staff also inspects the delivered
inventoriables for defective items. For any defects found, the personnel will send the item back to the
warehouse. With the inspection done the staff will search for a numerical code attached to the item to
match up with the accompanying inventory sheet. The inventory sheet dictates the prices as well as the
quantity of the delivered items for the delivery day. The items will now be displayed by kind and by
brand. The items are displayed inside or above the pieces of furniture. The challenge of this process is
that when the consumers flock in, they often neglect the cross check of the delivery received to the
items.

Dispatching

Retail

There are two types of retail transaction for the business and the first one is the regular walk-in
customer and the customer from the social media platforms.

Walk-in transactions occur in the main store, the customers chose a particular item they want to buy
and inform the staff about it. The staff will give the item its price. The displayed items are all out and as
it. It just means that if you buy it all there will be no other stock available. After the sale the staff will
record it as a deduction to the inventory sheet in which is often neglected due to certain obstacles such
as the flock of customers, inquiries and when the personnel forget to record it.

Online transactions are done through social media, the management posts a series of photos in which
the interested could inquired and buy them. The items that were acquired online are also as is. Thus, the
items can be only picked up in the main store. The consumer can only pay in the store. The challenge of
this process is that the social media platform is stormed by fraudulent buyers.

Whole transactions on the other hand is when the customer is accustomed to buy bulk items for a
cheaper price, the disadvantage of it is that the items can be handpicked and is also prepared by the
management.

Evaluation

Based on the series of interviews, SWOT and observations. The researchers determined this underlying
problems in the current system

Segregation of duties, only one staff is responsible for the recording and summary of the inventoriables.

The business lacks of documents vital to the control of inventory.

The store has inadequate internal control procedures. The employees often neglect the manual
inventory system of the business due to circumstances such as the flock of customers, inquiries and
forgetfulness.

Proposed Enhancement of Manual System

Proposed Business forms

King Louis Japan Surplus

Delivery Receipt Date

TO:

Unit
Goods Details Quantity Total
Price

Subtotal

Sales Tax

Shipping & Handling

Total Due

Received
Name: Date:
by:
 King Louis Japan Surplus

Purchase Order Date

TO:

Unit
Goods Details Quantity Total
Price

Subtotal

Sales Tax

Shipping & Handling

Total Due

Received
Name: Date:
by:
 King Louis Japan Surplus

Release Form Date

TO:

Unit
Goods Details Quantity Total
Price

Subtotal

Sales Tax

Shipping & Handling

Total Due

Received
Name: Date:
by:
 King Louis Japan Surplus

Return Form Date

Unit
Goods Details Quantity Total
Price

Subtotal

Sales Tax

Shipping & Handling

Total Due

Received
Name: Date:
by:
 King Louis Japan Surplus

Inventory Sheet
For the Month of _________

Items Item Code Quantity SRP Returned Defective.

King Louis Japan Surplus

Inventory Sheet
For the XX/XX/XX

Items Item Code Quantity SRP Returned Defective.

 Enhancement of the current manual system

Previous System

The previous inventory process which is shown above begins with the goods

being delivered from the warehouse to the main store. The goods are being checked and

inspected for damages from the passage of goods from the warehouse to the main store.

Items that are found defective are being returned to the warehouse to be labeled as scrap.

After the checking, the items from the delivery list will be now transferred on to the

inventory sheet that will serve as the basis of all the inventory in the store. Then the

inventory will be displayed throughout the store. The inventory lists are being filed every

day, for references from when did the item arrived. In the inventory sheet the items sold

will be deducted.
Enehanced Manual Inventory System

With the previous system in mind, the researchers came up with ideas to enhance the current

system for it to become less time consuming and erroneous.

Chapter 5
Conclusion and Recommendations
Conclusion
In conclusion, the researchers found out the following.
1. The business didn’t have any inventory system when it started.
2. The company have a manual inventory system used this year.
3. The newly implemented system is often neglected or forgotten by the employees.
4. Making the system inaccurate and full of holes.
5. The system is fairly new, so it has problems.
6. The system is not used properly by the staffs.
7. The system lacks proper records and documents.

Recommendation
Through the study and analysis of the problems encountered by the business. The researchers
recommend the following should be adapted:
The System should be properly introduced to the staff, so they can understand how the new
manual system works.
1. The staff should be trained how to use the new manual inventory system.
2. The process should be followed thoroughly by the users.
3. The new system needs to be updated regularly and not neglected.
4. The implemented system should be recorded and documented properly.