CHAPTER 2

RELATED LITERATURE AND STUDIES

Computer-Based Inventory System

StudyMode.com (2010)

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 will uplift the industry’s 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, inventory 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 fulfill 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.

Computerized Sales and Inventory system for Ronmon Trading

de Alday, Espino, Ragudo, (2010)

Based on the research entitled “Computerized Sales and Inventory system for

Ronmon Trading” (de Alday, Espino, Ragudo, 2010), the replacement of the manual

system with the proposed system provided more efficient and accurate processing of

transaction. The said system is much reliable, eliminated errors and inaccurate

information, and provided integrity valuable reports.

Inventory System of Best Choice Rice Dealer

Bisagas, Arivada, and Tanteo (2009)

“Inventory System of Best Choice Rice Dealer” by Bisagas, Arivada, and Tanteo

(October, 2009). The process of counting the sacks of rice is done manually, which

corresponds to difficulty in tallying the number of available stocks and sold items.

The manual generation of inventory reports such as daily, weekly, quarterly and

annual inventory list of records remains as one of their key problem since the

establishment of the business. The transaction processing system for Best Choice Rice

Dealer will minimize the difficulty of owner in processing inventory. It will monitor the

availability of product items for reorder to prevent under stocking, overstocking or

running out of stocks, the system will also generate necessary reports of inventory such

as sales reports.

Korean Red Ginseng Enterprise - Sales and Inventory System

J. De Leon, M. Ferrer (2009)

 Under the Korean Red Ginseng Enterprise Sales and Inventory System, the

researchers came up with a computerized sales and inventory system. The proponents

used database to easy access of files and for easier and faster processing of the selling and

inventory transaction. The program was designated to generate reports such as monthly

reports, inventory reports, sales invoice and list of items.In connection with the proposed

system, the proponents proposed a new and faster way of processing business

transactions. The system also helped the user to know the availability of the products. It

also helped the manager to monitor the stocks and to get immediate notice for acquisition

of additional products.

The Proponents acquires knowledge about the file processing and report

generations through this study. It also gives the proponents ideas to create the proposed

system’s reports in online sales and inventory system. Automation is mandatory, thus

automated report generation for precise reports is to beincluded in the proponent’s

proposed system.

Monitoring and Inventory for discovery Mall.com

Averion, Gaela, and Libo (2009)

In the study from Averion, Gaela, and Libo (2009) entitled “Monitoring and

Inventory for discovery Mall.com”, it stated that:

It will minimize the difficulty of the manager in processing inventory because

physical counting products, stocks and computing inventory summary will be the system

job. It will monitor the availability of products, items to prevent under stocking, over

stocking and running out of stock. The system will also simplify the transaction between
dealer and supplier relationship because of the updated supplier information and price list

of items will correspond to collaboration with other supplier.

Osaka Sales and Inventory System

Laranang, Maaño, and Nañola (2009)

The study entitled “Osaka Sales and Inventory System” (Laranang, Maaño, and

Nañola, 2009) states that business nowadays takes the advantage of using modern

technology to improve their status and ensuring an efficient and newer way to make their

work easier. They state that the main problem of the Osaka Iridology is what modern

effective tool must be use in creating and developing a sales and inventory system that

will manage efficiently their transaction. So they develop a system that inclusively for the

transaction of Osaka Iridology, such as monitoring of their medicine and their daily sales.

Sales and Inventory system for Schema Mega Center

Also stated in the research, “Sales and Inventory System For Schema Mega

center” (Almeda, Dañez, Geronimo), the proposed system are not just only accurate,

reliable, and fast in processing transactions rather it is also provided more systematic way

of transacting with the members and through the billingsystem also helped the employees

to save a lot of time on transaction processing.

Sale Inventory System

StudyMode.com (2012)

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 every 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 company’s merchandise, goods and materials that are contained in

the storefactory 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.

Thomas M. McHugh (2011)

According to Thomas M. McHugh (2011) computerized inventory management

systems provide many benefits that are hard to obtain using paper methods or an in-house

spreadsheet. Systems that are specific to the lab can be used relatively quickly without a
significant learning curve or system customization. The ability to analyze the inventory,

item usage, purchasing history, and other areas (e.g., lot numbers, equipment) are

important improvements to spreadsheets and paper systems. If the system includes

equipment tracking, it can be used to determine the capital asset as well as track the

service history and lifespan of equipment. The ability to streamline and automate many of

the inventory control tasks will be increasingly important to reduce hands-on time while

improving the analysis of trends, reducing stock-outs, and avoiding expiring reagents.

The ability to ensure that the right reagent in the right quantity is present at the right time

is critical to laboratory operations. Given that reagents are approximately one-half of

most labs' operating budgets, a continued focus on this expense will assist the laboratory

in continuing to provide accurate and timely laboratory testing at the lowest cost.

U.S. Small Business Administration (2010)

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 bymaking volume purchases, maintaining an

adequate inventory without an excess of absolute items.

HARDWARE AND SOFTWARE REQUIREMENTS OF THE SYSTEM

Hardware

At least Windows 7

i5-2430M CPU @ 2.40GHz

RAM 4.00GB

32-bit or 64-bit Operating System

Software

At least Microsoft Access 2007

 CHAPTER I

INTRODUCTION

Inventory is basically the total amount of goods and materials held in stock by a

school, factory, store and other business. Inventory system is a process whereby a

business keeps track of the goods and material available. In simplest explanation, it can

be done manually by counting every at the end of each day. It is also possible to keep a

record of goods coming into the business and goods being sold.

School inventory system is the process of counting the chairs, tables, computers,

papers, etc. inside the classrooms and offices. This is executed by the personnel who is

in-charge of the inventory monitoring every end of the day and he/she will submit stock

reports monthly.

BACKGROUND OF THE STUDY

Subic Bay Colleges, Inc. is a private college and high school established 14 years

ago. It is located at the Barangay West Bajac-Bajac, Olongapo City. After its

establishment 14 years ago, they have used manual type of inventory system. The SBCI’s

property custodian is the one who’s in charge of the inventory keeping. She executes the

inventory keeping occasionally by manually counting the school materials like chairs,

tables, computers, door, lamps, etc. inside the classrooms and write it down in a piece of

paper. Then she transfers it to the Microsoft Excel to complete her record. The inventory

of the offices is not included with the property custodian’s task but still executing the
same manual process. The office inventory is managed by the one who is in charge of the

office.