Chapter II

Review of Related Literature and System Technical Background

2.1 Review of Related Literature

2.1.1 Globe Business Philippines Inventory Management System

According to the Globe Business Philippines, the cost-effective and highly innovative
inventory management system gives you instant access to stock levels, allowing you timely
orders and zero wastage. 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. Effective inventory
management is essential in the operation of any business (Bassin, 1990). Hakansson and
Persson (2004) identify three different trends in the development of logistics solutions within
industry, one trend is concerned with the increased integration of logistics activities beyond
organization boundaries with an aim to reduce cost items such as capital costs for inventory
and handling costs of flows. According to Dosi, a material good or an intangible service. In
the case of goods, at least, the product may be either a discrete product or a whole system.
The former dimension obviously specifies whether the purchaser is a private firm or public
agency.

2.1.2 Survey-based Research of the different Inventory in Thailand

According to Wanida Jongsuwanrak, Sameer Prasad and Sunil Babbar, this survey-
based research identifies the different inventory models in use by multinationals operating in
Thailand. Unlike many of the newly industrialized countries, Thailand has received relatively
less attention in the international operations management literature. This article highlights
key factors affecting the type of inventory systems implemented in Thailand, which can be
of value to developing countries making the transition into newly industrialized ones. This
study shows that inventory systems in Thailand are affected by the type of production,
location of the multinationals' headquarters, demands, supply base, and the extent to which
materials were either exported or imported.

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2.1.3 Cerquit Inventory System

Cerquit Solutions, Inc. is a Philippine-based technology company. Effective Inventory

management is made possible with the aid of Cerquit Inventory System. This system is
originally integrated into the full blown Cerquit Accounting Suite but can work stand alone,
tailored-fit depending on client’s specification. It is highly customizable varying on the type
of business that it is set to be of used, with the system layout based on the client’s current
procedural framework and added features that would help improve operational efficiency.
Cerquit Inventory System can be integrated to our Cerquit Financial Suite to streamline your
business process and improve efficiency of your employees.

2.1.4 The Importance of Inventory System to any Institution

In this study conducted by Ariel Magat (2002), he reported that the Inventory System
of the vital to any institution, agency, or department. The proper safekeeping, processing and
disposal of records play important roles in the efficient, effective and smooth operation that
eventually would lead to the success attainment of the goals and objectives of the institution,
agency and department concerned. Based on her recommendation there should be a central
record management office that will hold data of the agency to serve as locator of the record
and to control the disposal of each record. This can be possible through the use of
computerized system. Computer with the appropriate software package is capable of handling
records efficiently and effectively. And locating records that are computerized is faster than
finding them in the filling cabinet.

2.1.5 Easy Supply Chain Management

The usual approach to replenishment at each step in the chain has been for the
manufacturer to place an order with the supplier. Typically, there would be no early warning
signals on requirements from the customer and thus the supplier would have to hold inventory
in the form of safety stocks as a “buffer” against this uncertainty. Likewise, the customer
would also carry safety stocks on the same items to safeguard against the possibility of none-
supply. The results of this conventional approach were higher levels of inventory in the chain
and paradoxically lower levels of customer satisfaction and responsiveness. Through this
inventory system software, suppliers can offer their customers a value added service by
performing the replenishment planning task for their business partners. Besides giving the
supplier increased visibility into actual demand, it also recognizes that suppliers often may

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have more knowledge and control over the logistical processes involved. By increasing
visibility into actual demand as well as inventory levels. This allows suppliers to make better
decisions on how to deploy goods across various customers’ locations, which leads to
increase customer service levels, lower transportation costs, reduced inventory levels and
lower sales cost.

2.1.6 Pro Infinity IT Solutions Company Inventory Management System (IMS)

Based on Pro Infinity IT solutions Company, The Inventory Management System

(IMS) manages different products, quantities, prices, product history, products description,
supplier's price, purchase orders and other related documents. This system successfully
organizes and keeps track of the inventory of consumable supplies and materials assigned to
the employees in the organization. The Inventory Management System designed in the
Philippines aims to provide a fast and easier way to monitor the movement of your stock of
goods. Its covers item entry, releasing of items, inventory adjustment, transferring of goods
from one warehouse to another and production.

2.1.7 Department of Social Welfare and Development Relief Goods Inventory and
Monitoring System

The Sahana Eden based Relief Goods Inventory and Monitoring System (RGIMS) is
used by the Philippine Department of Social Welfare and Development (DSWD) for
managing the delivery of humanitarian aid across the country. RGIMS is a web based
application that monitors the progress of relief goods in warehouses throughout the country
from the time they are first requested by DSWD field offices to their handover to
implementing partner and local government units. The World Food Programme (WFP)
sponsored this program, providing funding for training the IT department from the Philippine
Government’s Department of Social Welfare and Development (DSWD) to customize
Sahana Eden to be used to meet their emergency warehousing needs. Sahana Software
Foundation partner AidIQ provided that training last year and the system was out into heavy
use after Typhoon Haiyan/Yolanda struck the Philippines in November of 2012.

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2.2 Review Related Studies

2.2.1 Caltex Inventory System

The Computerized Inventory System of Stargaz Enterprises Caltex in Tabaco City is a

study in response to the experience of the employees. The experience was the difficulty in
product controlling, tracking and reporting, since it is done manually. The Manual system is
inefficient, time consuming and inaccurate. An example of this problem is the miscounting
of products; this kind of problem is time consuming. Due to this problem, the proponents
develop a “Computerized Inventory System of Stargaz Enterprise Caltex Tabaco City” used
in making, storing and retrieving of records for inventory. This system will replace the
manual way of recording data thus eliminating human error on recording and computing.

2.2.2 Gate Pass Management and Monitoring System

Another study about Gate Pass Management and Monitoring System of Equipment and
Tools in Hi – Tone Construction & Development Corporation wherein it will focus on Gate
Pass Management and Monitoring of Equipment and Tools. The Function of the proposed
system is to create, store and secure all the Gate Pass Records of the company and the second
function is to monitor all the time in and time out of equipment or tools of the company Hi –
Tone Construction and Development Corporation (HCDC). This is the Function the Function
of the system of the proponent to eliminate the problem that they encounter when it comes to
gate pass management and monitoring.

2.2.3 AMA Computer – Based Monitoring System

Computer – Based Monitoring System of Laboratory Equipment was developed for

AMA Computer College of Legazpi, Laboratory which uses a manual system of monitoring
equipment in its daily operation. The proponents conducted a study on the existing
monitoring of laboratory equipment both in digital and physics/chemistry procedure being
used by the borrower and the administrator. The proponents studied and discovered the
problem caused by the existing system. With this idea, the proponents aimed to generate a
computerized monitoring. System that will monitor the equipment borrowed and the
borrowers and will eliminate the problems prevalent in the current system.

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2.2.4 Boardwalk Computerized Inventory System

Computerized Inventory System for Boardwalk Business Ventures INC. of Legazpi

is a system has to do with business, money and most importantly securing and recording the
daily inventory transactions of a company. They collect, store, modify and retrieve the
inventory data of an organization. Computerized Inventory System are the backbone of an
organization because they update constantly. Every establishment has to check their
inventory quarterly, monthly or weekly in order to update their inventory

2.2.5 Gen Med Pharmacy and Inventory System

Additionally, Inventory for Gen Med Pharmacy System Daraga, Albay will enhance
the tracking of inventory transactions of the business establishments. This will automate the
Inventory process of the pharmacy. The system resolves the security issues of information of
stocks and transactions and it will give faster access to the products. They derive with this
system because they do inventory process by writing the details of the stocks received which
will include product details. The process was manual and time consuming so they make this
system for automated and faster transaction.

2.2.6 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 be included in the proponent’s proposed
system.

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2.2.7 Fire Effects Monitoring and Inventory System (FIREMON)

This is design to satisfy fire management agencies’ monitoring and inventory

requirements for most ecosystems, fuel types, and geographic areas in the United States.
FIREMON consists of standardized sampling methods and manuals, field forms, database,
analysis program, and an image analysis guide so that fire managers can 1) design a fire
effects monitoring project, 2) collect and store the sampled data, 3) statistically analyze and
summarize the data, 4) link the data with satellite imagery, and 5) map the sampled data
across the landscape using image processing. FIREMON allows flexible but comprehensive
sampling of fire effects so data can be evaluated for significant impacts, shared across
agencies, and used to update and refine fire management plans and prescriptions.

2.3 Summary of Review of Related Literature (RRL)

In relation with the above statements, reviewed literature and studies from both local,
Regional, National, International and foreign authors were collect to relate their significance
with the work of the present researcher. The researchers found out from the gathered studies
that those researches are resources that made these present study easily understood. The
present study is not exactly identical base from the study above. Some of the related literature
support the claims of the researchers study. Some studies have semblances to what this study
attempted to work on. However some of the outputs of the authors run counter to the result
of this study.

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