Review of Related Literature
Review of Related Literature
Review of Related Literature
LOCAL LITERATURE
The problem mainly concerns on the inventory. They are relying on physical
count of incoming goods and recorded on a piece of paper and transferred to a
columnar book. Every transaction on the outgoing of goods is being recorded to a Daily
Record Book and transferred to Daily Remittance Report. However, this process
provides redundant records, inaccuracy on their daily reports and make it hard for the
management to determine how many cases are still available in the warehouse and if
this stocks are enough to sustain the needs of their customers. If operations will stop
due to availability of stocks, It cost the company an estimated value of P 20, 000.00
losses on their income.
The advantages of the SMART system is that it has to be huge because products
that Wal-Mart do not carry will still scan and give out the relevant information so that it is
easier for people to return products. The SMART system is linked to the cash registers
as well as inventory is automatically update as products are sold. Hand counts are
updated as well as some products automatically updated. The main disadvantage of the
SMART system is that everything has to be coded with bar codes. Which can lead to
additional cost but the main key to an effective bar code system is to get as close as
possible to the bar code data source.
The retail business vision is to maximize profit from customer satisfaction and
loyalty towards the store by providing more personalize service for the customer.
However, retail business also easy to lose its possible customer if they do not have
sufficient stocks in the store. Thus, in this paper, the developer had identified problem
related with inventory that exists in a one of oldest retail store in Taman Majuknown as
Rahmath Store. The major problem of the store is they do not have proper inventory
control system in guiding and managing their sale and inventory level of the store.
Sales and Inventory System is one of the basic problems in almost every
company. Before computer age and integration, paper tables and paperwork solutions
were being used as inventory management tools. These we very far from being a
solution, took so much time, even needed employees just for this section of
organization. There was no an efficient solution available in the many companies during
these days. Every process was based on paperwork, human fault rate was high, the
process and the tracing the inventory losses were not possible, and there was no
efficient logging systems. After the computer age, every process is started to be
integrated into electronic environment. Now we have qualified technology to implement
new solutions to these problems. Software based systems bring the advantages of
having the most efficient control with less effort and employees. These developments
provide new solutions for also inventory systems in this context. In this paper, a new
solution for Sales and Inventory System(SIS) is designed and implemented.
Using this type of system, a company makes strategic business decisions regarding
raw material purchases, production scheduling, pricing, logistics and other decisions in
the supply chain. 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.
Function
A sales and inventory monitoring system collects data to aid in production scheduling.
For example, some systems use recent sales data to forecast how many of a type of
product will be needed to meet consumer demand in the near future. This includes
monitoring the levels of a product at all locations. A good example is a global company
with customers all over the world. The customer may live in Japan, but the system
must see if the warehouse in Canada has a product available to ship to Japan.
How it Works
The system compares current inventory levels of a product and the number scheduled
for production with the number needed, and determines if the level of production must
be changed. If necessary, the system sends a message to the master production
schedule to increase production. Also, the inventory monitoring system slows down
production when a product's retail sales levels don't meet the sales forecast and the
company overproduces the product.
Competitive Advantage
LOCAL
FOREIGN
Kerketta, A. & Kumar, G. (2016). Sales and inventory system. Volume 03, Issue 04.
Retrieved from: https://ijmter.com/papers/volume-3/issue-4/sales-and-envtory-
system.pdf