Chapter II

Review of Related Literature and Studies

This chapter attempts to give an analysis on the study, which

has significant bearings on the problem under investigation. This

also includes ideas, taken from finished thesis and other online

sources. The concepts introduced below help the researchers build

their foundation in pursuing the study.

Related Foreign Literature

(1) 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.
Based on Brigman (2007), Fundamentals of Financial Management, 5th 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.

(2) Louw, Door Janne, (2006, May 10, 2006)

http://www.liacs.nl/assets/Bachelorscripties/2006-08JanneLouw.pdf

Description with UML Hotel Reservation System. Developed a hotel management

system that can be used online. This system allows the guests to do their booking online

by them self. Some of task that the system can do are providing a query for arriving date

and the length of staying, providing the number of On rooms, view all available rooms and

provides user the ability to choose one or more of them, recording the number of on rooms,

view all available rooms and provides the user the ability to choose one or more of them,

recording kind of guests and how many going to be in the single room, providing the cost

of booking, asking the users if they want additional service; such as, dinner or breakfast,

storing the guests detail; like, name, address and telephone, asking the user for

confirmation, final confirmation views with the detail of booking and the guests can review

or cancel the booking.

The proponents’ system also allows the client to do their booking online and make

transactions by them self. The proponents’ system also provides a query for arriving date
 and departure date, view all the rooms and let the user choose what kind of accommodation

they want. Unlike UML Hotel Reservation System the proponents’ system do not include

additional services; such as, dinner or breakfast.

(3) Decision Support System for Vendor Managed Inventory

Achaval, et al (2000) vendors and retailer have begun to forge cooperative agreements to
manage inventory which requires sharing demand information and setting manually agreed upon
performance target to the company. This paper describes the market forecasting and inventory
management, Vendor Management Inventory (VMI) system has been initiated by certain
manufacturers to improve both retail customer services levels and inventory turnover. VMI system
achieve through more accurate sales forecasting and more affective distribution of inventory in the
supply chain. The VMI allows the retailer to expand the assortment of the vendor’s products that
can be offered within a retail space. This improves the profitability of the vendor’s brand for both
the retailer and the vendor.

(4)Records Management https://cs.uwaterloo.ca/~aataulla/papers/masters_thesis_ataullah.pdf

Storage of records has always been a fundamental objective of information systems.

However in the past decade managing sensitive information throughout its lifecycle, from creation

to destruction (or archival), has become of significant importance. The increasing awareness of the

impact of technology on privacy has added momentum to the need to have better enforcement of

records retention policies. Organizations today not only have to comply with regulations, but also

have to maintain a balance between operational record keeping requirements, minimizing liability

of storing private information, and customer privacy preferences. This work will not attempt to

define the term “record” in the broad context. Instead the term will be treated in all its generality

and then applied to the world of relational databases. Without attempting to differentiate terms

such as data, knowledge, information and record, it is recommended that the reader maintain a

simple but consistent definition of a record throughout this thesis.

 (5) K. Veeranjaneyulu (2012) has described the collection development process in

Archarya N. G. Ranga Agricultural University Library, Hyderabad. Similarly Rubinandhini (2012)

has conducted a survey on collection development in Periyar University Library, Tamil Nadu. Her

findings have revealed that their university library provides many printed and e-resource facilities

to its users. The university library is playing a vital role in innovations of exploring new concepts

to help the society at large. Similarly K. Palanivel (2012) has programmed a cooperative collection

development model for libraries in Puducherry. Its main objective was to share information by

way of resource sharing and networking through proposed Puducherry Library Network

(PUDULIBNET) using National Knowledge Network/ National Mission on Education through

Information and Communication Technology. It would enable the user to access resources

amongst the libraries in Puducherry. He also discussed the e-resource collection in Pondicherry

University Library, Pondicherry University, Pondicherry.

T Rama Lakshmi (2012) has done a case study of the collection development of e resource

collections especially the trends in the growth of digital library in S.V. University, Tirupati,

Andhra Pradesh. A brief description is presented on the issues and challenges faced during the

digitization process. Similarly S. Dhanavardhan (2012) analyzed the print and electronic

resources amongst self financing engineering colleges in Tamil Nadu. His paper also

suggested that there is a dire need for self financing engineering colleges to exploit the

information products and services by laying emphasis to user education programs.

S.Mathurajothi (2012) has surveyed the collection development in Gandhigram Rural Institute

Library, Gandhigram, . Likewise Lakshman Sarkar (2012) has surveyed the management and

use of library resources of Central Library of Krishnagar Government College, West Bengal.
 He suggested that librarians should automate their housekeeping operations, improve book

and period collection and provide user education programs.

Related Local Literature

(6) Inventory Ordering System By Globe Business Philippines
With just a few keystrokes, track your supplies using Globe’s Inventory Ordering System. The
cost-effective and highly innovative inventory management system gives you instant access to
stock levels, allowing for timely orders and zero wastage.

Get real-time reports

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.
Cut through red tape
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.

Features & Benefits

 Registration Module
 Order Management
 Inventory Management
 Sales Management
 Reports Module
  Text Broadcast
(7) From the local literature Jeonsoft Inventory System aims to provide easier
and faster way to monitor the movement of the business’ stock of goods. It is interactively
designed to possibly do the common tasks done in customary way. From item entry,
releasing of items, inventory adjustment, transferring of goods from one warehouse to
another and production, sure you can keep track of your inventory. JIS uses JibesXP Tools
that has been especially configured with properties that would help you organize well the
flow of your inventory. To ensure the security maintenance of JBS system, it has JADE
(Jeonsoft Administrative Enforcer) programmed to protect the transactions in your system.
Users will be asked to enter their login name and password to confirm if they are entitled
to access the system. Using JADE, Administrators can also assign a specific module for
employees to access since they are only entitled to access modules that are related to their
wor k.

These only means that in some reason using computer technology and a system can

lessen the works of an individual with an accurate result that are safe and reserved for the

future of the company.

(8)

9)

(10)

Related Foreign Studies

(11)A sales and inventory monitoring system by Audra Bianca, Demand Media
collect 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.
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.
(12) In the study of Ferrer (2001), Under the Koread Red Ginseng Enterprise Sales
and Inventory System, the proponent came up with a computerized sales and inventory
system. The proponent 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 proponent proposed a new and faster
way of processing business transactions. The system also helped the user to know
availability of the products. It also helped the manager to monitor the stocks and to get
immediate notice for acquisition of additional products.

The proponent acquires knowledge about the file processing and report generations
through this study. It also gives the proponent 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.

In a study by Aparanjitha (2008), this project is aimed to developing in online Sales

and Inventory Management System (SIMS) for a departmental store. This system can be
used to store the details of the inventory, update the inventory based on the sale details,
produce receipts for sales, generate sales and inventory reports periodically, etc. This is
one integrated system that contains both the user component (used by salesperson, sales
manager, inventory managers, etc.) and the admin component (used by the administrators
for performing admin level functions such as adding new items to the inventory, changing
the price of an item, etc.). This system runs on multiple terminals, offer GUI to its users
and connects to a common database(s).
 The proponent acquires knowledge on real time inventor, generations of receipts
and security features where in restricted information are only accessible by employees,
managers, administrators, etch. The proposed system can be accessible by employees,
administrators and customers, making online transaction possible.

(13) Automation can draidatically affect all phases of inventory management,

including counting and monitoring of inventory items; recording and retrieval of item
storage locations; recording changes to inventory; and anticipating inventory needs,
including inventory handling requirements. Effective Inventory Analysis. Get Data Related
to Effective Inventory Analysis. For many distributors, inventory is the largest and perhaps
the most important asset. Inventory ties up more money than buildings or equipment, and
is often less “liquid.” It is crucial, then, that distributors develop and use a comprehensive
set of tools that allows close monitoring of the performance of inventory investments. Read
more about simple measurements that can help you maximize your investment in
inventory.

According to the study of Edwin Bello and his fellow researchers of Computerized

Monitoring and Inventory of Stock with Warning Level dated March 2005, many firms

have thousands of items of inventory which require some form of control. The usage

calculations and record keeping chores would soon become overwhelming were it not for

the computer and its unique information storage and retrieval capabilities.

http://www.studymode.com/subjects/related-studies-in-pos-page2.html (2011, 09).

Chapter Ii: Related Literature and Studies of Inventory System.StudyMode.com. Retrieved

09, 2011, from http://www.studymode.com/essays/Chapter-Ii-Related-Literature-And-

Studies-767850.html

(13) 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;

1) Maintaining a wide assortment without spreading the rapidly moving items too thin,
2) Increasing inventory turnover without sacrificing service,
3) Keeping stock low without sacrificing performance,
4) Obtaining lower prices by making volume purchases,
5) Maintaining an adequate inventory without an excess of obsolete items.

Anyone in business must understand the business of inventory. Below is a look at six
different inventory systems as well as a comparison of the advantages and disadvantages.

Wal-Mart Inventory System

Wal-Mart runs its stores on a perpetual inventory system. This system records the quantity
of items sold as items are purchased. The computer system at Wal-Mart constantly keeps
up with additions or deductions from inventory and tells management what items are on
hand. The organization also conducts counts of employee manual counts of inventory
periodically. When an item arrives at the Wal-Mart distribution centre it is scanned into
the inventory system. When the items are purchased by the consumer, the point-of-sale
system reduces the inventory from that purchase. According to Wal-Mart’s Gail Lavielle,
a leaner inventory will help clear out store clutter and help Wal-Mart focus on specific
brands and products that consumers want (The Associated Press, 2006).

Advantages and Disadvantages of the Wal-Mart Inventory System

The advantages of a perpetual inventory system are that inventory is quickly updated in
real-time, which gives a constant picture of the inventory status.
(14)
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.
(15)
Online Billing and Reservation System of Bug Hotel

http://www.bug-hotel.org

The Bug Hotel Reservation System allow one to find the ideal bed and breakfast

inn, whether by location, amenities, online bookings, recipes, special packages, last-minute

availability. It also offers a wide variety of additional information to enhance inn travel

experience. The hotel was designed to simplify the task of online booking. It provides users

a unique, intuitive and easy to use interface that improves the way people use the web

today. Through personalization and rich features, Bug Hotel Reservation system enhances

the entire Web experience. Bug Hotel Reservation System offers an online web based

reservation system for hotels, properties, motels and B&B’s at affordable prices.

Similar to the Bug Hotel Reservation System, Online Billing and Reservation for

Altaroca Mountain Resort and Convention Center allows every clients to find the ideal bed

or room that they want. But unlike the Bug Hotel Reservation System they are not allowed

to reserve food and drinks. The proposed system of the proponents will also help the clients

to experience more convenient ways on how to book their reservations.

Related Local Studies
(16)According to Distors (2007), in her study Sales Monitoring System, the
accelerated work structure of the company proper monitoring is essential in order to keep
track of the company’s sales activities. Her system aims to come up with an efficient, and
accurate mechanized system of preparing invoices that will keep track of the daily
transaction and generate reports. Important information will be provided by this studying
order to prove that the computerization of the company’s operation and achieve a more
reliable and efficient means of monitoring day to day activities. Her system focuses on the
analysis and design of the sales monitoring system which will monitor the stacks inventory
of the sales departments. This system of hers is somewhat related to our study but our
system focuses more on the inventory monitoring system of a trading company.

As a stated at the book of Passion (2004), to improve their efficiency and reduce
their cost of operation. Reports are more timely and accurate. Computers have a large
capacity to store data and tremendous speed to manipulate and recall data to the format a
user wished to use which introduction of microcomputer computation of business is more
affordable.

Lewis (2002), stated that: the reason for using computers vary from person to
person. Some of the computers in business are to perform accuracy, to be as productivity,
to decrease bottle necks or hassles, to alter cash flows, or to simply elevate your status.

According to Sybex Inc (2000), visual basic provides a graphical environment in

which the users usually designed the forms and control that become the building block of
tour application. Visual Basic support many useful tools that will help the user to be more
productive. The hardware of a POS system is also distinctive and important. A typical
system includes a display screen for the clerk, a customer display, a cash drawer, a credit
card swiping system, a printer, and a bar code scanner, along with the computer loaded
with the POS software. Custom features may be added or removed, depending on the
industry. A restaurant POS system, for example, may have a feature which prints order
tickets directly in the kitchen, or a grocery store may have an integrated scale for weighing
goods.

(17) According to the study of Anna Marie Beltran Distor of Proposed Sales

Monitoring System issued 1995, the accelerated work structure of the company proper

monitoring is essential in order to keep track of the company’s sales activities. Her system

aims to come up with an efficient, and accurate mechanized system of preparing invoices

that will keep trSack of the daily transaction and generate reports. Important information

will be provided by this study in order to prove that the computerization of the company’s

operation and achieve a more reliable and efficient means of monitoring day to day

activities. Her system focuses on the analysis and design of the sales monitoring system

which will monitor the stacks inventory of the sales departments. This system of hers is

somewhat related to our study but our system focuses more on the inventory monitoring

system of a trading company.

Popular author of Accounting, Waldo T. Passion (1990) in his book stated that, to

improve their efficiency and reduce their cost of operation. Reports are more timely and

accurate. Computers have large capacity to store data and tremendous speed to manipulate

and recall data to the format a user wishes to use which the introduction of microcomputer

computation of business is more affordable.

(18) LC Pc Net Sales and Inventory System

AMA COMPUTER COLLEGE, SORSOGON CAMPUS October 2010
Technology has taken a big leap forward in 21st century, with computer programs,
electronics upgrading by the month & even by the day. Technology has influenced &
greatly simplified almost in every aspect of a student’s life today. It is amazing what
technology has done to our society and how dependent we have become on it. Having
computers in the workplace has enable the business to our more efficiently and has
contributed in having on all around better businesses, using computers cut down our work
time, we don’t have to write everything out by hands or type out on typewriters. This
increase in usage of computer proves that computers have affected every aspect of our lives
and have become one of the necessities. Many developers have contributed to such an
advancement and widespread of computer technology.

Nowadays there are so many companies using technical system to improve the quality of
service of their company, but there are some companies still using manual computing for
their product inventory like LC Pc Net Sales & Services.

LC Pc Net Sales & Services is owned by Mr. Leo Boongaling. It is established on April
2010. It is the first company that he built in order to apply his knowledge and skills in his
past schooling, together with his friends as employee. Their products are such peripherals.
And in the ground floor they have Louis and Nathalie Computer Shop.

(19)

(20)