CHAPTER 2 Review of Related Literature and Studies Foreign Literature
According to Jeff Wourio, online sales and inventory system are designed to immediately record any and all sales and inventory transactions. Not only does that mean timely and accurate sales tracking, but this system also lets one readily identify inventory levels, particularly when what you have on the books doesn’t jibe with actual stock. Little is more maddening to a business owner than watching his or her staff bogged down with inefficient, unproductive responsibilities, from double-checking his inventory disparities to seemingly endless cashregister reconciliation. Perhaps the greatest advantage to a comprehensive point-of-sale network is the freedom it can afford on personnel to devote their energy to what genuinely matters the most helping customers.
According to Donald Reimer and Ravi Nayar they disclosed that maintaining the right inventory levels is tough challenge. If not properly managed, the inventory can result in a significant expense. Looking over the shoulder is the lender who is concerned about the cost of carrying too much inventory – which can affect profitability.
Fortunately, there are management information systems that exists which use microcomputers and variety of industry specific software. The cost of carrying inventory today has become a major expenditure and requires immediate attention. The benefits of inventory control far outweigh the costs. Any reduction in inventories, whether it is raw material, work-inprocess, finished goods or supplies, can have a dramatic impact on your bottom line.
Industry averages suggest that a 20 percent reduction in inventory is achievable with an online inventory control system. For a company with a yearly sales volume of $1 million, such a reduction would result in savings of $14,400 per year and would free up $48,000 of new dollars for reinvestment. For a company with a yearly sales volume of $10 million, the figures are proportionately higher:$144,000 per year in savings and $480,000 in a new dollar for reinvestment.
. they propose non-parametric adaptive policies that generate ordering decisions over time. hardwood and softwood lumberyards. the knowledge of the demand distribution is not available. School of Operations Research and Information Engineering. NY 14853. A Non-Parametric Asymptotic Analysis of Inventory Planning with Censor and Demand of Columbia.udatasolutions.
Lumbergear sales and inventory software is a powerful.asp that was founded in 2002. They give control of hardwood lumber inventory and costs. brokers. and sawmills. Cornell University.com/lumbergear. where contrary to the classical inventory theory. demand data are censored. In this setting.According to www. Despite the fact that we come from modest beginnings and have come a long way. Furthermore. and get products to customers on time. Ithaca.
The manager must make an ordering decision in each period based only on historical sales data. and after years of research and development. and others.Unique Data Solutions began consulting with hardwood lumber companies to grasp the unique requirements of the hardwood lumber industry. affordable and easy to use lumber business management system that increases efficiency in the workplace. they continue to provide their customers with quality service and innovative technology solutions. They conduct a stochastic inventory planning with lost sales and instantaneous replenishment. Excess inventory is either perishable or carried over to the next period.
LumberCell is a new software add-on that works hand in hand with Lumbergear in realtime..
The aforementioned lumbergear system specifically helps manage and maintain inventory and costs for hardwood lumber and distribution. and wholesale operations. lumber sales. LumberCell allows mobile workers to be productive on the road. The system also features a core set of modules that make it possible to run lumber operations effectively. A mobile transaction processing system. and is compatible with the most hand held devices such as Blackberry. Lumbergear software was rolled out. they observe that only the sales quantity in each period and lost sales are unobservable. kiln facilities. that is. Lumbergear is flexible system that can be used by wholesalers. Pocket PC.
Food means brisk business. sari-sari stores.
. wet and dry markets.
Salavador P. a reconnaissance of places especially in the urban areas can attest to this. food retailing industry involves a wide array of sellers from the sidewalk vendors. The Philippines witnessed a substantial growth in the retail industry. hyper marts. Catelo denoted the importance of the Philippine Retail Food over the past decade. Food is intricately linked with its culture and traditions. 87 percent of the total employment comes from small food retailers with less than 10 employees (Digal. From 1981 to 1997. The food.27 percent over the same period.shows that the T-period average expected cost of our policy differs from the benchmark newsvendor cost-the minimum expected cost that would have incurred if the manager had known the underlying demand distribution. groceries. Outside the home. 2001). the industry grew by 5. About seventy-three percent (72. Within the food sector. supermarkets. Total retail sales in 2002 increased by 11. the industry absorbed 15 percent of the country‟s employed labor in 1998 (Digal.43 percent was in the service sector. investment on structure and modernization in operation.84 %) of this share was in the trade sub-sector while 25.
In the Philippines. In the family. food accounts for 43 percent of total expenditures. beverage and tobacco industry contributed 37 percent of the total employment in the wholesale and retail industry in the Philippines in 1995.1 percent and its GVA contributed 10. 2001). There are clear indications that this magnitude has been more or less maintained in the past 3 years. warehouse and discount clubs and convenience stores. Combined with the wholesale sector. Digal (2001) pointed out that the Philippine retail industry‟s performance comprises about 11 percent of the Gross Domestic Product (GDP) in 1997.6 percent to GDP in the same year. Although there is dearth of recent literature and statistics to support this observation.83 percent annually. Growth is seen not only in terms of numbers but more visible in terms of size. eating has become lucrative for the retail business. outpacing the average annual GDP growth rate of 2.
one the largest publicly-listed companies in the Philippine Stock Exchange.7 B in 1998. household spending on food increased by 26 percent from 1997 to 2000.com Henry Sy started to work at an early age of 12. the total market in 2000 was over PhP 30 B. the Legacy and Impreza 2.
. In the quick service or fast food segment. Aside from these three models. excluding corporate representation registered an average growth rate of 15 percent to 20 percent per annum in the last 10 years. exclusive distributor of Subaru in the Philippines reported a year-end sales performance of 602 units. Thus. Motor Image has also made available other well. Personal consumption expenditure (PCE) on food and beverages in 2002 reached about PhP 448 B from PhP 401.0R variants.
According to www. In 2008. Motor Image Pilipinas has continued to sustain its growth in the market with Subaru establishing itself as the premier sport-luxury in the country. the 300-hp WRX STI and the third generation compact SUV. (Palma. According to the Family Income and Expenditure Survey (FIES) of the National Statistics Office (NSO). It also registered the biggest growth in performance in the Philippine automotive industry based on the figures released by the Chamber of Automotive Manufacturers of the Philippines (CAMPI). marking an increase of 100 percent from 2007. Sy imported retail products from the US and sold it in the Philippines and the rest as they say was history.
Since its arrival in 2006. 2005). usually manning the small family sari-sari store and preparing the traditional way of recording the sales and inventory control. Shortly. or an average annual growth rate of about 3 percent (Omana. He entered the buy-and-sell industry to obtained funds to start his own retail business.Expenditures for dining out. 2005). Motor Image launched three new models that further strengthened its position in the market. Mr. Sy thought of selling small portions of their grocery items to accommodate customers buying small volumes of products.known Subaru models such as the Outback. Subaru has been the fastest growing automotive brand since its arrival in 2006 and Motor Image has announced plans to expand its business in 2009. the Forester. the concept of retail marketing came to his mind. Sy is now the CEO and the founder of the SM Prime Holdings.
Motor Image Pilipinas (MIP).helium. the luxury SUV Tribeca.
Online inventory management system has the capability to manage and process large volumes of data quickly and provide reports that help the healthcare facility do a better job of managing its surgical instrument inventory. RN. Others have additional options.
. However these techniques require error-free environments and better control over inventory since the buffer zone to compensate for the errors is less. is a valuable tool. It is important to be aware of which systems are currently available in the marketplace and what they offer. it has proven to be a cost effective instrument management program. Such techniques cut the use of company resources such as warehousing. such as instructional features online. the system requires maintenance. “However. we have an outrageous volume of instruments inventory. Most computer management systems track the instrument set through all processes and service. Inputting data using a bar code system is a definite time saver over annual input as long as the information is recorded at time of use. and employee tracking for productivity. Now we can find the trays. bar coding. sterile processing manager at Lenox Hill\hospital in New York City. but it’s worth it. At Lenox Hill. and someone to sit and input consistently.
When it comes to inputting data.
Although an automated system may require a substantial initial investment. Using a tray system that provided a location for labeling as well as the ability to bar code is a clear advantage. According to Valerie DeVries. backup. “It may cost thousands of dollars. Bar coded trays and a bar code scanner provide improved tacking of instrument sets. equipment and personnel.
Computer technology has provided opportunities for improving instruments management. instruments preventive maintenance reminders.Related Study Foreign
An Online Inventory Control System can also help company with new inventory management techniques such as Just-in-time („JIT‟).
The factory of the company is situated in Tangail district.D. In other words. In particular. The company follows “Safety Stock” inventory management system. and more detailed picture of its sales and inventory than the previous version. The “Quasem Dry Cells Ltd” is an old and premier manufacturing company of Bangladesh. the writes cited the aforementioned studies since it served as a guide to the present study. Silverman say he selected the upgraded CounterPoint software after evaluating other packages because it would run on the assortment of POS hardware his firm already had. Dynamics. The company mainly produced various types of batteries. Thus. at certain points of time the demand may exceed the anticipated level. a firm would come across situations in which the actual usage of inventory is higher than anticipated level and or the delivery of the inventory from the suppliers is delayed. the company has to follow a proper inventory management system. from Great Plains Software Inc. The demand of the product of the company is high.
The new version of CounterPoint gives the company a quicker. he says. Switching to competing POS software would have required Blades to purchase new hardware. Similarly. a discrepancy between the assumed and actual usage rate of inventory is likely to occur in practice. the receipt of inventory from the suppliers may be delayed beyond the expected lead-time.Improving information management has become the critical issue for most small retailers. transportation and other bottlenecks. N. says Judy Newdom. the program can be tied into the firm‟s accounting software.
Safety stock system helps the company to fulfill its market demand. As a result. a more accurate. The effect of increased and or slower
. based in Cleveland. This enables each sale to be entered instantly into the accounting ledger. the demand of inventory is likely to fluctuate from time to time. Moreover. Thus. For instance. The delay may arise from strikes. So. a principal of Computer Sciences Corporation national retail practice. of Fargo.
The aforementioned related studies seem to reveal the strengths and weaknesses of the Sales and Inventory System both local and abroad. floods. cash registers at many small businesses have been transformed into Online POS Systems.
employees scan the label once. The tags are then returned to Sokymat. its system will be deployed at 25 locations. or by PDA reader module supplier ACG. the firm would face a stock-out situation.” Nasser says. they created a study wherein once the tag is applied to a piece of jewelry. The database contains detailed information on each piece of jewelry. in true. therefore. the system has also caught the attention of jewelry retailers worldwide. be well advised to a keep a sufficient safety margin by having additional inventory to guard against stock-out situation.56 MHz
. When the store sells a product. “Not everyone needs a financing solution. This. French RFID systems manufacturer Tagsys and Swiss auto-ID software solutions provider Solid have co-developed a 13. disabling it.
By June. “From a technical point of view. as explained in detail below.
RFID Tracks Jewelry Sales. Nasser says. Inventory of Middle East. making it impossible to transfer it from one piece of jewelry to another one that is cheaper in an attempt to disguise a theft. instead. depending on the size of the retailer. can be waved a few inches above the jewelry to retrieve information about the item from the database. Such stocks are called “Safety Stock”. where bank ownership is an attractive option. it‟s about inventory management.” TJS charges the stores a monthly fee for the system. While the system offers special advantages to the Middle East. The company would. This would act as a buffer or cushion against a possible shortage of inventory caused either by increased usage or delayed as the minimum additional inventory to serve as a safety margin or buffer or cushion to meet an unanticipated increase in usage resulting from an unusually high demand and or an uncontrollable late receipt of incoming inventory. The system can be operated as a stand-alone system or integrated with the store‟s IT system. The data related to those daily read is transferred to an inventory database managed by TJS‟s software service. which removes the chips from the hard plastic cases and put them into new casings. it‟s a solution for the whole world. would disrupt the production schedule and alienate the customers. That is.delivery would be a shortage of inventory. a store employee uses a handled interrogator to capture the tag‟s unique identification number. and then cut the tag. Any attempt to cut the cord disables the tag. The company is not the only one offering an RFID solution for jewelry retailers. then again on a daily basis for inventory management. Handheld interrogators manufactured by Feig Electronics. and TJS forwards a daily report to the bank.
a summary report system for the manufacturing department and director. a sale person-order system through website via a computer PC or laptop. Fifthly. which is a database program.
A prototype warehouse sale order and inventory system via Pocket PC phone using GPRS communication has been created for sales departments in tire factories to manage with sales orders effectively and efficiently. This prototype will work as the order-center for administrators. customers and administrators. The application has five sections: Firstly. This warehouse sales order system has been created using PHP. Swiss watch and jewelry maker de Grisogono has developed the system at its stores in Geneva and Paris.98 percent and increased satisfaction for all users. a product data management system and sale order data management through website. which is server side script and MySQL.RFID system aimed at increasing inventory accuracy and reducing theft. Major in Information Services Management by 2004-2007 and Senior Business Systems Analyst of KFC Philippines.
Local Study Michael Cruz‟s of De La Salle College of Saint Benilde a graduate of Bachelor of Science in Business Administration. He conducted a research study on Enterprise Content Management to any store or company which tackles sales and inventory
. the result of order products through websites was very satisfactory. Fourthly. After the application was implemented by sale persons. It reduces the processing time by 77.
Secondly. It decreased the order processes. and at the same brought information technology to apply to the sale process. Thirdly. and also plans to roll it out across all 15 worldwide retail locations by the end of the year. sale person-order system through website via a pocket PC phone. and the GPRS communication network for a pocket PC phone. a customer-order system through website via a computer PC or laptop. sale persons and customers.
The system will require an internet network for a computer PC or laptop.
and then the cashier will scan the barcode to the barcode reader machine and automatically compute the sold items.
. The study also deals with sales inventory wherein the customer will purchase the item. The objectives of their research study is to have an accurate sales.
A Research Study of Longjas Trading Online Sales and Inventory was conducted by the students of Leyte Normal University Computer Science Department. They develop a system with high levels of reliability and availability required of business-to-consumer Websites that requires not only great technology. stock.control that aims to help concessionaires in their inventory stocking and as well as in preparing their sales report. using MySQL-server. but also great operational processes. Building a scalable. availability of an items. All of the key processes and tools are covered in this store from retail storefront to back end management. lessen the work load of the management employee and have smooth flow of sales inventory. available and generate sales inventory report.
They have tried developing the most basic modules required in an online business. that was conducted by the group of researchers of Eastern Visayas State University Bachelor of Science in Information Technology Students. highly available application is a necessary process in becoming functional as an e-commerce entity. Another research study with the title name “Sales Inventory” for Gaisano Capital Tacloban Branch”. PHP and Apache Web server.
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