INVENTORY SYSTEM

SUBMITTED BY:

BSACT3C

BUNYI, MARY KIMBERLY

OCHOA, HARVEY

REDONDO, ARSHEL

SUAREZ, ABYGAIL

VITUG, KIM

SUBMITTED TO:

PROF. GUEVARRA
 Chapter 1

The Problem and

it’s Background
 Introduction

Nowadays, many company are emerging in the business field and having a

competition, in order to have an advantage in the field every company needs a

wise and responsible employees and good management, in order to have a good

management a company needs a reliable inventory system and an inventory

system is a piece of software used by a company or business to track the

business's property. For example, the inventory system could be installed on the

tills at a supermarket to keep a record of every product scanned and sold - as a

result, the supermarket would be able to see which products are selling well,

which products are not selling well, and whether or not they need to buy further

stock.

Technology such as barcode readers and tracking devices are also included

under the term "inventory system", as they are used to inform the software of

data such as the number of products sold.

The used of manual processes in business has decline since the rise of

computerized and automated systems. And in fact, nowadays, the use of

computer-based business system has become prevalent all throughout the

developed and developing countries around the world due to the increased

productivity and efficiency of data processing

 Background of the study

Inventory is a current asset on your company’s balance sheet. More important, it

is a major part of your ongoing business operations. For manufacturers, inventory

includes raw materials used to make and assemble products. For resellers, it

includes products you acquire to resell to customers. In either case, you need

inventory to earn revenue. The ABC CO. get their stocks from XYZ Inc. and pay it

by terms, now recording of product sales, purchases, expenses and inventory are

in manual form, and we think about giving the a hand by creating this inventory

system.

Objective of the study

General Objective

To develop an inventory system that will help the ABC CO.This system will help

them to have an accurate, user friendly, and organized inventory.

Specific Objective

 To create a log-in account

 To have a better and easier access for the save inventory

 To store item on the inventory

 To develop a secured inventory information

Statement of the study

The researcher sought to answer the following questions

1. What is the impact of inventory system in order to have the needs of the

costumer in terms of

 Conveniency

 Competitive advantage for any business

 Operational efficiency

 Intelligence

2. How do costumers, staff and the management evaluate the inventory

system in terms of

 Funcionality and Reliability

 Performance

 User Friendliness

 Security
 Significance of the Study

It is important to value inventories accurately in order to meet shareholder

needs and demands for financial information. For manufacturing companies,

inventories usually represent approximately 20 to 60 percent of their assets;

hence it affects companies' profits. It is essential in which way assets are valued,

however, it will be a waste of time if the record accuracy level is poor.

This IT project intends to provide an accurate and effective Inventory and

Monitoring System which will benefit the following:

Department Manager: This study will help every manager in the projection

and acquisition of resources for project needs and the assignment of

responsibilities to ensure proper utilization of process; and the storage,

maintenance, and repair of critical resources

Management: Prepare the management on changes specially training the

department manager/s deal with the size complexity and changes in large

projects on how they foster collaboration given the organizational diversity and

loose coupling.

Researchers.The project serves as a basis of their study. It engages their

knowledge in programming activities to create a computerized system. It will also

 serve as a tool to sharpen their knowledge and ability in developing a

computerized system.

Scope and Limitations of the Study

Many companies use inventory systems in their production or

retail operations to manage inventory levels. Inventory might be one of the

most valuable assets a company owns and systems to manage it provide the

foundation to meet customer demand. Each inventory system falls within a

specific scope and exhibits certain limitations that management must

understand in order to choose the best system for the company.

Scope of the Study

 The scope of an inventory system defines which needs it addresses,

including valuing the inventory, measuring the change in inventory and planning

for future inventory levels. The value of the inventory at the end of each period

provides a basis for financial reporting on the balance sheet. Measuring the

change in inventory allows the company to determine the cost of inventory sold

during the period. Together, inventory values and level changes allow the

company to plan for future inventory needs.

Limitations of the study

The main limitations or disadvantages of an inventory system are the costs

required in setting an inventory system up, and the complexity of using and
maintaining an inventory system in an effective way.

Cost: The technology and software required by an inventory system can be

expensive to purchase, install and use. For example, the software used to track

what products have been bought, sold and delivered in very technical, and

therefore very expensive. In addition, the technology used in conjunction with

an inventory system, such as tracking devices in delivery vehicles

or barcode scanners, are also expensive. This means that a good

quality inventory system is usually out of reach of small, new or independent

businesses.

Complexity: Due to the technical nature of the software and technology used in

aninventory system, it can be difficult to thoroughly educate all members of staff

on how to use the inventory system in an effective way. In addition, the education

process can take days or even weeks, meaning that business can come to a

standstill during this time. As a result, although inventorysystems can be

incredibly useful, they can also be difficult to implement.

 Chapter 2

Review of Related

Literature and

Studies
 Foreign Literature

According in (Nissan team to tackle inventory problems)

(http://www.autonews.com/article/20140113/RETAIL01/301139998/nissan-team-

to-tackle-inventory-problems). Early last year, Nissan executives began using the

phrase "the right car at the right place at the right time" like a mantra. But it's

more than that. Nissan has assembled a team of sales managers, forecasters,

planners, retailers, factory engineers and logistics managers in North America

and Japan to execute its right-car mission. After spending the past two years

redesigning, reintroducing and repricing most of its vehicle lineup, the automaker

is convinced that all of its products are competitive in their segments, and in

some cases segment-leading. But one problem continues to hold the franchise

back -- a U.S. inventory chain with a few holes in it, says Fred Diaz, Nissan

Division senior vice president for U.S. sales, marketing, parts and service.

"We've got a huge initiative under way to get this right," Diaz says. "Rather

than trying to assess market needs from here at our headquarters or relying on

our retailers to guess, we're designing a new approach to make sure we can

deliver the right car at the right place at the right time." The process will give

Nissan's sales regions more voice in production planning and make it easier for

dealers to find cars in the factory order banks.

 In the past 90 days, Nissan also has been tackling inventory shortages of its

Versa subcompact, Maxima sports sedan, redesigned Sentra compact and

certain tech packages of its volume-leading Altima mid-sized sedan.

Nissan management has spent recent months working with its dealer

advisory board to rewrite the rules of the company's dealer stair-step incentives.

Retailers across the industry have decried stair steps for pressuring them to push

sales onto the market to meet aggressive sales targets. Nissan wants the sales

concept to work, believing it could be a powerful tool in its quest to capture a 10

percent U.S. market share -- up from 7.3 percent for 2013.

But to get there, inventory planning must improve, dealers told Diaz. In

order to sell 100 extra vehicles during a stair-step period, a dealership needs to

have the right vehicles on hand. Nissan was addressing the problem when Diaz

arrived last year. His boss, the newly promoted chairman for Nissan North

America, Jose Munoz, has urged dealers to help the company improve its

inventory planning. This year, Nissan will begin pushing more decision-making

out into the sales regions for planning and ordering.

Stocking the right vehicles is the key to selling more, says Brad Fenton, a

multi - franchise dealer with Nissan stores in Oklahoma and Missouri who helped

rewrite Nissan's stair-step plan. "We haven't been able to do that effectively in the

past, to order and stock the right product to do it," says Fenton, who also is

chairman of the Nissan National Dealer Advisory Board. "Jose has firmly
committed to making it work -- he is behind the plan of 'right car, right place, right

time.' He's committed to giving us what we need to achieve it."

According in (Nike’s Inventory Management Solution)

(http://blog.ordoro.com/2012/01/24/nikes-inventory-management-solution/). In the

early 2000s, Nike had some major inventory management problems. The

company lost around $100 million in sales due to these issues. It may be difficult

to imagine that such a well-established corporation could have a massive

operational failure like this, but they did. As they learned from this experience,

inventory control can be difficult for a business of any size. Fortunately,

following this failure, Nike developed an improved inventory management

solution to solve their problems rapidly. Here’s what happened to Nike and how

the company recovered:

In 2001, Nike implemented an updated version of their inventory

management software. The idea of this newly implemented inventory control

software was to help

predict which products they would sell the most, and thus prepare the right

amount of supply to meet the demand. First they would produce a demand

forecast and based on that forecast, they would prepare a manufacturing plan.

That’s how most big corporations (and some small businesses) make their

operational business decisions. Here is the process in a nutshell –

Based on historical sales data of different products, and based on some

market growth estimates, Nike would first prepare a demand forecast for different
families of products. This demand forecast is then used to determine optimal

inventory levels, reorder points, material lead times etc. And the entire

manufacturing plan for months is determined using these numbers produced by

the inventory management software.

In Nike’s situation, however, they ran into some serious software

implementation issues – bugs, and data errors – which resulted in incorrect

demand forecast. The predictions the software made were totally off, so Nike

didn’t produce enough of certain products that consumers were interested in

buying. Conversely, they overproduced other shoes. This erroneous

manufacturing plan eventually resulted in lost sales worth millions of dollars.

Nike’s case illustrates just how crucial it is to manage your inventory and

your inventory management system properly, irrespective of whether you are a

small, medium or large business. When choosing an inventory management

solution it is extremely important to ensure the quality of software that your

vendor provides. It is equally important to make sure that you enter all the

requisite data and double check everything! Especially if you are a small

business owner and can’t withstand a massive loss in sales!

According in (The Problem with Traditional Inventory Management)

(http://www.supplychain247.com/article/the_problem_with_traditional_inventory_

management) (By Orchestra, 02 / 2015). Traditional inventory systems attempt to

solve the inventory management dilemma through better forecasting,

improvements in the order point / order quantity process, or by adjusting safety

stock levels.

However, order quantities, safety stock and lead time represent only a minority of

the sources of inventory problems.

Many inventory problems are the result of poor execution, poor

communication, and / or poor decision making.

Poor execution is common at all levels of the supply chain and starts at the store

level. For example:

Product makes it to the store but doesn’t make it to the shelf.

Promotional displays or inventory make it to the store but not to the floor.

Product is put on the wrong truck at a distribution center, sent to the wrong store,

or is late to a distribution center.

Poor communication is common both within and across supply chain functions,

and takes a particular toll in data analysis and collaboration. Analysts, category

managers, sales managers and supply chain personnel look at problems in

different ways and focus on different aspects of them. Getting insights from data

is often a complex process for CPG data analysts, making collaboration difficult.

Poor decision-making is endemic at all levels of the supply chain, and is often the

result of both poor execution and poor communication. Quite often poor

decisions are made because the decision maker doesn’t know where to focus.

There are so many different SKUs in so many different stores, from so many
different distribution centers, in so many different locations in the stores, under so

many different conditions. Consequently, shortcuts are almost always taken,

which may compound the problem or lead to new ones.

Poor execution, communication and decision making, coupled with

“advanced” inventory management systems leads to a vicious cycle, ultimately

reducing sales, profit margins and customer loyalty.

According in (Cloud Based Inventory Management Software)

(http://www.mbtmag.com/articles/2013/05/benefits-cloud-based-inventory-

management-software). For a long time sophisticated inventory management

software solutions were too costly for most small and mid-size businesses. In

addition to paying for the software license, you needed appropriate hardware to

house the data and an IT staff to maintain the software and address problems. All

of this adds up to high cost of ownership. Instead, many SMB companies still rely

on paper processes and spreadsheets to monitor their products and supplies.

With the advent of cloud computing – also called Software as a Service (SaaS) –

however, reliable, sophisticated inventory management solutions are now within

the reach of most SMBs.

Enhanced Efficiency: Cloud inventory systems increase your efficiency in

a number of ways. One is real-time inventory monitoring. A single change can

replicate itself company-wide instantaneously. As a result, your staff can have

greater confidence in the accuracy of the information in the system, and

management can more easily track the flow of supplies and products – and

generate reports. In addition, cloud-based solutions offer greater accessibility.

You no longer need to be on the premises in order to access inventory

information; now you can see it anywhere you want – even in meetings with

clients. Cloud solutions are also good at supporting a wide variety of devices

including tablets and smartphones.

Improved Coordination: Cloud inventory programs also allow departments

within a company to work together more efficiently. Department A can pull

information about Department B’s inventory directly from the software without

needing to contact Department B’s staff for the information. This inter-

departmental communication also makes it easier to know when to restock and

which customer orders have been shipped, etc. Operations can run more

smoothly and efficiently, enhancing your customer’s experience. Accurate

inventory information can also have a huge impact on your company’s bottom

line. It allows you to see where the bottlenecks and workflow issues are – and to

calculate break-even points as well as profit margins.

According from (Fishbowl Manufacturing or Fishbowl Warehouse),

(https://www.fishbowlinventory.com/articles/inventory-management-

software/benefits-of-using-inventory-programs/) Instead of using an ad-hoc

inventory management system, you should seriously consider switching to an

advanced inventory program. There are many advantages of using an

established inventory program rather than trying to create one on your own. Here

are three of the biggest reasons:

SPEED UP INVENTORY MANAGEMENT. Most inventory tasks go much faster

with inventory programs. For instance, scanning products with a barcode saves a

lot of time compared to writing product numbers and quantities by hand and then

manually inputting those numbers into a computer. Not only is it inefficient to do

this by hand, it’s also much more likely that employees will make errors.

With an inventory program, receiving and selling products becomes less

tiresome because most of the work is done for you. You can automatically

generate invoices, sales orders, bills of materials and many other documents by

simply using a mobile wireless device.

INTEGRATE WITH QUICKBOOKS. When looking at inventory programs, make

sure you choose one that integrates with QuickBooks. QuickBooks is the most

popular accounting software for small businesses, and accounting and inventory

management go hand in hand. When you order a product, you want that to be

recorded in QuickBooks as both an account payable and a new asset. If your

inventory program integrates with QuickBooks, you won’t have to worry about

entering the same information twice; it will automatically update QuickBooks

every time you buy or sell products.

SAVE MONEY. By cutting down on inventory errors and making inventory

management less time-consuming, you can save a lot of money. Inventory

programs let you know how much inventory you need to carry, when to reorder

products and many other things that help you cut unnecessary costs.
 According to (Small Business, Setting – up an Inventory Control System),

(http://smallbusiness.chron.com/setting-up-inventory-control-system-2236.html),

Inventory is the most valuable asset in a large number of small businesses, and it

can also be one of the most difficult assets to keep under control. Theft,

administrative errors, physical damage and obsolescence all eat away at

inventory, squeezing profit margins and damaging bottom lines. Setting up an

inventory control system can help you to maximize the value of your inventory by

keeping costs under control.

Implement policies to limit the amount of people with access to your

inventory, and keep a record of who has access to secure areas at specific times

throughout each day. According to effectiveinventory.com, managers often

underestimate the effect of theft on their inventory costs. Consider installing

security cameras and keycard-access points in your inventory storage areas.

Create a plan to take advantage of central warehousing and cooperative

purchasing techniques. Create a formal system to replenish inventory at one

location with excess inventory from another location, when possible, and to

combine purchases for several locations into a single purchase order. This can

help you to make fewer and larger purchases, allowing you to take advantage of

quantity discounts and minimize distribution costs across the supply chain.

According to (PubMed.gov, Automating the purchasing and inventory

control functions), (http://www.ncbi.nlm.nih.gov/pubmed/3839107). Factors

involved in computerizing the purchasing and inventory control functions in

hospital pharmacies are described. When initiating an automated purchasing and

inventory control system, a feasibility study should first be conducted to

determine the extent of automation needed to develop a cost-effective system.

The design of the system will depend on the extent to which the department of

materials management is involved with other hospital departments. The

advantages and disadvantages of decentralized versus centralized systems are

discussed, and criteria for selecting hardware and software vendors are

presented. A return-on-investment analysis should be performed to validate the

benefits or savings expected from implementing the new automated system.

Factors to consider during implementation of the new system and future

developments affecting purchasing and inventory control systems, such as bar

coding, are discussed. With the current concern about rapidly rising health-care

costs and the need to enhance productivity, the development and implementation

of automated purchasing and inventory control systems are important strategies

for institutions to pursue now.

According from (IQRF, Automated Inventory System),

(http://www.iqrf.com/weben/index.php?sekce=iqrfabout&id=automated-inventory-

system&ot=case-studies&ot2=automated-inventory-system). These days,

systems for inventorying and property protection are usually passive technical

solutions using bar codes or RFID tags. These must be installed in combination

with protective gates or must be personally supervised. Such systems do not

provide the convenience of combining inventory and goods protection.

 IQRF Automated Inventory System (AIS) is a wireless communication

system for localization, data collection and control for use in the industrial sphere,

stores, shops, or logistics centers. The main purpose of automated inventory

systems is to take inventory of goods, components, vehicles and other items in a

particular space without handwork. Automated methods are much faster and

cheaper, while IQRF wireless technology renders systems even more flexible and

efficient.

This system makes it possible to track the position and movement of objects

within a given space by IQRF smart transceivers. IQRF transceivers are active

identification units working as bidirectional wireless communicators. This allows

the whole system to be operated by a superior unit and to work in real time,

which ensures the active protection of all the objects. Implementation of the IQRF

AIS does not affect everyday operation but, on the contrary, is quite

advantageous for the automation of manufacturing processes.

According to (Analysis of a production-inventory system with unreliable

production facility, M.J.M. Posner, M. Berg),

(http://www.sciencedirect.com/science/article/pii/0167637789900205), the

general purpose of this research is to incorporate the element of machine

imperfection into production-inventory models. Most existing production-inventory

models simply ignore the reliability factor, thereby tacitly assuming perfectly

reliable systems. Machine failures, however, do occur and could be very

disruptive—particularly in a highly automated production environment. In the

model studied in this work, we consider a relatively simplified production

situation: one machine, constant production rate, and a compound Poisson

demand process for the product; but we superimpose the reliability feature

comprising the machine failure process and the ensuing repair actions. For this

situation we derive an explicit closed form solution for the steady-state

distribution of the inventory level, and this result is then used to compute system

performance indices of interest related to service level to customers and machine

utilization. Some numerical results demonstrate the effect of the reliability

parameters on these performance indices.

According to (Item Identification Tag for Rapid Inventory Data Acquisition

System, by, Jack A. Ekchian, Robert W. Hoffman, Leon Ekchian, Kaigham J.

Gabriel), (https://www.google.com/patents/US4862160), a computerized

transceiver repeatedly sweeps through a set of transmit/receive frequencies to

interrogate collectively a plurality of groups of items in a stocking area. Items in

each group are tagged with a printed circuit transponder tuned to frequencies

uniquely assigned to each group. Data returned is stored and combined

mathematically by the computer to arrive at the total number of items in each

group. The system is particularly adapted for taking inventory of a large number

of retail shelf goods using a mobile transceiver.

 In many stores, electronic cash registers at the checkout counters have

been replaced by computerized point of sale terminals. Optical scanners and bar

codes on products, while posing other problems, allow flexible pricing and

computerized real time inventory control and automated stock ordering. All in all,

the various types of material requirement planning systems available today

throughout the retail, wholesale and manufacturing sectors have become an

indispensable tool of cost control.

According to (Virtual fare methods for a computerized airline seat

inventory control system, by, Scot W. Hornick),

(https://www.google.com/patents/US5270921), an airline seat reservation system

wherein seat reservations are controlled using, in part, a computerized seat

inventory control system. The seat inventory control system, based on a concept

termed Network-Based Expected Marginal Seat Revenue (EMSR), does not

require the large number of variables required by the other network-based

approaches, and it incorporates a probabilistic demand model without resorting

to computationally intractable integer programming. The seat inventory control

system uses iterative leg-based methods to control bookings in a flight network

comprised of a plurality of itinerary/fare class combinations using a plurality of

flight legs. When considering a particular flight leg, the total fare paid by a

passenger using the leg is adjusted by taking into account an estimate of the

displacement cost of the travel on the other legs of the itinerary to create a virtual

fare. Expected marginal seat revenues (or more precisely, their current
approximations) provide the displacement costs on the legs when computing

virtual fares. Using these virtual fares, a leg-based optimization method is applied

to the individual legs one-by-one to compute new approximations of the expected

marginal seat revenues. This method is iterated until the expected marginal seat

revenues converge to their network-optimal values.

According from (Fishbowl, Perpetual Inventory System),

(https://www.fishbowlinventory.com/blog/2010/09/16/why-you-need-perpetual-

inventory-system/), A perpetual inventory system immediately updates

inventory levels each time a product is bought or sold. You definitely want to keep

track of how much inventory you have on hand, and one of the best ways to do

that is by using a perpetual inventory system.

Avoid overstocks and shortages. I’ve talked about this several times on this blog,

so once more can’t hurt. Good inventory management is about keeping a

balance between too many and too few products on hand. If you’re always

updating your records, you’re more likely to make informed decisions on ordering

products.

Keep accurate records. Even the most powerful inventory management system is

only as good as the information it receives. With a perpetual inventory system,

you are constantly feeding accurate information into it to keep it up to date. Very

few typos or other mistakes can creep into a perpetual inventory system that

uses barcodes, scanners and other equipment to scan products in and out.
Cut out waste. Lean inventory management is all the rage right now. Companies

are looking for ways to cut costs without sacrificing customer service. Knowing

how much inventory you’re moving and how much you need is a great way to

accomplish these goals.

There you have it. A perpetual inventory system makes life easier for companies

trying to effectively management their inventory, keep their data accurate and

reduce expenses.

Local Literature

According from (SAP Inventory System Philippines),

(http://www.fasttrackph.com/sap-inventory-system/), SAP is an ERP software that

helps businesses, manufacturers and retailers in managing their supply chain.

SAP provides you and your suppliers fast access and real time

information. SAP creates a transparent system that implements efficient

collaboration for a better and responsive supply network.

Every business, companies, manufacturers and retailers are particular

with their inventory. It is important not to have an excessive inventory to avoid

overhead expenses. Manufacturers and Retailers need to ensure that they have

enough number of a given item in stock depending on its trends of sales.

Our Inventory System software provides real time assessment of items in stock.

As each item is sold, the inventory database is automatically updated. When the

inventory level is at its minimum, it automatically creates a purchase order sent to

the supplier. As soon as the order has arrived, the inventory database is

automatically updated and the system will issue a notification to the accounting

department for the supplier’s invoice and purchase order copy.

The Inventory System Software Advantage

Automate the Order to Delivery Process

Manage Inventory in Real Time

Adapt to Changing Business Needs

The SAP Inventory Software enables you to streamline end to end operations. It

lets you serve customers faster and better and achieve profitable growth.

According to (INVENTORY SYSTEM FOR SAN MIGUEL BREWERY

CORPORATION, by, ANDRADA PAUL MARK BALGANION | APUYAN JOHN

MICHAEL BARRIENTOS), (http://www.papercamp.com/essay/118025/Inventory-

System), for businesses, an inventory system is a must. An inventory system

provides the companies reports with regards to the products/services offered by

a company. Also, inventory system helps a company to monitor the status of the

company’s inventory. Inventory system is a necessity for all businesses. Without

it, a company will have a hard time managing their products.

Inventory system started as an all-manual work. It requires people to do the work

like going to the warehouses of the company just to check the status of that

specific warehouse, if the stocks are running low or not. And because it is all-
manual, there is a possibility of reports being lost because this kind of system

involves the use of too much paper.

Because of the advancement of technology, many companies shifted from the

traditional pen and paper inventory system to automated inventory system. The

said automated lessens the use of paper. Also, it does not require the employee

of the inventory department to go to all the warehouses.

According in (Inventory Systems Summary, Business and Industry, by,

ashunmomma), (http://www.papercamp.com/essay/20728/Inventory-Systems-

Summary), this report reviews inventory controls, cost evaluation methods as

well as inventory techniques in order for Learning Team A to decide on an

inventory system most feasible for our company. With many options to choose

from, our learning team conducted an in-depth fieldwork by comparing and

contrasting various inventory systems such periodic, perpetual, FIFO, UPC, and

order point inventory system. In terms of inventory control, we have concluded

that perpetual inventory system is the best method to maintain true and real-time

inventory information. Furthermore, our company will maintain two sets of book

using both FIFO and LIFO methods to evaluate our cost. Last, our company will

make use of both order point and UPC inventory technique to attain the Just-In-

Time Inventory, a preferred method widely used by the world’s most successful

companies such as Walmart and Toyota.

Inventory Systems Summary – Team A

 The purpose of this paper is to review the use of multiple inventory

systems and techniques. Through research, known knowledge, and general

understanding, Learning Team A identified five inventory techniques. Discussion

in this paper will focus on summarizing, comparing, and obtaining an excellent

understanding of the five inventory systems. The inventories are Universal

Product Code (UPC), Order Point Inventory System, Periodic Inventory System,

First In First Out (FIFO), and Perpetual Inventory System.

In addition to summarizing and comparing the inventory systems,

Learning Team A will discuss the advantages and disadvantages of each system.

According to CommerceDictionary.com (2011) the word inventory means, “to

count and record the quantity of each item in a warehouse or shop” (para.1). This

is very important for businesses and organizations functionality. Inventory is not

one standard practice but many systems and techniques all accomplishing goals.

According from (Inventory Systems, essay by, icybabi),

(http://www.papercamp.com/essay/18601/Inventory-Systems), Coca Cola also

implement the Just-In-Time ordering system to ensure retailers are getting the

right amount of stock delivery. This ensures that the product will stay fresh on the

retailer’s selves and the quantity of the stock meets the customers’ demand.

Coca Cola is aware that to take advantage on the JIT system, the ordering

process has to be fast enough to synchronize within the company to avoid

disconnect between orders. In addition, Coca Cola is working with IBM to

improve the system efficiency to connect the order entry and process in real time

flow to truly optimize the benefits of the system.

According from (IRIN News, PHILIPPINES: Aid management goes

automated), (http://www.irinnews.org/report/94838/philippines-aid-management-

goes-automated), MANILA, 10 February 2012 (IRIN) - The Philippines

government and an international aid agency are automating inventory systems to

improve relief distribution in one of the world's most disaster-prone countries.

The World Food Programme (WFP) and Department of Social Welfare and

Development (DSWD) are undertaking a US$46,000 customization of an open-

source software commonly used in disaster relief,Sahana, to develop a national

relief goods inventory and monitoring system, or RGIMS.

Sahana, developed in Sri Lanka after the 2004 earthquake and tsunami,

was most recently used during the 2011 Sendai earthquake and tsunami in

Japan, 2010 flooding in Pakistan and 2010 earthquake in Haiti, to name a few.

RGIMS covers inventory and warehousing, tracking and monitoring, and

reporting and evaluation.

"We want [DSWD] managers to know what relief goods are in stock in real

time," said Dragoslav Djuraskovic, WFP head of logistics in the Philippines. In

2011, the National Resource Operations Centre (NROC) in the capital Manila -

where all donations are handled - received, inventoried and re-packed an

unknown quantity of goods.

 "Everything that comes into our warehouse has to be encoded and sorted.

Currently, we use Excel spreadsheets for all of this data. It's so tedious and the

mere volume of the data makes the process prone to errors," said Ronald

Reonal, 26, an administrative assistant at NROC.

……………………

"There will be no getting away from the manual counting and sorting of

relief goods and donations," said Francia Fabian, NROC supervising

administrative officer. "But RGIMS will at least make the process more efficient

and our reporting more accurate."

Donors and authorized staff will be able to see, real-time, as supplies

dwindle. "There will be a threshold warning system that will alert the user on

inventory that is running low, moderate and out of stock or about to expire," said

George Pornaras, WFP's IT consultant for RGIMS.

According in (The Filipino Entrepreneur, HI-TECH SYSTEMS:

AMAZON), (http://www.filentrep.com/business-guide/inventory-management-in-a-

nutshell.htm), Inventory management has evolved from simple, manual

processes to fully automated and online systems. Hi-tech systems can now even

hock up to other computer systems like POS (point of sales), order tracking and

distribution.

Here’s an example. Amazon, the web-based shop, is known for selling

not just books but also toys, gadgets and other gift items. To fulfill orders,
Amazon keeps a vast array of distribution centers all over the US. When a

customer orders through the web from anywhere in the world (POS), the order is

sent to a central computer in Seattle.

The central computer (inventory management) finds out if stock is

available and its corresponding stock number. The stock number which is

encoded in barcode contains information on where it’s stored and, in addition,

which distribution center is nearest to the recipient. The central computer then

passes the order to the chosen distribution center.

In a manual system, finding this stock in an 800,000 square foot

warehouse will take several days. But the barcodes simplify the task a

hundredfold. Now, even barcodes are being overtaken by RFID (radio frequency

identification) tags. Unlike barcodes which need to be aligned precisely with a

scanner, RFIDS respond to radio waves that do not need a line-of-sight. This

allows more flexibility and speed in finding and distributing stocks. It also allows

more information to be stored in a single RFID tag.

Based on (CERQUIT Warehouse),

(http://www.cerquit.com/Products/Warehouse-Inventory-System), The Cerquit

Warehouse Management System is a web-based application that allows users to

manage the company's supply chain and enhance customer satisfaction by

providing reliable information about inbound / outbound delivery as well as

current inventory levels.

 Tracking of items - inventory, quantity at each warehouse, movement

history, stocking status are all made easier using the system. It can manage

various types of Bill Of Materials (BOM) necessary for every item processing of a

certain project. It allows effective item planning for every project/branch involved

and maintain an optimum level of inventory monitoring.

It performs instant availability of checks and track item stock levels with

real-time visibility of the inventory on hand. The software provides quantity details

that are adjusted by what is already committed to other customers, incoming

purchases, and project orders.

The system can generate reports to meet any of the warehouses and

inventory reporting needs. Detailed reports on the different features like purchase

ordering, stock receiving, item transfer, job issuance, and material billing

requirements provide the information necessary to make quick and effective

management decision.

Cerquit Warehouse Management System can be integrated to Cerquit Financial

Suite to streamline your business process and improve efficiency of your

employees.

System Components:

Multiple Site and Warehouse Inventory. System is capable of supporting

unlimited number of warehouses and sites, and allows tracking of all stock

movements from one site to another in full detail – from requisition, purchasing,

to delivery and receiving in sites.

Machinery and Equipment Management. The system has a facility to monitor

history of repairs of machineries and equipments, their rental statuses and

revenues.

Project Management. The BOM (Bill of Materials) is the heart of the Cerquit

Warehouse which allows company to have a total control of items/materials,

project budget and schedule.

Reports. Cerquit Warehouse is capable of delivering intelligent reports based on

real time transactions, helping company in creating wise business decisions in no

time.

According in (Advancing Information Technology Research, Vol 3, No 1

(2012), Sales and Inventory System of Edmar Marketing),

(http://ejournals.ph/index.php?journal=AITR&page=article&op=viewArticle&path

%5B%5D=5886), Edmar Marketing currently does its sales and inventory

manually. As such, it takes time to locate certain files for reports and the entries

in the monitoring sheet are not clear, thus, creating confusion. The project is an

automated Sales and Inventory System which has an array of functions involving

sales and inventory that can be of very big help to the company. It aims to make

files updated and easy to locate, hence, data and information become accurate

and orderly which may provide a faster alternative or means in doing the

inventory. The system inventory may also be harder to cheat because the coming

in and going out of stocks is recorded in the system. The warehouse personnel is

more accurate in their reports and can save more time by using the system.
Since the system user has saved time, the personnel in-charge can then be more

productive in terms of output which can be beneficial to the company.

Theoretical Framework of the Study

EXISTING

Input Process OUTPUT

The Manager The Inventory The list of
is asking for manager is still items was
the list of items manually given to the
before the year computing the manager after
ends new arrival items a long period
in the stockroom . of manual
After counting the writing and
inventory manager computation a
writes it down and complete and
computing computed
manually Inventory

The diagram shows that the manager is asking for the list of items and it will
undergo to a process wherein it will be counted and computed manually
which sometimes resulted to a wrong counting and wrong computation and
after counting and computing a list of items were given to the manager as
what he/she asked for.
 Theoretical Framework

PROPOSED

Input Process Output

The Manager is The inventory The list of
asking for the list manager count the inventories was
of inventories items and record it on given to the
before the year the system and it will manager after a
ends automatically short period of
computes the no. of time
items sold and how
much is the profit and
loss

The diagram shows that the manager is asking for the list of inventories and it will undergo to a
process wherein the list of items can be seen on a system and it will be computed and counted
automatically because of the better and reliable system after having the list it will be sent to the
manager.

Conceptual Framework of the Study

SECURED

EFFICIENT
Existing Criteria proposed
ORGANIZE

RELIABLE
The existing is the manual way of counting and computing the inventory

and the criteria for the proposed system are it is secured because only

reliable employee can have an access to the system, efficient because

of it’s not consuming so much time, organize because items can be

seen in ascending or descending form and last reliable because of it’s

automatic counting and computing.

Synthesis
 The researchers gathered numerous related literature and

studies for the record tracking inventory system. This will be able to enhance

and justify that the research is attainable. In this chapter the proponents put a

different opinion of others in terms of Inventory. this chapter gives an idea

also for the reader to review what’s use of Inventory to the business.

A study conducted by (Greg Gia)(2013) By automatically and

periodically scanning each computer on your network, you can always see

updated, detailed configuration and physical location of every piece of

hardware and software in your network. You can tag each asset and track

inventory by over 200 different hardware properties. Having a computerized

system is a much better compared to manual

According to (Patricia Atendodo) () There are 6 blueprint of

success and these are goal setting, data gathering, motivators, prioritizing

strategies, assesing progress and recognizing the progress. Having this 6

blueprints will resulted to a successful management

Operation Definition of Terms

 To understand different terminologies in this study. The study provided

clear definitions about the terms used in this study.

Inventory is a complete listing of merchandise or stock on hand, work in

progress, raw materials, finished goods on hand, etc., made each year by a

business concern.

Asset is items of ownership convertible into cash; total resources of a person

or business, as cash, notes and accounts receivable, securities, inventories,

goodwill, fixtures, machinery, or real estate

Purchases is acquisition by the payment of money or its equivalent; buying,

or a single act of buying.

Goods are possessions, especially movable effects or personal property.]

System is a working combination of hardware, software, and data

communications devices

Management is the process of dealing with or controlling things or people.

Automated is to operate or control by automation.