More Record thatcontains Errors,Wasted time andeffortManual Record of Sales andlnventory for
LMC
INPUT
Chapter IIREVIEW OF RELATED LITERATURE AND STUDIES
This chapter covers the conceptual framework of the researcher’s
proposed system. It also includes the local and foreign literature and studies,definition of terms which
defines the technical words and terms used in thesystem.
Conceptual FrameworkFigure 2.1 IPO Diagram
This shows the IPO (Input-process-output) diagram of the system
Figure 2.2 Existing System Diagram
This is the existing system diagram illustrates the problem in the manualstyle and system of the
company; record that contains errors and wasted timeand energy.
 INPUT
IPT
PROCESSOUTPUT
IPT
Recordof Sales andInventory
IPT
Recordof Sales,Inventoryand StocksComputerizedRecordsof Sales andInventory for LMC
INPUT
Less error of records,Saves time andeffort efficiently
 
 
Figure 2.3 Researcher’s Proposed System
 
This is
the researcher’s proposed diagram shows the solution to
problem; less errors and saves time and effort efficiently.
Review of Related Literature
This discusses the foreign and local literature. The informations indicatedwere gathered in internet
sites, journals and various books relating to the
researcher’s topic.
 
Foreign Literature
 According to Janes (2011) stated that computers are extremely reliabledevice and very
powerful calculators with some great accessories applicationslike word processing problem for all of
business activities, regardless of size,computers have three advantages over other type of office
equipment thatprocess information because computer are faster, more accurate
moreeconomical.Inventory management systems were created to help dealershipsimplement,
maintain, and fine-tune their inventory plans. Dealers who useinventory management systems
realize quicker vehicle turns and a higher ROI
INPUT

 
than dealers that don’t. Choosing the right system can make a significant
contribution to your inventory management efforts. This strategy helps a lot tocome up with a
successful outcome. (Zierden, 2009). Accor 
ding to the U.S. Small Business Administration, “Inventory refers tostocks of anything necessary to
do business” (U.S. Small Business
 Administration, 2010, pp 1-2). The U.S. Small Business Administrationpublication
describes what constitutes successful inventory management(balancing cost versus benefits of
inventory), including: Maintaining a wideassortment without spreading the rapidly moving items too
thin, Increasinginventory turnover without sacrificing service, Keeping stock low withoutsacrificing
performance , Obtaining lower prices by making volume purchases,Maintaining an adequate
inventory without an excess of obsolete
items. According to the Nicole Fallon(2013), investors in uncertain, rapidlychanging
product markets likeconsumer electronics react more strongly tocustomer satisfaction. Nokia, for
example, saw a rise in its American Customer Satisfaction Index (ASCI) figure in May, followed by
reports of increased interestfrom large institutional
investors. According to Stair and Reynolds (2009) on their book, Principles of Information
System, sales and marketing information systems are used todevelop new good and services
(product analysis), determine the best location