Inventory System Summary

According to the U.S. Small Business Administration, “Inventory refers to stocks of

anything necessary to do business” (U.S. Small Business Administration, 2013) 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 spreading the rapidly moving items too thin, Increasing inventory turnover
without sacrificing service, Keeping stock low without sacrificing performance, Obtaining lower
prices by making volume purchases, Maintaining an adequate inventory without an excess of
absolute 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 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.
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.

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 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 Shah Janat (2010), the individual in a supply chain, even wholesaler,
retailer or manufacturer or vendor, prefers to reduce inventories and then maintaining customer
services so not to gone customers because of the non-availability of goods. Huge inventories are
a drain on resources from the supplier, as it increases the profits cost of operations. So it is no
surprise that all firms want to reduce inventory in the supply chain. The inventory may be
divided into various categories. In general, there are the six selected categories of inventories:
First, the return of the stock, the inventory resulting from production or purchase in storages is
called return of stocks, since the lots are produced or purchased in cyclical lots.

According to Navarro (2012), Sales and Inventory System, a computer has his is general-
purpose using devicewherecan be programmed or re-programmed to carry out the finite set
arithmetic or local operation, the computer has a big role in our nation today because of our
technology. Wherever you go computer still exist, especially in business it makes the procedure
easy and source by programming the manual system into a computerized system. The purpose of
technology in our daily life today has a big reason.

Technology is the marking, modification, usage, and knowledge of a new machine or a

tool to crafts system method of organization in order to solve a problem, achieve a goal or
perform its own function. It also refers to the stocks of such tools, machinery, modification
arrangement, and procedure. Technologies significantly affect human as well as other animal
species ability to control and adapt to their natural environments.

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 center 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, 2014).

According to Mr. Eugene F. Brigman, Fundamentals of Financial Management, 5th

edition published at 2015, 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 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 researcher aim to develop a
automated inventory system which is technically, operationally, and economically. The method
used by the researcher to develop an automated inventory system is Descriptive Method. The
researcher conduct several interviews in order to gather information about the present existing
conditions of the inventory system, knowing its problems and enhancing it by developing an
automated inventory system.

Local Literature

Tanza National trade School

During the electronic age, early school Filipino teachers have a limited knowledge
through technologies, 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
increased productivity and efficiency of data processing. Computer developer thinks a better idea
on how to compress detail by detail any personal data. They developed a lot of different system
that can lift up the burdens of canteen’s staff for their customer.

In today’s modern life, modern technologies invented by IT courses and tons of

Computer Programmer, has now something to do in human living. One of its in demand
invention is the different system that is now using in everyday life. School Canteen’s Point Of
Sale System deals with evaluation of income and organize record of sales. This program is
initiated to secure daily income of School Canteen and to see to it, if the income from tax is
enough since School canteen's daily revenue review is very important to monitor.

A sale is an activity involved in the selling of products or services in return for money or
other compensation. It is an act of completion of a commercial activity while inventory A list of
what you have. In company accounts, inventory usually refers to the value of stocks, as distinct
from fixed assets. Advanced system on sales provide more reliable recording of sales of the
company with comparison to its actual cost. In addition, the data needed by the company to
decide matters in relation to inventory can be easily generated