Foreign Literature

According to the study of Jenkins (2020), companies often lose products in their

inventory because of the fact that employees sometimes don’t have the ability to check

all of the products in their storage. An inventory management system is a solution for a

business that is facing a problem in the area regulating the supply chain. An inventory

management system is software that helps the operators of the business manage the

inventory more efficiently. The significance of this article by Jenkins to this research is

that it focuses mainly on an inventory management system and how it works. In addition

to this, it focuses on how an inventory management system can be helpful to a

business, especially a business that is experiencing an inventory management problem.

According to Digital School of Marketing (2020) explained that the term "sales

and inventory system" pertains to a development tool management solution that is used

to monitor sales transactions and also inventories at the same time. Distributors and e-

commerce resellers alike could benefit from a comprehensive system in which a

complete transaction input records all of the necessary information about the client, the

items purchased, the amount, and the date, while also updating supply activity in real-

time. Sales and inventory systems are increasing among retail shops and online

marketplaces as a means of assisting them in maintaining their thumb on the pulse of

their company activities. As a result of the high interest in this specific software, it is

predicted that the worldwide retail automated business will top $275 billion (about R3.9

trillion) in revenue this year. The relevance of this article by the Digital schools of

marketing and to this research is that it analyze how inventory system works and how it

helps the owner in order to have a successful business. It also includes on how the
system can input all necessary information in the business and look for it anytime in a

much faster way rather than looking for it for several minutes or even hours when not

using an inventory system.

Inventory management is an essential part of making all the decisions in handling the inventory in

an organization such as activities to be carried out, policies of inventory management and procedures in

handling the inventory to ensure enough quantity of each item is kept in the warehouse at all times.

Inventory management is the building block of the supply chain house; it is the fluid that lubricates its

wheels (Wild, 2017). Inventory is an essential factor in SME production costs to boost competitive

advantage (Hasbullah et al., 2021). Singh and Verma (2018) highlighted the scope of inventory

management that covers many topics, such as replenishment scheduling, managing costs of storage and

inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future

inventory price forecasting, physical inventory, available physical space, quality management,

replenishment, returns and defective goods, and demand forecasting.

Hasbullah, H. and Santoso, Y. (2020), “Overstock improvement by combining forecasting, EOQ,

and ROP”, Jurnal PASTI, Vol. 14 No. 3, pp. 230-242.

Singh, D. and Verma, A. (2018), “Inventory management in supply chain”, Materials Today:

Proceedings, Vol. 5 No. 2, pp. 3867-3872

Wild, T. (2017), Best Practice in Inventory Management, 3rd ed., Routledge, London