Background of StudyAn inventory system is basically a process whereby a business keeps track of the goods and material it has available. In its simplest sense it can be done manually by a count at the end of each day.
In this way it is possible to keep a record of the goods coming in to the business and goods being sold. However this is only really appropriate for small businesses that do not have a lot of stock. For larger business it is more likely that a computerized system will be required. Transaction processing systems are commonly used to operate businesses.In this era, manual transactions evolved into computerized ones.
Manual inventory systems turned out to be slow and inaccurate resulting to problems like running out of stocks and slow computations of product prices being bought by the customers. The degree of success of a business greatly depends upon controlling the merchandise inventory. The continuously improving and upgrading of computer usage into more powerful and useful applications has made managing business transactions a lot more efficient and easier.Today, businesses use the computer to assist in controlling and monitoring many aspects of the businesses, since manual approach in data processing could no longer meet the demands of increasing volume of transactions.
In New York, Wal Mart is a global retailer and this international retail giant maintains an average inventory of about $32 billion, at any given time. Obviously such an amount of stock requires an efficient and reliable inventory system. Proper inventory management and control imperative in maintaining retailer’s profitability and customer satisfaction.In the past, retailers were content with hiring staff to monitor their stock levels. Today the introduction of computerized store management system and automated point of sales means that this is no longer the case.
Technology has made manually tallying of products redundant, preventing losses attributed to staff theft, inventory software comes with useful features for retail store managers. In Philippines Lots ’A Pizza expand and maintain its strong brand in the Philippines with its Inventory Ordering System (IOS) that enabled Lots ’A Pizza to shift from the manual to an automated method.As Eduardo and Tess NganTian, owners of Lots’A Pizza, began offering the business to franchisees in 2000, they needed a way to ensure that their order reports and inventory records are accurate. As a complete solution for supply chain management offered through Globe Business, Inventory Ordering System makes it easy to do inventory and sales monitoring, automated invoicing, and procurement for Lots ‘A Pizza. Inventory Ordering System allows orders and reports via SMS or web, all in a simple web-based and self-service set up. In La union, CSI City Mall located at Brgy.
Biday San Fernando the first true mall in La Union Province. It was built in March of 2004. CSI City Mall is using the inventory system for their goods and services. They are using this system to provide a faster, more efficient, more accurate and non-redundant process wherein it is an initiative solution in the proportionate account. . They have many products to be sold like cell phones, batteries, cell phone accessories and they also downloading games, songs, videos for the cell phones, mp3, mp4 and etc.
is still using manual computing for his inventory products.He was able to write everything out by hands and compute all his inventory or sales product manually. He is always tallying the products redundant. Using the manual way, he consumes more time and energy just to finish or finalize his work. Mr.
Guntang writes down all the details of different materials every time a transaction is being done. It takes a lot of time and susceptible to errors. The problem of this company using the manual inventory system are the transaction as delays, errors, omission, and the like result of misinformation to the management of the availability of the stock and sold items.Because of this problem its affect the effective decision on the part of management. The researchers develop an inventory system for the Mel’s Magic General Merchandise to have a simpler, easier, and faster way to do things with It can help Mel’s Magic General Merchandise simplify the process of storing and managing files they need for the future use and make finding files easier than the manual process. Mel’ Magic General Merchandise need this inventory system so that the product will be list properly and the sales will take it in the easier way so know exactly how much inventory comes in, how much is on-hand now and where it goes.
In this way it is possible to keep a record of the goods coming in to the business and goods being sold. Conceptual Framework According to Conrado T. Valix (2010) inventories are assets which are held for sale in the ordinary course of business, in the process of production for such sale or in the form of materials or supplies to be consumed in the process or in the rendering services. Inventories encompass goods purchased and held for resale including for example, merchandise purchased by a retailer and held for resale or land and other property held for resale by a subdivision entity and real estate developer.Inventory also encompass finished goods produced, goods in process and materials and supplies awaiting use in the production process. According to David J.
Piasecki (March 2009) inventorymanagement isn't easy. If it were, more companies would be good at it. But being competent at managing your inventory isn't all that difficult either. It just requires that you invest the time to develop an understanding of the factors that should be affecting your inventory management decisions.Then use this understanding to start to put together the calculations and decision logic you will use to manage your inventory. Calculations for forecasting, lot sizing, and safety stock are well known to the inventory management community, but are generally not understood to the level necessary to effectively use them.
This lack of understanding results in incomplete calculations, incorrect inputs, flawed logic, or a fall-back to less effective, keep-it-simple approaches. Inventory Management Explained helps readers build a solid understanding of the key planning aspects of inventory management.It does this by clearly explaining what inventory management is, but then goes well beyond typical inventory management books by tearing apart the calculations and logic we use in inventory management and exposing the hidden (or not so hidden) flaws and limitations. It then builds on this by showing readers how they can use their understanding of inventory management and their specific business needs to modify these calculations or develop their own calculations to more effectively manage their inventory.
The emphasis on practical solutions means readers can actually use what they've learned.According to The Great Soviet Encyclopaedia (2010), inventory the control of the presence and condition of material values (fixed and working capital) in kind as well as monetary resources, balances in bank accounts, and accounts with debtors and creditors. Taking inventory is one of the most important methods of control over the safeguarding of socialist property, over the qualitative preservation of raw and other materials and finished goods, and over the accuracy of warehouse management and current accounting.In the USSR, taking inventory is obligatory for all state, cooperative, and public enterprises, organizations, and institutions. Inventories may be complete or partial, planned or unexpected. A complete inventory includes checking of all resources of the enterprise and of all its accounting relations; it is held on the basis of the Statute on Accounting Reports and Balances of State, Cooperative (Except Kolkhoz), and Public Enterprises and Organizations (this statute was confirmed by the Council of Ministers of the USSR, with subsequent amendments and supplements).
The purpose of a complete inventory is to ensure that the bookkeeping balances as of the end of the year are real and by the same token to prove the reality of the financial results of the enterprise’s activity as shown in these balances. Such an inventory is taken also at the time of organization or liquidation of an enterprise. Partial inventories are taken to check the existence of those resources which according to their physical properties are subject to natural loss when stored; they are also taken when writing off goods that have become worthless and when hiring personnel responsible for material values.According to Britannica Concise Encyclopaedia (2008,) inventory in business, any item of property held in stock by a firm, including finished goods held for sale, goods in the process of production, raw materials, and items that will be consumed in the process of producing saleable goods.
Inventories appear on a company's balance sheet as assets. Inventory turnover, which indicates the rate at which goods are converted into cash, is a key factor in appraising a firm's financial condition. For financial statements, inventories may be priced either at cost or at market value.
