JDM Lechon Manok Sales and Inventory System with SMS Notification CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES
This chapter presents the review of related literature and studies. It shows the similarities, differences, as well as the synthesis of the study to compare the different studies conducted and literature that help the researchers broaden their knowledge and achieve their goal respectively. Related literature literature
The following are the literatures explored by the researchers to provide information and ideas in developing the proposed system. Local Literature
According to PLDT (Manila, Philippines) (2011), small and medium enterprises, who long for a point-of-sale(POS) system that can track how much they sell and how much stock they have left at their stores in real-time and from anywhere, can now turn to PLDT SME Nation. “Inventory System for Best Choice Rice Dealer” by Bisagas, Arivada, and Tanteo (October 2009). The process of counting the sacks of rice is done manually, which corresponds to difficulty in tallying the number of available stocks and sold items. The Manual generation of inventory reports such as daily, weekly, quarterly and annual inventory list of records remains as one of their key problem since the establishment of the business. The transaction processing system for Best Choice Rice Dealer will minimize the difficulty the owner in processing inventory. It will monitor the availability of product items for reorder to prevent under stocking, overstocking or
running out of stocks. The system will also generate necessary reports of inventory such as sales reports. According to Averion, Gaela, and Libo (2009), entitled “Monitoring and Inventory for discovery Mall.com”, it stated that: “It will minimize the difficulty of the manager in processing inventory because physical counting products, stocks and computing inventory summary will be the system job. It will monitor the availability of products, items to prevent under stocking, over stocking and running out of stocks. The system will also simplify the transaction between dealer and supplier relationship because of the updated supplier information and price list of items will correspond to collaboration with other supplier.” According to Junaito Villegas (2009), entitled “Inventory controls are key to dissuade employees from stealing” states that: “Computers can only do much, but coupled with inculcating honesty among staff and instituting the appropriate deterrents, they can work very well in minimizing losses and pilferages. It is therefore highly advisable to do both the manual and the computerized inventory system in a retail and wholesale business.” According to Josefina Estolas (2009), in exploration, we find new techniques, knowledge, even developed new substances, gadgets, equipments, processes or procedures, imagination and skill is employed by the researcher. The commodities, new devices, services, in technology are needs of man for a better fuller life which is concern of the research. These useful arts are the product of the technological environment and the end-user is society in general.
According to Sanders (2010), Computer-based system is a complex system wherein information technology plays a major role. It makes the work easier, faster and more accurate. Due to that fact, the automated scheme has become essential to small and big companies for they are expected to give the best services possible. Nevertheless, some businesses still prefer sticking with the system that is not integrated with technology. Profitable causes are computer illiterate staff and lack of funds. Companies, especially the big ones are recommended to switch from manual to automated systems because this will improve the efficiency and productivity of the business which will up lift the industry’s reputation. One of the most sought after automated systems of different companies is a purchasing and inventory system which comes hand in hands.
A
purchasing and inventory system is very important in every organization because a good and inventory management can create an excellent productivity. Primarily, inventory work consists of input, output and restock. Input is a process of buying new products into the inventory and replacing the old products with the new ones. Meanwhile output is a procedure of taking out the products for the inventory for sales or usage and refill the insufficient products or escalating demands.
Most of the retailing market is using
traditional way in the inventory management system where a person is assigned to check and record the stock by hand using pen and paper. It is where operations with regards to all the stock will be archived. Foreign Literature
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. According to 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 Oludare O., et. al (2013), SMS is an acronym used in the world of communications technology. It stands for Short Messaging Service which is a protocol used in communications that gives way to the exchange of short text messages from one mobile telephone device to another. SMS or text messaging largely dominates today’s means of communication since seventy-four percent of all cell phone users send and receive text messages nowadays. The technology behind SMS has paved the way for the rapid growth of improvement of text messaging that has now allowed users to broadcast SMS text messages not just from mobile phones but also from computers with the use of SMS software and through public SMS gateways. The link between text messaging to SMS technology now conotates the terminology of “SMS” as the act of texting or sending text messages even with the use of a different communications protocol According to Janes (2011), stated that computers are extremely reliable device and very powerful calculators with some great accessories applications like word
processing problem for all of business activities, regardless of size, computers have three advantages over other type of office equipment that process information because computer are faster, more accurate more economical. Inventory management systems were created to help dealerships implement, maintain, and fine-tune their inventory plans. Dealers who use inventory management systems realize quicker vehicle turns and a higher ROI than dealers that don’t. Choosing the right system can make a significant contribution to your inventory management efforts. This strategy helps a lot to come up with a successful outcome. (Zierden, 2009). According to the U.S. Small Business Administration , pp 1-2 (2010), 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 obsolete items. Related Studies
The following are research studies explored by the researchers to provide information and ideas in developing the proposed system. Foreign Studies
According to a recent Aberdeen Group study (2012), companies are prioritizing supply chain visibility, inventory optimization, supply chain analytics, and supply chain out sourcing as ways to cut supply chain management (SCM) costs this year.
According to IBM (2012), Innovations such as just-in-time manufacturing bar codes and RFID tags have revolutionized supply chain management. Unfortunately these innovations have brought with it staggering amounts of data to deal with. This white paper outlines some of the major factors affecting inventory and supply chain management. According to Aparanjitha (2008), this project is aimed to developing in online Sales and Inventory Management System (SIMS) for a departmental store. This system can be used to store the details of the inventory, update the inventory based on the sale details, produce receipts for sales, generate sales and inventory reports periodically, etc. This is one integrated system that contains both the user component (used by salesperson, sales manager, inventory managers, etc.) and the admin component (used by the administrators for performing admin level functions such as adding new items to the inventory, changing the price of an item, etc.). This system runs on multiple terminals, offer GUI to its users and connects to a common database(s)The proponent acquires knowledge on real time inventor, generations of receipts and security features where in restricted information are only accessible by employees, managers, administrators, etch. The proposed system can be accessible by employees, administrators and customers, making online transaction possible. According to Thomas M. McHugh (2011) computerized inventory management systems provide many benefits that are hard to obtain using paper methods or an in-house spreadsheet. Systems that are specific to the lab can be used relatively quickly without a significant learning curve or system customization. The ability to analyze the inventory, item usage, purchasing history, and other areas (e.g., lot numbers, equipment) are
important improvements to spreadsheets and paper systems. If the system includes equipment tracking, it can be used to determine the capital asset as well as track the service history and lifespan of equipment. The abi lity to streamline and automate many of the inventory control tasks will be increasingly important to reduce hands-on time while improving the analysis of trends, reducing stock-outs, and avoiding expiring reagents. The ability to ensure that the right reagent in the right quantity is present at the right time is critical to laboratory operations. Given that reagents are approximately one-half of most labs' operating budgets, a continued focus on this expense will assist the laboratory in continuing to provide accurate and timely laboratory testing at the lowest cost. According to the U.S. Small Business Administration (2010), “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; 1) Maintaining a wide assortment without spreading the rapidly moving items too thin, 2) Increasing inventory turnover without sacrificing service, 3) Keeping stock low without sacrificing performance, 4) Obtaining lower prices by making volume purchases, 5) Maintaining an adequate inventory without an excess of obsolete items. Anyone in business must understand the business of inventory.
Below is a look at six
different inventory systems as well as a comparison of the advan tages and disadvantages.
Local Studies
According to J.De Leon and M. Ferrer (2009), Under the Koread Red Ginseng Enterprise Sales and Inventory System, the researchers came up with a computerized sales and inventory system. The proponents used database to easy access of files and for easier and faster processing of the selling and inventory transaction. The program was designated to generate reports such as monthly reports, inventory reports, sales invoice and list of items. According to de Alday, Espino, Ragudo (2010), the replacement of the manual system with the proposed system provided more efficient and accurate processing of transaction. The said system is much reliable, eliminated errors and inaccurate information, and provided valuable reports with integrity. Also stated in the research, “Sales and Inventory System For Schema Megacenter” (Almeda, Dañez, Geronimo), the proposed system are not just only accurate, realiable, and fast in processing transactions rather it is also provided more systematic way of transacting with the members and through the billing system also helped the employees to save a lot of time on transaction processing. According to Laranang, Maaño and Nañola (2009), states that business nowadays takes the advantage of using modern technology to improve their status and ensuring an efficient and newer way to make their work easier. They state that the main problem of the Osaka Iridology is what modern effective tool must be use in creating and developing a sales and inventory system that will manage efficiently their transaction. So they develop a system that inclusively for the transaction of Osaka Iridology, such as monitoring of their medicine and their daily sales.
According to Mr. Gragasin (2010) et,al. Entitled “A customized Point of Sale and Inventory System for Anespee Enterprise Hardware Carangian” concluded that the implementation of the Developed system increases the business efficiency and effectively in terms of every transaction that they have. Managing the records such as employee, customer, suppliers and transaction is faster and easier than using the manual paper based system.The researchers propose a customized system that would likely be adapted by the locale to speed up its processes and increase the efficiency of the business.
Synthesis of Literature and Studies
JDM Lechon Manok Sales and Inventory System with SMS Notification is a system that serve as the sales and inventory system for the owner/workers. The system will contain available products, daily sales and so on. It is also a system that owner and trusted workers can have use to. Moreover, the cited literature and studies served as guideposts in the conduct of the study. The similarities between the proposed system and the previous researches are the technology utilized and the idea of beneficial factors to the users. In this case, both systems aim to develop a crucial factor to fulfill the needs of the society. Both, emphasizes to reach everyone with a better function of system and technological purposeful usage. Similar to the cited literature and study, the present study shows the use computerized sales and inventory system as a method of monitoring and providing information to the managers.
Definition of Terms
SMS – stands for Short Message Service and is also commonly referred to as a "text message"
RFID (Radio Frequency identification) Tags - is an ID system that uses small radio frequency identification devices for identification and tracking purposes.
POS (Point of sale) – system is the place where your customer executes the payment for goods or services bought from your company.
ROI (Return of Investment) - is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments.
BIBLIOGRAPHY
StudyMode Research (2015). Related Literature for Inventory System. Retrieved from: http://www.studymode.com/essays/Related-Literature-For-Inventory-System68701660.html Academia.edu [n.d]. Chapter 2 Review of Related Literature and Studies. Retrieved from: https://www.academia.edu/28938437/CHAPTER_2_Review_of_Related_Literature_and _Studies
Academia.edu [n.d]. Chapter https://www.academia.edu/4295554/CHAPTER_II
II.
Retrieved
from:
Academia.edu [n.d]. Chapter II new. Retrieved from: Unpublished undergraduate thesis, University of the Philippines College of Mass Communication.
Academia.edu [n.d]. Chapter II Review of Related Literature and Studies 2.1 Review of Related Literature 21.1 Review of Foreign Literature Retrieved from: https://www.academia.edu/27763145/CHAPTER_II_Review_of_Related_Literature_and _Study_2.1_Review_of_Related_Literature_2.1.1_Foreign_Literature
StudyLib [n.d]. Chapter 2- Sales and Monitoring system. Retrieved from: https://www.academia.edu/27763145/CHAPTER_II_Review_of_Related_Literature_and _Study_2.1_Review_of_Related_Literature_2.1.1_Foreign_Literature
