CHAPTER 2

Review of Related Literature and Studies

Local Study
According to J.De Leon and M. Ferrer (2009) Under the Koread RedGinseng

Enterprise Sales and Inventory System, the researchers came up with acomputerized sales

and inventory system. The proponents used database toeasy access of files and for easier

and faster processing of the selling andinventory transaction. The program was

designated to generate reports such asmonthly reports, inventory reports, sales invoice

and list of items.

Foreign Study

According to Carter (2016) Point-of-sale systems have replaced traditional cash

registers, largely for functionality reasons. POS systems, as they are sometimes called,

are relatively easy touse and help provide valuable data for important decision makers. In

order to keep upwith the record-keeping needs of small and mid-sized businesses, a good

point-of-salesystem is necessary. Web-based point-of-sale systems are preferred over

multiple computers.

According to Ganderton (2015).The best thing about having a computerized POS

System in your retail business is: as new stocks arrives and as it is sold, it keeps the stock

levels current and updated, hence making it is easier to identify which items are selling

and which items are not. A POS System is also good in checking for any obsolete or out

of date stock that needs to be disposed. If you are still counting your inventory manually

on the shelves or in the warehouse, you should think twice about your method, for there

are many advantages in using a POS System. One advantage of a POS System is its

ability to help your business achieve detailed real-time stock level information. In

addition, a POS System can also give you information such as weather forecasts, public

holidays and major sporting events, which can be of great help in determining the stock

level of seasonal products. You can now efficiently and effectively handle your stock

management accurately.

According to Mueller (2015) One of the biggest, and probably one of the most

important, advantages of an automated sales and inventory system is that it helps

businesses focus on their biggest goal, to improve the customers experience at the store.

With this system, companies can have a better understanding of customer demand

through the analysis of their sales and inventory.

Local Literature
 According to Magat (2015), The Sales and Inventory System of the vital to any

institution, agency, or department. The proper safekeeping, processing and disposal of

records play important roles in the efficient, effective and smooth operation that

eventually would lead to the success attainment of the goal and objectives of institution,

agency and department concerned. Based on her recommendation there should be a

central record management office that will hold data of the agency to serve as locator of

the record and to control the disposal of each record. This can be possible with

computerized system. Computer with the appropriate software package is capable of

handling records efficiently and effectively. In addition, locating records that are

computerized is faster than finding them in the filling cabinet.

According to Gemma Navarro (2016) Computer is general purpose device which

can be programmed to carry out a finite set arithmetic or local operation. Computer has a

big rule in our nation today because of our technology. Wherever you go computer still

exist, especially in business it makes the procedure easy and secure by programming the

manual system into a computerizing system. The rule of technology in our life today has

a big impact.

According to Averion, Gaela, and Libo (2015) stated that inventory system help

to 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.”

Foreign Literature

As defined by Carolina Barcode Inc. (2013), a software and hardware networked

together to track sales and inventory as they occur. Point-of-Sale systems will solve a

multitude of problems in your business. it is one of the focal points of any retail or

hospitality business in the cash register. The ability to process transactions and tender

cash are essential to the efficient operation of the enterprise. If you have a lot of cash

transactions, replacing the cash registers with a Point-of-sale (POS) system save your

money.

In an early age when most of the company is still using the manual sales and

inventory, most of the company encountered so many problems because of the process of

the existing system is too slow and too long. Acco Morris (2010), manual inventory

management system can help sales and manager’s control costs by identifying lost sales

due to inventory shortages; inventory overrides on products that are not selling; losses

due to employee’s theft or damage. Implementing an inventory management system can

take a large amount of time depending on the size and diversity of inventory.

According to Hold (2015) article, “Inventory refers to stocks of anything

necessary to do business”. The U.S Small Business Administration publication describes

inventory, including: Maintaining a wide assortment without sacrificing service; Keeping

stock low without sacrificing performance; Ontaining lower prices by making volume

purchases; and Maintaining an adequate inventory without an excess of absolute items.

Based on Brigman (2016), Fundamentals of Financial Management, companies

are increasingly employing Inventory System. A computer start with an inventory counts

in memory. Withdraws 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 placed 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 passed over an electronic reader, which then adjust the

computers inventory balance, at the same time the price is fed to cash register tape.When

the balance drops to the recorded point, an order is place. The proponent aim to develop

an automated inventory system which is technically, operationally, and economically.

The method used by the proponent to develop an aoutpmated inventory system is

Descriptive Method. The proponent conducts several interviews in order to ather

information about the present existing conditions of the inventory systems, knowing its

problems and exchancing it by developing an automated inventory system.

Questionnaries were also distributed to all interviewers for additional information.