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Sales and inventory System Essay

A business is an organization involved in the trade of goods, services, or both to consumers. One of the three types of business is merchandising. This type of business buys products at wholesale price and sells the same at retail price. They are known as “buy and sell” businesses. They make profit by selling the products at prices higher than their purchase costs. Merchandising activities may include display techniques, free samples, on-the-spot demonstration, pricing, shelf talkers, special offers, and other point-of-sale methods.

Most of the small scale businesses use manual inventory system where they write orders, deliveries, expenses, and sales per day, bad order, and details about the product and so many more, where in there is a lot of paper works, slow data processing, unsecured, and is not user-friendly. Above all this hassles it is time consuming and is difficult in managing records. In manual inventory system the work is slow and so the money will moves slow too. In an early age when the most of the company are still using the manual system in the sales and inventory most of the company encountered so many problems and this is because of the process of the existing system is too slow and too long. According to Kaye Morris (2010), manual inventory management system can help sales and production managers 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.

In order to solve the manual inventory system companies has converted their system into automated inventory system. Automated inventory system monitors and records the merchandise and goods of a retail store with the help of computer. With an automated Sales and Inventory System, business rely on computers to do tasks that were once performed manually, such as inventory check and product sales. Automated Sales and Inventory System these process can be handled in a timely manner and also be more accurate and reliable than ever before. It provides greater accuracy and more flexibility in the types of information and reports that can be generated by the system.

In order to keep up with the record-keeping needs of small and mid-sized businesses, a good inventory management system is a must. The best thing about having a computerized inventory management system in your retail businesses: 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.


To convert their manual inventory management system to automated inventory management system. To ease their problem in records managing for easier monitoring and tracking. To help them have a faster way of recording details about their business works.

The purpose of this study is to help small scale businesses have an automated inventory management system. This can help their business in means of monitoring and tracking how their products move and have a clean record. This eases the problem in managing records for easier searching. Also automated inventory management system compared with their manual inventory management system is faster, easier to use more user-friendly and will help their business.

Significance of the Study
Business Owner

This will help the business owner in monitoring how their business works or what is the flow in their business. In security this study help their records more secure than the manual system, its safe in case of fire, flood, and thief breakout. Business owner will also have less time in managing the business since it will be faster and easier to manage. With the help of the automated system he can now have more time to spend to some of his business.


Employees will have an easy way in recording the orders, expenses, bad order. They will not have problems in orders since its now automated.


For customer, this will help them in way that their order will arrive early. This will also will in relationship of the costumer and the owner since when the costumer will have problems or queries about the order the owner can answer the question faster and easier.


This study will help us in skills improvement in terms of time management, teamwork, critical thinking, planning and patience. Hence they are able to gain information about businesses and how it works.

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