Inventory system Essay
BACKGROUND AND RATIONALE
In today’s generation, we are engaged in highly computerized technology aiming to enhance individual lifestyle and most especially in the world of business. Certainly, there are plenty of small retail outlets, manufacturers, and other businesses that continue to rely on manual means of inventory tracking. Many companies and businesses are using sales monitoring and inventory systems for their success and growth. It is an effective way for monitoring sales and tracking different products and materials that are transferred in and out of a company’s warehouse or establishment. Moreover, a sales monitoring and inventory system promotes effective inventory control which ensures stocking the marketable and correct items in correct quantities. This system can help the company to avoid overstocking.
When a company overstocks, money is wasted since procuring, storing, and accounting for unneeded items require time, space, and money which could have been used on more favourable and marketable assets. Having a developed system on sales monitoring and inventory makes the company more productive, efficient and convenient both to the company and its client. The sales and inventory system is meant to help the company employees and personnel to show customers more relevant items, hoping to expedite and increase the sales and most importantly to increase the profit of the company. With the aid of a sales monitoring and inventory systems, product management will be more consistent, reliable and efficient.
Soundpoint Electronics and General Merchandise is a retail enterprise located at Brgy. Taboc, Borongan City, owned and managed by Mr. Crisanto Jose C. Labro.
The computerization of their existing system is one of the primary reason why I conducted this study. I believed that with the computerized sales monitoring and inventory system, the problems met on the existing system will lessen and eventually eliminate.
STATEMENT OF THE PROBLEM
This study aims to solve the following existing manual sales monitoring and inventory problems:
1. Their present sales and inventory system is highly labor intensive because they require continuous monitoring on their business enterprise on a daily basis.
2. In terms of their sales transactions, the only record that they have are the customer’s official receipts and the problem with that is not all customer’s ask for an official receipt. They cannot determine how much their total earnings are at the end of the day because their records or the official receipts that they keep are not complete.
3. Lack of security in terms of their sales and their products. The business owner will find it difficult to see if some products are lacking or missing because they don’t have any written records about the available products. 4. Unreliable inventory and sales report. Because they don’t have a complete records of their inventory and sales transactions, they cannot produce any inventory or sales report that are really consistent and dependable.
SCOPE AND LIMITATION OF THE STUDY
This study was conducted at Soundpoint Electronics and General Merchandise located at Brgy. Taboc, Borongan City. This was conducted during the first semester of school year 2013 – 2014. The proposed sales monitoring and inventory system will: 1. This can no longer be highly labor intensive because with the aid of the sales monitoring and inventory system, they can monitor their sales and determine their lacking and unavailable products with the accurate reports that the system will generate. 2. After each customer transaction, the system will generate an official receipt and from then, they will be able to have a record and they can now determine their earnings.
3. Promote data security in terms of making the files always updated and easy to locate to provide a faster mean of doing the inventory. Unauthorized employees and persons will not be able to use the system unless under the supervision of the business enterprise owner. 4. Enable to produce accurate reports. A sales report to know the earnings of the business enterprise daily, weekly, monthly and yearly and an inventory report to see what products are lacking and unavailable. However this sales monitoring and inventory system will not cover the following:
1. Payroll report of the employees.
2. Ordering of the needed / lacking products in the business enterprise.
SIGNIFICANCE OF THE STUDY
SOUNDPOINT ELECTRONICS AND GEN. MERCHANDISE
This study will greatly contribute to the management in improving its level of sales and inventory management consistency, efficiency, accuracy and convenience in providing and giving services to owner, employees and customers.
This study will help the proponent understand and appreciate the importance of the sales monitoring and inventory system for all business enterprises and establishments. This study will also improve her knowledge and experience in thesis writing as well as creating the Sales Monitoring and Inventory System.
This study will greatly help the future researchers to be aware on how important a sales and inventory systems in a certain business enterprise. This study can be a reference to the future researchers who undertake studies in the same nature, also as contribution for other topics/areas. In addition to this, it will offer essential information and learning experiences to the future researchers, to expand their knowledge in the fields of System Analysis and Design and Software Development. And the study will also help the future researchers to gather significant information and to learn more about the problems that most business enterprises encountered in their sales and inventory management.
The customers will be benefited in a way that their processes and transactions in the business enterprise will be much easier and faster because of the computerized sales monitoring and inventory system.
This study will also be helpful to the product suppliers in terms of in every product name, the name of the supplier or the company of the supplier will be seen. If the time comes that the products are already lacking in the business enterprise, the proprietor will know who the suppliers are and can contact the suppliers immediately.
DEFINITION OF TERMS
Accuracy- the ability to be precise and avoid errors
Complexity- the condition of being difficult to analyse, understand and solve
Computer- machine that perform tasks, such as calculations or electronic communication, under the control of a set of instructions called a program Computerize – to store information in a computer system or process it by a computer
Convenience – the quality of being or making things easy, useful, or of increasing comfort
Customer – a person or company that buys goods or services
Data – information, a form that is suitable for storage in or processing by a computer
Employee – a paid worker
End User – a person or group that is one of the ultimate consumers or users that a software product has been designed for
Feasible – capable of being achieved or put into effect
Gantt Chart – a chart in which horizontal lines show the actual and projected amounts of time involved in completing a particular task or reaching specific levels of production
Inventory System – are tracking systems that inform you of the amount of raw materials, supplies or final products you have readily available
Manageability – able to be handled or controlled without much difficulty
Manufacture – a factory, person, or organization that produces finished goods from raw materials, especially on large industrial scale
Marketable Assets – products that fit to be sold, in demand and therefore relatively easy to sell
Monitoring Staff- an employee or personnel who checks for incorrect and damage products
Personnel – the people employed in an organization, business or armed force
Products – items sold in a store
Proponent- the student who analyzes and researches in great detail in order to understand and discover more about this study
Proprietor – the owner of a commercial enterprise or establishment
Reference – a source of information
Researcher – a person who study something methodically
Suppliers- a person that provides or sells available or needed products by a company or any retail enterprises
Utilize- to make use of something or find a practical or effective use of something