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Colegio De San Juan De Letran College of Liberal Arts and Sciences 2nd Semester, School Year 2011-2012 Sales and Inventory System By: Panis, Hanna Katrina Navarro, Jenesis Dumanlang, Carmela Contreras, Amiel Chapter 1 I. Introduction Computers began from a wild imaginative idea to the world’s highly prioritized tool. Computers today are now used as a substitute to manual processes and other past inventions like the radio, television, etc. It is now used by people for much simpler, easier and faster way to do things.
Some used it as a hobby, and some use it as a job. Technology has never stopped from advancing through the years. Its new innovations helps answer the people’s further complex questions. Why not use these advantages to benefit ourselves? Many people use computers in their daily lives. Some use it for transactions, some use it for educational purposes and others use it for data storage. Though it might sound unnecessary but in some cases when storing a file for such a big company, can you manage it properly? Organizing, finding a file, etc.
With computers, it can help you simplify the process of storing and managing the files you need for future use and make finding files easier than the manual process. Most companies nowadays use computers in transacting with their clients. Companies are now making their systems computerized because using a computerized system will help the company minimize the time and efforts consumed by using manual system. Sales and Inventory systems maintain information about activities within firms that ensure the delivery of products to customers.
The subsystems that perform these functions include sales, manufacturing,??warehousing, ordering, and receiving. In different firms the activities associated with each of these areas may not be strictly contained within separate subsystems, but these functions must be performed in sequence in order to have a well-run inventory control system II. Background of the Study Technology has taken a big leap forward in 21st century, with computer programs, electronics upgrading by the month & even by the day. Technology has influenced & greatly simplified almost in every aspect of a student’s life today.
It is amazing what technology has done to our society and how dependent we have become on it. Having computers in the workplace has enable the business to our more efficiently and has contributed in having on all around Better businesses, using computers cut down ?? our work time, we don’t have to write everything out by hands or type out on typewriters. This increase in usage of computer proves that computers have affected every aspect of our lives and have become one of the necessities. Many developers have contributed to such an advancement and widespread of computer technology.
Businesses nowadays are innovating there business process into computerize transaction and making edge to other business competencies. Some business transaction made online with the used internet like: ordering, reservation registration, and etc. The most commonly system used by the company is the sales system and integrated it with a inventory system, this system handle various operations. Sales and Inventory System is business computer software that can manage sales, ordering, quotation and inventory reports.
This system is a point-of sales type system and offer a truly unique computerized business processes and control system. For now, the business operations are manual in terms of processing and handling data in their overall business transactions. Staffs are just recording data and important information in numerous papers and store files at their basement. III. Statement of the Problem A successful business relies on many factors, one of which is a reliable inventory management system. Inventory management consists of everything from accurate record-keeping to shipping and receiving of products.
Inventory management that is properly maintained can keep a company’s supply chain running smoothly and efficiently. However, there are many common inventory management problems that can occur. Inventory management problems can interfere with a company’s profits and customer service. They can cost a business more money and can lead to an excess of inventory overstock that is difficult to move. Most of these problems are usually due to poor inventory processes and out-of-date systems IV. Objectives of the Study
The objectives of a sales and inventory system should be oriented toward developing a rhythm for selling inventory on hand at a rate comparable to the pace at which it is being produced, so your company will have neither too much nor too little inventory on hand. If you work with perishable product, the need to develop an appropriate relationship between sales and inventory is especially critical, because you are liable to lose product that you do not sell in time. Sales is the aspect of a business geared toward getting product into the hands of customers.
Sales involves marketing, or educating the customer about your product in order to create a demand for it. Sales also involves product display and fulfillment, or getting your product to your customers when they want it. An effective sales force moves as much product as possible, but it is subject to the potential limitations of your company’s ability to produce enough product to meet demand. Inventory is the aspect of your business geared towards keeping enough product on hand to meet demand. Inventory management is subject to the limitations of available space as well as available capital to produce or buy product to keep in stock.
Different types of businesses have different time periods that represent ideal amounts of time to turn over existing inventory. For example, a grocery business strives to turn over all of its inventory on average every week. Relationship of Sales and Inventory In order for your sales force to do its job, there must be enough inventory on hand to sell. A successful relationship between sales and inventory operations involves either a predictable rhythm of inventory turnover as a result of consistent sales, or dependable communication between the two divisions so the inventory department will know how much the sales department needs.
In order for this system to function smoothly, the sales department must have a clear idea of how long it takes the inventory department to acquire more product, through production or ordering, and must plan its orders accordingly. V. Scope and Limitations Many companies use inventory systems in their production or retail operations. Inventory management provides the foundation to meet customer demands and composes one of the largest assets owned by the company. Companies incorporate inventory systems as a way of managing inventory level.
Each inventory system falls within a specific scope and experiences certain limitations. Management needs to understand the scope and limitations of each in order to choose the best inventory system for the company. ??? Scope ??? The scope of sales is connected to the nature of sales. This is the way in which the management team go around ensuring that as many sales as possible are to be made and that there is to be a profit within the company to ensure that they are to be successful. The scope of an inventory system considers which needs the inventory system addresses.
These include valuing the inventory, measuring the change in inventory and planning for future inventory levels. The value of the inventory at the end of each period provides a basis for financial reporting on the balance sheet. Measuring the change in inventory allows the company to determine the cost of inventory sold during the period. The inventory level and changes allow the company to plan for future inventory needs. ??? Limitation The limitations of sales are different for many companies, however, there are going to be different legal aspects that all sales teams have to ensure that they abide by and do not have any trouble with.
This is to ensure that the company is to be as successful as possible and that they are not to encounter any problems. VI. Significance of the Study Sales and Inventory system is that this system makes a business much more efficient, lowering the costs of running the business while improving customer service and making the business more pleasant to work in while Computerized inventory system helps management control the inventories, in turn lowering overall operating costs in the areas of labor, facilities and logistics. A computerized inventory system also improves customer-service metrics and fulfillment rates.
You’ll know exactly how much inventory comes in, how much is on-hand now, and where it goes. While manual methods may have their place, most entrepreneurs these days find that computerizing gives them a far wider range of information with far less effort. Sales and inventory programs now on the market let you track usage, monitor changes in unit costs, calculate when you need to reorder, and analyze inventory levels on an item-by-item basis. In fact, many experts say that current computer programs are changing the rules of the ABC analysis.
Sales and inventory is an important part of a business because inventories are usually the largest expense incurred from business operations. Most companies will use sales and inventory system that will track and maintain the inventory required to meet customer demand. Most systems used by companies are linked to the management or accounting information system, increasing the effectiveness of their operations. Chapter 2 Foreign Related Study A significant amount of literature is available on inventory systems. A majority of the findings are derived from experiences in the US, Japan and Western Europe.
Some inventory systems however, can be affected by variations in local conditions such as infrastructure, customs, duties, and regulations. Hence, it is essential to view such systems in an international context. To frame this research, we will examine the literature on operations in NIC countries followed by an analysis of local conditions in Thailand. A number of articles are available that examine the inventory setups in Singapore, Hong Kong, and Korea (Amsden, 1989). For example, Cheng (1988) and Hum and Ng (1995) examine the workings of Just In Time (JIT) systems in Hong Kong and Singapore, respectively.
Other studies related to inventory management include facility location decisions (Sisodia, 1992; Nambiar, fielders, and Van Wassenhove, L. N, 1989; Mathews, 1997) and distributed systems. These studies indicate that Thailand is not as industrialized as the other NIC countries such as Singapore, and infrastructure shortcomings play an important role. Next, we will examine the literature on the quality of infrastructure in Thailand. Infrastructure affects both the productivity and effectiveness of manufacturing companies. It has a direct impact on the distribution of raw materials, parts, and finished goods to customers.
The few studies focused on Thailand have primarily addressed infrastructural problems in Thailand (Chalamwong, Chalongphob and Wattanalee, 1994; Chalamwong, 1993). In identifying the infrastructure-related problems, Yukio (1990) calls for the Thai government to pay closer attention to transportation systems in their effort to attract more Japanese and foreign investment. Sibunruang (1986) also points to infrastructural constraints having a bearing on the development of the Thai economy. Local Related Study According to “be the Philippine, IT industry in review by Denalyn M.
Rubio,” Information technology is virtually everywhere. Whenever you look, you could see either a by-product of IT, a representation or, just about anything that espouses IT. ” The great possibilities the internet offers can effect society as one perceives it. In the Philippine daily inquirer by Margie Quimpo-Espino: ” in another Sign how simple idea can turn to something big in the internet. ” In the book, “Understanding Computers”, Reggie Planas defined web site as “A collection of web pages maintained by a college, university, government, agency, company of individual.
Some popular website many are trying to access at the same time. ” Reggie Planas commended that: “internet is the largest computer of smaller interconnected networks around the world. ” Planas also stated that: some of the strengths of the internet is that it is structured around the concept of hypertext. The term hypertext is used to describe an interlinked system of documents in which a user may jump from one document to another in a non-linear associative way. ” ———————– [pic]