Inventory System
CHAPTER I
The Problem and Its Background
INTRODUCTION
Long before the computer era, merchants had reckoned that keeping a simple system of keeping track products and services being delivered or exchanged were important to keep the business operations as organized as possible. This paved the way to one of the most chief aspects of a business and was almost as important as having an investment: inventory management. Be it in barter system, small village livelihoods or up to the most basic unit of dealership, people had been knowledgeable of one of the simplest principle of inventory: the first-in-first-out approach.
Having an inventory system keeps the business organized and efficient when it is maximized and managed accurately. Nowadays inventory management has come a long way and large companies will even spend high amount of money, put a lot of effort and allocate a serious amount of time in order to keep track where their main inventories are and to ensure that this system is working well. Negligence of recording may result to either inventory excess or inventory shortage, which can affect the operation’s overall productivity. Hence it is very essential that all businesses, no matter how big or small, practice inventory management in any scale(Retrieved on August July 23 2013 from http://smallbusiness.chron.com/introduction-inventory-management-systems-41581.html).
One common notion is that recording and cataloguing involves mostly material products. However, archiving not only the counts of this product is what inventory was for, but it can be useful to keeping counts of services being executed as well. Moreover, with the current advancement in technology, there are very little reasons not to utilize this systematic approach of organizing things. Service centres for example, despite being focused mainly on skills of workers, can benefit greatly when proper and appropriate inventory system is applied (Retrieved on August July 23 2013 from
The Problem and Its Background
INTRODUCTION
Long before the computer era, merchants had reckoned that keeping a simple system of keeping track products and services being delivered or exchanged were important to keep the business operations as organized as possible. This paved the way to one of the most chief aspects of a business and was almost as important as having an investment: inventory management. Be it in barter system, small village livelihoods or up to the most basic unit of dealership, people had been knowledgeable of one of the simplest principle of inventory: the first-in-first-out approach.
Having an inventory system keeps the business organized and efficient when it is maximized and managed accurately. Nowadays inventory management has come a long way and large companies will even spend high amount of money, put a lot of effort and allocate a serious amount of time in order to keep track where their main inventories are and to ensure that this system is working well. Negligence of recording may result to either inventory excess or inventory shortage, which can affect the operation’s overall productivity. Hence it is very essential that all businesses, no matter how big or small, practice inventory management in any scale(Retrieved on August July 23 2013 from http://smallbusiness.chron.com/introduction-inventory-management-systems-41581.html).
One common notion is that recording and cataloguing involves mostly material products. However, archiving not only the counts of this product is what inventory was for, but it can be useful to keeping counts of services being executed as well. Moreover, with the current advancement in technology, there are very little reasons not to utilize this systematic approach of organizing things. Service centres for example, despite being focused mainly on skills of workers, can benefit greatly when proper and appropriate inventory system is applied (Retrieved on August July 23 2013 from