inventory system
CHAPTER I Introduction
Background of Study An inventory system is basically a process whereby a business keeps track of the goods and material it has available. In its simplest sense it can be done manually by a count at the end of each day. In this way it is possible to keep a record of the goods coming in to the business and goods being sold. However this is only really appropriate for small businesses that do not have a lot of stock. For larger business it is more likely that a computerized system will be required. Transaction processing systems are commonly used to operate businesses. In this era, manual transactions evolved into computerized ones. Manual inventory systems turned out to be slow and inaccurate resulting to problems like running out of stocks and slow computations of product prices being bought by the customers. The degree of success of a business greatly depends upon controlling the merchandise inventory. The continuously improving and upgrading of computer usage into more powerful and useful applications has made managing business transactions a lot more efficient and easier. Today, businesses use the computer to assist in controlling and monitoring many aspects of the businesses, since manual approach in data processing could no longer meet the demands of increasing volume of transactions. In New York, Wal Mart is a global retailer and this international retail giant maintains an average inventory of about $32 billion, at any given time. Obviously such an amount of stock requires an efficient and reliable inventory system. Proper inventory management and control imperative in maintaining retailer’s profitability and customer satisfaction. In the past, retailers were content with hiring staff to monitor their stock levels. Today the introduction of computerized store management system and automated point of sales means that this is no longer the case. Technology has made manually tallying of products redundant,
Background of Study An inventory system is basically a process whereby a business keeps track of the goods and material it has available. In its simplest sense it can be done manually by a count at the end of each day. In this way it is possible to keep a record of the goods coming in to the business and goods being sold. However this is only really appropriate for small businesses that do not have a lot of stock. For larger business it is more likely that a computerized system will be required. Transaction processing systems are commonly used to operate businesses. In this era, manual transactions evolved into computerized ones. Manual inventory systems turned out to be slow and inaccurate resulting to problems like running out of stocks and slow computations of product prices being bought by the customers. The degree of success of a business greatly depends upon controlling the merchandise inventory. The continuously improving and upgrading of computer usage into more powerful and useful applications has made managing business transactions a lot more efficient and easier. Today, businesses use the computer to assist in controlling and monitoring many aspects of the businesses, since manual approach in data processing could no longer meet the demands of increasing volume of transactions. In New York, Wal Mart is a global retailer and this international retail giant maintains an average inventory of about $32 billion, at any given time. Obviously such an amount of stock requires an efficient and reliable inventory system. Proper inventory management and control imperative in maintaining retailer’s profitability and customer satisfaction. In the past, retailers were content with hiring staff to monitor their stock levels. Today the introduction of computerized store management system and automated point of sales means that this is no longer the case. Technology has made manually tallying of products redundant,
Bibliography: Published Financial Accounting 1, 2010, volume 1, copyright 2010 Unpublished Gina Carino, Inventory System of Saint Mary’s Academy (2007), Thesis Book AMA, San Fernando La Union Web Based http://inventorybooks.com/shop/index.php?main_page=product_info&cPath=1&products_id=4 http://www.mb.com.ph/articles/298943/smooth-inventory-and-order-lots-a-pizza-with-globe-business#.ULyTkeSZX-I http://inventories.uslegal.com/methods-of-valuing-inventory/ http://encyclopedia2.thefreedictionary.com/inventory