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CHAPTER 1
Introduction
Inventory to many small business owners is one of the more visible and
finished goods all represent various forms of inventory. Each type represents
money tied up until the inventory leaves the company as purchased products.
when their sale puts money into the cash register. In a literal sense, inventory
a large portion of the business investment and must be well managed in order
to maximize profits. In fact, many small businesses cannot absorb the types of
protect the regular and planned course of production against the random
management also concerns the fine lines between replenishment lead time,
forecasting.
on order and inventory in stock. There are several proven purposes that
method is used, records may not be needed at all or only for slow
• Enables the manager to retain a portion of the price ticket when the
item is sold. The manager can then use the stub to record the item that
was sold.
control inventory is far more feasible for small business than ever before, both
The manager receives information printouts at regular intervals for review and
action.
takes the stock count and writes the reorder. Unwanted merchandise
necessity.
Every distributor is assigned to a particular place and has to deal with an own
system to keep track of the sales made. Mostly, a distributor would rely on a
manual system since it will require less maintenance time and less cost. But
speed but with efficiency. This is where the researchers’ “Personal Distributor
growing needs for business solutions, big or small companies are expanding
their clients.
In 2001, Mr. Wee Liang Cheng, invested in the company and acquired
more than 90% of shares registering it under the Foreign Investments Act
Focused on PIEC products in the market, PIEC which stands for Pillars
products on markets, which then grew and increased through the years. Now,
products, not to mention other walk-in clients. Also they currently have 84
employees, marketing and Distribution Pillars has its own marketing sales
force that calls and gets orders from its customers. Right now we have 7 sales
agents.
Assisted by Mr. Wee Liang Cheng, PIEC managed to rival with tight
everyday needs of the market for quality PIEC products, needs to monitor the
warehouses and in timely manner it is because the sales clerk. Though given
each stockroom, cannot have their list updated every time. It would require
every sales clerk to compare each of their records every time to determine all
out of the stockrooms, due to defects or for the owners' personal usage. In
items are lacking. This leads to another problem; the company becomes
clueless of when and how many stocks to reorder from its supplies.
Reorder too early and/or too much products would cause the prices
to fluctuate, because the prices of the excess commodities will decrease. The
prices will decrease because the company needs to sell the excess products
fast before they stay in the stockroom longer than usual, adding more
expense and work in maintaining its quality and acceptability, or worst. The
good condition to its clients. By doing such, products can be free of defects
employees, for entries are sometimes doubled or omitted from their records.
other employee has already recorded it. When it involves only one employee,
record transactions and view the status and quantity of the products in each
centralized record in real time. Also they should also be capable of knowing
fast and accurately the availability of their products by having their lists
commodities, the company should also know the products nearly and already
warehouse.
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From the stated problems and needs of this company, the researchers
In this part the researchers indicate the study's main objective. It will
also present the specific and precise objectives the study has to accomplish in
General Objectives
Specific Objectives
added items, product availability add items easily sold and which
are not.
of the study, “LAN-Based Sales and Inventory System for Pillars Industrial
Equipment Corporation".
Scope of Study
The research will upgrade the inventory transactions of the company due to
the failing of the manual system. The study covers the generations of yearly,
monthly and daily reports on sales for the administration. The project includes
attendance.
Limitations of Study
Equipment is the only product that is included in the system. Only the order
To the Company
to the PIEC Merchandising. this study will trigger a technology growth to the
company and will uplift its level among modernized businesses. It would also
this research will strengthen the relationship of the company and its
employees, for simplifying their work and entrusting them with a computerized
system as aid.
To the Employees
Equipment would be the analysis of problems and needs they have with the
task assigned to them. With this analysis, the researchers can administer an
appropriate assistance to them. The study will provide the employees more
speed, functionality and ease by decreasing tedious work and errors. The
research would also grant the employees connectivity, bridging the gap
To the Clients
services with hospitality from the company's employees and from the
services. The clients will obtain faster, reliable and more accurate services,
along with high quality goods from the company. Therefore, the market will
To the University
its name as producers of intellectual students. The success of the project will
companies, parents, and potential students. This study will present the
To the Students
studies, providing an example and an aid for their educational inquiries. The
study would give an insight to students in lower years of what the College Of
students, depicting their assets and capabilities. It would also add up to the
To the Researchers
knowledge about the field we have taken and what opportunities await us. It
would give us a chance to display what we have learned and prove that we
confidence and pride for our achievement. The study would also promote
teamwork, responsibility and sacrifice we would share and endure to fulfil this
requirement.
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Chapter II
aids the researchers in developing the study. All gathered information from
In this chapter, we will deal with the analysis and careful observations
about the existing system. This will be a great help for the researchers to
identify the strengths and weaknesses of this existing system. This will also
Conceptual Literature
Inventory
paper clips, screws, nuts, and bolts to large items such machines, trucks,
finished items, and finished goods, as well as spare parts for the machines,
carpeting, stationary, appliances, gifts, cards, and toys. Some also stock
sporting goods, paints, and tools. Hospital stock drugs, surgical supplies, life-
stock fresh and canned foods, packaged and frozen foods, household
supplies, magazines, and baked goods, dairy products, produce, and other
“Inventories are assets which are held for sale in the ordinary course of
business, in the process of production for such sale in the form of materials or
services.”
resale, or land and other property held for resale by a subdivision company
produced, goods in process and materials and supplies awaiting use in the
the goods purchased for the principal purpose of reselling them in the ordinary
furniture store has beds, tables, chairs, and bookcases as its merchandise
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inventory. A vehicle dealer has cars, trucks and vans forming part of his
record the decrees in the inventory balance as a result of the sale. There are
occur. The perpetual inventory system acquired its name from the fact that the
inventory records are continuously updated. The acquisition cost, are simply
akin to storage tank that can release its content (the costs) when certain
triggering events take place. Even if, in a world of just in time, the role of
inventory) (b) the choice of how to attach costs to objects held in inventory
Types of Inventories
1. Cycle Inventory – the portion of total inventory that varies directly with
lot size.
Inventory Management
warehouses. Among the many elements for each item at each warehouse, the
system calculates and stores usage rates, stocking level, and movement
to management personnel. Usages rates help predict future sales from past
sales.
movement. Each item is classified by its dollar moved through the warehouse
to spend their time in controlling inventory. With all facets working in concert,
the inventory provides the best customer service with minimal labor.
(www.snowbd.com)
made up of several elements: operational stocks kept for meeting the ready
given point of time, while other stock will be in transit at any given point of
time, while other stock will be awaiting shipments. Finally, there are kept for
the inventory, warehouse rent, staff salaries, insurance, rates and taxes,
interest on the capital tied up in the inventory becomes the most significant
element of the total inventory carrying cost. In fact, inventory cost causes the
on the increase of the products pushes up the inventory carrying costs as the
increase in the interest rates also pushes up the inventory carrying costs.
(www.inventory-info.com)
“Accounting Alert”, here are the new significant Provisions and Changes in
Accounting
1. Inventories should be carried at the lower cost (i.e., those cost incurred
its present location and condition) and net realizable value (i.e., the
inventory costs.
With the rollout of new and innovative services, which draw on complex
includes recent mergers and acquisitions among some of the top vendors, so
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it would be useful to chat with the leading and gauge their thoughts about this
stock. The series considered in this paper are characterized by high volatility
and skewers, which are both time varying. These features motivate the
particularly apparent when the approach is used as the basis for robust point
Merchandising
buying and selling of products. The main difference merchandising and the
manufacturing business because it does not produce its own product for sale.
are “trading enterprise”, “trading firm” or buy and sell business. (Valencia,
2006)
Sales
item’s real-time quantity available for sale eliminates the need for manual
reserved for sales orders from quantity on hand. The quantity available for
system. All of these features combine to help the salesman service the
Warehousing
It includes storing, dispersing, ordering, and accounting for all materials and
(WW) model. The objective is to maximize profit from production and sales of
a single good over a finite planning horizon. Demand, costs, and prices vary
immediate loss of profit from sales. Previous models augment the total cost
objective by this lost profit. The difference of the proposed model is that
unsatisfied demand in a given period causes the demand in the next period to
restoration heuristic is developed that tries to adjust optimal lot sizes of the
solver CPLEX 8.1 on 360 test problems of various period lengths. (AKSEN,
2007)
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Networking
Because the world topology basically means shape, the term network
network are wired together. There are several different topologies in which
networks are wired, and the choice of a topology is often your most important
choice when you plan a network. The different topologies have different costs
(oath install and maintain), different levels of performance, and different levels
together for the purpose of sharing data. Networks are built with a mix of
amongst group and people to gain greater access to mutual support, facilities
influence over the decision making that affects our lives”. (www.navca.org.uk)
computers that are physically close together, such as in the same room or
connected on a single LAN. The limitations vary based upon the medium
connecting the computers and devices as well as upon the LAN software
few kilometres and are typically used in offices or across university campuses.
A LAN enables the fast and effective transfer of information within a group of
geographic area, like home, office, or group of buildings. Current LANs are
at 10, 100 of 1,000 Mbit/s, or on IEEE 802.11 Wi-Fi technology. Each node or
computer in the LAN has its own computing power but it can also access
other devices on the LAN subject to the permissions it has been allowed.
These could include data, processing power, and the ability to communicate
used form of LAN. A piece of hardware called a hub serves as the common
wiring point, enabling data to be sent from one machine to another over the
network. LANs are typically limited to distances of less than 500 meters and
is called a node. A LAN can have from two to several hundred such nodes,
such as telephone circuits, that are used for other purposes. Because of the
a LAN but one still small enough so that dedicated links (such as microwave
sent over office computer networks. Terminal were no longer “dumb”, but
contained the power to perform their own instructions and maintain their own
larger group of users. This eliminated the need for each worker to have a
printer and ensured that the one printer provided was not underutilized. In
and copied to several more over the LAN. As a result, an e-mail system
supervisors.
among several computers, the mainframe’s main role was eclipsed and
the job of a new device, the file server. Today, there are many different types
of LANs. For example, many Macintosh computers use AppleTalk, while IBM
Network Topology
network installation.
There are four main network topologies (and mixtures of the four) in common
use today.
• Bus
• Mesh
• Ring
• Star
A Bus topology can be both Physical and Logical. The Bus topology is one of
the simplest of the four network topologies to use, in its most basic form it is
simply a case of running one cable (referred to as the backbone) from the first
device/PC in the network to the last device/PC, and then add any further
devices/PCs to the existing cable (backbone) between the first and last
machines.
setup, as only one cable is used the installation is fairly simple and
tolerance, or the lack of it, this type of network transfer data by passing
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messages through the same cable, so a break in any part of the cable will
bring the whole network down. Each device will check to see if the message is
(www.helpwithpcs.com)
This type of network topology boasts the highest fault tolerance of all of
network by its own cable, which means vast amounts of cables for any
separate cables for each connection, allowing any one cable to break without
connection needs its own cable a Mesh topology can get very expensive.
Every time you add a client to a mesh network you have to run cables to each
The amount of cables you will need for a mesh network can be
calculated by:
CN = (D*(D-1))/2
When you need to add a single device to a Mesh network the job can
be very complex, for example if you had a network of 15 devices, to add one
The physical ring topology is rarely used this days; a Ring topology
devices. Data is passed one way from device to device, fault tolerance in a
physical ring topology is non existent, if one device/cable fails then the whole
network goes down. Adding a new device to an existing physical Ring network
devices. (www.helpwithpcs.com)
such as a Hub or a Switch. A Star topology gives great fault tolerance as any
device/cable failure will not affect the rest of the network (unless the
centralizing device or server (if vital) fails). Physically adding new devices to a
Star network is very simple compared to any of the other topologies; you
also, they are commonly mixed with one of the other topologies to create a
Internet
university, government, and research facility in the world. Also included are
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Crossover cable
A type of networking cable that connects two computers or network
devices directly to one another. When purchasing this type of cable, the
packaging must indicate that it’s a crossover cable for the required network
crossover cables are used to connect two computers with network cards
(www.computerhope.com)
Rollover cable
Type of network cable that connects a dumb terminal or computer to a
network switch or router console port. Often this type of cable is flat or yellow
to help prevent any type of confusion between other Cat5 network cables.
(www.computerhope.com)
STP cable
Short for Shielded Twisted-Pair cable, STP is a type of cable originally
developed by IBM for Token Ring that consists of two individual wires
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communication. (www.computerhope.com)
Twisted-pair cable
A type of cable made by intertwining two separate insulated wires
together. There are two types of twisted pair: shielded and unshielded.
Shielded Twisted Pair (STP) has a fine wire mesh surrounding the wires to
protect the transmission; Unshielded Twisted Pair (UTP) does not. Shielded
Coaxial cable
(www.computerhope.com)
Foreign Studies
supply chain promise specific times of delivery that cannot be met due to a
approximation for the distribution function of the customer waiting time and we
policy in supply chains in which each enterprise has its autonomy in pricing. In
multiple different retailers, as the followers, who then sell the product in
manufacturer’s and its retailer’s profits; (b) a retailer’s profit may not
manufacturer; and (c) the equilibrium of the Stackable equilibrium benefits the
mostly known analytic models using the compound distribution approach have
orders. Such orders incur additional costs but have a much shorter lead time.
decision rule minimizes the expected costs under the assumption that there is
only a single possibility for emergency replenishments, but the rule is used
replenishments, our decision rule will always reduce the expected costs. A
simulation study illustrates that the suggested technique performs well under
the upper echelon. Each retailer experiences Poisson demand and operates a
base stock policy with backorders. The supplier manufactures to order and
lead time and hence the distribution of demand during order lead time, we find
the steady state inventory and backorder levels based on the assumption that
order lead times are independent of demand during order lead time at a
assumed forms for the order lead time distribution. Finally we provide a
derivation of the steady state inventory and backorder levels which will be
Local Studies
for point of sales and inventory system for the two branches of Floor Center,
monitoring of the inventory levels to lessen and prevent out of stock situation
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viewing of the sales and inventory of the 3 branches remotely on a daily basis.
Providing statistical analysis data of sales by year, month, and day being able
and easier way of data retrieval and a more convenient approach of data
system to change the system, and realize the progress of the system by
of the Inventory and Point of sales of the company Odyssey. Also reducing
Abstract
quite general modelling assumptions. Any unsatisfied demand is lost, and any
leftover inventory at the end of the finite selling horizon has a salvage value.
The cost component for the retailer includes holding, shortage, and both
variable and fixed ordering costs. The retailer's objective is to maximize its
the optimal pricing and replenishment policy for each period. We show that,
each period an (s,S) policy is optimal for replenishment, and the value of the
optimal price depends on the inventory level after the replenishment decision
has been done. Our numerical study also suggests that for a sufficiently long
selling horizon, the optimal policy is almost stationary. Furthermore, the fixed
hand, the profit impact of dynamically changing the retail price, contrasted
with a single fixed price throughout the selling horizon, also increases with K.
We demonstrate that using the optimal policy values from a model with
Logistics, 2006
paper points out the benefits obtained following the implementation of this
technique and presents based on the case the variables that define and
For the (S-1,S) lost sales inventory model with multiple demand
classes that have different lost sales penalty cost parameters, three accurate
and efficient heuristic algorithms are presented that, at a given base stock
level, aim to find optimal values for the critical levels, i.e., values that minimize
Conceptual Framework
This section presents the several elements needed for the project
completion and identifies its relationship with each other through the Input-
framework of the study, depicting the various inputs essential to the study and
Definition of Terms
This part contains the terminologies and definitions used in the study.
These definitions will assist the readers as it have had assisted the
researchers. It will enrich our understanding of the system, the business, and
Availability
Business-to-business (B2B)
administration).
Coaxial Cable
Commodities
Bulk goods such as grains, metals, livestock, oil, cotton, coffee, sugar
and cocoa. They can either be sold on the spot market for immediate delivery
Content
features of the system. The content must be updated and appropriates for its
purpose.
Crossover Cable
signals from one piece of equipment to the receive signals from one piece of
versa.
Customer
Customer is an individual with whom one must deal, one that buys
data stores, external entities, data flows in a business or other system and the
Database
answer questions.
clients.
Database Model
Delivery Note
Depleted
depleted”
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Depicting
Ecommerce
products or services over electronic systems such as the Internet and other
computer networks.
Enhancement
Fluctuate
Functionality
the specifications. The system’s ease, convenience and user friendliness are
also considered.
Inventory
in stock.
Inventory Management
Inventory System
Refers to the software used to plan and track inventory balances and
activities.
Invoice
Logical Topology
Maintainability
Merchandise
a want or need. However it is much more than just a physical object. It is the
obtain if they purchase the product. It is the sum of all physical, psychological,
Merchandising
sales outlets in order to ensure the display of the fastest selling titles.
Mesh Topology
Modem
a phone line.
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Network
that all transmit the same programs; “the networks complete to broadcast
components or circuits.
Networking
resources.
Network Topology
Official receipt
Payment
Physical Topology
Process
Redundancy
Reliability
errors occur.
Retailer
retail price.
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Retailing
All activities directly related to the sale of goods and services to the
Reorder Point
For slow moving products and especially if the lead-time is short, you
RFID
Ring Topology
other
Rollover Cable
Sales
Server
Software
pertaining to the operation of a computer system and that are stored in read/
write memory.
Star Topology
System
function.
Tedious
Theoretical
experiment.
Transaction
Twisted-Pair Cable
together.
Warehouse
Warehousing
Workstations
small group or an individual in their own work location yet powerful enough for