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CHAPTER II: REVIEW OF THE LITERATURE AND STUDIES

The literature and studies cited in this chapter tackle the different concept, understanding, and
ideas, generalization or conclusions and different development related to study of the enrolment from
the past up to the present and which serves as the researchers guide in developing the project. Those
that were also included in this chapter helps in familiarizing information that are relevant and similar to
the present study.

2.1 Related Literature

Foreign Literature

According to Janes (2011) stated that computers are extremely reliable device and very
powerful calculators with some great accessories applications like word processing problem for all of
business activities, regardless of size, computers have three advantages over other type of office
equipment that process information because computer are faster, more accurate more economical.
Inventory management systems were created to help dealerships implement, maintain, and fine-tune
their inventory plans. Dealers who use inventory management systems realize quicker vehicle turns and
a higher ROI than dealers that don’t. Choosing the right system can make a significant contribution to
your inventory management efforts. This strategy helps a lot to come up with a successful outcome.
(Zierden, 2009).

According to the U.S. Small Business Administration, “Inventory refers to stocks of anything
necessary to do business” (U.S. Small Business Administration, 2010, pp 1-2). The U.S. Small Business
Administration publication describes what constitutes successful inventory management (balancing cost
versus benefits of inventory), including: Maintaining a wide assortment without spreading the rapidly
moving items too thin, Increasing inventory turnover without sacrificing service, Keeping stock low
without sacrificing performance , Obtaining lower prices by making volume purchases, Maintaining an
adequate inventory without an excess of obsolete items.

According to the Nicole Fallon(2013), investors in uncertain, rapidly changing product markets
likeconsumer electronics react more strongly to customer satisfaction. Nokia, for example, saw a rise in
its American Customer Satisfaction Index (ASCI) figure in May, followed by reports of increased interest
from large institutional investors.

According to Stair and Reynolds (2009) on their book, Principles of Information System, sales
and marketing information systems are used to develop new good and services (product analysis),
determine the best location for production and distribution facilities (place or site analysis), determine
the best advertising and sales approaches (promotion analysis), and set product prices to get the highest
total revenues (price analysis).
Cashman stated in her book “System Analysis and Design”,(2011) that transaction processing
system data generated by day-to-day business operations. Transaction processing are efficient because
they process a set of transaction related commands as a group rather than individually to protect data
integrity however, TP systems ensure that if any single element of a transaction fails, the system does
not process the next transaction.
Sales are affected by maany factor besides advertsing, such as product features, price and
availability. Service is the anything which organization offers to customers. It is the means by which
customers needs are satisfied. Service organizations nee to follow a strategic approach for effecctive
service that can increase customer satisfaction that influences the profitability (Ketler, 2009).

Local Literature

According to PLDT(Manila,Philippines,April 15,2011), small and medium enterprises, who long

for a point-of-sale(POS) system that can track how much they sell and how muchstock they have left at
their stores in real-time and from anywhere, can now turn to PLDT SME Nation.

“Inventory System for Best Choice Rice Dealer” by Bisagas, Arivada, and Tanteo (October 2009).
The process of counting the sacks of rice is done manually, which corresponds to difficulty in tallying the
number of available stocks and sold items.

The Manual generation of inventory reports such as daily, weekly, quarterly and annual
inventory list of records remains as one of their key problem since the establishment of the business.
The transaction processing system for Best Choice Rice Dealer will minimize the difficulty the owner in
processing inventory. It will monitor the availability of product items for reorder to prevent under
stocking, overstocking or running out of stocks. The system will also generate necessary reports of
inventory such as sales reports.

In the study from Averion, Gaela, and Libo (2009) entitled “Monitoring and Inventory for
discovery Mall.com”, it stated that:

“It will minimize the difficulty of the manager in processing inventory because physical counting
products, stocks and computing inventory summary will be the system job. It will monitor the availability
of products, items to prevent under stocking, over stocking and running out of stocks. The system will
also simplify the transaction between dealer and supplier relationship because of the updated supplier
information and price list of items will correspond to collaboration with other supplier.”

An article by Junaito Villegas (June 23, 2009) entitled “Inventory controls are key to dissuade
employees from stealing” states that:
“Computers can only do much, but coupled with inculcating honesty among staff and instituting the
appropriate deterrents, they can work very well in minimizing losses and pilferages. It is therefore highly
advisable to do both the manual and the computerized inventory system in a retail and wholesale
business.”

Josefina Estolas in the book Fundamentals of Research (2009), in exploration, we find new
techniques, knowledge, even developed new substances, gadgets, equipments, processes or
procedures, imagination and skill is employed by the researcher. The commodities, new devices,
services, in technology are needs of man for a better fuller life which is concern of the research. These
useful arts are the product of the technological environment and the end-user is society in general.

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 2.2 Related Studies

Foreign studies

According to a recent Aberdeen Group study (March 2012), companies are prioritizing supply
chain visibility, inventory optimization, supply chain analytics, and supply chain outsourcing as ways to
cut supply chain management (SCM) costs this year.

According to IBM (October 2012) Innovations such as just-in-time manufacturing bar codes and
RFID tags have revolutionized supply chain management. Unfortunately these innovations have brought
with it staggering amounts of data to deal with. This white paper outlines some of the major factors
affecting inventory and supply chain management.

Local Studies
According to J.De Leon and M. Ferrer (2009) Under the Koread Red Ginseng Enterprise Sales and
Inventory System, the researchers came up with a computerized sales and inventory system. The
proponents used database to easy access of files and for easier and faster processing of the selling and
inventory transaction. The program was designated to generate reports such as monthly reports,
inventory reports, sales invoice and list of items.
Based on the research entitled “Computerized Sales and Inventory system for Ronmon Trading” (de
Alday, Espino, Ragudo), 2010, the replacement of the manual system with the proposed system
provided more efficient and accurate processing of transaction. The said system is much reliable,
eliminated errors and inaccurate information, and provided valuable reports with integrity.

Also stated in the research, “Sales and Inventory System For Schema Megacenter” (Almeda,
Dañez, Geronimo), the proposed system are not just only accurate, realiable, and fast in processing
transactions rather it is also provided more systematic way of transacting with the members and
through the billing system also helped the employees to save a lot of time on transaction processing.

Based on the research entitled “Computerized Sales and Inventory system for Ronmon Trading”
(de Alday, Espino, Ragudo), 2010, the replacement of the manual system with the proposed system
provided more efficient and accurate processing of transaction. The said system is much reliable,
eliminated errors and inaccurate information, and provided valuable reports with integrity.

Also stated in the research, “Sales and Inventory System For Schema Megacenter” (Almeda,
Dañez, Geronimo), the proposed system are not just only accurate, reliable, and fast in processing
transactions rather it is also provided more systematic way of transacting with the members and
through the billing system also helped the employees to save a lot of time on transaction processing.

In the study entitled “Osaka Sales and Inventory System” (Laranang, Maaño and Nañola, 2009)
states that business nowadays takes the advantage of using modern technology to improve their status
and ensuring an efficient and newer way to make their work easier. They state that the main problem of
the Osaka Iridology is what modern effective tool must be use in creating and developing a sales and

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inventory system that will manage efficiently their transaction. So they develop a system that inclusively
for the transaction of Osaka Iridology, such as monitoring of their medicine and their daily sales.