Mobile Application: Inventory System for TLE Department in Carlos P.

Garcia High School 10

CHAPTER 2: REVIEW OF RELATED LITERATURE AND STUDIES

Foreign

Before the boom of technology, paperwork is a widespread job all over the world. It is a

job that includes recording the item status. It is an effective strategy to avoid the cases of missing

items. When the company and economy grow bigger, the demand of item increases as well, with

that, the Inventory Management System can’t handle the information anymore. Mistakes in the

record frequently happens, missing items were always a topic, low production of work, and

inaccuracy on the information. (Kheng 2018)

In companies all over the world, inventory system are used. It is used because of its

capacity to connect to multiple stores, distribute stocks to several branches of larger franchises,

generate report sale, and etc. (Ramlee; 2018) There are companies who are using this system

because of its capacity to bring good record and information in any line of business. An

entrepreneur would give in on the idea of using this kind of advancement in technology. Let’s

look at specifically on every business that inventory system helped and developed.

In the point of view of a business man, an inventory system could provide convenience

and efficiency which may lead to a good point of sales. A good example of a business is the CW

Home Depot. Through inventory system, the workload of the employees lessen, time is not

wasted, and especially it gave profit. (Dela Torre, Herminigildo, Suguitan, Lauzon; 2018)

Another example provided by Victoria (2018) is the Omigo Superstore that is using the

manual sales and inventory system in operating their service. But because of the proposed

inventory system, transaction such as accuracy, reliability, and peed re provided in operating

their business.
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What could be the possible help of this system? According to Loizides (2018), “It also

allows for enhanced marketing, stocking and oversight of critical sales objectives. Computerized

sales and inventory systems save time for businesses by speeding up transactions while raising

accuracy. This generates confidence in a business and ensures on going consumer relationships.”

Let’s take into consideration the things that the inventory system could do to improve the

work and to lighten the burden in an organization. Mamon (2018) mentioned that, “Manual

method is very hassle and time consuming process of inventory. It has many drawbacks as there

are many mistakes while recording large data and it disturb some important transaction

sometimes”. If we will consistently use the manual operation, there are a lot of things a

company my risk such as time, money, effort, investment, man power, and etc.

Without any kind of system, time would be wasted and it could lead to human error.

People in charge may forget to record information, miscount good, mistaken a transaction.

(Santiago; 2018) It is evidently shown that this kind of system would help in the improvement of

a certain process. It makes everything easier and more reliable in content.

Local

Inventory Management System does not limit to businesses but it also has the capacity to

assist hospital records. According to Duangpun Kritchanchai and Watcharaphong Meesamut

(2015), “Single inventory policy has been applied to entire types of drugs in hospitals, despite

several different drug and demand characteristics. Shortages regularly occur, which may affect

patients’ lives, especially when vital drugs are being administered to them. However, hospitals
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cannot store a large amount of every drug because of limited space and budget.” Health care is a

worldwide issue that we need to have an utmost care and the intake of drugs are essential on its

part. One of the hottest issues in Thailand is the fact that there is a lack of stock in the medicines

and over count of inessential medicines. With that manner of concern, the hospital cannot

provide sufficient medicines for the patient. This situation is likely to occur because of human

mistake.

As stated by, Sarbjeet Khurana, Neelam Chhillar, Vinod Kumar Singh Gautam (2013),

“Approximately 35.0% of annual hospitals budget is spent on buying materials and supplies,

including medicines. This requires effective and efficient management of the medical stores.

Efficient priority setting, decision making in purchase and distribution of specific drugs, close

supervision on drugs belonging to important categories, and prevention of pilferage depend on

the drug and inventory management.” In Delhi, health care is a priority in their country so they

are giving importance on their investments. Inventory management system in order to sort out

what is needed in their hospitals.

Inventory management system is a critical process wherein adequate practices would

possibly run the risk to give inadequate medication to the patient. (Kevin Wijayawickrama,

Karolyn Woo-Miles; 2015) The availability of the drugs may be monitored well by the Inventory

management system, and with that, hospitals can provide essential care to the patients. It could

be a shallow explanation that it actually save lives.

A study conducted last 2015 by Areega et.al on manual accounting versus the

computerized accounting, showed that, “Through using the computerized accounting system, the

respondents are able to finish their jobs accurately and enhance quality and quantity of their

work, while the respondents who use the manual accounting system are also able to finish their
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jobs accurately, but they find the computerized accounting system easier to set.” This is an

evidence that technology can be at par to human jobs and can contribute with our daily living.

Lockard (2011) stated five reasons why inventory management should be used in every

aspect of business and branch of the society. The first reason is to avoid spoilage, he is not just

talking about food but we can also relate to the computer business. There is a risk that due to the

lack of management of tools or food, those are just mere stocks in the warehouse. The food will

be spoiled or the computer won’t function and be outdated. Another reason is, stop paying

hidden cost. If a person would continue to have a manual inventory, there would be a demand to

have a bigger warehouse. With that, there is also a demand for a custodian or guard for the

materials. Thirdly, stop disappointing customer. As the expert says, “Customers are always

right.” Without thinking any thoughts, customers should be the priority. There is a chance that a

customer will order a certain tool or food but because of the manual instruction, the owner

cannot deal with the customers immediately. Looking at it, the customers will be driven away.

Furthermore, inventory management system can help to manage the time. Obviously, it is

accurate, efficient, and fast in nature. Lastly, using inventory management system can make a

person plan or start ahead. Through the use of this application, the owner would have enough

time to monitor what is trending in the market and can get ready to the spikes of sales.