Professional Documents
Culture Documents
Research Preliminaries Format
Research Preliminaries Format
Research Preliminaries Format
Group Members:
Introduction:
To quote a British newspaper in a June 1949 news article about the Electronic Delay
Storage Automatic Calculator computer ―also known as EDSAC, the first full-size stored-
program computer built at the University of Cambridge to provide a formal computing service for
users (EDSAC, 1949). ― ’The “brain” [computer] may one day come down to our level [of the
common people] and help with our income-tax and book-keeping calculations. But this is
speculation and there is no sign of it so far.’ Seventy years later, the speculation came into reality
rate―so astonishing, that in fact, citing statistics about its growth would be futile. So astonishing,
that today’s innovation could become obsolete tomorrow. After the ESDAC came the personal
computer, from bulky desktops to handy laptops. Seventy years later, computers aid us in almost
everything including income tax and bookkeeping calculations. Seventy years later, the absence
Before the emergence of Computerized Accounting Systems (CAS), everything was done
manually. Starting from the acquisition of goods (for merchandising) or raw materials (for
manufacturing), into receiving cash from customers and paying for the goods or materials
acquired. With the ever-increasing competition in the market in every business line there is,
computers and computer systems play a vital role in the success of a business. CAS are information
accounting transactions, CAS has modernized and simplified people’s work to data encoding
(Ongoco, 2018).
can be a real challenge for most businesses and may become a major problem especially if the
inventories are long and in- and outflow is huge. Manual reports are time consuming and difficult
to construct. Inadequacy, duplication, irrelevance and inefficiency are just few of the many
problems with the current manually operated systems. List of files, and papers in these files are
difficult to document and maintain, thus prone to risk of loss or damage, making the system
inefficient (Arshad, Shoaib, & Sajjad Khan, 2000). In this age of information, manual accounting
system is still being used by some establishments, even companies with large number of
inventories.
employed in firms in controlling its interest in inventory. It includes the recording and observing
of stock level, estimating future request, and settling on when and how to arrange. On the other
hand, Deveshwar and Dhawal (2013) proposed that inventory management is a method that
companies use to organize, store, and replace inventory, to keep an adequate supply of goods at
the same time minimizing cost. It is justified that the inventory management practices have a direct
positive impact on the competitive advantage and organizational performance of MSE firms.
Therefore, owners or manager of MSE manufacturing firms are expected to consider inventory
management practice as a one core enterprise objective in order to excel their competitiveness
through providing quality customer service, quality product, reduction of cost, meet market
demand in a flexible manner, and also enhance their overall organizational performance (Daniel
A study conducted in Kenya by Naliaka and Namusonge (2015) identified that inventory
management affects competitive advantage of manufacturing firms. The same study further
concludes that the firm is able to compete based on quality and delivery of customer orders on
itself from its competitors and is an outcome of critical management decisions (Li, Ragu-Nathan,
In the business line of selling foods and giving services, it is crucial to maintain the right
amount of inventory to eliminate any form of waste and additional holding costs from the
accumulation of inventory, which may also result in longer lead time – meaning customers will
wait longer if an item is out of stock, which now becomes an additional concern because the
In reality, inventory management is not fascinating but it can define success from failure.
It is said that the bigger the inventory, the more that management inventory is vital. Inventory
management and purchasing have the same objective: to have the right goods at the right time at
the right quantity. The goal of proper inventory management and control is to ensure continuous
operations which is important because delays due to lack of materials is costly. Furthermore,
sales can be maximized by stocking appropriate inventories in retail and wholesale establishments.
Protecting inventories which is part of the assets of the company from theft or shrinkage contribute
to operational efficiency. If inventories are maintained at an optimum level, meaning, the point
at which inventory stock outs are at the minimum level and do away with excess inventory, money
can be saved and profit can be maximized (Moore, Petty, Palich and Longenecker, 2008). A
reliable inventory system means a high level of customer trust and their attendant continuous
patronage. Inventory management system are primary used in manufacturing companies, where
its viability and potential economic value are reasonably attained. Inventory is kept to meet
reliability of operations, flexibility in production scheduling, change in raw material, delivery time
It came to the researcher’s attention that Makimura Ramen Corp. is still using the manual
accounting system, which includes their inventory system. As a result, the researcher conducted
this study for the main reason of introducing a computerized inventory system with POS to the
company. All because inventory decisions are risky and they make a large impact throughout the
supply chain (Bowersox, Closs, & Cooper, 2005). Hence, beginning from inventory acquisition
until the generation of sales, inventory decisions must be carefully made and executed by every
establishment.
inventory, tracking inventory movement, optimizing stock levels and improving cost control
measures through generated reports from the system. The billing and collection process could be
The study aims to design a computerized accounting system with point of sale for Makimura
Ramen Corp. that will reduce the ineffectiveness and inefficiency of their existing inventory
system.
1. What are the processes involved in the existing inventory system of Makimura Ramen
Corp.?
2. What are the problems encountered in the existing inventory system of Makimura
Ramen Corp.?
3. What is the best possible design of a computerized inventory system with point of sale
Ramen Corp.?
4. What are the benefits of adopting the proposed computerized inventory system with
point of sale?
Note: Attach Data Gathering Instrument (e.g. Questionnaire, Guide Questions, etc.)