Review of Related Literature
Review of Related Literature
Related Literature
A small or large firm needs resources to survive in the commercial sector. It is a vital part
to guarantee success. People who own businesses typically invest in these resources to expand
what they have started. Their company strategies always indicate how many resources they will
employ and how much these resources can last long (Henderson, 2019). There are five resources
needed for a business to last long: Financial, Human, Educational, Emotional, and Physical.
Financial and physical resources are linked because physical resources would not exist without
financial help.
However, having those physical resources is not enough to run the business effectively.
With that; having inventory management is essential because it can track when to buy and
restock items, it can also help the business owner to identify what to sell and at what pricing
range is applicable to the items (Hayes, 2022), it also helps to save money because it guarantees
that the proper type and amount of stock is accessible without retaining surplus stock and tying
up cash and simultaneously, it improves the satisfactory of the customer (Jenkins, 2020).
Jane, M. (2017) using a manual process means updating the inventory physically, like counting
the items physically. Additionally, manual tracking of daily sales is difficult because the
employee needs to list the items sold and the sales. Doing that is unreliable because the
employee might forget to record the sales for the day or lose the list of items sold. With that,
Leonard, K. (2019) said that a computerized inventory management system can reliably track the
cash flow in the business and monitor the stocks available and what is not.
An inventory management system is the process of tracking business products from
purchase through manufacture to final sales. It regulates how your company approaches
inventory management (Unleashed, 2019). Inventory management systems are vital, especially
for businesses that need to know if their goods are understocked or overstocked. Without an
understanding of the items that the company controls, it may have an overstocked or inadequate
supply of commodities. Inventory management systems play a significant role in the linkage of
sales in a firm. If a company's inventory does not have enough items, sales will suffer because
customers' demands will not be met (DSD Business Systems, 2017). In addition, it also indicates
a good company plan, that understanding client demand for items leads to understanding what to
check or monitor the most. An excellent and intelligent inventory management system may
provide great visibility of things and where they are situated and adequate time to refill items that
Using a computerized inventory management system will help the business owner
economically. According to Singh, S. (2022), having an inventory management system will help
the owner maintain their stock count. It also automates the process of inventory management,
where it can perform inventory tracking in real time. It can also generate reports and analytics to
help the business owner determine the products that are selling the most and track the expiration
dates of the products (Cho, 2019). Dinsmore, K. (2020) also stated that having an inventory
management system will significantly reduce the lost and wasted money because the system will
provide real-time financial and analytical reports showing the business owner where they are
losing inventory.
has a POS system. Lightspeed (2019) said that a point of sales (POS) system is the hardware and
software that enables the area to become the point of purchase. They also said that the POS
system comes hand in hand with managing the business's inventory, and it also records every
transaction made by the company or the industry. Additionally, having a POS for inventory
management is one of the vital and smart decisions a business owner can make because using a
POS for managing the inventory lets the business owner lower the ordering cost because the POS
can tell them when exactly to order and restock their items (Carlson, 2021). Having both the
point of sale (POS) system and an inventory management system is a must-have to effectively
manage and run the business. Fuscaldo, D. (2021) stated that integrating inventory management
with the point-of-sale system lowers the chance of having a costly inventory inaccuracy. Dublino
J. (2022) stated that a point-of-sale (POS) system helps manage inventory. According to her,
every time they do transactions, the POS system will automatically update the items in the
inventory. It also allows the staff or the cashier to view the inventory level to prevent stocking
out of items.
The point of sale (POS) system is frequently used in business to process customer
transactions. This early iteration of the POS System has been the standard for micro to small
businesses in Indonesia, typically using a basic cash register machine as a base, a cash drawer to
store the money, and a note to write the receipt. However, as time goes by and our world is
changing and updating using technology, younger entrepreneur has entered the business industry
and integrate new technology into their system (Sembiring et al., 2020).
Related Studies
In the study entitled Analysis and Design of a Sales and Inventory Management
Information System for Motorcycle Parts and Accessories Store, the objective of their study is to
develop an inventory system to improve the business process of their client. Their system will
monitor their product stocks and notify their client for restocking. The system is also capable of
computing and recording the sales. The said system also generates an inventory and sales report
(Magallanes et al., 2021). In comparison to the study of Abdul Aleem, R. B. (2013) named Sales
and Inventory Management System, the purpose of their system is to improve the business
process of the Rahmath Store. Specifically, their system will generate a weekly report about the
sales and inventory of the business, similar to the study of (Magallanes et al., 2021) and the study
entitled Point of sales and inventory monitoring system for Kkopi.Tea – Area K branch.
The Design and Implementation of an Inventory Management System for Walid Halal
Spices studied by (Dahiru,2020) is the same as the proposed system in a way that both of the
clients are not using an automated system. The (Dahiru, 2020) system is also a web-based system
In connection to the study of Rajat Kerkatta, A & Kumar, G. (2016) entitled Sales and
Inventory System, the primary modules of this system are the Inventory Module and the Sales
Module. Their approach is similar to the proposed system, which it also has an Inventory and
Sales Module.
The study of Abisoye, O., Boboye, F., Abisoye, B. (2013), Design a Computerized
Inventory Management System for Supermarkets is alike to the proposed study, point of sales
and inventory monitoring system for Kkopi.Tea – Area K branch where both of the system has a
functionality to monitor the supply and their products. However, the platform in which the
system of (Abisoye et al., 2013) runs is different from the platform that will be used in the
proposed system.
The developed system of Dela Cruz, G. M. et al. (2019) entitled Inventory Management
System with POS functions similarly to the proposed system in terms of having a security feature
to prevent unauthorized access, tracking the transaction from the customer every day, and storing
it to the database. Both the said system and the proposed system are capable of generating
reports. On the other hand, the proposed and developed systems differ in the platform they are
running.
In the study of Acosta et al. (2020), their developed system, Analysis and Design of Sales
and Inventory Management System for Yochang General Merchandise, has a similarity to the
proposed system entitled Point of sales and inventory monitoring system for Kkopi.Tea – Area K
branch in terms of the objectives to monitor the stocks of the items quickly and efficiently. They
are also similar in the functionality to compute, record, and produce sales and support reports
accurately. However, the main difference between the study of (Acosta et al., 2020) and the
proposed system is that their system has a scanner for their product.
Management System in LotteMart Solo Baru, the researcher stated that one of the features of the
system is tracking every good. Similarly, the proposed system also has a functionality that tracks
every drink sold. In addition, the proposed system and the study of (Sutanto, 2019) utilizes a
The proposed system entitled Point of sales and inventory monitoring system for
Kkopi.Tea – Area K branch has a connection to the study of Mendoza, A. R. et al. (2019),
wherein their system also monitors the company transactions. The said system also keeps track
of their inventory goods in real time. Additionally, the proposed system has a report module that
contains important information such as inventory product, sales, and remaining cups and
formula. The study of Lal, A. K. & Rathore, D (2022) entitled A New Era for Instant Billing and
Enhanced Business- Utilization Billing Software (POS/PMS) has similar functionality to the
proposed system in terms of inventory management. The said system automatically updates its
inventory when a product was sold or when the order is placed, the system will edit the
inventory. The order management is also similar. However, the proposed system does not have a
Sales and Inventory System of Edmar Marketing is the study of Abacahin et al (2012)
where they stated that their system will generate reports that are easily understandable, similar to
the proposed system, wherein the proposed system will generate reports about the sales,
inventory of the cups that was used, number of the product that was sold. Also, the system of
(Abacahin et al, 2012) and the proposed system will display clear and accurate sales and an
inventory system free from confusion. The system will also display the number of products sold
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