Thesis Chapter 1

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1. Introduction

Inventory management is primarily about specifying the size and placement of stocked goods. It involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. It also handles all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. Inventory management is the key to running a successful business. Good management will make for a more efficient and profitable business. It is vital to every business to have an accurate inventory count on hand at all times. There are a lot of different programs to choose from based on the size of your inventory and how technical you'd like the system to be. Computerized programs vary from using SKU or barcodes to remove an item from your inventory, to manually entering each item. There are computer programs that can tie your cash register right into your inventory system. As each item is sold it will be removed from your inventory. [WIMC2007] Using removable stickers is another option for tracking inventory. Stickers may have a code or title written on them. These stickers should be kept in a daily or a weekly file. Manually enter each item in your ledger or computer program. This type of inventory tracking requires diligence to maintain accurate counts. [WHTDC2012] D’ Label Fashion Boutique is a small business that sells RTW clothes, bags, accessories and shoes for women which started in December 8, 2011. It is located in Modern Village, Brgy. Paciano Rizal, Calamba City, Laguna and it is owned by Debra Claire Dreyfus. The store is open at 11:00 am – 9:00 pm from Monday-Saturday.

2.1 Statement of the Problem
Using old fashioned way of inventory system like using paper and pencil can waste up the time of the employees. A paper-based system can only be organized in a single way, cannot be easily searched, cannot be easily modified, cannot be accessed remotely, cannot be conveniently cross-referenced, maintained and updated, protected, and cannot be expanded without considerable effort. A paper-based system would need extensive labor and reorganization in order to change the sequence and order of data. Paper system cannot be easily modified and expanded. Updating data requires removing each record's card or file, erasing the old data (or waiting while white-out dries because a former employee violated the 'pencil only' rule), and then carefully entering it again. For bulk updates and batch changes, every single record must be found and updated individually. If the original filing system wasn't conceived to take new fields into consideration, you'll resort to writing on the backs of cards, or meticulously writing in margins, or adding pages to filing systems that were designed for a single page per record. Not so with computer-based databases. Batch updates take seconds, with a click-and-drag function. Further, a database system could cross-reference data, finding matches within multiple fields, correlate them, perform arithmetic processes on them, and retrieve only the data that matches every single criterion. [WWAC2010] In relation with D’ Label Fashion Boutique, it still uses a manual inventory system which is causes the employees a major headache. Nevertheless, the business is doing well. However, the business is in dire need of a barcode inventory system.

2.2 Description of the Current System
Currently, D’ Label Fashion Boutique uses manual inventory system. It uses a paper-based inventory specifically paper and pen. The business doesn’t have a computer or a laptop. When there is a customer looking for a specific item, the employee will manually check or look in the stock room or in their shop closet the item that the customer wants. After checking on the available item and the customer bought it, the employee...
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