Inventory System

Topics: Industry, Marketing, Support automation Pages: 6 (1458 words) Published: September 7, 2013
CHAPTER I
The Problem and Its Background

INTRODUCTION
Long before the computer era, merchants had reckoned that keeping a simple system of keeping track products and services being delivered or exchanged were important to keep the business operations as organized as possible. This paved the way to one of the most chief aspects of a business and was almost as important as having an investment: inventory management. Be it in barter system, small village livelihoods or up to the most basic unit of dealership, people had been knowledgeable of one of the simplest principle of inventory: the first-in-first-out approach. Having an inventory system keeps the business organized and efficient when it is maximized and managed accurately. Nowadays inventory management has come a long way and large companies will even spend high amount of money, put a lot of effort and allocate a serious amount of time in order to keep track where their main inventories are and to ensure that this system is working well. Negligence of recording may result to either inventory excess or inventory shortage, which can affect the operation’s overall productivity. Hence it is very essential that all businesses, no matter how big or small, practice inventory management in any scale(Retrieved on August July 23 2013 from http://smallbusiness.chron.com/introduction-inventory-management-systems-41581.html).

One common notion is that recording and cataloguing involves mostly material products. However, archiving not only the counts of this product is what inventory was for, but it can be useful to keeping counts of services being executed as well. Moreover, with the current advancement in technology, there are very little reasons not to utilize this systematic approach of organizing things. Service centres for example, despite being focused mainly on skills of workers, can benefit greatly when proper and appropriate inventory system is applied (Retrieved on August July 23 2013 from http://smallbusiness.chron.com/introduction-inventory-management-systems-41581.html).

Statement of the Problem
This research will try to determine the benefits, factors and significant difference of automated and manual inventory system. It specifically answers the following. 1. What are the possible benefits of automated inventory system?

2. What are the main factors that affect the productivity of the service centre in relation to the inventory management?

3. Is there a significant difference from automated and manual inventory system?

Significance of the Study
Through thorough investigation of present inventory system in PC Gilmore and formulating a computerize inventory platform, when maximized the output of this study will contribute in creating a more efficient workflow, cost-effective operational processes and an improved customer service which will eventually affect the overall business profitability.

This study may serve as a reference for future academic works. Optimum usage may achieved if the expected output will serve its purpose to similar business (such as PC Gilmore Service Centre), if adapted. It may be beneficial as well even to smaller or start-up companies as it is primarily designed to make a simple yet efficient inventory system, which can be customized to suit better the needs of the operation.

Most importantly,as it will be designed principally for PC Gilmore service centre, this project will be recommended for the company’s usage and may be modified more for better suitability.

Scope and Limitation of the Study
This study is primarily focused on receiving-releasing flow of items with warranty in PC Gilmore Service Centre. The structure and design of the proposed inventory system will be mainly based on the present inventory the centre has in terms of the said flow and will not be including the main product handling as this was already covered by the Sales department.

Theoretical FrameWork
In the 1960s, a group of...
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