POS and inventory system

Topics: Inventory, Point of sale, Credit card Pages: 10 (3272 words) Published: November 19, 2013
Chapter 1
Inventory is basically the total amount of goods and materials held in stock by a factory, store and/or any businesses. An inventory system is a process whereby a business keeps track of the goods and materials available. In its simplest sense, it can be done manually by a count at the end of each day. In this way it is possible to keep a record of the goods coming in to the business and products being sold. Point of Sale (POS) and Inventory management are vitally important for any business that sells a physical product. An inventory system must be balanced having enough inventories on hand to meet the demand of customers while investing as little money as possible in inventory. However this is only really appropriate for small businesses who have limited stocks. For larger businesses, it is more likely that a computerized system will be required. These days, a computerized Point of Sale and inventory system is most likely to be used by medium and large businesses although some small businesses use it too. This can be used to track customer orders, monitor the stock a business has available for fulfilling orders and also provides details of when of when inventory needs to be restocked. Since manual inventory consumes a lot of time and is susceptible to errors, it would be helpful to build a system that will automate the transactions from acquisition of the product description to update the inventory database. The automated inventory system will improve employees’ work efficiency by automating routinely and time consuming tasks such as the time spent in taking down product information. As a result, the time consumed can be used in more productive activities and would eliminate the need of constantly encoding lengthy details of products.

Company Background
Yakal as originally started at the year 1996 at its main branch at Candon City, Ilocos Sur. A year later, they built their branch at Del Pilar Street, Tagudin Ilocos Sur at June, 1997. Yakal is owned by Mr. And Mrs. Bobby Tiu. They sell Lumbers at the first place; unfortunately a fire accident happened so they have to stop the operation. After 3 months of recovery they were able to continue the business again and aside from lumber they started to purchase different products like furniture and home appliances. At present, Yakal is the biggest establishment at Tagudin.

Situational Analysis
According to the U.S. Small Business Administration “Inventory refers to stocks of anything necessary to do business” (U.S. Small Business Administration 2010.The U.S. Small Business Administration publication describes what constitutes successful inventory management (balancing cost versus benefits of inventory), including: 1) Maintaining a wide assortment without spreading the rapidly moving items too thin, 2) Increasing inventory turnover without sacrificing service, 3) Keeping stock low without sacrificing performance ,

4) Obtaining lower prices by making volume purchases,
5) Maintaining an adequate inventory without an excess of obsolete items.  Eisen, (2007).further notes that in accounting periods where costs remain relatively constant, the FIFO method is probably the most appropriate. If it is important that replacement costs relate as closely as possible to the cost of the goods sold, the LIFO method is better. The weighted average method is a third option, even though it does not necessarily bring about the matching of costs and revenue. Its simplicity may have a cost-saving effect. A retail software and POS systems program needs to offer fast and easy point of sale software transactions, so that your staff can learn the system quickly, and you can record key information about your customer transactions. All retailers need a computerized system. We've been working with retailers, computers, POS software, and point of sale software, retail software, inventory management...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Centralize Inventory System with Pos
  • Inventory and Pos System Essay
  • Pos and Inventory System Essay
  • Chapter 1 Inventory and Pos System Essay
  • S.A.D Pos and Inventory System Essay
  • Pos System Essay
  • Inventory System Essay
  • Inventory System Essay

Become a StudyMode Member

Sign Up - It's Free