related studies

Topics: Sole proprietorship, Inventory control system, Data flow diagram Pages: 9 (2962 words) Published: March 4, 2014

CHAPTER 1
INTRODUCTION

A. Background of the Study
Egay’s Store is a sole proprietorship business, also known as sole trader. It is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subjects to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor’s. It is a “sole” proprietorship in contrast with partnerships. A sole proprietor may use a trade name or business name other than his or her legal name. Inventory is often the largest priced asset of a business after the fixed asset. Keeping the inventory also means keeping a tab on the realizable value, market value of all the stocks, stock in production and finished stock. This paper explores the challenges of manual inventory management system for supermarkets and infers solutions to the current challenges by designing a computerized inventory management system to order and update the stocks. The main method used for this research work is interview. Data were collected from 5 heterogeneous supermarkets and used as a tool for obtaining facts. When the goods were supplied the update of the stocks were being taken from time to time. The finding shows the challenges facing the manual system of inventory management system; the manual system requires everyday counting of items in the inventory, human errors are very prevalent during counting and recording and in case of disaster like fire or flood or poor communication, all the manual inventory records will be damaged and irretrievable. Based on the findings this paper highlights the possible solutions to the above problems; a computerized inventory management system to order and update the stocks was designed and goods were supplied to implement the possible solutions. An Inventory System provides a complete set of methods to support inventory handling. All users of the Inventory System need the same functionality to complete their varied tasks. Inventory is basically the total amount of goods and materials held in stock by a factory, store and other business. An inventory system is a process whereby a business keeps track of the goods and material it has available. In it 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 goods being sold. Since manual inventory consumes a lot of time and is prone to errors, it would be helpful to build a system that will computerize the transactions from acquisition of the product description to updating the inventory database. The computerized inventory system will improve employees work efficiency by computerizing routinely and time consuming tasks such as the time spent in taking down product information. As a result, the time can be used in more productive activities. The accuracy of the current system will also be improved, since the computerized inventory system would eliminate the need of constantly encoding lengthy details of products by having an inventory system. Monitoring encompasses the tracking of individual processes, so that the information on their state can be easily seen, and statistics on the performance of one or more process can be provided. Inventory management provides you with critical information about the condition of your products, such as whether you are low on stock and your inventory needs to be replenished. Inventory management also gives you insight into which products are selling well and which products are not. This information allows you to make better business decisions on how to market your products, and whether or not to carry them. Keeping track of inventory is vitally important for any successful retail enterprise. Inventory systems let you know when it is time to stock up on...
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