Chapter 2 Inventory System Essay

1261 words - 6 pages

Chapter 2

This represents the review about the related reviews including literature and studies underlying theoretical and conceptual framework of our study. This also includes the generalization and synthesis made after review of the related.
Foreign Literature
The University of Alberta stated Facility Inventory System has the responsibility to ensure that all new equipment acquisitions are inventoried. Initially, this involves scrutinizing all completed purchase orders, followed by an 
Equipment Inventory staff member locating and tagging the equipment and processing the information.
Local Literature
 According to Ariel Magat ...view middle of the document...

The introduction of unit perishability has significant effect on inventory policy for a large number of commodities. A significant amount of research has been presented which addresses the trade-offs between ordering, carrying, shortage, and outdate costs for perishable inventory. A model of the perishable inventory system which incorporates the effects of consumer-realized product expiration. This model represents a synthesis of two distinct directions in the perishable inventory literature, and addresses the simultaneous determination of inventory ordering and outdate policy for a perishable item with random demand and random lifetime.
Michelle Mckinley, a periodical inventory system does not require day-to-day tracking of physical inventory. Purchases, cost of goods sold, and inventory on hand cannot be tracked until the end of the accounting time period when a physical inventory is performed and ending inventory is compared against the sum of beginning inventory and purchases. Cost of ending inventory can be calculated by using the LIFO or FIFO inventory accounting methods, or other less common methods. Periodic inventory management allows a company to know beginning inventory and ending inventory but it does not track inventory on a daily basis. This means there is lost information.
Bonnie Conrad, A computerized inventory management system makes everything from inputting information to taking inventory easier. Doing a hand count of inventory can take days, but with a computerized inventory management system, the same process can be done in a matter of hours.
Mr.Eugene F. Brigman. Wal-Mart runs its stores on a perpetual inventory system. This system records the quantity of items sold as items are purchased. The computer system at Wal-Mart constantly keeps up with additions or deductions from inventory and tells management what items are on hand. The organization also conducts counts of employee manual counts of inventory periodically. When an item arrives at the Wal-Mart distribution center it is scanned into the inventory system.

Malcolm E. White (2003), Merchandising means selling products to retail customers. Merchandisers, also called retailers, buy products from wholesalers and manufacturers, add a mark-up or gross profit amount, and sell the products to consumers at a higher price than what they paid. When you go to the mall, all the stores there are retailers, and you are a retail customer. Retailers deal with an inventory, all the goods (products) they have for sale. They account for inventory purchases and sales in one of two ways. Periodic and perpetual. As the names suggest these methods refer to how often the inventory account balances are updated.

Local Studies
Janes (2001) Stated that computers are extremely reliable device and very powerful calculators with some great accessories applications like word processing problem for all of business activities, regardless of size, computers have three advantages over other...

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