REVIEW OF RELATED LITERATURE

Related Literature

A small or large firm needs resources to survive in the commercial sector. It is a vital part

to guarantee success. People who own businesses typically invest in these resources to expand

what they have started. Their company strategies always indicate how many resources they will

employ and how much these resources can last long (Henderson, 2019). There are five resources

needed for a business to last long: Financial, Human, Educational, Emotional, and Physical.

Financial and physical resources are linked because physical resources would not exist without

financial help.

However, having those physical resources is not enough to run the business effectively.

With that; having inventory management is essential because it can track when to buy and

restock items, it can also help the business owner to identify what to sell and at what pricing

range is applicable to the items (Hayes, 2022), it also helps to save money because it guarantees

that the proper type and amount of stock is accessible without retaining surplus stock and tying

up cash and simultaneously, it improves the satisfactory of the customer (Jenkins, 2020).

Using a manual process of inventory management is prone to human errors. According to

Jane, M. (2017) using a manual process means updating the inventory physically, like counting

the items physically. Additionally, manual tracking of daily sales is difficult because the

employee needs to list the items sold and the sales. Doing that is unreliable because the

employee might forget to record the sales for the day or lose the list of items sold. With that,

Leonard, K. (2019) said that a computerized inventory management system can reliably track the

cash flow in the business and monitor the stocks available and what is not.
 An inventory management system is the process of tracking business products from

purchase through manufacture to final sales. It regulates how your company approaches

inventory management (Unleashed, 2019). Inventory management systems are vital, especially

for businesses that need to know if their goods are understocked or overstocked. Without an

understanding of the items that the company controls, it may have an overstocked or inadequate

supply of commodities. Inventory management systems play a significant role in the linkage of

sales in a firm. If a company's inventory does not have enough items, sales will suffer because

customers' demands will not be met (DSD Business Systems, 2017). In addition, it also indicates

a good company plan, that understanding client demand for items leads to understanding what to

check or monitor the most. An excellent and intelligent inventory management system may

provide great visibility of things and where they are situated and adequate time to refill items that

are insufficient in a given period (FishBowl, 2022).

Using a computerized inventory management system will help the business owner

economically. According to Singh, S. (2022), having an inventory management system will help

the owner maintain their stock count. It also automates the process of inventory management,

where it can perform inventory tracking in real time. It can also generate reports and analytics to

help the business owner determine the products that are selling the most and track the expiration

dates of the products (Cho, 2019). Dinsmore, K. (2020) also stated that having an inventory

management system will significantly reduce the lost and wasted money because the system will

provide real-time financial and analytical reports showing the business owner where they are

losing inventory.

Apart from having an inventory management system, having a point-of-sale is also

helpful. According to Deutch, K. (2020), a POS or a Point-Of-Sale is where the transaction

has a POS system. Lightspeed (2019) said that a point of sales (POS) system is the hardware and

software that enables the area to become the point of purchase. They also said that the POS

system comes hand in hand with managing the business's inventory, and it also records every

transaction made by the company or the industry. Additionally, having a POS for inventory

management is one of the vital and smart decisions a business owner can make because using a

POS for managing the inventory lets the business owner lower the ordering cost because the POS

can tell them when exactly to order and restock their items (Carlson, 2021). Having both the

point of sale (POS) system and an inventory management system is a must-have to effectively

manage and run the business. Fuscaldo, D. (2021) stated that integrating inventory management

with the point-of-sale system lowers the chance of having a costly inventory inaccuracy. Dublino

J. (2022) stated that a point-of-sale (POS) system helps manage inventory. According to her,

every time they do transactions, the POS system will automatically update the items in the

inventory. It also allows the staff or the cashier to view the inventory level to prevent stocking

out of items.

The point of sale (POS) system is frequently used in business to process customer

transactions. This early iteration of the POS System has been the standard for micro to small

businesses in Indonesia, typically using a basic cash register machine as a base, a cash drawer to

store the money, and a note to write the receipt. However, as time goes by and our world is

changing and updating using technology, younger entrepreneur has entered the business industry

and integrate new technology into their system (Sembiring et al., 2020).
Related Studies

In the study entitled Analysis and Design of a Sales and Inventory Management

Information System for Motorcycle Parts and Accessories Store, the objective of their study is to

develop an inventory system to improve the business process of their client. Their system will

monitor their product stocks and notify their client for restocking. The system is also capable of

computing and recording the sales. The said system also generates an inventory and sales report

(Magallanes et al., 2021). In comparison to the study of Abdul Aleem, R. B. (2013) named Sales

and Inventory Management System, the purpose of their system is to improve the business

process of the Rahmath Store. Specifically, their system will generate a weekly report about the

sales and inventory of the business, similar to the study of (Magallanes et al., 2021) and the study

entitled Point of sales and inventory monitoring system for Kkopi.Tea – Area K branch.

The Design and Implementation of an Inventory Management System for Walid Halal

Spices studied by (Dahiru,2020) is the same as the proposed system in a way that both of the

clients are not using an automated system. The (Dahiru, 2020) system is also a web-based system

similar to the proposed method.

In connection to the study of Rajat Kerkatta, A & Kumar, G. (2016) entitled Sales and

Inventory System, the primary modules of this system are the Inventory Module and the Sales

Module. Their approach is similar to the proposed system, which it also has an Inventory and

Sales Module.

The study of Abisoye, O., Boboye, F., Abisoye, B. (2013), Design a Computerized

Inventory Management System for Supermarkets is alike to the proposed study, point of sales

and inventory monitoring system for Kkopi.Tea – Area K branch where both of the system has a

functionality to monitor the supply and their products. However, the platform in which the
system of (Abisoye et al., 2013) runs is different from the platform that will be used in the

proposed system.

The developed system of Dela Cruz, G. M. et al. (2019) entitled Inventory Management

System with POS functions similarly to the proposed system in terms of having a security feature

to prevent unauthorized access, tracking the transaction from the customer every day, and storing

it to the database. Both the said system and the proposed system are capable of generating

reports. On the other hand, the proposed and developed systems differ in the platform they are

running.

In the study of Acosta et al. (2020), their developed system, Analysis and Design of Sales

and Inventory Management System for Yochang General Merchandise, has a similarity to the

proposed system entitled Point of sales and inventory monitoring system for Kkopi.Tea – Area K

branch in terms of the objectives to monitor the stocks of the items quickly and efficiently. They

are also similar in the functionality to compute, record, and produce sales and support reports

accurately. However, the main difference between the study of (Acosta et al., 2020) and the

proposed system is that their system has a scanner for their product.

In the study conducted by Sutanto, A. P. (2019) entitled Web Based Inventory

Management System in LotteMart Solo Baru, the researcher stated that one of the features of the

system is tracking every good. Similarly, the proposed system also has a functionality that tracks

every drink sold. In addition, the proposed system and the study of (Sutanto, 2019) utilizes a

web-based platform to implement the system.

The proposed system entitled Point of sales and inventory monitoring system for

Kkopi.Tea – Area K branch has a connection to the study of Mendoza, A. R. et al. (2019),

wherein their system also monitors the company transactions. The said system also keeps track
of their inventory goods in real time. Additionally, the proposed system has a report module that

contains important information such as inventory product, sales, and remaining cups and

formula. The study of Lal, A. K. & Rathore, D (2022) entitled A New Era for Instant Billing and

Enhanced Business- Utilization Billing Software (POS/PMS) has similar functionality to the

proposed system in terms of inventory management. The said system automatically updates its

inventory when a product was sold or when the order is placed, the system will edit the

inventory. The order management is also similar. However, the proposed system does not have a

delivery feature because the business used a FoodPanda for delivery.

Sales and Inventory System of Edmar Marketing is the study of Abacahin et al (2012)

where they stated that their system will generate reports that are easily understandable, similar to

the proposed system, wherein the proposed system will generate reports about the sales,

inventory of the cups that was used, number of the product that was sold. Also, the system of

(Abacahin et al, 2012) and the proposed system will display clear and accurate sales and an

inventory system free from confusion. The system will also display the number of products sold

in the inventory module.

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