1 Chapter 1 INTRODUCTION 1.1 Background of the study To keep business running at a good pace, a good sales management is required to constantly maintains a good balanced between the sales and items which are keep in storage and the items going in and out. In order to achieve a good management, to monitor the sales, profits and items sales management system is used. Sales management system is a business solution used to simultaneously track sales activity and inventory. Before the era of technology, Sales and Inventory Management System was a system involving paperwork to record down all sales report and item status. It was widely used by companies to manage their storage. However, as the company grow bigger and the storage increase in size where sometimes the storage has to be divided to a few locations, thus the Sales and Inventory Management System would use up a lot of spaces and money to keep track of the item as it used more paper to keep track of the item and sales record, at the same time the papers need more spaces to stored. It will become less efficient as longer time is needed to arrange the information from all the storage and find the information about a certain item within that huge pile of papers. 2 A Case Study on Inventory Management Improvement was conducted at Riga Technical University by Darya Plinere and Arkady Borisov in 2015. The proponents of the Case Study have performed two experiments with the Inventory Management System, at the second experiment, the Agent based inventory management system showed the best results. In this paper, the existing inventory management situation is analyzed, twofold improvement is proposed – to use inventory management with the aim to decrease company’s inventory level and holding costs by avoiding overstocks and to apply the agent system in order to automate the inventory management processes and to timely react to demand deviations from the forecasted demand by making corrections in replenishment policies. Inventory management can have real-time and monetary benefits. By keeping track of which products you have on-hand or ordered, you save yourself the effort of having to do an inventory recount to ensure your records are accurate. A good inventory management strategy also helps you save money that could otherwise be wasted on slowmoving products. This project aims to develop and validate an user-friendly Sales and Inventory Management System software for storing large amount of data on items and record of sales and capable of printing of reports.