Background of the study

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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.
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