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CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Related Literature 2.1.1 Foreign Literature According to the book of Steven M. Brags, Year February 2005 entitled Inventory Management states that a comprehensive, step-by-step guide to setting up an inventory accounting system is keeping it running at maximum efficiency. The book shows the following idea with regards to the Inventory management. It set up an accounting system that efficiently handles accumulating inventory costs, summarizing accounts, and standard journal entries used to record transactions. It uses best practices to increase the efficiency of inventory-tracking and costing functions. It Implement a step-bystep checklist of activities for inventory counting procedures. According to the book of Steen Lamparter and Lars Jordan entitled Production Scheduling for Manufacturing Execution System (September 2, 2011) states that todays rst inter-organizational tracking & tracing systems facilitate timely identication and handling of disruptions along the supply chain. However, these systems typically operate at SCM and ERP level and therefore lack knowledge and control over production processes. This paper bridges the gap between logistics and production IT by proposing a novel architecture for coupling the manufacturing operations as dened in IEC 62264 with an EPCIS-compliant realtime tracking & tracing system. The system leverages logic-based complex event processing for detecting critical disruptions in the supply chain and initiates rescheduling of production. It is shown that in the presence of unexpected events the rescheduling algorithm minimizes delays and inventory costs while avoiding nervous schedules caused by frequent changes. As proof of concept a reference implementation of the architecture is realized within a discrete production line.

Material Management Procurement and Inventory

2.1.2

Local Literature According to the history of PhilGEPS. In 2000, the secretary of

Department of Budget and Management (DBM) initiated a web-based pilot electronic procurement system (EPS) as part of its reform initiatives for modernizing their government procurement process. Then President Estrada issued an executive order that authorizes the Procurement Service (PS). The PhilGEPS is designed as a web-enabled application that is easily accessible to any user through the Internet using a common browser and the Adobe PDF reader. It supports multiple access views depending on a users role and has the following major features which is Electronic Bulletin Board, Supplier Registry and Electronic Catalogue

2.2 Related Studies

2.2.1

Foreign Studies Based on the study of Inventory Tracking System it have Inventory Tracking System Control which can certainly easily decrease device losses and it results inside significant novel purchase savings. The actual inventory tracking system makes the users more accountable plus leaves a little region for robbery, misplacement, negligent reduction to not mention shifting blame alongside a few a lots of others. But unfortunately, many of these manual stock tracking systems furthermore have countless drawbacks. They require numerous folks in order to be included for the verification, which purchases happened and in addition had been precisely recorded. Based on the study of NetSuite inventory management the software offers a complete set of inventory management, manufacturing and purchasing capabilities that improves supply chain management and delivers an end-to-end procure-to-pay process. The benefit of this is that it can get complete real-time visibility into demand, supply, costs and fulfilment measures and trends. It

Material Management Procurement and Inventory

Manage margins with a clear view into inventory costs, turn rates and inventory profitability and Eliminate manual inventory management processes and improve vendor satisfaction with a seamless procure-to-pay process the system is effectively and efficiently meet customer demand, helping drive and maintain superior customer service levels. According to the references on the internet the philosophy of JIT is that the storage of unused inventory is a waste of resources, thats why JIT inventory systems expose hidden cost of keeping inventory, and it is not a simple solution for a company to adopt it. The company must follow an array of new methods to manage the consequences of the change. The Just-in-Time inventory system focus is having the right material, at the right time, at the right place, and in the exact amount, without the safety net of inventory. The benefits of JITS are reduced setup time. It minimizes storage space needed and increased emphasis on supplier relationships.

2.2.2

Local Studies

Based on the study of Procurement process on the internet it may involve bidding process known as tendering. A company or organisation may require some product or service. The Identification of data is an internal step for a company that involves understanding of the company needs by establishing a short term strategy (three to five years) followed by defining the technical direction and requirements. Second, the Supplier Identification that needs to provide the required product of the company. The company also needs to negotiate for the price, availability, and customization possibilities are established.

Material Management Procurement and Inventory

2.3 Synthesis and Significance of the study The purpose of the study is to help the proponents gathered relevant information in promoting good work in developing the material management and inventory system based on study the system must be effective and efficient. The proposed system is being develop to lessen the work of the users that are involve in purchasing and controlling the supplies of the company, since the system is automated the proponents gathered relevant information / data which can help them and give ideas to provide or produce upgraded system that can support the daily operation of the business regarding to purchasing and stock system. This will be a guide to support the study and a process for setting up upgraded inventory system. The companion of the proposed system regarding to the gathered information on the thesis and related studies is that this system is made and develop to help the users lessen their work and to established good system for the future users. The difference of the Material Management Procurement and Inventory system compare to the other studies and system is that it can provide or send email to the supplier of the desired purchased orders and can notify the personnel or users of the system about the supplier inside the company. This system is consist of quantity and timing future material orders to purchase and manages procurement process.

Material Management Procurement and Inventory