Sales and Inv. System

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

INTRODUCTION

The advent of computer technology, a product of man’s insatiable tendency to make things more convenient, has made everyday life so much easier. From performing basic arithmetic operations as its intended use, computers have evolved and can now perform a multitude of complex functions and operations at the same time with less hassle on the user. At present, computers are everywhere. In fact, computers have been found to have countless applications in many industries including manufacturing, medicine, transportation, communication and finance sectors.

Computers, and consequently, computer-based financial systems and softwares are of great use to financial institutions. Such systems help perform business related transactions and functions with great ease and accuracy. Large companies and even small and medium enterprises have resorted to computer-based systems including balance sheets, payment system among many others. Of greater importance is the introduction of computer-based inventory systems which allow faster tracking of goods thereby ensuring that stocks are in place for manufacturing or trade activities.

An organized inventory system enables a firm to manage the smooth flow of goods which in return ensure capital mobility and reasonable profit. Without an inventory system, overstocking may occur which may not be good to the business. Overstocking of supplies or goods means tying up one’s capital, thereby exposing the business to risks of losses due to costs incurred in pilferage and obsolescence. Small and medium based enterprises cannot afford to take such risks. Therefore it is important that inventory is properly and effectively managed.

Despite the increased use of computers in many businesses, D’floras Garden is yet to develop a sales and inventory system that will facilitate smoother operations. For this reason, the researcher was...