Related Literature

This chapter presents a brief discussion of the literature reviewed by the

researchers which further enriched the conceptualization of the study and helped in
describing the cognitive design that guided the conduct of the researcher.

Regardless of its operational relevance and importance, a clear definition of tracking

cannot be found in the logistics literature (van Dorp, 2002; Stefansson and Tilanus,
2001). In particular, tracking has invariably been associated with tracing, to form the
commonly adopted concept of tracking and tracing (van Hoek, 2002; Huvio et al.,
2002). However, the authors argue that it would be more informative to consider
tracking and tracing as two different applications. The separation is also presented by
van Dorp (2002), where tracking signifies the gathering and management of information
related to the current location of products or delivery items, whereas tracing relates to
storing and retaining the manufacturing and distribution history of products and
components. This segregation is also supported by Jansen (1998) and Toyryla
(1999).
Contemporary tracking systems are only useful when goods are handled by one
company. Such systems utilize service provider-specific coding for consignments and
thus increase the complexity of retrieving tracking information for customers using
multiple providers. Generally, the service providers make tracking information available
via a Web page, resulting in manual interrogation for customers. The automated
alternative is the integrating of the tracking systems to the operating systems of the
customer company. However, this is time-consuming and often cumbersome. Moreover,
integrating with the tracking systems of the logistics service providers, potentially ties
the customers to the providers (Janah and Wilder, 1997)
According to the U.S. Small Business Administration, Inventory refers to stocks
of anything necessary to do business The U.S. Small Business Administration
publication describes what constitutes successful inventory management balancing cost
versus benefits of inventory, including Maintaining a wide assortment without spreading
the rapidly moving items too thin, Increasing inventory turnover without sacrificing
service, Keeping stock low without sacrificing performance, Obtaining lower prices by
making volume purchases, Maintaining an adequate inventory without an excess of
obsolute items. (U.S. Small Business Administration, 2010)
Companies are increasingly employing Inventory System. A computer start with
an inventory counts in memory. Withdrawals are recorded by the computer as they are
made, and the inventory balance is constantly revised. When the recorded point is
reached, the computer automatically places an order, when this new order is received,
the recorded balance is increased. Retail stores have carried this system quite far, each
item has a magnetic code, and as on item is checked out, it passes over an electronic
reader, which then adjusts the computers inventory balance, at the same time the price

is fed to cash register tape. When the balance drops to the recorder point, an order is
place. The researcher aim to develop an automated inventory system which is
technically, operationally, and economically. The method used by the researcher to
develop an automated inventory system is Descriptive Method. The researcher conduct
several interviews in order to gather information about the present existing conditions of
the inventory system, knowing its problems and enhancing it by developing an
automated inventory system. Questionnaires were also distributed to all interviewees for
additional information. Using the descriptive method, the researchers also observe the
functionality of the present inventory system, which help them discover that Electronic
Data Processing is Advantageous than other. (Mr.Eugene F. Brigman, Fundamentals
of Financial Management, 5th ed.)
The basic functionality of tracking systems is that when a tracked item (i.e.
shipment) arrives at a predefined point in the distribution network (a checkpoint) the
arrival is registered and a message regarding the arrival is sent to a tracking database.
The message may contain only three basic attributes: the identity of the entity at the
checkpoint, the location of the checkpoint, and the time of the arrival of the entity.
However, additional attributes concerning the consignment may also be recorded, e.g.
quality, in the case of perishables. (Karkkainen et al., 2003c; Loebbecke and
Powell, 1998; Stefansson and Tilanus, 2001; Tausz, 1994).
According to article of Dr Geoff Relph, Witek Brzeski and Gail Bradbear,
published at year 2003; A simple stock classification method is discussed that gives
details about the ABC technique, Pareto distribution and takes a look into further class
level and part level analysis. There is a worked example of an ABC classification with
valuable information about creating alternative scenarios and varying parameters for
class boundaries and order frequency per class. The results are shown in a series of
statistical tables.
Source: Online Article (http://www.inventorymatters.co.uk/portfolio/the-firststeps-to-inventory management?type=publication)

According to Bonnie Conrad, Computerized Inventory Management System

gives advantage to the business like first, the Speed and Efficiency. A computerized
inventory management system makes everything from inputting information to taking
inventory easier. Doing a hand count of inventory can take days, but with a
computerized inventory management system, the same process can be done in a
matter of hours. Second the Document Generation, once the computerized inventory
management system is in place, managers and workers can use it to automatically
generate all kinds of documents, from purchase orders and checks to invoices and
account statements. Managers can also use the system to automatically order products
when they run low. Third, the Timely Data with a manual system, the data is only as
accurate and up to date as the last hand count. With a computerized inventory
management system, the management team can pull a report and instantly see how

many units are on the floor, how many have sold and which products are selling the
fastest.
Source: Online Article (http://smallbusiness.chron.com/advantagesdisadvantages-computerized-inventory-management-system-22513.htmll)
Wal-Mart runs its stores on a perpetual inventory system. This system records
the quantity of items sold as items are purchased. The computer system at Wal-Mart
constantly keeps up with additions or deductions from inventory and tells management
what items are on hand. The organization also conducts counts of employee manual
counts of inventory periodically. When an item arrives at the Wal-Mart distribution center
it is scanned into the inventory system. When the items are purchased by the
consumer, the point-of-sale system reduces the inventory from that purchase.
According to Wal-Marts Gail Lavielle, a leaner inventory will help clear out store clutter
and help Wal-Mart focus on specific brands and products that consumers want (The
Associated Press, 2006).

The most common method of registering the pass of a checkpoint is to use some
automatic identification technology to read a code from the tracked consignment, but
some tracking systems are based on warehouse transactions or logistics documents
related to, for example, customs clearing (Loebbecke and Powell, 1998; Shah, 2001;
Stefansson and Tilanus, 2001).
In some rare instances, an entity is continuously tracked in the supply network
(for example, GPS location of a truck or a marine container). However, since the
continuously tracked entity is usually a transport instrument containing several
consignments, it can, from a tracking system perspective, be regarded as a moving
checkpoint. The last location (and the time of pass) of the tracked item can then be
interrogated from the tracking database. (Anon, 1996; Bodamer, 2002)
Malcolm E. White Published at 2003; Merchandising means selling products to retail
customers. Merchandisers, also called retailers, buy products from wholesalers and
manufacturers, add a mark-up or gross profit amount, and sell the products to
consumers at a higher price than what they paid. When you go to the mall, all the stores
there are retailers, and you are a retail customer. Retailers deal with an inventory, all
the goods (products) they have for sale. They account for inventory purchases and
sales in one of two ways. Periodic and Perpetual. As the names suggest these methods
refer to how often the inventory account balances are updated. Source: Online Article
(http://www.middlecity.com/ch06.shtml)