REVIEW OF THE RELATED LITERATURE AND STUDIES
In exploration, we find new techniques, new knowledge, even develop new substances, gadgets, equipment, processes or procedures, imagination and skill is employed by the researcher. The commodities, new devices, services, in technology are needs of man for a better fuller life which is the concern of the research. These useful arts are the products of the technological environment and the end-user is society in general. The fast growing trend and innovation in technologies today prompts proponents to conduct studies about the efficiency of system program. This Chapter presents a brief review of literature and studies, both local and foreign that is related to these studies
The discussion below deals with literature that has been gathered through a series of books which pertains to knowledge on industrial engineering concepts of process and system improvement. The following subject matters were taken into consideration in order to make a successful study on the project. Approaches such as ABC analysis, forecasting and Mean Absolute Deviation will be discussed. All are concerned on the decision-making of the model. In order to lower the inventory cost, Just in Time Management shall be practiced Inventory system.
Shim and Siegel (1999) says that the most common problems facing operations manager is inventory planning because inventory usually represents a sizable portion of a firm’s total assets and more specifically, on the average, more than 30% of total current assets in the U.S. industry. Excessive money tied up in inventory is a drag on profitability.
Inventories may contain materials that have either dependent demand or independent demand. Dependent demand inventories consist of items whose demand depends on the demands for other items also held in inventory. Demand (or usage) or subassemblies and component parts is derived from the number of finished units that will be...