Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter contains related literatures and studies

from both foreign and local researchers. The study is

generally concentrating on creating a sales and inventory

system for St. Lazarus Medical Laboratory. The literatures

of this study come from books, journals, articles and other

existing theses and dissertations that are believed to be

useful in the development of the study

Web Based Application

According to Daniel Nations (2016), Web based

application is any application that uses a Web browser as a

client. He said that the application can be as simple as a

message board or a guest sign-in book on a website or as

complicated as a word processor or a spreadsheet. He also

said Web based applications commonly use a combination of

server-side script (ASP, PHP, etc.) and client-side script

(HTML, JavaScript, etc.) to develop the application. He

also said that the client-side script deals with the

presentation of the information while the server-side

1
script deals with all the stuff like storing, updating,

deleting and retrieving all the information.

According to Raluca Budiu (2013), Web Applications are

not real applications; they are really websites that, in

many ways, look and feel like native applications, but are

not implemented as such. She also said that they are run by

a browser and typically written in HTML5 and users first

access them as they would access any web page. Furthermore,

Web apps became popular when HTML5 came around and people

realized that they can obtain native-like functionality in

the browser.

Alex Chaffee (2012), stated that a web based

application is a collection of servlets, html pages,

classes, and other resources that can be run on multiple

containers from multiple vendors. He also said that a web

application is rooted at a specific path within a web

server and a web application exists as a structured

hierarchy of directories. Furthermore, the root of this

hierarchy serves as a document root for serving files that

are part of this context.

2
 According to Christopher L. Tan (2013), he came up to

the study of implementing a Library System with Web Based

Online public access cataloging and Android Based Online

public access cataloging. He said that this system will be

administered by the Campus Librarian and will be used by

students and school personnel as well. Furthermore, he also

mentioned that the flow of the system in each book in the

library will be recorded in the system including the number

of copies of each book.

According to Giancarlo G (2011), he recently heads an

SME (small and medium-sized enterprises) project, the

VSuites Technology, where they empower small businesses

with web based business applications to further grow and

expand their businesses. He aims to help the small and

medium scale businesses grow in the Philippines through

affordable web based business applications. Because of this

desire, he helped create the VSuites website with a sole to

provide a cheaper alternative to expensive investments on

IT infrastructures for small and medium scale businesses.

According to Reynar David (2012), web-based management

information provides information that is needed to manage

3
organizations efficiently and effectively. He said that

management information systems are not only computer

systems-these systems encompass three primary components:

technology, people (individuals, groups, or organizations),

and data/information for decision making. He also mentioned

that this proposal will enable Philippine National Police

of Angeles City to have a web-based management information

system (MIS) that will allow Authorized Officers to have a

tool in managing their announcements about their events and

latest news and especially regarding about suspect

profiling.

Based on the study of M.J. Dewiyani (2016), the

development of web-based learning application is in the

form of hybrid learning by using Google Apps for education

called Brilian. He added that there are some steps being

taken in the study: requirements analysis, (2) interface

design, (3) construction performance, and (4) testing and

implementation.

Based on the studies of Kong, Zhang and Stonebreaker

(2014), the use of web-based mapping applications is to

deliver information that has undergone a dramatic upsurge

4
during the past decade. They also added that this

application allows users to find, analyze spatial

information, and create customized maps. In academic

libraries, the rise of web GIS brings great opportunities

for information seeking. Dacanay, Marimon et.al (2013),

stated that this study provides a medium for managing and

monitoring records of an online English tutorial which is

specifically the bIELTP. They said that the application

shall be web-based and shall be utilized by the

administrators and authorized employees of the company.

They said that it is the aim of the proponents to come up

with an application that has features which are fit for

certain daily business processes done with IELTP. They also

said that their aim is to provide a means of organizing

profiles and other essential details regarding the

company’s employed tutors as well as their clients who are

basically the students.

Based on the study of Alegre, Desales and Torres

(2013), The Web-based Enrollment System with Reservation

can help avoid error on record keeping through putting into

operation an electronic form upon providing personal data

5
in registration. They said that system can cater more

enrollees simultaneously compared to the current process on

registration period. They also stated that the proponents

used Waterfall Process Model as a guide in developing the

system and this process model is composed of step by step

phase from analyzing the requirements and identifying the

features to be developed to implementation until the system

is complete.

Inventory System

According to Peter Chawaga (2017), The main goal of an

extensive inventory solution is to improve efficiency in

recording for each transaction. He also said that instead

of maintaining separate record-keeping processes for the

payment and inventory adjustment, you can manage each

aspect with a single entry.

According to David Ingram (2017), Inventory systems

track purchases, incoming shipments, and stored inventory

throughout an organization. He also said that the inventory

systems can be as simple as a pen-and-paper system, or as

complex as an enterprise software package connecting

accounting databases, and inventory information.

6
As mentioned by Osmond Vitez (2017), Inventory management

is a specific function that focuses on controlling the

movement of products through a company’s various business

systems. He also said that business owners and managers

typically setup systems or processes to aid them with this

function. And using a computerized inventory system is

quite common in the business industry.

As mentioned by Labadan, Labio et.al (2013), inventory

system was cheaper, faster, could lessen the human

resource, effective, and efficient way in gaining hefty

profit. It reduced failure reporting and analysis, and

could provide timely and accurate reliability/quality

reports. They also said that the proponents highly

recommended for the enhancement of the system to include

online payment, automate the delivery details and

transaction recording, and include computations in all

accounting transactions.

According to Amil, Canda et.al (2012), the inventory

System which has an array of functions involving inventory

that can be of very big help to the company. They also

mentioned that it aims to make files updated and easy to

7
locate, hence, data and information become accurate and

orderly which may provide a faster alternative or means in

doing the inventory. Furthermore, the system inventory may

also be harder to cheat because the coming in and going out

of stocks are recorded in the system.

Based on the study of Rose Trayvilla (2014),

computerized inventory system aims to improve manual

inventory system to all records to the database.

Computerized inventory system with online viewing could

have a big advantage for the user and the developer to

enhance the human ability.

Based on the study of Bianca, Media (2016), A

inventory monitoring system collects data to aid in

production scheduling. They also mentioned that some

systems use recent data to forecast how many of a type of

product will be needed to meet consumer demand in the near

future. She also said that this includes monitoring the

levels of a product at all locations.

Based on the study of Neil Kokumuller (2013), an

automated inventory system is a software-based business

solution used to simultaneously track activity and

8
inventory. Added to what he said, manufacturers and trade

resellers can both benefit from a thorough solution, where

a single transaction entry records necessary details on the

customer, products purchased, price and date while also

updating inventory levels.

According to Scott Thompson (2013), when a business

carries more inventory than it can sell in the short term,

it loses money on warehousing and other costs. He also said

that when a business carries too little inventory to meet

demand, it can lose customers who don't want to wait for

the product to come in. Furthermore, the purpose of a

inventory system is to make sure the company always has the

right amount of inventory.

Based on the study of Albunian, Luping et.al (2012),

Inventory management is primarily about specifying the size

and placement of stocked goods. They also said that the

scope of inventory management also concerns the fine lines

between replenishment lead time, carrying costs of

inventory, asset management, inventory forecasting,

inventory valuation, inventory visibility, future inventory

price forecasting, physical inventory, available physical

9
space for inventory, quality management, replenishment,

returns and defective goods and demand forecasting

SMS Notification

Ayee Macaraig(2014),stated on her article published in

Rappler that the Senate supports a House bill requiring

telcos to send free SMS alerts ahead of a disaster. She also

said that getting warnings about an impending super typhoon

or heavy rain can soon be as easy as reading an SMS.

Furthermore, the notification will also contain the numbers

of local government units, agencies responding to disasters,

evacuation areas, relief sites and pick-up points. And also

she added that it is now easier to give warnings to the

people.

According to Ramil G. Lumauag,Ed.D(2016), that mobile

phone are considered as an essential part of people’s daily

lives which is used for communication. He also added that

mobile phone now is use for subscription to value-added

services like disaster warning, alert systems and

notification. He said that that is the reason why the

researchers developed a School Event Notification through

SMS. Furthermore, the use of SMS Notification will notified

10
the students with the upcoming events of school, changes in

schedule of events, and suspension of classes due to bad

weather. And also he said that the teacher will be notified

for schedule of meetings, emergency meetings and deadline of

requirements. And last that will be notified are the

parents. They will get informed about school activities and

be aware of their children in school. Overall, he said that

the system evaluation is that it is very effective, highly

functional, highly reliable, highly usable, highly

efficient, highly maintainable and highly portable.

Based on Judith Balea(2015), getting the right answer

whenever there is a suspension of classes because of typhoon

is quite challenging for student. She also stated that there

is an application that can now use by the students to easily

get information about their school activities or roll out of

new policy or a suspension of class which is what they

called “iSkwelahan”. Furthermore, it is easily to get

information because it uses an SMS based notification she

added.

According to the study of Voos,et.al(2017), their

research is about Medical Event Notification System

11
implementation using short message service (SMS). Their main

objective is to announce vaccination campaigns and

availability of a particular medical attention at health

sites where there are not regularly provided. They also

stated that since they want to connect people in more

fastest way, SMS is use to guarantee on reaching all

recipients regardless of their mobile device technology.

Based on the study of Gerona,et.al(2016), their study

aims to create, design and develop a provident fund and loan

system for Calamba Water District. Furthermore, their system

can automatically and accurately compute the provident fund

and loans of employees, disseminate information of the said

fund and loans through SMS notification.

According to Maseko(2017), South African Social

Security Agency confirms to their beneficiaries that the

agency will now use SMS notification to notify the affected

by funeral policy deductions. He said that it is easier to

use SMS notification for the people to easily receives the

message and response to it.

Based on Basu(2015), in a bid to control the

problematic traffic menace in the capital of Delhi they

12
launched SMS alert service for the people. He said that the

police will send information about traffic jams due to

vehicle breakdowns, water logging, accidents, road blocks,

or traffic diversions. He also stated that SMS notification

is easier to use for the both police and people.

According to Lunny,et.al(2014), text messaging has become

the most common mode of communication. They also said that

text messaging can use to remind patients about clinic

appointments and it is easier to facilitate patient

communication with their health professionals with any

questions and concerns they may have about their sexual

health by means of SMS notification.

Based on the study of Olaleye, Olaniyan, Eboda,

Awolere(2013), their system is specially design to make all

the SMS Notification about scheduling possibly cross all SMS

gateway so that it much easier to communicate with all

people and can fast their cancellation.

According to the study of Keng Hoong Ng,et.al(2017), they

use SMS to notify passengers about the arrival of the bus.

They also stated that SMS will delivered on-demand to bus

passengers who are constantly on the go. They added that

13
such bus passengers will no longer need to wait for

broadcast announcements of bus arrivals time in the bus

depots.

Information System

According to Dr. Eldon Yi (2013), an information

systems professionals mission is to turn systems into

organizational values, requiring innovative, communication,

technical, people, management and valuation skills. He also

said that one must keep abreast of knowledge, methods,

phenomena and technology advances, applying them to

managing an organization.

According to Julie Davoren (2015), there are three

fundamental roles of Information Systems in Business

(Storage and Analysis, Assistance with making decision,

Assistance with business process). She added that

Information systems help a company make adequate use of its

data, reduce workload and assist with compliance with

various mandatory regulations.

According to Zippy Elrich (2010), there are various

definitions of computer security and each views computer

14
security from a different standpoint. He said that security

professionals tend to define three interdependent

information security goals: confidentially, integrity, and

availability (CIA). He firstly defined Confidentiality that

it is the main goal of information security and refers to

preventing confidential information from falling into the

hands of unauthorized users. He also mentioned integrity,

it refers to preventing unauthorized alteration and

modification of data, either by unauthorized users such as

hackers, or by authorized users making unauthorized

modifications.

Based on the study of Sao Paulo (2012), the importance

of patient records, also known as medical records, is

related to different needs and objectives, as they

constitute permanent documents on the health of patients.

He also stated that with the advancement of information

technologies and systems, patient records can be stored in

databases, resulting in a positive impact on patient care.

Based on the study of Barredo (2011), registration

system is important for student to allow update the

information especially in billing, which they need to

15
update from student to the system. Monitoring information

these important aspects through automation has made things

better and simple for managers. He added that with the use

of automation systems is to gather the information and to

update the information of the student.

According to Corey Stapleton (2010), the system shall

have the capability of producing legible documents of all

original and refilled prescription information. He said

that during the course of an on-site inspection the records

must be accessible for viewing or printing.

Based on the study of Charter Oak (2015), he said that

the goal of the Information Systems Studies concentration

is to prepare individuals for positions that use

information technology to develop computer-based systems

that support organizations. He also said that these

positions involve the use of information technology to

acquire, organize and communicate data, coordinate

processes, and make decisions.

Based on Reiner Lorenzo Jarabe Tamayo (2015), he said

that quality documentation improves patient care which

results in better outcomes, while poor documentation often

16
contributes to poor-quality nursing care. He also noted

that electronic information systems provide an avenue for

more effective communication and collection of patient

health information resulting in more effective patient

care. He gave one example such as the electronic health

record or EHR, where multiple systems that cross to share

data are networked to support efficient information

management and communication within a healthcare system.

Based on Liao and Mary Finn (2014), student

information system or SIS incurs such application software

designed for educational establishments to manage student

data. They said that SIS provide capabilities for entering

student test and other assessment scores, building student

schedules, tracking student attendance as well as managing

many other student-related data needs within the

institution university. Furthermore, they mentioned that

many of these systems applied in the Philippines can be

scaled to different levels of activity and can be

configured by their home institutions to meet local needs.

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Point Of Sales

According to Justin Guinn (2016), the point of sale

(POS) system is the place where your customer executes the

payment for goods or services bought from your company.

According to Rosemary Peavler (2017), Point of sales

systems are checkout locations in business operations where

transactions occur. She also said that the checkout

location is a point of sale or POS terminal, which is just

a computer used as a cash register. Point of sales

terminals and systems make perpetual inventory control

systems possible.

According to Matthew Hudson (2017), The Point of Sale

(POS) refers to the area of a store where customers can pay

for their purchases. He also stated that the term is

normally used to describe systems that record financial

transactions. Furthermore, this could be an electric cash

register or an computer system which records the data that

comprises a business transaction for the sale of gods or

services.

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 According to Jojo Balagosa (2014), point of sales

systems are replacing the traditional cash registers for

the better in Philippines. He said that the POS has

redefined the level of efficiency and accuracy in the

sphere of sales. He also stated that the system is designed

to cater to a wide range of operations and is customizable

for any specific business. And these systems have made the

work at the counter a whole lot easier and manageable.

According to Kathleen Martin (2015), The Bureau of

Internal Revenue has ordered businesses to register their

cash register, point of sales (POS), and other receipt-

printing machines with the agency. She also stated that in

a memorandum, the tax agency said developers, distributors,

dealers, vendors, and the likes that sell and distribute

sales machines should secure accreditation from the BIR

before the distribution of these units.

Based on the study of Kris Hiiemaa (2015), Point of

sale systems are systems that enable the business

transaction between the client and the company to be

completed. He also said that POS system is a computerized

network that consists of the main computer linked with

19
several checkout terminals and supported by different

hardware features starting from barcode scanners and ending

with card payment terminals.

Based on the study of Cara Wood (2016), POS runs a

store from end to end - that is, from the time that a

product is first added into inventory, to the time that it

is sold. She also said that the POS even keeps track of

everything around a sale and can produce thousands of data

points about your salespeople, your customers, and how

every sale occurred. It's an incredibly powerful software.

Based on the study of Matthew Cote (2016), the point

of sale and inventory management system seeks to discover

how the system can inform in terms of decision making

procedures of management regarding business functions such

as ordering, product positioning, inventory control,

customer service, sales projections, demand forecasts,

marketing efforts, and seasonality of products.

Based on the study of Raniza (2014), The Point of Sale

(also called POS or checkout, during computerization later

becoming electronic point of sale or EPOS) is the place

where a retail transaction is completed. It is the point at

20
which a customer makes a payment to the merchant in

exchange for goods or services.

Based on the study of Agoy and Calda (2016), Point of

Sale Software for general retail, small merchants, small

businesses, grocery stores and other types of retail

businesses is cheap, powerful, and very easy to learn and

use. They said that it helps you manage your business

effectively and efficiently. They also said that it reduces

your payroll overhead by allowing your employees to

concentrate more on the business of selling instead of

capturing sales.

Review of Related Literature

This chapter covers all the ideas and concepts of the

authors, articles, organization and studies related to the

propose system.

According to David Ingram (2017), Sales and inventory

systems track purchases, incoming shipments, stored

inventory and sales transactions throughout an

organization. He also said that the sales and inventory

systems can be as simple as a pen-and-paper system, or as

21
complex as an enterprise software package connecting

accounting databases, inventory information and point-of-

sale terminals across several continents.

According to Rosemary Peavler (2017), Point of sales

systems are checkout locations in business operations where

transactions occur. She also said that the checkout

location is a point of sale or POS terminal, which is just

a computer used as a cash register. Point of sales

terminals and systems make perpetual inventory control

systems possible.

According to Amil, Canda et.al (2012), The Inventory

System which has an array of functions involving sales and

inventory that can be of very big help to the company. They

also mentioned that it aims to make files updated and easy

to locate, hence, data and information become accurate and

orderly which may provide a faster alternative or means in

doing the inventory. Furthermore, the system inventory may

also be harder to cheat because the coming in and going out

of stocks are recorded in the system.

22