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Chapter II Review of Related Literature and Studies

I. Introduction

The review of the foreign and local literature and foreign and local studies for this

project focuses on creating computerize inventory system for the Max’s restaurant. In

order to create, the proponent needs to find some helpful resources or information about

the project.

Foreign literature is about the studies that has been done by the foreign people

with regards to the computerized inventory. Local literature is about the information of

the company here in the Philippines which is related to the project that is creating by

the proponents. While Local literature is about the studies of the local people with

regards to the computerized inventory.

Foreign and local studies is about the company that use the inventory system. It

contains the features of the system which is useful to the company.

2.1 Related Literature

2.1.1 Foreign Literature

Foreign literatures are number of studies have been done in the field of

inventory management by various foreign researchers. Some of them are given

below:

Bern at de William, 2008

This study tells that the main focus of inventory management is on

transportation and warehousing. The decision taken by management depend s on

the traditional method of inventory control models. The traditional method of

inventory management is how much useful in these days the author tell about it.

He is also saying that the traditional method is not a cost reducing, it is so much

expensive. But the managing the inventory is most important work for any

manufacturing unit.

Max’s Restaurant Inventory System

Jon Schreibfeder,1992

He said that it is easy to turn cash into inventory, the challenge is to turn

inventory back into cash. In early 1990’s many distributor recognize that they

needed help controlling and managing their largest asset inventory. In response to

this need several companies developed comprehensive inventory management

modules and systems. These new package include many new features designed to

help distributors effectively managed warehouse stock. But after implementing

this many distributors do not feel that they have gained control of their inventory.

Wolf Bagby, 1996,Managing inventory

In this study Mr. W.Bagby explains that by managing the inventory it

becomes easier for the organization to meet the profit goals, shorter the cash

cycle, avoid inventory shortage, avoid excessive carrying costs for unused

inventory, and improve profitability by decreasing cash conversion and adopt JIT

system. According to this study companies need to get smart about inventory.

Boosting financial performance is another benefit that comes from better

inventory management. Infect large number of manufacturers enjoy savings and

better performance by choosing the approach of inventory reduction.For this

company needs to maximize the cash flow and profitability and this includes

keeping a watchful discerning eye on charge in supply and demand.


2.1.2 Local Literature

Foreign literatures are number of studies have been done in the field of

inventory management by various foreign researchers. Some of them are given

below:

Masinag (2005)

confused on the enhancement of the manual keeping and management of

stocks to provide easy access on the previous record of stock and finally to provide

security of the stock. The study aimed to provide an inventory report to passed to the

OIC and an adjustment reports for the expired product or stocks.

Reyes (2005)

Stressed about the conversion of the manual system into a computerized

one to provide faster, easier transaction and generation of reports with accuracy.

Mendoza (2005)

Stated that paying attention to analyze and identify the problem being

encountered by the staff involved in the system advocates a better way of dispention

reservation and offers best service to their customers and most of all it makes them

familiar in their current system. The study of the monitored the available stock and

for each product and its status. It almost reserved detailed list of a articles likes

stock.

2.2.1 Foreign studies

Bob Evans Restaurant

Bob Evans Farms, Inc. is a food service, processing, and retailing

company based in the Columbus, Ohio suburb of New Albany. The company is

named after its founder, Bob Evans (1918–2007). It operates Bob Evans

Restaurants. Its food processing and retail enterprise products are manufactured

and sold under the Bob Evans and Owens Country Sausage brand names.

History


The Bob Evans Restaurant chain started from a single truck stop diner

near the Bob Evans Farm in Rio Grande, Ohio in 1946. The chain has grown to

nearly 570 locations in 23 states, primarily in the Mid-Atlantic, Midwestern, and

upper Southern states. All locations are corporately owned, not franchised.

The restaurant chain started after Bob Evans began slaughtering and

packaging his own sausage for his diner. Truck drivers and other patrons began

telling him that his sausage was superior. However, but did not have the capacity

to fill large orders. He contracted with his cousin Tim Evans of Evans Packing

Co. to package Bob Evans Sausage products. In the early years of The Bob Evans

History, Bob was known to have made his way across the Southern Ohio Hills

seeking some of the best cuts of meat. He was very well known in a little town

along the Ohio River by the name of Coal Grove, Ohio, where at the local Meat

Market & Grocery Store he and Earl Nance created sausage recipes. Evans tried

to sell his sausage to area restaurants, but they turned him down, saying that

customers wouldn't pay more for quality. Evans felt differently, and opened his

own restaurant on his farm in Rio Grande in 1962.

Another relative, Dan Evans, served as CEO until his retirement in 2000.

The company also offers pork products to the retail grocery market, as

well as other prepared food products to the grocery and food service segments.

The primary theme is one of country living: "Breakfast is served all day."

Company operations

The company acquired Texas based Owens Country Sausage in 1987. The

company branded its otherwise identical restaurants in Texas as Owens

Restaurants due to trademark issues. By January 2006, all Owens restaurants were

closed.

The company operated a Mexican-themed restaurant called Cantina del

Rio in the mid-1990s, a move which Bob Evans called "a disaster."

The Evans family controlled daily operations of the company until 2000

when Dan Evans retired as CEO. After Dan's retirement, Stewart K. Owens (a

former officer of the Owens Country Sausage company and later president of

BOBE) assumed control of Bob Evans Farms Inc. as CEO. In 2001 he became


Chairman of the Board. Company profits faltered under Owens' tenure. In August

2005, after corporate profits had dropped in eight of the previous nine quarters,

Owens announced his resignation. Officially, the cause of Owens' departure was

"personal reasons" but many analysts believed Owens' departure and Bob Evans

disappointing results were more than a mere coincidence. After operating for

several months under interim CEO Larry Corbin, the company hired Steven

Davis, former president of Long John Silver's, as CEO in May 2006.

The Mimi's Cafe restaurant chain was a wholly owned subsidiary of Bob

Evans Farms, Inc., with 144 locations throughout the US, until sold to the U.S.

branch of Group Le Duff in 2013. They featured casual dining and American food

with a French emphasis and decorative elements.

Arthur J. Simms (who headed the commissary at MGM Studios in the

1950s) his son Thomas Simms, Brian Taylor, and Paul Kurz opened the first

Mimi's Cafe in December 1978 in Anaheim, California. Bob Evans Farms, Inc.

purchased the Mimi's Cafe restaurant chain (operating under SWH Corporation)

in July 2004 for USD$182 million.

On August 17, 2009, Bob Evans opened a prototype restaurant in Xenia,

Ohio. This new restaurant has a more farm-like feel and resembles the Bob Evans

farm.

Portillo Restaurant

Portillo's, which is the main entity within The Portillo Restaurant Group is

a chain of restaurants that specialize in serving Chicago-style food. Portillo's is

located primarily throughout the Chicago metropolitan area, with two locations in

southern California and one in Scottsdale, Arizona.

History

Dick Portillo was born at 1330 West Van Buren in Chicago, Illinois. His

family then moved to government-subsidized row houses on Mohawk Street,

called the Mother Frances Cabrini Housing Project. After his father started

earning enough money, they were prompted to leave and moved to 1617 South

Central Park. His family later moved to the southwest suburbs. He was a 1957


graduate of Argo Community High School at 63rd and Harlem. After high school,

he served a tour with the Marine Corps.

The first Portillo’s hot dog stand known as “The Dog House” opened in

1963 on North Avenue in Villa Park. Owner and founder Dick Portillo invested

$1,100 into a 6’ x 12’ trailer without a bathroom or running water. To get the

water he needed, he ran 250 feet of garden hose from a nearby building into the

trailer.

By 1967, “The Dog House” was a success and was ready for a new look.

After it was remodeled, it was renamed “Portillo’s” and over the years has grown

into a successful multi-state operation. Portillo’s expanded to Southern California

in 2005, Indiana in 2006 and expanded to Arizona in 2013.

The Barnelli’s Pasta Bowl concept was introduced in 1993, and features

pastas, salads, and pizza. Barnelli’s first opened in Schaumburg and has additional

locations in Naperville, Vernon Hills, Glendale Heights, Niles, Summit, Crystal

Lake, Chicago and Willow brook, IL.

In September 2000, Mr. Portillo launched a full-service concept, Luigi’s

House, located on Route 59 in the Aurora/Naperville area. Luigi’s House was

inspired by Dick’s trips to Italy and the Mediterranean. Luigi’s House and its

garden area have been designed to create the feeling of dining in a private Italian

home, serving traditional Italian cuisine in an Italian/Mediterranean atmosphere.

Mr. Portillo launched his latest concept, Honey-Jam Cafe in May of 2010. There

are currently three Illinois locations: one in Downers Grove, one in Batavia and a

third in Bolingbrook. Several of the items on the menu were discovered by Dick

in different restaurants he visited during his travels throughout the United States

and the world. Most of the décor, including the large double-sided fireplaces, was

inspired by Dick’s travels to Cabo San Lucas, Mexico and various locations

throughout the United States.

Julian’s Plaza, a shopping center created by Mr. Portillo, opened in

Bolingbrook, IL in April 2011. Julian’s Plaza has over 42,000 square feet of

restaurant and retail space and is positioned at the busiest corner in Will County,


Illinois. Rich port Plaza, the second shopping plaza developed by Mr. Portillo will

open in Spring 2013 in Elgin, IL. The plaza has 16,000 sq. ft. of retail space.

Portillo’s Home Kitchen is the restaurant group’s fast-growing catering

and shipping division. Portillo’s Home Kitchen offers products including Italian

beef, pasta trays, salads and barbecue ribs. Boxes are available for shipping to all

50 states.

The Portillo Restaurant Group is the recipient of numerous awards and is

the largest privately owned restaurant group in the Midwest. This was all

accomplished without franchising or investors. Combined, the concepts have over

4000 employees and a total of 50 restaurants, plus a catering and shipping

division and two shopping plazas.

Spangles (restaurant)

Spangles is a family-owned fast food chain based in Wichita, Kansas. It

serves 1/3-poundburgers, flatbread pita wraps, french fries, onion rings, Lactose

free milkshakes and other soft-serve ice cream desserts, cinnamon rolls of which

are made in Yoder, Kansas and are named after the town, and breakfast

sandwiches. Breakfast specialties include sourdough sandwiches, Pitas and

Breakfast Bowls. Lunch specialties include the 1/3-pound Gourmet Supreme

burger, 1/3-pound Western Burger, 1/3 pound Mushroom Swiss Burger,

Sourdough Bacon Swiss, Sourdough Turkey bacon Ranch Sandwich and Grilled

Chicken on Pita. Some of the promotional food items that Spangles have served

are a Guacamole Bacon Swiss Burger, Asian Chicken Pita, Seafood Krab Pita (a

Lenten offering), a Parmesan chicken pita, and a Frito Chili Cheese Bowl. The

chain is known for its bizarre, kitschy TV commercials. Unlike restaurants like

McDonalds, Spangles offers its full menu until 11:00 a.m. and offers six popular

breakfast items the rest of the day.

History

Spangles began as a restaurant named Coney Island in Wichita, Kansas.

Brothers Dale and Craig Steven converted a hot dog restaurant named Wiener

King into their own restaurant and opened in January 1978.[3] Business went well


at Coney Island, but in 1984 the Steven brothers decided that the name "Coney

Island" was too restrictive since it could not be franchised. The company launched

a city-wide contest which resulted in the name Spangles.

Some locations are open from 6:30 a.m. to 3 a.m. (drive through only)

Hours for a typical store are from 6:30 a.m until 10:00 p.m. for the Dining room

and 6:30 a.m. until 11:00 p.m. for drive through customers. The stores feature a

1950s diner look with chrome and neon red exteriors. The interiors play bebop

music and include Elvis and Marilyn Monroe mannequins in dining rooms

displaying advertising from the period as well as memorabilia such as neon

guitars and jukeboxes. The chain also derives 50% of its revenue from drive-thru

orders. Spangles strives for the drive through orders to be done in 70 seconds or

less.

The first Topeka store opening made national news in restaurant trade

publications in 2004 “An average unit volume of over $20,000 a week is

considered respectable in the industry — $25,000 to $30,000 would be extremely

high,” Dale Steven said.A typical first week for Spangles in Wichita produces

$35,000 in sales, a strong number by industry standards, said Dennis Carpenter,

CEO of the Kansas Restaurant & Hospitality Association. In its first week, the

Topeka Spangles reached $97,000 in sales; cars were wrapped twice around the

building with people outside directing traffic. On April 25, 2006, a store opening

in Lawrence, Kansas, attracted 250 people camping in tents who were awaiting

the store's 6:30am opening despite a thunderstorm in the area. Campers waited for

the grand opening because Spangles offered free food for one year for the first

100 customers. Some campers stayed for as long as 24 hours in improvised forts

to protect against the hail. Spangles framed pictures of the first 100 customers in

that store and hung them on the wall of the restaurant. Marsha Sheahan, vice

president of public relations for the Greater Topeka Chamber of Commerce, said

Spangles is filling a niche that is different than the large chains, such as

McDonald's, and the slow-paced home style restaurants in the city.

Business for Spangles increased when the restaurant chain doubled its

advertising budget to about 4 percent of its revenue. The company runs major


advertising campaigns on local radio stations, local television stations, and Cox

Cable channels. In addition to the company's slogan, "Spangles, it just tastes

better! the Gourmet Supreme value pack is advertised with the slogan, "$2.99?

Are you out of your mind?" In May 2008 the famous $2.99 Gourmet Supreme

value pack was raised to $4.99 due to rising costs. The new $2.99 burger is the

Classic Burger which was the Gourmet Jr sandwich. The company's advertising

firm, digital BRAND Communications, has been making Spangles TV

commercials for nearly 10 years. In 2005, the company produced 23 commercials,

nearly one new commercial every two weeks

.


2.2.1 Foreign studies

Congo Grille

Congo Grille is a chain of family restaurants in the Philippines named for

its African jungle-themed interiors. In contrast to the decor, the cuisine is

predominantly Filipino with a smidgen of Western and Chinese foods. The award-

winning restaurant is also popularly known as The Sisig King for its recent

achievements in a food feast celebrating the favorite Filipino dish. The chain has

plans to build stores overseas, especially in the United States.

History

Congo Grille was established in 1999 by Kenneth Sytin and his brothers.

That year, the business had as many as 13,000 customers a month and was dubbed

"the fastest growing grill in town." In 2006, Congo Grill participated in the

Annual Sisig Festival held in Angeles City, Pampanga. Their pork sisig and two

other sisig dishes won first prizes in the major categories.

The restaurant operates based on three concepts; a Philippine restaurant in

an air conditioned environment, food without monosodium glutamate, and a

mascot (an ape in asafari outfit) for entertaining youngsters. Congo Grille was

opened for franchising in 2008.

The first franchised-operated store opened at the Araneta Center in 2009.

Bacolod Chicken Inasal

Bacolod Chicken Inasal is a Philippine restaurant chain. It is among the

best known in the country for serving inasal, a kind of roast chicken served on

skewers that originated in the Visayas. It is also a sponsor for a number of

television sitcoms on ABS-CBN.

History

The chain was established in 1993 by the Tanalgo siblings; Rose, Bing

and JM. It began as a small take-out stall in Mandaluyong where customers

purchased their food then ate them at their convenience. A year later, a full-

fledged store was built to allow patrons to sit and dine. Soon, their specialties


gained attention among the denizens of Metro Manila and, five years after it was

founded, a second outlet was built in Makati.

On May 30, 2009, the first-ever Inasal Festival was held in Bacolod City.

For their efforts in promoting inasal nationwide, BCI was commended by the

city's mayor, Evelio Leonardia, who presented them a trophy.

Advertising

The mascot of the chain is a caricature boy named Toto. His name,

according to the website, is a Visayan customary way in which men are

sometimes called. On ads or banners, the character talks in a Visayan dialect

(subtitled in Tagalog).

Portraits of local actress Judy Ann Santos, holding an inasal, are often

seen on ads that promote the restaurant chain. She was selected to be an endorser

of the business because they were inspired by a dish called Ysabella Chicken that

appeared in a TV sitcom called Ysabella which stars Santos. Despite this, Rose

Tanalgo said the recipe for their chicken is rather different from what was seen in

the TV series.

Gerry’s Grill

Gerry’s Grill is a group of restaurants based in the Philippines. It is also

among the largest restaurant chains in the country, having 47 stores (44 in the

Philippines and 3 in the United States).

History

Gerardo B. Apolinario had a way of enjoying delicious food with friends

and relatives. In this, he dreamed of a place of such pleasant ambience which he

would share with them. After gathering his folks for organizing, Gerry's Grill was

opened on Valentine Day in 1997. Since then, the restaurant business rapidly

expanded. Apolinario's explanation regarding how he founded the chain was:

“When we were in college, I was always the designated cook of the group

whenever we had out-of-town trips. I eventually mastered it.”

During the opening of a branch in Cebu, Apolinario once quoted:

“You should be consistent with your food and service. That is the secret. ”


After opening a couple of branches in the United States, the restaurant

chain plans to put up and outlet in Singapore. It has been opened at the Marina

Bay on December 2010.

Other countries that being considered to have branches soon include

Canada, Australia, and Thailand.

Products

One specialty of the chain.

One of its high promoted delicacies is blue marlin (as emphasize by the

restaurant logo). This fish is served in four ways.

Their best seller dish however is sisig, a dish of fried pieces of pork which

originated from Angeles City in the province of Pampanga and has since become

an integral part of Philippine cuisine. This dish also comes in tuna and milk fish

versions.Gerry's Grill has branches all over Luzon, Visayas, and Mindanao.


2.3 Synthesis and significance of the studies.

Reviewing of literature and studies about inventory system is important.

The proponents can get some ideas that will help to them in making the project.

Literature is about the study of some know people who studies about the inventory

system that was done by the foreign people and local are the studies that was done

by the local studies. Foreign literature, according to bern at de William, jon

schrebfeder and wolf bagby, inventory management system helps the bus. To meet

the profit goals, shorter the cash cycle, avoid inventory shortage inprove business

profits, to manage the stock in the warehouse and the most important work for any

manufacturing unit. It explains that by managing the inventory it becomes easier

for the organization to meet the profit goals, shorter the cash cycle, avoid inventory

shortage and avoid

In local literature according to masinag, reyes and mendoza, can make

the process or operation easier, faster and accurate, can monitor the states of

product. The manual keeping and management of stocks to provide easy access on

the previous record of stock and finally to provide security of the stocks. It stated

that paying attention to analyze and identify the problem being encountered by the

staff involved in the system advocates a better way of dispention reservation and

offers best service to their customers and most of all it makes them familiar in their

current system. The study of the monitored the available stock and for each product

and its status.


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