DATA FLOW DIAGRAM FOR EXISTING INVENTORY SYSTEM

Figure 1. Context Diagram of the Existing Inventory System

Figure 2. Data Flow Diagram of the Existing Inventory System

Supporting Narrative for Primitive Processes in the Existing Data Flow Diagram
Process 1. Transtech, the company's middleman, takes the calls of the customers and will
notify the LBC courier directly. The order of the customer will be inputted in the Inventory
Master. The LBC courier will then deliver the product to the customer together with the
product invoice.

Process 2. When a defective product is delivered to the customer, it will be returned to the
warehouse. The return of the defective product will also be inputted in the Inventory Master.

Process 3. The employees of the warehouse will notify the finance department of the
returned sales.

Process 4. The finance department will return the payment of the customer for the defective
product.

Process 5. In the warehouse, staff performs the inventory count and from this, the marketing
department will be informed which of the inventories are depleting.

Process 6. The marketing department will report the depleting inventory to Oaklawn
Marketing.

Process 7. Oaklawn Marketing will contact the regular supplier to order the necessary
inventory.

Process 8. The supplier will deliver the ordered products to the warehouse. The delivered
products will be inputted in the Inventory Master.

Process 9. The warehouse will return unqualified inventory to the supplier. The purchase
return will als be inputted in the Inventory Master. The supplier will return the payment to the
company.

DATA FLOW DIAGRAM FOR PROPOSED INVENTORY SYSTEM

Process 1. Transtech, the company's middleman, takes the calls of the customers and will
notify the LBC courier directly.

Process 2. The Quality Assurance Inspector will inspect the inventory before delivering it to
the customer.

Process 3. The SAP user will update the SAP program by updating the sales order of the
company. The ordered product will be delivered to the customer together with the invoice.

Process 4. The customer may return product that they wouldn't want.

Process 5. The SAP user will update the SAP program by updating the sales return of the
company. The returned product will be delivered to the warehouse.

Process 6. The employees of the warehouse will notify the finance department of the
returned sales.

Process 7. The finance department will return the payment of the customer for the defective
product.

Process 8. The SAP user will check the inventory list in the SAP program and print
depleting inventory report. He will notify the marketing department of the depleting inventory.

Process 9. The marketing department will report the depleting inventory to Oaklawn
Marketing.

Process 10. Oaklawn Marketing will contact the regular supplier to order the necessary
inventory.

Process 11. The SAP user will update the SAP program by updating the purchase order of
the company.

Process 12. The supplier will deliver the ordered products to the warehouse.

Process 13. The Quality Assurance Inspector will inspect the inventory delivered before
accepting all of the inventory. The acceptable inventory will be accepted and placed in the
warehouse.

Process 14. The defective inventory found by the Quality Assurance Inspector will
communicate with the SAP user, who in turn will update the SAP program by updating the
purchase returns of the company.
Process 15. The defective inventory found by the Quality Assurance Inspector will be
returned to the supplier. In return, the supplier will return the payment of the company for the
defective inventory.

Related Costs of Recommended Changes to the Existing System

Quality Assurance Inspector Php 23,836 per month Commented [1]: https://www.indeed.com.ph/salaries/
Quality-Assurance-Manager-Salaries
SAP Business One Starter Package Php 99,000 Commented [2]: http://sapphilippines.mseedsystems.c
with in-house training om/sap-packages/1-user-starter-package/

SAP User salary Php 20,526 per month Commented [3]: https://www.payscale.com/research/P
H/Job=SAP_Consultant/Salary
Opening a full time position for Quality Assurance Inspector for the company will Commented [4]: https://www.jobstreet.com.ph/en/job/u
increase cost for the salary but will decrease sales returns due to defectivity of the product. It rgent-quality-assurance-specialist-8040543

will also ensure the quality the company intends to provide to their customers.

The SAP Business One will help the company monitor accurately their inventory
better since it will improve business efficiency and can handle future business expansion. It
is also for better security of information used in the operations i.e. customer information,
suppliers, sales, purchases, inventory etc.

Related Benefits of Recommended Changes to the Existing System

The quality assurance inspector will inspect the inventory being delivered by the
supplier and the product before it is delivered to the customer. The inventory delivered to the
company from the supplier will be checked by the quality assurance inspector. The inventory
inspected will be segregated to the acceptable inventory, which will be placed in the
warehouse and the defective inventory, which will be returned to the supplier. This reduces
the defective inventory delivered to customers. The quality assurance inspector also
inspects the product before it is delivered to the customer. This ensures that the product to
be delivered is adequate.

The SAP program will help the company keep track and monitor the inventory more
sufficiently. The inventory count in the SAP can be used for control if its balances is the
same as the actual count. It can also be used to check the depleting inventory to notify the
marketing department whenever the company is in need of more stock of inventory.