CHAPTER I
INTRODUCTION
In the current generation, we are engaged in highly computerized
technology that aims to make personal lifestyle more comfortable and easy,
especially in the business world. The current manual system is considered to
be the first process after the advent of the computer system. Online trading
is very popular nowadays to expand the target market of the business. It
becomes more efficient for the customer as it can save time and is
considered uncomplicated. The most common system used by some
companies is an inventory management system. In addition to the data, the
information a business needs to decide on an inventory issue can be easily
generated. In addition, stock control ensures the required and correct items
are stored in the correct quantities.
This system, entitled the E.C. Loria Trading Inventory Management
System, is to help a business facilitate the installation and configuration
inside and outside of hardware. This system contains a dashboard, settings,
image quality, speed, security, username and password, price items,
expiration date, price of items, add items and delete items, and a database.
The researchers created this system to make it easier to record items and
make calculations.
The researcher came to understand that a modern method would best
be implemented and tried by prospective respondents to see how it really
operates. The researcher then selected E.C Loria Trading in Namay Morong,
Rizal to be the study’s respondents. This system can be used to store the
details of the inventory, perform stock maintenance, and update the
inventory based on the criteria.
OBJECTIVES OF THE STUDY
GENERAL OBJECTIVES
The aim of this research is to develop an inventory management
system to ensure a continuous supply of materials and stock so that
production should not suffer at the time of customer demand for E.C. Loria
Trading.
SPECIFIC OBJECTIVES
To avoid both overstocking and under-stocking of inventory.
To maintain the availability of materials whenever and wherever
required in enough quantity.
To maintain minimum working capital as required for operational
and sales activities.
To optimize various costs indulged with inventories like purchase cost,
carrying a cost, storage cost, etc.
To keep material cost under control as they contribute to reducing
the cost of production.
To eliminate duplication in ordering stocks.
To minimize loss through deterioration, pilferage, wastages, and damages.
To ensure everlasting inventory control so that materials shown in
stock ledgers should be physically lying in the warehouse.
To ensure the quality of goods at reasonable prices.
To facilitate furnishing of data for short and long-term planning with a
controlled inventory.
To supply the required material continuously.
To maintain a systematic record of inventory.
To make stability in price.
SCOPE AND LIMITATION OF THE STUDY
This study focuses on E.C. Loria Trading's inventory management
system. The transaction and registration process will be done accurately,
quickly, and reliably by minimizing human error. The system will also provide
a computerized search of the requested products; it will create accurate
records in inventory and also ensure system security to protect business on
record.
The E.C Loria Trading Inventory Management System will be developed
using the traditional SDLC waterfall model. The technology used to develop
the system will be Visual Basic for the user interface and Microsoft Access as
the database to store all the data.
This study does not include the following features: use of barcode
reading technology, payroll of facility staff, and it does not accept payments
by check.
SIGNIFICANCE OF THE STUDY
The study will be significant to E.C Loria Trading Owner, Customer, and Future
Researcher.
E.C Loria Trading Owner. Owners benefit from the system because they can
manage the system that provides everything to the user and also benefit
from the accurate records that the system can maintain.
Customer. They will benefit from a better quality service and it will be more
convenient for them. The new system will reduce customer time in the
purchase and payment process.
Future Researcher. Future researchers can use this project as a sample study
guide if they are conducting research to develop a system related to this
type of system. This project can serve as a reference for them; they can use
the data from this project for further research.
DEFINITION OF TERMS
Dashboard - a graphical summary of various pieces of important information,
typically used to give an overview of a business.
Description - a minor or less significant item or feature.
Organize - arrange in a systematic way.
Stock - the goods or merchandise kept on the premises of a business or
warehouse and available for sale or distribution.
Manage Inventory - Inventory management helps to manage the stock of the
company. It provides proper details of the products what kind of raw
material, what are the sizes we require and etc. to the purchasing
department.
Less Storage - When the inventory management provides proper information
to management, they buy according to them which helps the company to
store fewer products.
Improve Productivity - Inventory management helps to improve the
productivity of the machines and manpower. Employees are aware of stocks
and the quantity that require to produce.
Increase Profits - Inventory management helps to improve the profits of the
company. It helps to provide proper information about stocks that saves the
unnecessary expenses on stocks.
Chapter 2
REVIEW OF RELATED LITERATURE
This chapter discusses the related literature and studies which are related
to the proposed study. It consists of review about the related concepts
such as Information System, Management information System and
Inventory System that may help the researcher develop and understand
more their proposed study.
Information System
Shelly, Cashman, and Rosenblatt (2012) defined information system
as a system that combines information technology, people, and data to
support business needs. According to them, an information system has five
key components, which are the hardware and software used, data, the
processes performed, and the people involved. Everything in the physical
layer of the information system is called hardware. Hardware includes
servers, workstations, networks, telecommunication equipment’s, fiber-optic
cables, handheld computers, scanners, digital capture devices, and other
technology-based infrastructures.
Greaney and Kellaghan (2016) also consider monitoring as systematic
and regular procedures for the repeated collection and interpretation of
assessment data of important aspects of the subject understudy.
According to Leithwood, Aitken and Jantzi (2013), a monitoring system
is defined as a concise description of what should be (objectives) and a
process to determine what is (procedural and status report). It is further
explained that it is framework within which to select or define, Interpret and
use wide arrays of indicators.
On a similar grounds, Fitz Gibbon (2019) cites that monitoring is way of
examining quality or performance, largely by the use of indicator focused on
outcomes. However by monitoring, it shall generally mean the use of
performance indicator not only regularly collected but also being reported
back to the units responsible. This definition often uses concepts such as
performance, outcomes and feedback.
Sander (2010) computers are an intelligence amplifier that can free
human to use their time effectively. Because a computer is a fast and
accurate electronic symbol or data manipulating system that design
automatically accept and store input data process and procedure output
results under the direction of the stored program or instruction.
Adamski(2011) give some advantages of database processing first
economy of scale getting more information from some amount of data,
sharing data balancing conflicting requirement, enforcement of standard,
controlled redundancy consisting integrity security ,flexibility and
responsiveness ,increase programmers productivity, improve program
maintenance and data independence.
In accordance to the study of Navarro (2012), Inventory System,
computer is general purpose device which can be programmed to carry out
the finite set arithmetic or local operation, the computer has a big role in our
nation today because of technology. Wherever you go, computer exists,
especially in business it makes the procedure easy and source by
programming the manual system into a computerized system. The role of
technology in our life today has a big impact.
According to Shanker (2013), the difference between manual and
computerized system is speed. The processed data can minimize errors and
increases efficiency. The data inputted can easily be summarized in just a
few seconds. While the manual computing with paper and pencil or ball penis
cheaper than a computerized sales system, which requires a machine and
system software. Other expensed associated with computer process include
training and program maintenance.
according to Bianca, Demand Media (2011), Sales and Inventory
Monitoring System using this type of system, a company makes strategic
business decision regarding raw materials purchased, production scheduling
pricing, and other decisions in the supply, Sales and Inventory data enables
the company to increases or decreases of products in the factory so that the
company won’t have too finished goods stored in its warehouse.
According to Janes (2011), computers are extremely reliable device and
very powerful calculators with some great accessories application like
processing problem for business activities, regardless of size, computers
have three advantages over other type of business equipment that process
information because computer are faster, more accurate and more
economical.
Foreign Studies
According to theU.S. Small Business Administration,“Inventory refers to
stocks of anything necessary to dobusiness” (U.S. Small Business
Administration, 2018) The U.S.Small Business Administration publication
describes whatconstitutes successful inventory management balancing
costversus benefits of inventory, including Maintaining a wideassortment
without spreading the rapidly moving items too thin,Increasing inventory
turnover without sacrificing service,Keeping stock low without sacrificing
performance, Obtaininglower prices by making volume purchases,
Maintaining an adequateinventory without an excess of absolute items.
According to Zierden, (2016)Inventory management systemswere created
to help dealerships implement, maintain, and fine-tune their inventory plans.
Dealers who use inventory managementsystems realize quicker vehicle turns
and a higher ROI thandealers that don’t. Choosing the right system can make
asignificant contribution to your inventory management efforts.This strategy
helps a lot to come up with a successful outcome.
Cashman stated in her book “System Analysis and Design”, (2011)that
transaction processing system data generated by day-to-daybusiness
operations. Transaction processing are efficient becausethey process a set of
transaction related commands as a grouprather than individually to protect
data integrity however, TPsystems ensure that if any single element of a
transaction fails,the system does not process the next transaction.
According to Ketler, (2017)Sales are affected by manyfactors besides
advertising, such as product features, price andavailability. Service is the
anything which organization offersto customers. It is the means by which
customers’ needs aresatisfied. Service organizations need to follow a
strategicapproach for effective service that can increase
customersatisfaction that influences the profitability.
According to Mitch etal.... (2017)on their book,Principles of Information
System, sales and marketing informationsystems are used to develop new
good and services (productanalysis), determine the best location for
production anddistribution facilities (place or site analysis), determine
thebest advertising and sales approaches (promotion analysis), andset
product prices to get the highest total revenues (price analysis).
Local Studies
According to J.De Leon etal... (2019)Under the Koread RedGinseng
Enterprise Sales and Inventory System, the researchers came up with
acomputerized sales and inventory system. The proponents used database
toeasy access of files and for easier and faster processing of the selling
andinventory transaction. The program was designated to generate reports
such asmonthly reports, inventory reports, sales invoice and list of items.
Based on the research entitled “Computerized Sales and Inventory
systemfor Ronmon Trading” (de Alday, Espino, Ragudo),(2010), the
replacement of themanual system with the proposed system provided more
efficient and accurateprocessing of transaction. The said system is much
reliable, eliminated errorsand inaccurate information, and provided valuable
reports with integrity.
According to Hamlett (2017), primary use of the periodic inventory
system occurred prior to the introduction of point-of-sale scanners and
computers. Companies such as drug and hardware stores that sold lots of
small merchandise found it easier to update their inventory balances
periodically instead of trying to account for every item sold on a daily basis.
The periodic inventory system allows a company to record sales of
merchandise in a special account. When merchandise gets sold, the company
records the revenue but does not record a cost of goods sold (CoGS) entry.
ACC Van Wijk, Ivo JBF Adan, etal... (2013) We study a multi-location
inventory problem with a so-called quick response warehouse and base stock
inventory control. In case of a stock-out at a local warehouse, a demand can
be satisfied by a stock transfer from the quick response warehouse. We
derive the optimal policy for when to apply such a stock transfer, as well as
conditions under which that is always optimal. In a numerical experiment we
compare the optimal allocation policy to simpler policies.
Allen H Tai, Wai-Ki Ching (2014) In this paper, we consider a Markovian
model for a two-echelon inventory/return system. The system consists of a
supply plant with infinite capacity and a central warehouse for inventory and
returns. There are also a number of local warehouses which are also capable
of re-manufacturing of returns to products. To obtain a high service level of
handling inventory and returns, lateral transshipment of demands is allowed
among the local warehouses. The objective is to minimize the total expected
operating cost by choosing the maximum inventory level at the local
warehouses. We present some theoretical results for the proposed model.
Numerical examples are also given to demonstrate the performance of the
system.
Chapter III
Methodology
This chapter describe the project development framework, locale of the
project, subject of the project, and procedures of the project.
Project Development Framework
The SDLC methodology will be used to specify the tasks that must be
completed at each stage of the software development process. SDLC is a
development team's structure inside a software organization. It is a thorough
strategy that explains how to build, maintain, and replace certain software.
The life cycle outlines an approach for enhancing software quality and the
development process as a whole.
To describe this number of components, a variety of SDLC models or
methodologies, such as waterfall, spiral, V-Shaped, and agile software
development, have been developed. The waterfall model was chosen by the
researchers for the study's development.
The Waterfall methodology, often known as the Waterfall Model, is a
sequential software development process in which progress flows slowly
toward completion through project phases that are, requirement analysis,
design, implementation, verification, and testing and maintenance. This
includes completely documenting a project in advance, including the user
interface, user stories, and all the variants and outputs of the features.
The waterfall model is used by the researchers to ensure that the
program is directed from planning to implementation with no backtracking
and that everything is stable and finished once the software is built.
In the Requirement Analysis phase, the researchers have a complete
understanding of the client's problem. The researchers asked about the
system they are currently using in inventory. The researchers also asked
how the process of putting
items in and out works. Each question answered by the client is listed to
analyze the need to create system requirements.
In Design phase, the researchers designed the layout of the system
based on the information gathered. And in this phase, researchers begin to
analyze the collected data and record each requirement.
In the implementation phase, researchers begin working on the
system's prototype.
In Verification and Testing phase, the researchers test the system's
functionality as it is based on the client's problem. The researchers ensure
that the system is fully functional to meet customer satisfaction. Testing was
performed every time there were some adjustments to the system.
In the Maintenance phase, the researchers know that there will always
be annual updates and bug fixes to keep the system running more stable
and efficient. Some problems arise in the client environment. To solve these
problems, fix bugs and errors, and improve the system, better versions are
also released. Maintenance is performed to implement these changes in the
customer's environment.
Locale of the Project
The store was established in the year 2005 the E.C. Loria hardware is
given because of the first initials of Elizabeth Cania (E.C). E.C Loria Trading
Hardware is located at T. Claudio Street Barangay Sanjuan Morong, Rizal.
They come up with this business it’s because to sustain their finances and
due to their hard work in Baras, Rizal store, the E.C Trading Hardware has
now another branch in Morong, Rizal. E.C Loria Trading Hardware Service or
Offered Product such as Online Order, Deliver, and Online payment (can be
cashless), Good Quality, Can be Returned, on-time services, Durable, and
Installation.
Subject of the Project
The proponents chose the store’s attendant to be served as the
system’s user which can give a lot of time-saving procedures, less time in
processing means more time in checking the item completion and delivery.
Procedures of the Project
To complete the study, the researchers took it one step at a time
procedure. The researchers discuss the probable title and ideas, then the
researchers decided to pick at least three(3) titles and go for the next stage
which is to ask for approval and title revisions. The title that is approved by
the instructor is the E.C. Trading Inventory Management System for Morong,
Rizal.
The researchers gathered information and analyze the client’s needs in
order to know the system requirements. The information that is gathered is
prioritized in a pre- study process than chapters 1 to chapter 3 will be revised
and changed accordingly with the help of the proctor's advice and have a
virtual oral defense for final approval and proceeding chapters.
Chapter 4
TECHNICAL BACKGROUND
System flowchart
This system flowchart describes how the entire system operates. It
helps to recognize the flow of operations in the system. It reflects the
relationship between inputs, output and processes of Loria Trading
Inventory System.
Start
Userna Your log in
Account does me/Pas as
exist s word administrat
or
Inventory system
Product Transa Manage Inventory
ction users reports
A B C D
A
List of product Add new product
New Product
Save
You can add You can save
new product
Close
the product
Edit
List of
Product Refresh
New Delete
Stock out B Stock in
List of Stock in
History product Products
Stock of
product
Show the history Show the list of
of product stock-in the
products
Stock out
History product
Show the history Show the list of
of products stock-out
products
C
User
Close details Add new user
List of user
User
Close details Print review
Save all data
report
All data can
STOP print on ms
Dataflow Diagram
This dataflow diagram represents the how the data of the Inventory
Management system flows, processes and accessed by the users.
Context DFD
Manage stock
History
Admin E.C Loria
Hardware
Inventory
System
Report Supply Record
Database Schema
Unified Modeling Language
Setting
Report
Stock-in
OWNER EMPLOYEE
Stock-out
Account
Print
Cost and Benefit Analysis
Costs:
Item Estimated Total Cost
Quantity
Computer Equipment:
Desktop Computer
with supporting 2 65,000 130,000
software:
Printer: 2 8,000 16,000
Installation and
Network:
Networking Materials: 10,000 10,000
Training cost:
Rizal:
Expenses
due inefficiency
During first
Electricity: 12
10,000 120,000
Month
s
12 18,000 216,000
Internet:
Month
s
TOTAL COST: 544,000.00
Estimate Benefit per
Item
year
Improve efficiency and
100,000
reliability data
Improved the speed and 100,000
function
More ability to manage the 500,000
system
More enhance and simplified 50,000
TOTAL COST: 750,000
ROI = (Benefits -
cost)/Cost )*100 ROI =
(700,000,00 -544,000.00)*100
ROI = (.38)*100
ROI = 38% per year
Program Output
+
Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary of findings, conclusion and
recommendation.
Summary of Findings
After the development, the project team conducted quality
assurance testing with the developed system on specific features of the MIS.
In general, results show that required functionality of the system in providing
support in helping E.C Loria Trading Hardware to manage all undertakings in
their hardware is 60%.
The team also conducted the user acceptance test. Its criterion measured
the system’s functionality per module. The result of the test yielded an
overall pass rating of 60.89% that describes that all the modules of the
developed MIS for E.C LoriaTrading was accepted to the target users.
Specifically, the systems user acceptance testing criteria rating are as
follows; User Login 75%, User Account 100%, Stock-in/out 85%, data base
67%, Print 90%,
Reports 95%.
Hence, the obtained passing rate of system content describes that the user
found the system to be functional because it provides sufficient features that
are made well enough to meet their needed support services.
Conclusions
Based on the findings and comments/feedback that were gathered in
the whole conduct of the project, the proponents concluded that the system is
useful to the administration/employee as it provides secure data in handling
the system, efficiently manage inventory records in terms of stocking and
proper handling inventory records, able to handle the sending of notifications
to guardians and students, manage system settings and generate systems
reports.
After methodical process in developing and testing the project, the team
achieved all the specified objectives of the project because the system works
as required and without issues during normal use of the recipients.
Recommendations
In view of the discussion of findings and conclusions, the following
recommendations are presented for further improvement of the system.
1. The hardware may take into consideration the end-users training on
using the developed system and its maintenance.
2. The hardware administration may implement the system so they
easily handle transactions and managing of inventory records.
3. Improving the systems interface by making it more responsive and
adaptive as possible.
4. Similar project may be conducted considering other more functionalities
that may be useful to the hardware.
