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1.1 Background of the Study
Avon, the company for women, is a leading global beauty company, with $10 billion
in annual revenue. As the world's largest direct seller, Avon markets to women in over
100 countries through its significant number of independent sales representatives. Its
product line include beauty products, fashion jewelry, and apparel, and it features well-
recognized brand names such as Avon Color, Anew, Skin-So-Soft, Avon Solutions,
Advance Techniques, Avon Naturals, Anti-Marks, and Avon Wellness.
Avon has a handful of branches operating all over the Philippines, and one of which
is the Imus Branch established in 1995. In counting, Avon Philippines Imus Branch
has been operating for 18 years now. Mrs. Soledad Pena who is part of the General
Manager Advisory Council looks after the said local outlet.
In a retail company like Avon, multiple transactions are made on a daily basis.
These may range from marketing, product development, monitoring of cash flows,
promotion, beginning and ending inventory to clerical work. All these require manpower
which may mean a slash on the cash budget and the possible outpour of workload.
The proponents have come up with a proposed study to develop their existing
manual system through computerization, design, create a link database system in their
inventory functions to easily process their transaction and avoid the common problems
that they encounter.

This system is effective and efficient for it will alert them to any stock-out, overstock
and missing items. Inventory clerks will be able to anticipate and calculate their
replenishment lead time and inventory controlling will be much easier as the items are
stacked systematically.

1.2 Statement of the problem
1.2.1 General Problem
Considering the multiplicity of transactions in a retail company, the manual
system does not work well anymore because of the legitimate repercussions that
it may cause like time consuming, loss of files, error in computation and being
susceptible to errors. It is through this real-life situation that the researchers want
to focus on putting up a system that will unload the work and definitely help the
company save files and process transactions, ease up inventory management,
and help speed up preparation of sales and inventory reports, in a more
convenient way.
1.2.2 Specific Problem
Given that the company does not have any database, the
employees could have a hard time in storing files that they have.
Due to manual recording the files stored may be lost and destroyed
by accident, calamities and other certain events. Unorganized and
misplaces files can also cause loss of files. This may lead to
information discrepancy.
With the manual recording, handwriting and erasures of the records
may not distinguish by the owner.
Another problem of the company is the computation of their sales
or counting the items in the inventory. A high chance of alteration in
their reports may occur.

Checking the stocks one by one is hard for it is not always reliable.
There is always an issue checking the stock levels and reconciling
stock in and stock out as a miss count on delivery can throw the
system a problem. Dealing with return of a product also has its
1.3 Objective of the study
1.3.1 General Objective
To develop system for Avon Philippines Imus Branch in order to aid and
boost the works of the system in balancing the competing requirements lead to
finest inventory levels, which in an on-going process as the business needs vary
and respond to the wider environment. The system will easily process, find,
organize, and save company files and reports.
1.3.2 Specific Objectives
To create an efficient Sales and Inventory System for Avon Imus
that will engender rapid and precise outcome for their sales and
To propose and construct a module that will supervise the critical
level of the stocks or items of its inventory.
To develop an inventory system that could supply the way of
tracking the flow of the data in and out of the company.
To develop a system that will generate an accurate report that can
be used for sales and inventory monitoring purposes.

1.4 Significance of the study
The study will definitely benefit the following:
a. Employees. This system will minimize their workload for the efficiency that it will
bring. It will give them a systematic way of preparing sales and inventory reports.
b. Employers. Since the system will now generate accurate reports, monitoring the
operation of the company becomes easier.
c. Customers. This system will definitely benefit the customers since the company
can now serve them better and a faster way.
d. Future Researchers. This system will benefit future researchers in terms of
information about sales and inventory system for projects or thesis use.


1.5 Scope and Limitation
Study only revolves in the scope of planning sales and inventory control. The study
of sales and inventory is only within Avon Imus Branch. The proponents will also
incorporate data reporting by producing hard copies. The system has four different
types of level access. First, is the Administrator or Admin account, second is the
Inventory account, third is the Cashier account and the fourth is Dealer account.
File 3 sub menus: Sales, Inventory and Logout.
a) Sales Admin or Administrators and Cashier accounts use this for
sales transactions. The edit sub menu is only enabled for Admin
b) Inventory Admin or Administrators and Inventory accounts use
this. This will provide the user to add, edit, or search items for
products and provide returned items for report processing.
c) Logout Logs out the current user logged in.
View Reports three sub menus: Sales and Inventory. This module is disabled
for Cashier accounts.
a) Sales Able to view and print daily, weekly, monthly and annual
sales reports.

b) Inventory Able to view or check critical stocks, empty stocks,
available stocks in inventory and returned items. Can also print
Inventory reports.
c) Dealer Reports contains information for the franchise dealers.
Accounts two sub menus: Admin and Change Password. The Admin sub menu
is disabled for both Inventory and Cashier accounts.
a) Admin enable to add, edit and deactivate user accounts,
franchise manager and franchise dealer accounts.
b) Change Password users can change the account password in
this sub menu.
Backup 2 sub menus: Create Backup and Restore Backup. This module is
disabled in Cashier account.
a) Create Backup creates backup of database.
b) Restore Backup restores the database prior to the backup
created by the user.
There are four main menus to use when the Administrator or Admin is logged in to
the system.
First is the File main menu. Inside, there are three sub menus: the Sales, Inventory
and Logout. The Sales sub menu is used to create new sales record, void transactions,
and edit existing record. There are three menus under Sales sub menu, New sales
where in customers pay the product via cash or installment basis, Edit Sales where
administrator accounts can edit an existing sales order or for correction purposes, and
Returned Items where the cashier would check the Service Order number of the

customer and also verify to the Franchise Manager if it is good for return or not. If it is
good, then the Franchise Manager will be the one updating the Service Order number
and provide new product for the customer. There will be a checkbox in the system to
inform the returned items to the Inventory Department. The Inventory Department will
now update their database for returned items. The Installment menu is provided with a
menu for continue payment where the cashier would just input the Service Order
number of the customer and then can update the Service Order with regards to the
payment the customer will be doing. The Inventory sub menu is used to put new
products, edit existing products, deleted products. The logout sub menu is used when
access is no longer needed by the user. The second main menu is View reports. There
are three sub menus under it, the Sales Report, Dealers Report and Inventory Report.
The Sales Report is used to view and print daily, weekly, monthly, and yearly reports.
The Dealers Report is used to view and print the dealers sales progress, can view
daily, weekly, monthly, and yearly reports. The Inventory is used to view and print
critical stocks, empty stocks, recent stocks and returned items. The third main menu is
Accounts. There are two sub menus under it, the Admin and Change Password sub
menu. The Admin sub menu is used to create, edit and deactivate user accounts,
franchise manager accounts and franchise dealer accounts. The franchise manager and
dealer accounts are used for records in sales. The Change Password sub menu is to
change the password of the current user. The fourth and last main menu is the Backup
menu. The Backup menu is used to create and restore backups of the database.
For the Inventory Account, there are four main menus. First is the main menu. Inside,
there are two sub menus: the Inventory sub menu and the Logout sub menu. The

second main menu is the View Reports and there is only one sub menu, the Inventory.
The person in charge of the inventory can check the stocks in this menu. The third main
menu is the Accounts main menu where the user can change the user password. The
last main menu is the Backup menu. The person in charge of the inventory can back up
the files to ensure the accuracy on updating stocks and also for recovery of records in
case there will be problem with the database.
Third account is the cashier, they will be provided a user account by the administrator
and there are some features disabled for them for security purposes. The disabled
features are: editing an existing Sales Records, adding a product into the inventory,
removing a product into the inventory, creating a user account and creating a backup.
Last account is the dealer; this is used for the franchise dealers to see information
about available inventory stocks and their status of products they are selling.
The proposed system will be using computer units for the administrator, inventory
staff, dealers, and cashier. The network that will be used is the star topology and the
proposed system will be using Visual Basic.Net together with SQL Server.
The system is limited to its point of sales functions such as order acquisition and
order reporting. As for the sales and inventory system it is limited to quantity
manipulation and item tracking. The system can print sales and inventory reports. The
system is intended for sales and inventory use only. The system does not include
solving problems hardware problems and malfunction.

1.6 HIPO






1.7 Network Diagram

Server Inventory Computer

The Administrator/Officer-in-charge computer is placed in the Administrators
office where the Administrators and executive managers always stay, while cashiers
computer will be placed over the counter to do all the sales transaction. The Inventory
computer is placed in the warehouse department where the products are there.

1.8 Definition of Terms
Visual Basic .NET (VB.NET). It is the first fully object-oriented programming
(OOP) version of Visual Basic, and as such, supports OOP concepts such as
abstraction, inheritance, polymorphism, and aggregation.
Network topology. It describes the arrangement of systems on a
computer network. It defines how the computers, or nodes, within the network
are arranged and connected to each other.
Star Topology. Is a type of topology where all of the computers and devices on
the network connect to a central device, thus forming a star. A star topology is
best suited to be in small networks and work efficiently when there is limited
number of connections.
Database. It is designed to provide an organized mechanism for storing,
managing and retrieving data (information).
SQL. It is the abbreviation of Structured Query Language. It is a consistent
query language for requesting information from a database.

Routers. A Router is a device that connects two networks - frequently over large
Backup. It is the activity of copying files or databases so that they will be
preserved in case of equipment failure.
Stock out. A situation in which the demand or requirement for an item cannot be
fulfilled from the current inventory.
Inventory Management. Activities employed in maintaining
the optimum number or amount of each inventory item.
Outpour. To pour out or overflow.


2.1 Database Approach
A database is an application that manages data and allows fast storage and
retrieval of that data. In the proposed system, SQL Server will be used for storing data.
Since the database will be running on SQL server, the database can be accessed by
multiple users. All data will be stored in the form of tables in a database server. These
data are accessible for the administrator, cashiers and inventory staff. The cashiers
and inventory staff will only be allowed to access limited transactions and system
control while the administrator has the full control of the system.
Since Avon Imus Branch has inventory management and sales transactions
being done, the proponents have come up with operational database as the type of
database for the proposed system. Sales transaction and inventory management, all
this information is collected and stored in the database. Storing information in a
centralized area can increase retrieval time for users. Operational database can contain
detailed data used to run the day-to-day operations of the business in terms of sales
and inventory. The data continually changes as updates are being made. It is important
when information is needed quickly. This is why the proponents decided to choose
operational database as their type of database for the proposed system.
Avon Imus Branch has still been doing sales and inventory manually. It would
greatly affect the operation of the business if sales and inventory records are lost or
missing. The proposed system will provide the business a database to handle inventory

of products, sales transactions or sales and inventory reports in a more organized and
detailed way.
2.2 Relational Database
A relational database is a collection of data items organized as a set of formally
described tables from which data can be accessed easily. Data are stored inside tables
and all operations on data are done on the tables or produce another table as the result.
Each record is identified by a field or an attribute containing a unique value. Every
table shares at least one field with another table. Thus, these relationships will allow the
database user to access the data in almost an unlimited number of ways.
The proposed system will be using at least 7 tables for the database. These are
users, receipts, receiptitems, franchise_manager, franchise_dealer, inventory, and
Users this table consists of all the users that will be using the system. Users
are provided by access levels, Admin, Inventory and Cashier. These access
levels have different privileges. Admin can access all of the systems privileges.
The fields for the table consist of: Username, Password, Privilege, Name, and
Status. The primary key will be the Username.
Receipts, Receiptitems, and Invoicereceipt the tables consist of all the sales
transactions done by the company. The table will have a column named, service
order number. This service order number has a unique key property so that no
duplication of service order numbers will take place. The service order number
will be used for checking of returned items and updating of installment payments.

Inventory this table is made for managing the inventory. Adding and editing of
inventory items will be done in this table. Checking of critical stocks and empty
stocks will be at this table.
Franchise_dealer and franchise_manager the tables consist of all the franchise
accounts for the company. There are two types of franchise accounts, the
franchise manager and the franchise dealer. Franchise managers will be
handling the franchise dealers. In terms of the database, it will be used for
reference when doing sales transactions and printing or checking of sales
The proposed system will be providing systematic and organized database for Avon
Imus Branch.
2.3 Network Approach
A network protocol denotes rules and conventions for communication between
network devices. It includes mechanisms for devices to identify and make connections
with each other and permit sharing of resources and information among devices.
Network topology is a schematic description set up of a network in a communication
The proposed system will use star topology to construct the network. The star
topology is considered the easiest topology to design and implement. The network does
not necessarily have to resemble a star to be classified as a star network, but all of the
nodes on the network must be connected to one central device. A network router will act

as the central hub or device for the network. The proposed system will be using three or
more computers, printers and a network router. There will be a computer inside the
Officer-in-charges office. Computers will also be deployed in inventory department or
warehouse and also by the counter. Network routers will be the one handling all
information that the computers will send. It will also be in charge of distributing this
information to its proper destination. The proposed system will have a server that is
used inside the Officer-in-charge office. It will be one server and nine clients. The
Officer-in-charge and Franchise Managers will be the one using the admin accounts
and the Franchise Dealers, Inventory clerks and Cashiers will be using accounts that
have limited access permissions. The whole network is all linked together using
category 5-e, unshielded twisted pair cable connected to the network router. The Avon
Imus Branch is still using manual sales and inventory check which is time consuming in
a business environment. The proposed system will be benefitting the company for it will
contribute to a fast and efficient way of doing business.


3.1 Local Studies
3.1.1 Title: Computerized Sales, Purchasing, & Inventory System of Johny Be Water
Purifying Station
Authors: Shiela Marie Daniellle Geronimo
John Kenneth Oliva
Christian Garrol
Carlo Limpangog
Luigi Sevilla
Junno Gonzales
Date: August 2009
Source: AMA Computer College Cavite
This study deals with the computerized sales, purchasing and inventory system
of Johny Be Water Purifying Station. This System will be able to track down lent water
containers, it indicates the stock of purified water and LPG for sale, it also indicates the
number of containers available, speed up ordering and reservation of orders, generate
reports for a daily, monthly, yearly, or a specified schedule, and monitor input and
output of transactions. This system will come with a security access that will prevent the
entry of unauthorized entities on the system.

Therefore the company provides a system that avoids complications due to
human errors such as using incorrect labeling of items and products and incorrect
recordings of quantity and pricelist. And develop a system that is convenient to use, that
will minimize human works and is less time consuming.
Similarities/ Relations:
Alike to Avon Imus , the company has encountered a lot of problems regarding in
complications on inventory reports due to manually handwritten processing of records.
And time consuming when it comes to generating inventory reports.
This system is almost the same in the second module of the proposed system
Sales and Inventory System for Avon Imus branch, in which the Inventory Reports
Module of the Sales Records generates the daily, weekly, monthly and yearly reports,
and monitor input and output of transactions. And also the same with a security access
that will prevent the entry of unauthorized entities on the system.


3.1.2 Title: Sales and Inventory System of Gigahertz Computer System
Authors: Rey Christopher Ali
Jaizzelle Mae Apay
Joseph Conrad Marapao
Rina Jane Paredes
Mary Kris Sierra
Date: April 2010
Source: AMA Computer College
The Company used the system in order to generate numbers for financial reports
and tax records. Ideally, most companies want to have just enough inventories to meet
current orders. The proponents used Visual as the programming language
and MySQL as the database handler for the system. The proposed system will generate
Sales and Inventory reports respective to three period of time such as daily, weekly, and
monthly, to identify and keep the tracks all data processing assets in the storage. The
study will cover some different modules these are the Point of Sales Module, Inventory
Module, Maintenance Module, and the Reports Module. In the Point of Sales Module,
there are two parts of this module, the cash and the installment plan. And in the
Inventory Module, this will be used to add/update Product Name, Price, Discounts and
Stocks Available. After saving the changes of the inventory, the database will be
updated. On the other hand, the Maintenance Module, this module will require an
administrative password for security purposes. The system will only accept specific

username and password that would be secured by the administrator. The administrator
can retrieve the daily, weekly, and monthly sales and inventory reports on this module.
And the last is the Reports Module; this module will be used to create Sales and
Inventory reports on a timely manner i.e. daily, weekly or monthly. The system has a
four level of User Access, First the System Administrator to access the Maintenance
Module. Second Level is the Managers to access the Reports Module of the system.
The Third Level is the Inventory Custodian to access the Inventory Module. And the
Fourth Level and the Last Level is the Sales Custodian to access the Point of Sales
The current processes on Sales and Inventory of Gigahertz Computer System
has encountered problems such as human errors that occur during manual handling of
sales and inventory. It also takes a long time to execute the existing program since it
has a large volume of data to load and lead the system into hang time. The existing
process also results to data redundancy and poor precision of reports. These problems
lead the company into poor business dales and transactions.
The proposed system applies systematic approach on its data processing to
avoid system bugs, errors and failures. This will organized the steps used on the
recording of sales and inventory.
Similarities/ Relations:
This system is almost the same with the proposed system, it will generate Sales
and Inventory reports respective to three period of time such as daily, weekly, and
monthly, to identify and keep the tracks all data processing assets in the storage. It is
also the same in requiring an administrative password for security purposes. And like to

the proposed system, the administrator can retrieve the daily, weekly, and monthly
sales and inventory reports on the Maintenance Module. And the proposed system will
also used Visual as the programming language.
3.1.3 Title: Computerized Sales and Delivery System for PR Gaz Haus
Authors: Cherily Margarito
Marjorie Heraldo
Aiko Bongcayao
Milcah Rafon
Date: December 2010
This study deals with the computerized sales and delivery system of PR Gaz
Haus. The proponents used Visual Basic 6.0 in creating a user- friendly interface for the
system, and MS Access for the database. The system makes real-time and accurate
reports that reduced paper works and time consuming tasks. The system are enabled
the company to transact faster with the used of modules, menu, and submenus that are
included in the system. The system has two levels of access, the Administrator and the
Staff. The system equipped with security access such as login form that will prevent
unauthorized access on the system. The Administrator can access all other the modules
of the system except for transaction module. In File Module, the admin has a privilege to
access about the products sub modules in which the admin can add, edit the unit price
and some information about the products. While in the Transaction Modules, only the
Staff can access this, in which sales and delivery sub module is under to it. And in the

Report Module, the system includes sales reports in which can be classified into daily,
weekly, monthly, and annually. Only admin has the privilege to add a customer who
wants to be a member to avail the discounts. The admin can also edit the said
discounts, customer information and can remove inactive customers. The admin can
create additional accounts for new employee, can edit own password, and can
manipulate employee information such as deactivate user accounts if employee is not
already part of the company. While the cashier staff has a privilege to edit only own
password for the security purposes. Online operation is not included in this system.
The main problem of the said company is, they are using manual method in the
existing system, which is time consuming for the side of the staff and manager, this
method is also prone to have human errors.
Due to this problem, the proponents proposed a Computerized Sales and
Delivery System that helped to lessen the problem of the existing system to have an
efficient and organize records of data.
Similarities/ Relations:
The study have a similarities to the proposed system, first is the system equipped
with security access such as login form that will prevent unauthorized access on the
system. And the second is, in the Report Module, the system includes sales reports in
which can be classified into daily, weekly, monthly, and annually. And like to the
proposed system, this system has no access in the internet.


3.2 Foreign Studies
3.2.1 Title: Inventory Control Management System
Author: Mrs. Hafiza Mohd Akhir
Date: October 2009
This project is aimed at creating an inventory control management system to
facilitate the operator in controlling and updating the flow of inventory in any
organization. It also needs computer units for the users and also the network switch that
will be used in communication between the users. This system is developed by using
software Visual Basic version 6.0 integrated with Microsoft Access 2000 and Seagate
Crystal Report version 6.0. The Crystal Seagate Report is chosen because it is easy to
develop and also its format a more systematic compared to the other report format.
Overall, the developed system is increased the users confidence because it is easy to
use. Further works such as to upload the system to the internet could be performed to
improve the performance of the system.
Same as the proposed system, this system needs a computer units for the users.
And its almost the same in terms of view reports which are the sales report, inventory
report, and system users report. Without an organized reliable system especially
computerized system. And these are the difficulties that the company has been

undergoing over the years: problem lacks of control in their inventory system,
Laboriousness and time consuming when it comes to generating inventory reports.
3.2.2 Title: MidWest Hospital Pharmacy Purchasing and Inventory Control Sytems
Author: Jc McAllister
Date: November 2009
The Purchasing and Inventory Control System for the MidWest Hospital
Pharmacy, the system will focus on the various components of the purchasing and
inventory control process. Through the purchasing and inventory control functions are
substantially interrelated, each will be presented separately. Most installments will
present examples of applications in a wide variety of institutional settings. Topics to be
discussed include historical perspectives, assessment of vendors and product selection,
bid solicitation and contract negotiation, evaluation of drug procurement alternatives,
development of a purchasing system, coordinating the purchasing process, objectives
of inventory control, quantitative measurement of inventory control, methods of
inventory control, management of the system, automated information systems, and
quality insurance.
An upgrade for the system that can be a more user-friendly system and have an
auto update on their inventory for the prices, stocks, product expiration and related.


Similarities/ Relation:
There are similarities between the systems, the main information database
storage of the whole system are obvious. They are also similar in the added data or
create a new sales and stored data on the inventory system. The focus of The
Purchasing and Inventory Control System for the MidWest Hospital Pharmacy is
obviously for hospital purpose only but the monitoring process of their inventory stocks
is similar with the proposed system.
3.2.3 Title: Inventory Management Control and Replenishment
Author: Imee Juiana BT HJ. Tajuddin
Date: March 29, 1999
The study only revolves in the scope of planning inventory control and
replenishment. The analysis will be on how the reports by SMSBs inventory
management control and planning. The inventories which are stocked too long could
age and this will cost the company financially and operationally because it is very
difficult to sell old stocks. The Bin System is a fixed ordering system, which has the
advantages of ease on record keeping and physical control. It uses a bin- card
discipline where, products will be stacked accordingly and systematically referring to
type, color, and brand and product type. This system works together with the system

used under MRP technique. It should complement each other, because if not, there will
be errors.
In record keeping, they should always record when an item is loss, cancelled or
taken out. And this should be recorded manually as well as into a computer. And in
cycle- counting method which is a monthly counting of inventories are done to check
and recheck the stock volume manually and thoroughly. So the inventory planning
period is not accurate which to critically inaccurate anticipation set of time limits on
stock planning. The techniques are still blurring to the new management, which is part
of the constraints. So the researcher made this system to eliminate those unpredicted
Similarities/ Relations:
The methods that the researcher used are interviews, intensive library research,
computer research and actual performance indicators. In primary method, the
researcher interviewed the Logistics, Planning and Control Manager, the Inventory
Manager, and the researcher also interviewed the staff in LPPC department. And in
actual performance indicators the researcher used aging report, stock balance, and the
sales report.
This system is almost the same to the proposed system in terms of view reports
which are the sales report, inventory report, and system users report. The sales report
is use to view and print daily, weekly, monthly, and yearly reports. While the inventory
reports are used to view and print critical stocks, empty stocks, and recent stocks. And it
also the same with back- up module which is used to create back- up data from the

3.3 Local Literatures
3.3.1 Title : Automated Inventory System Using Portable Data Acquisition Module for
Bell Electronics Corporation
Author: Zarina Ira V. Bernabe
Monchie C. Dela Cruz
Karen K. Jao
Jingel A. Tio,
Antonio S. Gonzales Jr.
Date: 7 Mar 2007
Bell Electronics Lab Corporation situated in Calamba, Laguna is engaged in test
and assembly of optoelectronics and sensor devices. The company is concentrating on
its resources in metal can packaging. In Bell Electronics Corporation, there is a
corresponding form for every incoming or outgoing item (from the stock room). These
forms serve as the basis of comparison when inspecting; that is, the amount of item that
goes in or out must tally with those written in the forms. Afterwards, all the transactions
will then be encoded manually in Microsoft Excel for future reference. In addition to the
complexity of the process, the employee responsible on this task also needs to check
the stocks once in a while so as to monitor which items are already getting below the

allowable minimum quantity. Because of the draining work, there were circumstances
when the inventory record in the computer does not tally with the actual amount of the
available items. Another thing to consider in manual inventory is prone to errors since it
is inevitable that the employee assigned to do the inventory would commit mistakes.
Due to the inefficiency of manual inventory, security is also being risked. If not properly
monitored, theft and loss of items can actually take place. It is also time consuming to
take note of several details each time an item is brought in and out of the stock room.
Since manual inventory consumes a lot of time and is prone to errors, it would be
useful to build a system that will computerize the transactions from acquisition of the
product description to updating the inventory database. Work effectiveness of
employees is defined as how dynamic they are in their work. Comparable to the
proposed system the automated inventory system will develop employees work
efficiency by automating routinely and time consuming tasks such as the time spent in
taking down product information. As a result, the time can be used in more productive
activities. Accuracy is defined as the precision of accessing information. The accuracy
of the current system will also be improved, since the automated inventory system
would reduce the need of continuously encoding long details of products by having an
inventory database.


3.3.2 Title : Sales and Inventory System of Edmar Marketing
Author: Jennylen Abacahin
Delia Amil, Maricel Canda
Althea Dumon
Marie Anafaye Matilos
Laurence Perocho
Date: 3 Mar 1999
Edmar Marketing currently does its sales and inventory manually. As such, it
takes time to locate certain files for reports and the entries in the monitoring sheet are
not clear, thus, creating confusion. The project is an automated Sales and Inventory
System which has an array of functions involving sales and inventory that can be of very
big help to the company. 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. The warehouse personnel are more accurate in their
reports and can save more time by using the system. Since the system user has saved
time, the personnel in-charge can then be more productive in terms of output which can
be beneficial to the company.

Similar to the basic routines of Avon Imus, currently Edmar Marketing does its
inventory manually. It has inventory monitoring sheets which are filled up whenever
stocks come in and delivered out. Whenever a customer gets stocks, EDMAR provides
the customer a delivery receipt keeps a copy of it and then inputs on the monitoring
sheet the stocks that are taken out. When stocks come in, the assigned personnel input
the number of stocks in the monitoring sheet and add it to the current number of stocks.
Every weekend, posting is done, doing a balance between the delivery receipts and the
amount entered in the monitoring sheet. If the total amount reflected in the delivery
receipts does not come up to the same amount entered in the monitoring sheet, a
manual recount of stocks is done.


3.3.3: Title: Online Inventory and Monitoring System of Cagayan de Oro City Health
Authors: Darryl M. Nuyda
Jundrie R. Calma
Joseph I. Tampos
Craig Ken M. Leandres
Ryan Anthony Z. Arbutante
Date: 23 Mar 2003
This study aimed to develop and implement an online inventory and monitoring
system or medical supplies of the City Health Office (CHO) of Cagayan de Oro.
Specifically, it aimed to provide the CHO with a system that allows all users to make
supply related transactions easily and speedily. The system also allows for an
accurate tracking of inventory records. It creating an online inventory and monitoring
system that uses PHP for the front-end, SQL Server for the back-end and Windows
Server for the operating system. The new system provides the City Health Office with
an efficient and convenient system for inventory of medical supplies of the CHO of
Cagayan de Oro. The system generates accurate reports and facilitates transactions

fast. Being efficient and convenient, the proposed system will improve the healthcare
services of the City Health Office and that of barangay health centers.
Inventory and monitoring models with quantity, pricing, and budgeting, although
common in practice, have received very little attention from researchers. The objective
of this study is to develop an online inventory and monitoring system for quality of
services being offered by the City Health Office of Cagayan de Oro City.
The online inventory system monitors the availability of the stocks needed in
order to make the request of supplies easy and fast. The system supports updating
inventory information of all items and for monitoring inventory depletion of record. The
proposed system addresses the problem current system, which processes are manually
done. These problems include time consuming generation of inventory reports and filing
of requests. The online monitoring can complement formal techniques to increase the
quality of service. The above-mentioned system used PHP and SQL Server for their
database while the proposed system uses VB.Net together SQL Server as well.


3.4 Foreign Literatures
3.4.1 Title: Inventory Control for Point-of-use Locations in Hospitals
Author: M Bijvank ( Universite de Montreal, Montreal, Quebec, Canada)
I F A Vis (University of Groningen, Groningen, The Netherlands)
Date: April 4 2012
Most inventory management systems at hospital departments are characterized
by lost sales, periodic reviews with short lead times, and limited storage capacity. We
develop two types of exact models that deal with all these characteristics. In a capacity
model, the service level is maximized subject to a capacity restriction, and in a service
model the required capacity is minimized subject to a service level restriction. We also
formulate approximation models applicable for any lost-sales inventory system (cost
objective, no lead time restrictions etc). For the capacity model, we develop a simple
inventory rule to set the reorder levels and order quantities. Numerical results for this
inventory rule show an average deviation of 1% from the optimal service levels. We also
embed the single-item models in a multi-item system. Furthermore, we compare the
performance of fixed order size replenishment policies and (R,s,S) policies.
Like the current proposed system, the system developed in the related study is a
Online Inventory and Monitoring System of Cagayan de Oro City Health Office. It only

lacks sales monitoring functions though. Modules of the inventory are somewhat
dissimilar in terms of names and functions. The system has five modules which are:
the Master File which has sub-modules such as the Department Files, Supplier Files,
Article Files; Transaction Files which has Store Files, Issues Files; Reports which
allows viewing of current Stock, stock of specific item, monthly stock issued, annual
stock issued department wise items and article status; Utilities which allows indexing all
of the files, backing files and restoring files; and the fifth module which is the Exit Files.
Addition, modification, deletion and listing are among the common functions of the sub-
modules in the system.
Among the used modules, the only the Report Module and Utilities Modules
bears the most likeness with the program the current system has which allows stocks
and specific items to be viewed either in current or stocks based monthly or annually
and backing of files and restoring them respectively.
The system was also coded in rather old programming language as FoxPro 2.5
and is using dBASE III plus as its primary database compared to a more advance
Microsoft VB.Net and SQL Server which the current study is using.


3.4.2 Title: Riordan Manufacturing Supply Chain
Author: Chase, R.
Jacobs, F.
Aquilano, N.
Date: October 30, 2009
Riordan Manufacturing is a worldwide manufacturer of plastics. The companys
products include plastic fans and fan parts produced at its facilities in Hangzhou, China
and custom plastic parts produced at its plant in Pontiac, Michigan. The company's
major customers for its standard and customized fans are automotive parts
manufacturers, aircraft manufacturers, the Department of Defense, and appliance
Under the current process, raw materials are received at the receiving area. The
receiving area supervisor reviews the shipping document with scheduled incoming
orders and prepares the orders received log at the end of the day to give to the
inventory clerk who enters the related information into the inventory system. This
process could be streamlined by eliminating the receiving log process and integrating
the receiving system with the inventory system. The importance of a good inventory
control system cannot be overstated as it is tied directly to the financial performance of
an organization (Chase, 2006).

Large company such as Avon Imus and Riordan Manufacturing should have
focus on their sales and inventory system from the very start since their are operating
for a vast customers nationwide. Inefficiencies in several departments due to the
manual procedures being utilized and redundancies in certain departments, including
the inventory system are being experienced in the said company. ).Several of its
manufacturing processes are time consuming and cost ineffective (UOP, 2009).
3.4.3 Title: Bath and Body Works (BBW) Sales and Inventory Systems
Author: Sevilla, A.
Somers, K.
Date: September 12, 2010
Bath and Body Works (BBW) is a franchise owned by Limited Brands
Incorporated. BBW sells personal care, beauty, and home fragrance products that are
sold under the Bath and Body Works, CO Bigelow, and White Barn Candle brand
names. Bath and Body Works is a very successful business and has grown to become
one of the largest personal care retailers in the United States. A benefit of this system is
the fact that there is no need for recording each withdrawal from inventory. This option
will reduce the costs associated with maintaining stock. It will also help manage low
inventory levels effectively through sales, pilferage, and any errors that can reduce the
amount of inventory.

A problem that this inventory system faces is the added cost of record keeping.
Handheld PCs need to be purchased, maintained, and updated often to ensure that the
record keeping is always accurate. Another problem is the fact that a physical count of
the inventory still has to be performed periodically to verify records due to the possibility
of errors, pilferage, and many other factors that may reduce the effect amount of
inventory. It is because of these problems that the company is seeking to implement a
solution. The implementation of a new form of the perpetual inventory system offers a
very simple elementary system.


3.5. Justification
Having a computer based sales and inventory system provides a real-time
assessment of the company sales as well as their stock levels. The proponents aims to
build up a system whereby sales and inventory safeguarding would become easier,
well-organized and less time consuming. We focus on improving sales and inventory
management to guarantee smooth operation of services and products. It took the task
to validate the entire inventory from time to time; the system will also facilitate the
creation of stock and sales statement for the company. Separate table would be use for
damaged and return items. Inventory system helps supply enough provisions for your
clients as well as helps get in more sales. Facilitate fortitude of stock inventory and
routine of sales transactions are the main goal the study.



4.1 Organizational Background
4.1.1 History
Avons founder, David McConnell, started his career as a successful book
salesman who often gave his female customers a gift of perfume with their purchases.
Realizing that his perfumes were more popular than his books, in 1886 Mr. McConnell
launched a brand-new business selling toiletries directly to customers: the California
Perfume Company, based in New York City.
A pioneer in the industry now known as direct selling, Mr. McConnell keenly
understood the power of relationship-based sales, and knew that women could be
effective, trustworthy sales people. When he launched his business, he tapped into an
unheard-of sales force, immediately employing Mrs. Persis F. Eames Albee as the first
Avon Representative. His commitment to empowering women to earn income for
themselves and their families shattered paradigms 34 years before women in the U.S.
have the right to vote and rarely work outside of home.
In the 1990s Avon entered Central and Eastern Europe with operations running
in Russia and Czech Republic in 1991 and rapidly expanding to two markets in that
region during the 1990s. Avon also entered Asia, and one of the countries it entered
was the Philippines. With over 100 branches and outlets nationwide, and one of which
is the Avon Imus branch. It was established in the year 1995 founded by a member of
the General Managers Advisory Council, Mrs. Soledad Pea.

4.1.2 Mission & Vision
Avons mission is focused on six core aspirations the company continually strives
to achieve:
Leader in Global Beauty
Build a unique portfolio of beauty and related brands, striving to surpass
competitors in quality, innovation, and value, and elevating Avon's image
to become the world's most trusted beauty company.
Womens choice for buying
Become the shopping destination for women, providing a personal, high-
touch experience that helps create lifelong customer relationships.
Premier direct selling company
Expand Avon's presence in direct selling, empowering women to achieve
economic independence by offering a superior earnings opportunity as
well as recognition, service and support, making it easy and rewarding to
be affiliated with Avon.
Most admired company
Deliver superior returns to shareholders by pursuing new growth
opportunities while maintaining a commitment to be a responsible, ethical
company and a global corporate citizen that is held as a model of success.


Best place to work
Elevate the company's leadership, including its high standards, respect for
diversity, and commitment to helping Associates achieve their highest
potential in a positive work environment.
To have the largest foundation dedicated to womens causes
Be a committed global champion for the health and well-being of women
through philanthropic efforts, with a focus on breast cancer, domestic
violence and women's empowerment.
To be the company that best understands and satisfies the product, service and
self-fulfillment needs of womenglobally. This is the company that knows the value of a
perfect lip, but still opens its mouth and speaks out against domestic violence and for
women's financial independence. This is the company that not only brings beauty to
doors, but also opens them. The company that supports more than 6 million
Representatives in over 100 countries. This is Avon. The company that for more
than 125 years has stood for beauty, innovation, optimism and, above all, for women.

4.1.3 Goals and Objectives
As more and more Representatives discover the power of the Avon Earning
Opportunity, Avons goal is to retain them and increase their productivity by continuing
to innovate their business model. Avon also plans to leverage technology and the viral
power of the Internet to build communities that connect Avon to the Representatives

and the Representatives to their Customers. With more and more consumers
discovering the smart value of Avons store, Avon plans to broaden shopping
opportunities with new product categories that reinforce their beauty image and
strengthen their customer relationships.
In November 2005, Avon launched a comprehensive, multi-year turnaround plan to
restore sustainable growth. The following are the companys short term-objectives.
Committing to brand competitiveness by focusing research and
development resources on product innovation and by increasing
Winning with commercial edge by more effectively utilizing pricing and
promotion, expanding the Sales Leadership program and improving the
attractiveness of Representative earnings opportunity as needed;
Elevating organizational effectiveness by redesigning the structure to
eliminate layers of management in order to take full advantage of their
global scale and size; and
Transforming the cost structure so that costs are aligned to revenue
growth and remain so.


4.2 Policies, Standards & Procedures
4.2.1 Dealers Standards and Procedures
1. Registration:
a. Representative acknowledges that she/he is 18 years of age or older and
a resident of the Philippines.
b. Representative shall duly fill-out the on-line registration form and shall
submit the same online along with proof of identification, address, and a
photo. The registration and this Contract become effective upon e-mail
and/or text/call notification and an account number is issued. This
Contract shall supersede any agreement previously made between the
Representative and Avon.
2. Credit check:
Representative agrees to have her/his personal details being checked to
credit reference and fraud prevention agencies and to Avon making searches
from time to time of her/his details with such agencies and keeping a record
of that search. Representative agrees that Avon shall have the right to use
such information and any future Representative's account activities and
payment records to determine whether any credit facilities can be or continue
to be made available to Representative.
3. Cooling Off:
a. Representative may withdraw her/his application for registration as a
Representative for any reason within thirty (30) days from the date of this

Contract ("Cooling Off Period") by giving a written notice to Avon and
Avon shall refund without interest the registration fee (if any) that has been
paid by the Representative within thirty (30) days from the date of receipt
of such withdrawal notice.
During the Cooling Off Period, Representative may also return the
products to Avon for a refund provided that the products are returned in
the same condition as supplied by Avon. Any free gifts received shall also
be returned to Avon.
4. Activities:
a. Avon allows the Representative to purchase Avon's products at wholesale
prices, subject to the Company's sales, marketing, incentive or
compensation policies and credit terms. Accordingly, the Representative
agrees to undertake the following Activities for Avon:
To purchase products from Avon exclusively for resale; to obtain
and maintain all permits/licenses required to conduct his/her
To pay all his/her purchases in accordance with Avon's credit terms
and policies on the dates specified without need of demand.
To be responsible for the conduct of his/her business, including the
payment of taxes, in compliance with applicable laws.
To immediately inform Avon of any change in the information given
in the Registration Form. The Representative understands that

failure to inform Avon of a change in information or any
misrepresentation shall be a ground for termination of this
Other related activities that may be communicated by Avon to the
Representative from time to time.
b. Representative agrees that should she/he promote and sell Avon
products, she/he shall
Honor the Avon tradition of integrity and personal service and the
applicable Avon Guarantee;
Make no statements, claims or representations, or do any act that
would impair the name, reputation or goodwill of Avon;
Sell only to Consumers and not to sell Avon Products for resale to
or through third parties, any business entity or any type of retail
establishment or any internet site unless authorized by Avon; and
Makes neither export shipments of Avon products nor knowingly
sell products to other individuals who intend to export those
products unless authorized by Avon.
5. Conflict of Interest:
a. Representative may engage in any other business, occupation or activity
provided that such business, occupation or activity does not, in Avon's
opinion, cause a breach of or conflict with any of the Representative's
obligations under this Representative Contract or a conflict with Avon's

6. Sales Leadership:
a. Representative may separately join the Sales Leadership Program in
order to be authorized to appoint and train other new representatives and
receive commission for such activities and sales revenue raised by her/his
down line representatives. In such a case, Representative needs to meet
the standard to become a sales leader and to comply with applicable laws
and regulations, Avon's applicable policies, procedures or guidelines
issued by Avon which may be amended from time to time as Avon deems
necessary and the terms and conditions of the Avon Sales Leader
7. Status:
a. Representative agrees that she/he is an independent representative and
not an employee nor agent nor partner of Avon and has no authority to
bind Avon contractually nor to incur any liability on behalf of Avon.
b. Representative agrees that she/he shall be responsible for compliance
with all matters associated with the status of self-employed individual
including payment of all tax, pension, insurance contributions or other
business expenses and shall possess all licenses, permits, insurance and
or registrations at her/his cost for conducting Avon business or activities.
8. Ordering:
a. All Purchase Orders are subject to product availability and acceptance by


9. Payment:
a. Representative agrees to provide orders and to pay for all orders and to
repay any credit facilities that are made available to Representative
pursuant to the payment terms as set forth in the applicable policies,
procedures and guidelines.
b. Avon shall have no obligation to fulfill any future orders should
Representative fail to pay for any previous orders or if there is any
outstanding amount due to Avon or if the account is not in good standing.
In addition, Avon shall have the right to withhold the payment of all or part
of any discount, commission, awards, incentives or other monies due to
the Representative, and/or the right to set off any monies that may be due
or payable to the Company by the Representative against any such
payment of discount, commission, awards, incentives or other monies due
to the Representative. Representative agrees to pay the statutory interest
as notified by Avon and as amended by Avon from time to time on all
overdue sums. Representative also agrees to be liable to Avon for any
additional costs incurred by Avon for recovering any overdue amount from
Representative including attorney fees and court costs incurred by Avon.
10. Discount:
a. Representative will receive a trade discount on Avon's recommended
retail prices if her/his order meets the minimum order value as amended
by Avon from time to time.


11. Intellectual Property:
a. Representative agrees that she/he shall not, except to the extent
authorized in the applicable policies, procedures and guidelines, use or
exploit Avon's intellectual property rights which include but not limited to
trademarks, or trade names or any logos, product names, designs or
copyright belonging to Avon.
b. Representative agrees that all advertising materials must comply with
policies or guidelines issued by Avon from time to time. Avon may request
the removal of any advertising materials regardless of whether such
materials were previously approved.
c. Representative agrees not to use or register, and do not currently own,
any domain names, keywords or metatags that include, in whole or in part,
any of Avon's trademarks including, without limitation, the name Avon, and
that she/he hereby consents to transfer to Avon any such domain names.
12. Security and Privacy and Data Transfer:
a. Representative shall comply strictly with any applicable data protection
laws with respect to personal information processed in the performance of
the Representative's obligations under this Contract.
b. Representative acknowledges and consents to her/his personal
information being collected, used, processed, and transferred by Avon and
its affiliated entities, and authorized third parties, including but not limited
to entities in countries that have a different level of data protection than
that in the Representative's home country, for the purposes described in

the Avon's Security and Privacy Statement. In addition, Representative
consents to use of data for marketing or other purposes, using electronic
or other means as may be described in Avon's Security and Privacy
c. Representative understands that she/he may withdraw her/his consent
granted in Article 12.2, but if such Representative chooses to withdraw
her/his consent, she/he will no longer be a Representative.
13. Compliance:
a. Representative agrees to be bound by the terms and conditions of this
Contract, any applicable laws and regulations, and any applicable policies,
procedures or guidelines issued by Avon, which may be amended from
time to time as Avon deems necessary. Such policies, procedures, or
guidelines shall be incorporated into and form part of this Contract as if set
out in full in this Contract. Representative further agrees to be bound by
the standards and principles set out by the Direct Selling Association of
the Philippines.
b. Representative agrees that violation of any of the above requirements
shall result in any disciplinary actions deemed appropriate by Avon
including but not limited to termination of this Contract.
c. Representative shall indemnify Avon for any liability for any claim arising
out of the breach by the Representative of this Contract.


14. Termination:
a. Either party has the right to terminate this Contract for any or no reason
with immediate effect.
b. Once this Contract is terminated, Representative will lose her/his right to
any recognition or award, or right to attend any Avon function, including
such recognition or award, or function she/he may have become eligible
for prior to termination.
c. Except in the case where termination is caused by Representative's
breach of any of the terms of this Contract, Representative shall have the
right to return to Avon products purchased prior to such termination,
subject to the terms and conditions applicable to product returns.
d. Furthermore, Representative agrees that her/his registration as
Representative shall be terminated for inactivity, as set forth in the
applicable policies, procedures and guidelines.
15. Confidential Information:
a. Information provided in connection with this Contract and which is not
publicly disclosed shall be kept confidential and shall not be used or
divulged other than in the proper cause of performance of the obligations
under this Contract.
16. Amendment:
a. Avon reserves the right to amend the terms and conditions of this
Contract, including Avon's policies, procedures or guidelines at any time
by giving the Representative written notice to the Representative's

address on record. If Representative has signed up to conduct her/his
activities online or has provided Avon with an email address,
Representative expressly authorizes Avon to issue communications and
invoices electronically, by email to the Representative or by posting
messages or notices on Avon's website, and any such communication
shall be deemed appropriate as written notice.
17. Others:
a. This Contract, including any applicable policies, procedures or guidelines
issued by Avon which may be amended from time to time as Avon deems
necessary, constitute the entire contract between the parties and
supersedes any previous contract or understanding.
b. This Contract may not be transferred or otherwise assigned without the
prior written consent of Avon.
c. Articles 9, 11, 13.3, 15, 17.4 and 17.5 shall survive the termination of this
d. This Contract shall be governed by and interpreted according to the laws
of the Philippines.
e. In case of any dispute arising out of or in respect to this Contract, any
legal action pertaining thereto shall be filed only in the courts of Makati
City to the exclusion of all other courts.


18. Removal as an Avon Independent Sales Representative
Either you or Avon may terminate your association with Avon at any time with
or without cause. Circumstances that may lead Avon to terminate its
association with you include but are not limited to:
Inactivity: If you do not submit an order for four consecutive Campaigns,
you are considered inactive and will automatically be removed from
Avons active file.
Past-Due Account: You may be removed if you fail to submit payments
to Avon in a timely manner.
Inappropriate Actions: If you act in violation of, or in ways inconsistent
with your Avon Independent
Sales Representative Contract or any of Avons policies and procedures, wherever
found, you may be removed.
Management Decision: Avon always reserves the right to terminate its
association with a Representative at any time for any or no reason in its
sole discretion.


19. Returning Products
Representatives may only return to Avon those products they purchased
directly from Avon within the prior twelve (12) months and should provide,
if requested, proof of purchase. Likewise, Representatives are required to
accurately report the reasons for returns.
Note: Exceptions are Representatives returning a product in accordance
with the Avon Promise on behalf of a Customer who purchased the
product from another Representative. Abuse of this exception by
Representatives will not be tolerated. Under no circumstances is a
Representative permitted to charge a fee of any kind to a Customer for
honoring the Avon promise.
4.2.2 Employee Policies and Regulations
Everyone working in Avon Philippines Imus Branch should be able to do the
best that they can and is dedicated to their job. Each employee should be able to
contribute to the progress of the company.
Employees should be able to meet their quotas.
Employees should strive to observe mutual respect and understanding
towards each other.
Leaving the office without permission from the superior is prohibited.
Overtime and absences are increased and deducted from the employees
Employees should always wear uniforms.

4.3 Organizational Chart

Mrs. Soledad Pea
GMAC/Branch Operator
Ms. Judy Seniel
OIC/Branch Officer
Mary Lacson
Dealer Account Management
Team Leader
Rosalinda Halum
Sales and Inventory Management/Cleaning and Order Staff
Team Leader

Alan Rosales
DAM Staff
Leica Rivera
DAM Staff
Abbie Dreo
Lionell Oliva
Rochelle Quilantang
Noel Mendez
Rodel Betinol
Junelle Labachado
Ryan Tesorero
Maryjane Tumbaga
Jewelry Adviser
Richard De Vero
Clarelle Corpuz
Freddie Magada
Security Guard

Existing System
5.1 Brief Introduction
Avon Imus currently uses the most renowned Microsoft Excel 2007 together with
Microsoft Word 2007 as the software for the sales management system and sales
invoice printing as well as for the inventory management system which include updating
and saving incoming delivery of products. The process of ordering of items is typically
done through on-site buying and through dealers. Once the stock levels diminished, the
inventory clerk will inform the manager that certain product is running out of stock and
needs to stock-up to prevent shortages. Generally, diminishing products can be
analyzed on the spreadsheets where the product inventories are saved. After the stock
is delivered, the inventory clerk ensures that exact number of items ordered is received
and then update the inventory file in the worksheet as well as record it on the inventory
5.2 Inventory of IT Resources
Avon Imus Branch uses 14 computers for its operation. One computer is being
used by the OIC for administrative purposes, usually for tracking the sales progress,
communicating with the suppliers, evaluation for employees, and other classified
information related to the company. The Dealer Accounts Management (DAM) uses 4
computers and the Cashier have 8 computers for the operation. Another computer, the
Account Status Viewer computer is used publicly for the dealers and managers for them
to view their current status as a manager or dealer on Avon. Three telephones are used

for the communication of the administrator, cashiers and inventory clerks. Network
router is used for the internet connection of the company.
The current specifications on their existing system are the following:
Operating System : Windows XP Professional
Internet Service Provider : PLDT
Software : Microsoft Office 2007
5.3 Hardware
The hardware specifications are based on each working computer on the Avon
Imus Branch. The hardware specifications on their existing system are the following:
Cashier Computers
Processor : Intel Core 2 Duo Pentium 4 2.66 GHz
Hard Disk : 100 GB
Monitor : LCD Flat Screen Monitor
OIC Computer
Processor : Intel Core 2 Duo Pentium 4 2.66 GHz
Hard Disk : 200 GB

Monitor : LCD Flat Screen Monitor
DAM Computers
Processor : Intel Core 2 Duo Pentium 4 3.06 GHz
Hard Disk : 100 GB
Monitor : LCD Flat Screen Monitor
Account Status Viewer
Processor : Intel Core 2 Duo Pentium 4 2.66 GHz
Hard Disk : 100 GB
Monitor : LCD Flat Screen Monitor
5.4 Software
Avon Imus Branch uses computers running on Windows XP Professional and
with Microsoft Office 2007 applications installed on it. Inventory staff and cashiers use
Microsoft Excel 2007 in printing a duplicate of the sales invoice, saving and updating
Avon product items in their branch. The OIC holds a record of all the progress in the
branch saving it in a word document and also holds a copy of the inventory list of items
for future resources.


5.5 Input Documents

Name : Inward Invoice
Origin : Supplier
No. of Copies : 2
Recipient : Inventory Staff

5.6 Output Documents

Name : Authorization to Purchase
Origin : Dealer
No. of Copies : 1
Recipient : Franchise Manager

Name : Sales Invoice
Origin : Cashier
No. of Copies : 2
Recipient : Dealer


5.7 Files

Date Purchased Date 10
P.O. No. Integer 10
Purchased From String 50
Description String 30
Category String 20
Quantity In Integer 10
Quantity Out Integer 10


Date Purchased Date 10
P.O. No. Integer 10
Purchased From String 50
Description String 30
Name String 20
Cash Decimal 10
Credit Decimal 10

5.8 SAD Tools
5.8.1 Major Cycle of Operation (Existing System)

Dealers Picks-up Desired
Products in the Market
Dealers Presents Picked-up
Products to the Cashier
Cashier Keeps Duplicate
Invoice for Record
Cashier Encodes the Products
Cashier Prints Sales Invoice
Generation of Reports
Identify Critical and Empty Stocks
Place the Order to the Supplier
Receiving of Delivery
Inspection of Delivered Package
Update Records Manually
Arranging Products
Printing of Inventory Report

5.9 Level Data Flow Diagram
Inventory Management Process

Identify Critical
and Empty
Place Order to
the Supplier
New Stocks
Rejected Products
Receive Delivery
Accepted Products
Inward Invoice
Inspection of the
Update Records
New Inventory List Counted Products
List and Info
of Products
in Stock

Printing of
Inventory Report
Arranging of
Inventory List
Updated List of

Contact supplier
for availability



5.9 Level Data Flow Diagram
Sales Management Process
Dealer Presents
Products to the
Verifies if
Products are in
Good Condition
Cashier Encodes
the Products
Dealer Picks-up
Desired Products
in the Market
Cashier Prints
Sales Invoice
Cashier Punch
Out Ordered
Inventory Staff
Rejected Products
Cashier Keeps
Duplicate Invoice
for Record
Generation of
Receives Sales
Confirm orders
Accepted Orders
Sends Data to Head
Receives Order

Sorts Invoices


5.10 Context Diagram

Receives Products
Inventory List
Denied Products
Generation of
Sales Report
Printing of
Inventory Report
Counted Products
Encodes Ordered
Sales Invoice
Due Date
Total Amount
Inward Invoice
Verifies Ordered
Product for Breakage


5.11 Problem Analysis
Avon Philippines Imus Branch has a manual Sales and Inventory System that
causes inaccurate sales and inventory reports. Based on manual recording of inventory
in logbooks, an unrecorded, lost and damaged record occurs. Employees are having a
tough time tracing documents of certain products since reports are saved on different
The availability of products is hard to determine for the arrangement and listing of
products in the logbook is not properly arrange, which makes it difficult to check whether
the product is still available in the inventory. Manual input of inventory and manual
process of sales produces errors and is a time consuming task since it is only recorded
by means of a record saving based software like Microsoft Excel and Word document.


The Proposed System
6.1 System Overview
The proposed system entitled Computerized Sales and Inventory System for
Avon Imus provides a systematic approach on its data processing relevant to the sales
process and inventory tracking of the company. The proposed system will provide Avon
Imus a database that will hold the inventory of products, sales transactions and sales
and/or inventory reports in an accurate and precise way . The system will be protected
by a password when a certain user tries to log into the system which indicates a user
without a recorded username and password would not be capable to effectively login
into the system. This is regularly made to guarantee confidentially and security of the
system and avoid any illegal access to the system and its utility.
The proponents used Visual as the programming language in creating
a user-friendly interface and Microsoft SQL Server R2 as the database handler for the
system. The system enabled the company to transact faster with the use of the
modules, menus and submenus included in the system. . The system has three level of
access: Administrator, Sales, Inventory and Dealers. The system will only accept
specific username and password provided by the system administrator. This is to
prevent unauthorized access to the company profiles and processes. Further works
such as printing the sales and inventory reports could also be perform for company
evaluation purposes.


6.2 System Users
a. Administrators (Franchise Manager) the administrators gain access to and
perform high level arrangement of the features of the system. The administrators
were allowed to create new user accounts, reset user password, activate or
deactivate user accounts, and monitor all system processes. The administrators
can view and edit sales, inventory and dealers reports as well as their stock
b. Cashier - The cashiers (front liners) input the actual sales transactions of the
customer. It uses a PS code that allows the system to read the product name
quickly and provides the sales order number. PS code provides product
descriptions and unit prices that are pre-stored in the Sales and Inventory
System databases. This function allows maximum flexibility, security and
centralization at different levels. The cashier is responsible for the preparing of
daily, weekly, monthly and annual sales reports of the Avon Imus branch.
c. Inventory Clerk - The Inventory Clerk will handle the day-to-day parts inventory
control and expenditure that serves the Avon Imus branch. The roles of the
inventory clerk are following: verifies clerical computations against physical count
of stock and adjusts errors in computation or count, or investigates and reports
reasons for discrepancies; compiles and maintains records of quantity, type, and
value of material, equipment, merchandise, or supplies stocked in establishment;
counts material, equipment, merchandise, or supplies in stock and posts totals to
inventory records, and prepare reports, such as inventory balance, price lists,
stock in , stock out as well as the stock levels.


d. Dealers The dealers, who are in charge for the sales promotion is also entitled
to have access to the system. The dealers account is for the verification of each
dealers sales report. Dealers are allowed to view records, remaining balances
due dates as well as viewing of the inventory list.
6.3 Cost and Benefit Analysis
6.3.1 Operating Cost (Existing System)
Salaries of Personnel (Annually)
Cashier (4)
Inventory Clerk( 3)

Printing, Stationary and Office Supplies (Annually)
Logbook/Inventory Book 3,000.00
Bond Paper 3,000.00
Forms 8,000.00
Ink Cartridges 2,400.00
Ballpen/Pencil 300.00
Stapler/Staples 500.00
SUBTOTAL: 17,200.00


Utilities (Annually)
Electricity 960,000.00
Telephone / Internet 78,000.00
Rent 2,400,000.00
SUBTOTAL: 3,438,000.00
TOTAL: 4,335,058.00

6.3.2 Development Cost
Period of Development (3 Months)
a. Hardware
Printer 8,600.00
b. Software
Windows XP 10,000.00
Visual Studio 2010 8,000.00
SQL Server 2008 R2 7,000.00
MS Office 2007 5,000.00
SUBTOTAL: 38,600.00


Programmer (monthly) 54,000.00
System Analyst (monthly) 60,000.00
SUBTOTAL: 114,000.00
TOTAL COST: 152,600.00

6.3.3 Operating Cost Annually (Proposed)
Salaries of Personnel
Cashier(2) 251,388.00
Inventory Clerk (1) 125,694.00
SUBTOTAL: 377,082.00

Printing, Stationary and Office Supplies (Annually)
Bond Paper 4,750.00
Ink Cartridges 4,800.00
Stapler/Staples 500.00
SUBTOTAL: 10,050.00


Utilities (Annually)
Electricity 960,000.00
Telephone / Internet 78,000.00
Rent 2,400,000.00
SUBTOTAL: 3,438,000.00
TOTAL: 3,977,732.00

6.3.4 Payback
Existing System: 4,335,058.00
Proposed System: 3,977,732.00
Savings: 357,326.00

Year Present Value Interest Application Future Value Accumulated Future Value
1 357,326.00 1.12 400,205.12 400,205.12
2 757,531.12 1.47 1,113,570.746 1,513,775.87
3 1,871,101.87 1.4 2,619,542.613 4,133,318.48
4 4,490,644.48 1.42 6,376,715.161 10,510,033.64
5 10,867,359.64 1.41 15,322,977.09 25,833,010.73


6.3.5 Return of Investment
Year 357,326.00
Months 29777.17
Weeks 7444.29
Days 978.98
Hours 40.79

6.3.6 Payback Analysis

1 2 3 4 5
Future Value
Accumulated Future Value


6.4 Hardware & Software Requirements
Hard Drive : 100 GB
Monitor : LCD Flat Screen Monitor
Operating System : Windows XP Professional
Processor : Intel Core 2 Duo Pentium 4 2.66 GHz
Ram Memory : 2 GB RAM
Printer : Epson fx 2155
Software Requirements
The developers of the system used Visual Basic.Net 2010 to design the system.
Visual Basic.Net 2010 is an integrated environment that simplifies essential tasks of
creating, debugging and deploying applications. Microsoft SQL Server 2008 R2 is a
relational database management system used for adding, removing, and modifying
information in the database. Microsoft SQL Server 2008 R2 can be a data storage
backend for different varieties of data. SQL Server 2008 was used as the database
handler because of its self-adapting, self maintaining and self organizing. Microsoft SQL
Server 2008 R2 is superlative on small and large companies for the database can
handle millions of records and transactions.


6.5 SAD Tools
6.5.1 Major Cycle of Operation

Inventory management process
Place an order
Identification of stocks
Delivery of products

Update of record

Print reports
Sales management process
Select an item
Identification of stocks

Transaction process
Update records and
Delivery of products
Generation of reports


6.5.2 Level Data Flow Diagram

T1 inventory
Inventory Staff
of Orders
Save List of Accepted Products
New Stocks
Updating records
and Delivery
Printing of
Inventory Management Process
Franchise Manager
Accepted Products

Printed List of

Delivery Receipt

Rejected Products

List and Info of
Updated Products in


Sales Management Process
Select an
Franchise Manager
Identification of
Update of
Official Receipt

Franchise Manager
Transaction processed
of Reports
Authorization to

Place an


Send data to

Updated Sales

Orders Accepted

Encode the

Release the

Record is
T2 receipts
View Availability
of Products

T1 inventory
Checked Availability of


6.5.3 Context Diagram

Inward Invoice
Sales Invoice
Due Date
Total Amount
Encodes Ordered
Counted Products
Printing of
Inventory Report
Generation of
Sales Report
Receives Products
Inventory List
Denied Products
Verifies Ordered
Product for Breakage


6.6 Screenshots of Proposed System

Figure 6.8.1 Splash Screen

Figure 6.8.2 Login Form


Figure 6.8.3 Main Form

Figure 6.8.4 Sales Form


Figure 6.8.5 Sales Report Form

Figure 6.8.6 Inventory Form


Figure 6.8.7 Inventory Report Form

Figure 6.8.8 Backup Form


Figure 6.8.9 Register Account Form

Figure 6.8.10 Edit Accounts Form


Figure 6.8.11 Change Password Form

Figure 6.8.12 Activate User Accounts Form