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CHAPTER I

INTRODUCTION
Project Context
The purpose of this study is to make things easier and portable, to help
the 4r Duya Hardware lessen the time in checking inventory and stocks.
Automated system will make these changes possible. Avoiding erroneous
computation of products that slowing the process of selling. Giving importance in
production help a company to increase its sales. By the help of technology and
the unity of this group that conduct this study. The main problem of the company
was Manual Checking on Inventory. The Solution for manual checking is to make
a database that can update anytime the owners want and Inventory system that
provides information about the computation of the 4r duya equipment stocks.
Provides accurate, update, number of available equipments.They also
experienced Inaccuracy of Inventory Book.
Some of that put in database has all the products information that helped
the user to monitor the stocks that the company have. Another problem is
erroneous Computation. So that will provide Inventory system that has all the
information about the computation of 4r duya equipment stocks, provides
accurate, updated numbers of available equipments. The last one is Adding
Supplies, so by using automated system, they can easily add supplies in the
inventory database.

Purpose and Description of the Project


Knowledge of Inventory can make or break small business performance.
Products and service that depend on raw materials, parts and other supplies
need consistent inventories to complete business, with cost management to
maximize profits. The nature of the business, and its industry may suggest the
scope of an inventory system. The purpose of management is to plan, direct,
organize and the success of business at various levels through a number of
methods including customer satisfaction and employee training. Management,
normally made of a manager and their assistants, is key to running an
organization on what could be considered microscopic levels.

Theoretical Framework
The Systems Development Life Cycle provides more detailed process for
system programming. It can help system analysts, researchers, and future
programmers in determining the system that can serve as a solution for the
specific problem.
Systems Planning and Selection - is the identification of need and
investagation and determination of scope.
Systems Analysis - the methodical study of the data-processing needs of a
business or department, together with recommendations for specific hardware
and software installations.

Systems Design - is the process of defining the elements of a system such as


the architecture, modules and components, the different interfaces of those
components and the data that goes through that system. It is meant to satisfy
specific needs and requirements of a business or organization through the
engineering of a coherent and well-running system.
Systems Implementation and Operation - is the construction of the new
system and the delivery of that system into production such as: programming,
documentation, and hardware and software installation.

(SDLC)
Systems Development
Life Cycle

FIGURE 1.0 Systems Development Life Cycle


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Conceptual Framework
An Implementation of Inventory Management System for 4r Duya in
Barangay Arenda, Sta. Ana, Taytay Rizal identifies the modern process of
technology, on how it works quickly for the owners. Based on the objectives of
the study and above-mentioned theories and concepts derived from the review of
related literature and studies, the following conceptual model of study was
developed.
The Input-Process-Output (IPO) Model below illustrates the flow of the
proposed system.

INPUT

PROCESS

OUTPUT

Hardware Requirement(s): Computer


Software Requirement(s):
Access Database (for Data),
eation of Program (for Execution) via Visual Basic
Systems
Implemented Inventory Management System
nowledge Requirement(s): Computer
Literate Development

Life Cycle
(SDLC)

FEEDBACK
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FIGURE 2.0 Implementation of Inventory Management System for 4r Duya


In Barangay Arenda, Sta. Ana, Taytay Rizal
Input - is most often sent to the computer using an input device such as
a keyboard or mouse. The picture is an example of input being sent from the
computer keyboard to the computer.
Process - refers to a set of instructions currently being processed by the
computer processor. For example, in Windows you can see each of the
processes running by opening the Processes tab in Task Manager.
Output - Any information that has been processed by and sent out from a
computer or similar device is considered output. A simple example of output is
anything you view on your computer monitor.
Feedback - is caused when a signal is sent through the output and received
back to its input.

Statement of the Problem


The proposed project, the Implementation of Inventory Management System
for 4r Duya which aims for the automation of process of the Hardware in Taytay
Rizal addresses to the following concerns:
1.
2.
3.
4.

Time Consuming.
Inaccuracy of Inventory Book.
Erroneous computation of products.
Manual Checking of Inventory.

Objectives of the Study


The main objective of the study is to make the inventory management as well
as the transaction process will be automated. The details regarding the objective
are:
1.
2.
3.
4.

Lessen the time consumed.


To accurate the number of products from inventory book.
Proper computation of supplies.
To record and count the products easily.

Scope and Limitations of the Study


Knowledge of inventory can make or break small business performance.
Products and service that depend on raw materials, parts and other supplies
need consistent inventories to complete business with cost management to
maximize profits. The nature of the business and its industry may suggest the
scope of an inventory system. The owner will be the admin and have the full
acces on the system. The head staffs will assign to record and check the
equipment and supplies of the hardware.
Software Requirement: The researchers use visual basic 6.0. Visual
Basic is a third-generation event-driven programming language and integrated
development environment (IDE) from Microsoft for its Component Object Model
(COM) programming model first released in 1991 and declared legacy in 2008.
Microsoft intended Visual Basic to be relatively easy to learn and use.
Microsoft Access is a database management system (DBMS) from Microsoft that
combines the relational Microsoft Jet Database Engine with a graphical user
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interface and software-development tools. It can also import or link directly to


data stored in other applications and databases.

Significance of the Study


The Implementation of Inventory Management System project will benefit the:
Owner The system will help them organize inventory records, and can easily
check the supplies, and to lessen the number of workers from the business.
Staffs - To lessen the time on checkings supplies, especially if theyre in a rush.
Future Researchers - This can help them as their reference guide in their thesis
writing.

Definition of Terms
The words used in the project study are as follows:
Program is a set of instructions that is inputted by its user for a computer to
follow and execute.
System is a set of interrelated components working together for a specific
purpose.
Software a program made for a specific purpose; a part of a computer system
which has no physical substance.

Microsoft Visual Basic (VB) first released in 1991, it is the most widely used
application tool for creating such programs in an easy Graphical User Interface
(GUI) format.

CHAPTER II
REVIEW OF RELATED SYSTEMS LITERATURE

This chapter presents a brief discussion of the literature reviewed by the


researchers which further enriched the conceptualization of the study and helped
in describing the cognitive design that guided the conduct of the researcher.

Foreign Literature
Audra Bianca (2012), using this type of system, a company makes strategic
business decisions regarding raw material purchases, production scheduling,
pricing, logistics and other decisions in the supply chain. Sales and inventory
data enables the company to increase or decrease production in the factory so
the company won't have too many finished goods stored in its warehouses.
J. De Leon, M. Ferrer (2001), under the Koread Red Ginseng Enterprise Sales
and Inventory System, the researchers came upwith a computerized sales and
inventory system. The proponents used database to easy access of filesand for
easier and faster processing of the selling and inventory transaction. The
program wasdesignated to generate reports such as monthly reports, inventory
reports, sales invoice and list of items. In connection with the proposed system,
the proponents proposed a new and faster way of processing business
transactions. The system also helped the user to know the availability of
theproducts. It also helped the manager to monitor the stocks and to get
immediate notice for acquisition of additional products.The Proponents acquires
knowledge about the file processing and report generations through this study. It
also gives the proponents ideas to create the proposed systems reports in online

sales andinventory system. Automation is mandatory, thus automated report


generation for precise reports is to be included in the proponents proposed
system.

Foreign Studies
According to Edwin Bello (2005), the Computerized Monitoring and Inventory
of Stock with Warning Level dated March 2005, many firms have thousands of
items of inventory which require some form of control. The usage calculations
and record keeping chores would soon become overwhelming were it not for the
computer and its unique information storage and retrieval capabilities.
Jamjam (2011), according to the U.S. Small Business Administration, Inventory
refers to stocks of anything necessary to do business (U.S. Small Business
Administration, 2010). The U.S. Small Business Administration publication
describes what constitutes successful inventory management (balancing cost
versus benefits of inventory.

Local Literature
Ralph M. Stair (1999), emphasized that the development of technology through
the years have enabled us to do more with less effort. From the orientation of the
light bulb to the industrial revolution and beyond, we have continuously tried to in
a more efficient means of doing tasks. It is without a doubt that one of the major
roles played by today in almost every area in the society particularly in business
and marketing is the computerized system. This system enables us to make very
detailed work and follows accurate directives without error. This study is prepared
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for the implementation of the Sales Inventory System in Borderless Hub


Philippines, Inc. located in Rm. 306-307 Pink Walters Building Quimpo
Boulevard, Davao City. In order to know the problem, we conducted an interview
with the managing team for sales, billing, and inventory. This led us to problems
like the manual time-consuming record of documents, billing errors and difficulty
in data retrieval. Inventory is a companys merchandise, goods and materials that
are contained in the store factory at any given time. The employees need to
know how many units of their products are available for reservation and sales
and the items that are sold. All of these rely on the inventory system to present
solutions. The sales inventory system would provide service to the user, input
information to the database, summarize the inquiry of bills, and manage the
product releases and storage. This would generate a faster improvisation of work
given less time and effort.
According to Eleonora Alekseykina (2008) , she stated that Reliable and fast
school management software with the great customers support. It'll help you with
your daily school management routines and deliver you from your paperwork.
Inventory is one of the most important in monitoring a stock that take place in
business activity. The inventory system does the entire task in computing the
value with inventory (cost nand quality) and handling data or information.
Inventory System maintains an orderly flow of supplies, raw materials, or finished
goods through an office shop/factory because of items in any inventory.
Represents cost, they need to be controlled. The purpose of inventory system for
management are to keep inventory levels and cost at desire minimums while
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maintaining to proper safeguards over materials to places and people who need
them. Inventory review refers to the
inventories.

time interval

between counting

Periodic review systems have a set schedule for conducting an

inventory count. Transactional review systems update the inventory count after
each transaction. Periodic review is less resource intensive but more prone to
creating shortages and inventory discrepancies while transactional review is
more accurate but requires more resources.
Warren R. Planret, (2002), inventory means goods and materials, or those
goods and materials themselves, held available in stock by a business. This word
is also used for a list of the contents of a household and for
testamentary purposes of

the

possessions of someone who has

list for
died. In

accounting, inventory is considered an asset. It is little wonder that business


experts commonly cite inventory management as a vital element that can spell
the difference between success and failure in today's keenly competitive
business

world.

Writing

in

Production

and

Inventory

Management

Journal, Godwin Udo described telecommunications technology as a critical


organizational asset

that can help a company realize important competitive

gains in the area of inventory management. According to Udo, companies that


make good use of this technology are far better equipped to succeed than those
who rely on outdated or unwieldy methods of inventory control.

Local Studies

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According to Anna Marie Beltran Distor (1995),


structure

of

the

company proper

the

accelerated

work

monitoring is essential in order to keep

track of the companys sales activities. Her system aims to come up with an
efficient, and accurate mechanized system of preparing invoices that will keep
Sack of the daily transaction and generate reports. Important information will be
provided by this study in order to prove that the computerization of the
companys operation and achieve a more reliable and efficient means of
monitoring day to day activities. Her system focuses on the analysis and design
of the sales monitoring system which will monitor the stacks inventory of the
sales departments. This system of hers is somewhat related to our study but our
system focuses more on the inventory monitoring system of a trading company.
Waldo T. Passion (1990), in his book stated that, to improve their
and

reduce their cost of operation. Reports

are

efficiency

more timely and

accurate. Computers have large capacity to store data and tremendous speed to
manipulate and recall data to the format a user wishes to use which
the introduction of microcomputer computation of business is more affordable.

Synthesis
The proponents believe that every literature and every studies stated in
this research is similar on the present study . The proponents relate and
differentiate the research based on the flow of their transaction from the
proposed study. The transaction and process and also the design specialization
will easy help to acquire and accommodate and communicate with the user.
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The proponents get and use other research in this chapter, in which it
helps to them, because they get knowledge during creating the systems. This
Review of Related Literature and Studies, illustrate the specific and general task
of the Inventory Management System, also the types of Inventory that gives a lot
of knowledge for everyone before entering into business and using Inventory. In
this chapter the proponents put a different opinion of others interms of Inventory,
the Literatures and studies should get on the Book articles on the internet.
Inventory Management system, tackled how you manage your inventory whether
manual or computerized, both of that having advantages and disadvantages for
the business, this chapter gives an idea also for the reader to review whats use
of Inventory to the business

CHAPTER III
TECHNICAL BACKGROUND
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This section contains Concept of operation of the Existing System,


Business Rules of the Existing System, Technical Background of the Existing
System, Concept of operation of the Proposed System, Technical Background of
the Proposed System that serve as tools to understand the technical aspects of
the project.

Concept of Operation (Existing System)


Having the list of the product by category and the end of the month we
have to count the product left. And make sure that the previous month inventory
from current month inventory equals the total sales for the month.

Business Rules (Existing System)


Inventory Process
1. Counting supplies one by one.
2. Recording it on inventory book.
3. Checking of products left and supplies added.

Technical Background of the Existing System


The 4R Duya Hardware is using a manual kind of system that uses pen
and paper. They dont use any system since then. They use the traditional way of
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recording and inventoring supplies. Calculator is the basic device used in


computing or checking the stocks of hardware materials.

Concept of Operation (Proposed System)


The researcher designed and developed an Inventory system for 4R Duya
hardware. The general purpose of this study covered on how it will help the
company to boost up its income and globally well-known in the field of
merchandising tools and equipments and aims to provide a system that will serve
their company accurately and with efficiency in matters related their inventory
checking and sales report. The system is very easy to understand with a user
friendly interface. The system provided a full detail about the products and also
about the stocks and their daily records.
Login Form - This form can help to secured and safe your system from the
hackers.
Monitoring Stocks Form This form can help this company to monitor their
establishment and stocks available, sold.
Sold Items Print Form This form can help for the printing of any payments sold
from the company.
Technical Background of the Proposed System
The Proposed

project system requires minimal hardware and software

specifications:
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Minimum Hardware requirements:


Intel Core i5-3337U CPU 1.80GHz, Hard Disk Drive at least 80GB
Minimum Software Requirements
OS: Windows8 64-bit
Database: Microsoft Access 2013
Qualified People to Operate:
Staff with Computer Literacy

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