CHAPTER I

INTRODUCTION
BACKGROUND OF STUDY
A point of sale inventory management system allows a business owner to
have more than one business location and adequately keep track of inventory at
each without being present. No more worries about employee theft or pricing
inconsistency between one location and another. The boss can be away and not
worry about employee theft. Employee efficiency can be maintained. Pont of sale
systems take care of those problems that result when management isn’t present.
Ravi (2010) pointed out that manual pointed out that manual sales systems
are time consuming, it is very tedious, lots of paper work, slow data processing, it
is not user-friendly environment and it is difficult to found records due file
management system. In an early age when the most of the company are still using
the manual system in the sales and inventory most of the company encountered
so many problems and this is because of the process of the existing system is too
slow and too long.
According to Kaye Morris (2010), manual inventory management system
can help sales and production managers control costs by identifying lost sales due
to inventory shortages; inventory overrides on products that are not selling; losses
due to employee’s theft or damage. Implementing an inventory management
system can take a large amount of time depending on the size and diversity of
inventory.
To overcome the deficiencies of manual system, many companies have
automated their inventory system. This system is used to track or monitor the
merchandise and goods of a retail store. With an automated Sales and Inventory
System, business rely on computers to do tasks that were once performed
manually, such as inventory check and product sales. Automated Sales and
Inventory System these processes can be handled in timely manner and also be
more accurate and reliable than ever before (Hartman, n.d.), It provides greater
accuracy and more flexibility in the types of information and reports that can be
generated by the system.
 Point of sale systems have replace traditional cash registers, largely for
functionality reason. POS systems, as they are sometimes called, are relatively
easy to use and help provide valuable data for important decision makers, In order
to keep ip with the record keeping needs of small and mid-sized businesses, a
good point of sale system is a must. Web0based point of sale systems are
preferred over software based pos systems because they are easily upgradable,
and feature access from multiple computers.
The best thing about having a computerized POS System in your retail
business is; as new stocks arrives and as it is sold, it keeps the stock levels current
and updated, hence making it is easier to identify which items are selling and which
items are not. A POS system is also good in checking for any obsolete or out of
date stock that needs to be disposed. If you are still counting your inventory
manually on the shelves or in the warehouse you should think twice about your
method for there are many advantages is using a POS System. One advantage of
POS System is its ability to help your business achieve detailed real-time stock
level information such as weather forecasts, public holidays and major sporting
events, which can be great help in determining the stock level of seasonal
products. You can now efficiently and effectively handle your stock management
accurately (Ganderton, 2010).
One of the biggest, and probably one of the most important, advantages of
an automated sales and inventory system is that it helps businesses focus on their
biggest goal, to improve the customers experience at the store (Mueller, 2011).
With this system, companies can have a better understanding of customer demand
through the analysis of their sales and inventory.
Chow Unlimited is the subject of this project. The business is located in RD
Prestige Tower F. Ortigas Jr. (formerly Emerald Ave.) Pasig City. Ederson and
Irish Sy Started Chow Unlimited store from 1998s in the Prestige Tower F. Ortigas
Jr. (formerly Emerald Ave.) Pasig City., They also have a branch in One San
Miguel Pasig City and Quezon Ave.
 When the first Chow Unlimited Found in Prestige Tower, there was not
much variety on it’s menu, but the food supply with high quality, low cost and good
environment.
By 2000, Chow Unlimited Opened its first branch in One San Miguel Pasig
City they also offer a catering services for special occasions such as Birthday
parties, weddings, christenings, as well as corporate event such as seminar and
product launching.
The Store has a huge number of customers we choose to create a system
for Chow Unlimited to help the company to be on top and align with fast growing
stores, to promote quality and services, and avoid waste of time.
STATEMENT OF THE PROBLEM
This part tackles the problem that leads to the development of the Sales
System of Chow Unlimited.
1. Sales data are hard to locate.
2. Up to date report for the use of management are hard to generate.
3. Record are not legibly written, thus causing to the unreliability of financial
data.
4. Without point of sale system the management did not see the problem in
existing sale.
5. The management did not identify the existing sales.
OBJECTIVE OF THE STUDY
The study aims to provide Chow Unlimited with easier and more modern
alternative in doing their sales.
1. To provide real-time sales data.
2. To develop a system that easily generates reports to user queries.
3. To create a database that would organize necessary details is pertaining to
sales.
4. To identify the existing sales process.
5. To provide a system that will secure important records.
SIGNIFICANCE OF STUDY
We intended to provide an effective tool in sales. The findings of this study
will be beneficial to the following:
To the Company. This improves efficiency, reduces human error, increases sales
and improves the bottom line.
To the Manager of Chow Unlimited. Data and sales analysis can be performed
with the access of real-time information. Thus, the management will be able to
make better decisions and plan accordingly.
To the Cashier of Chow Unlimited. The over-all system is very advantageous in
increasing the service of the crew, He/she would not have manually write them on
a paper. The system would ensure accuracy and speed in recording sales
transactions.
To the Customer. Since it makes reliable outputs of the calculation of their bills.
Costumer would be served better and faster by the crew.
To the Future Developers. This research will serve as reference for the future
that chose sales and inventory system as their title.
SCOPE AND DELIMITATION
The proposed study is limited to keeping track of sales of Chow Unlimited.
It is concerned with reports relevant for the management to make timely decision
and justifiable assessment of the business. Reports which present labor auditing
are not anymore within the scope of the study. The limitations of the study include
not involving the probability that customers would carry out credit card
transactions. Also, credit is not viable to customers who directly place orders in the
center.
The proposed system will greatly help the company in updating,
maintenance of records of their products and customer and executing of reports
systematically.
The researchers will use Visual Basic.Net as the programming language
and Microsoft Access as their database.
Sales and Inventory System of Chow Unlimited using computerize system
is limited only to official activities and products of Chow Unlimited.
 CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDY
This chapter presents the review of related literature and studies that have
some relevance to the research proposal about point of sale system.
REVIEW OF RELATED LITERATURE
Foreign Literature
Also known as the point of service or POS, the point of sale is the exact
point in a transaction when goods or services are provided to the customer and
payment is rendered for those products. While the specifics of a point of sale
system will vary somewhat from one situation to another, the final outcome is
always the same. (Malcolm Tatum, 2010)
According to KayeMorris (2010), Point of sale manual inventory
management system can help sales and production managers control costs by
identifying lost sales due to inventory shortages; inventory overrides on products
that are not selling; losses due to employee’s theft or damage. Implementing an
inventory management system can take a large amount of time depending on the
size and diversity of inventory.
Based on Brigman (2007), Fundamentals of Financial Management, 5 th ed.,
companies are increasingly employing Point of Sale and Inventory System. A
computer start with an inventory counts in memory. Withdrawals are recorded by
the computer as they are made, and the inventory balance is the constantly
revised. When the recorded point is reached, the computer automatically places
an order, when this new order is received, the recorded balance is increased.
Retail stores have carried this system quite far, each item has a magnetic codes,
and as on item is checked out, it passes over an electronic reader, which then
adjusts the computers inventory balance, at the same time the price is fed to cash
register tape. When the balance drops to the recorder point, an order is place.
The proponent aim to develop an automated inventory system which is technically,
operationally, and economically. The method used by the proponent to develop
an automated inventory system is Descriptive Method. The proponent conduct
several interviews in order to gather information about the present existing
conditions of the inventory systems, knowing its problems and enhancing it by
developing an automated inventory system. Questionnaires were also distributed
to all interviewees for additional information. Using the descriptive method, the
proponent also observes the functionality of the present inventory system, which
help them to discover that Electronic Data Processing is Advantageous than other
(Isn’t this part of the Data Gathering Procedure?).
According to Hold (2010) article, “POS Inventory refers to stocks of anything
necessary to do business”. The U.S Small Business Administration publication
describes what constitutes successful inventory management balancing cost
versus benefits of inventory, including: Maintaining a wide assortment without
sacrificing service; Keeping stock low without sacrificing performance; Obtaining
lower prices by making volume purchases; and Maintaining an adequate inventory
without an excess of obsolete items.
Local Literature
According to PLDT(Manila,Philippines,April 15,2011), small and mediume
nterprises, who long for a point-of-sale(POS) system that can track how much they
sell and how much stock they have left at their stores in real-time and from
anywhere, can now turn to PLDT SME Nation
In the study from Averuin, Gaela and Libo(2009) entitled “Monitoring and
inventory and discovery Mail.com”, it stated that: “It will minimized the difficulty of
the manager in processing inventory because physical counting products, stocks
and computing inventory summary will be the system job. It will monitor the
availability of products, items to prevent under stocking, overstocking and running
out of stocks. The system will also simplify the transaction between dealer and
supplier relationship because of the updated supplier information and price list of
items will correspond to collaboration with other supplier.
According to J.De Leon and M. Ferrer (2009) Under the Korean Red
Ginseng Enterprise Sales and Inventory System, the researchers came up with a
computerized sales and inventory system. The proponents used database to easy
access of files and for easier and faster processing of the selling and inventory
transaction. The program was designated to generate reports such as monthly
reports, inventory reports, sales invoice and list of items.
According to the thesis of Carlo Magno “There was a ground swell to move
from paper signature and documents because the task of record management was
huge. We had file cabinets full of backup materials. By converting from manual
process, we would be able to eliminate a lot of paper. We could go further with the
automation of manual process and remove manual paperwork if people trusted the
technology.
REVIEW OF RELATED STUDIES
Foreign Studies
As defined by Carolina Barcode Inc. (2013), a Point-of-Sale system is a
computer software and hardware networked together to track sales and inventory
as they occur. Point-of-Sale systems will solve a multitude of problems in your
business. It is one of the focal points of any retail or hospitality business in the cash
register. The ability to process transactions and tender cash are essential to the
efficient operation of the enterprise. If you have a lot of cash transactions, replacing
the cash registers with a Point-Of-Sale (POS) system save you money. In an early
age when most of the company are still using the manual system in the sales and
inventory, most of the company encountered so many problems and this
is because of the process of the existing system is too slow and too long.
In connection with the proposed system, the proponent proposed a new and
faster way of processing business transactions. The system also helped the user
to know availability of the products. It also helped the manager to monitor the
stocks and to get immediate notice for acquisition of additional products.
The proponent acquires knowledge about the file processing and report
generations through this study. It also gives the proponent ideas to create the
proposed system’s reports in online sales and inventory system. Automation is
mandatory, thus automated report generation for precise reports is to be included
in the proponent’s proposed system.
In a study by Aparanjitha (2008), this project is aimed to developing in Sales
and Inventory Management System (SIMS) for a departmental store. This system
can be used to store the details of the inventory, update the inventory based on
the sale details, produce receipts for sales, generate sales and inventory reports
periodically, etc. This is one integrated system that contains both the user
component (used by salesperson, sales manager, inventory managers, etc.) and
the admin component (used by the administrators for performing admin level
functions such as adding new items to the inventory, changing the price of an item,
etc.). This system runs on multiple terminals, offer GUI to its users and connects
to a common database(s).
(Carter, 2012) The best thing about having a computerized POS System in
your retail business is: as new stocks arrives and as it is sold, it keeps the stock
levels current and updated, hence making it is easier to identify which items are
selling and which items are not. APOS System is also good in checking for any
obsolete or out of date stock that needs to be disposed. If you are still counting
your inventory manually on the shelves or in the warehouse, you should think twice
about your method, for there are many advantages in using a POS System. One
advantage of a POS System is its ability to help your business achieve detailed
real-time stock level information. In addition, a POS System can also give you
information such as weather forecasts, public holidays and major sporting events,
which can be of great help effectively handle your stock management accurately
(Ganderton, 2010).
One of the biggest, and probably one of the most important, advantages of
anautomated sales and inventory system is that it helps businesses focus on their
biggest goal, to improve the customers experience at the store (Mueller, 2011).
With this system, companies can have a better understanding of customer demand
through the analysis of their sales and inventory.
Local Studies
Based on the research entitled “Computerized Sales and Inventory System
for Ronmon Trading “(de Alday, Espino, Ragudo), 2010, the replacement of the
manual system with the proposed system provided more efficient and accurate
processing of transaction. The said system is much reliable, eliminated errors and
in accurate information, and provided valuable reports with integrity.
 In the study entitled “Sales and Inventory System of Best Choice Rice
Dealer”(Bisagas, Arivada, and Tanteo), 2009, The process of counting the sacks
of rice is done manually, which corresponds to difficulty in tallying the number of
available stocks and sold Items. The manual generation of inventory reports such
as daily, weekly, quarterly, and annual inventory list of records as one of their key
problem since the establishment of the business. The transaction processing
system for Best Choice Rice Dealer will minimize the difficulty of owner in
processing inventory. It will monitor the availability of product items for reorder to
prevent under stocking, overstocking or running out of stocks, the system will also
generate necessary reports of inventory such as sales reports.
In the study entitled “Osaka Sales and Inventory System” (Laranang, Maaño
and Nañola, 2009) States that business nowadays takes the advantage of using
modern technology to improve their status and ensuring an efficient and newer
way to make their work easier. They state that the main problem of the Osaka
Indology is what modern effective tool must be use in creating and developing a
sales that inclusively for the transaction of Osaka Indology, such as monitoring of
their medicine and their daily sales.
Also stated in the research, “Sales and Inventory System For Schema Mega
Center” (Almeda, Dañez, Geronimo), the proposed system are not just only
accurate, reliable, and fast in processing transactions rather it is also provided
more systematic way of transacting with the members and through the billing
system also helped the employees to save a lot of time o transaction processing.
Based on research entitled “Sales and Inventory System”
StudyMode.com(2010), It was without a doubt that one of the major roles played
by today in almost every are in the society particularly in business and marketing
is the computerized system. This system enables us to make every detailed work
and follows accurate directives without error.
 CHAPTER III
SYSTEM ANALYSIS
SOFTWARE DEVELOPMENT METHODOLOGY
The Waterfall Model was first Process Model to be introduced. It is very
simple to understand and use. In a waterfall model, each phase must be completed
before the next phase can begin and there is no overlapping in the phases
Waterfall model is the earliest SDLC approach that was used for software
development is divided into separate phases. The outcome of one phase acts as
the input for the next phase sequentially. This means that any phase in the
development process begins only if the previous phase is complete. The waterfall
model is a sequential design process in which progress is seen as flowing steadily
downwards (like a waterfall).

Figure 1.0 Waterfall Model

The reason why the researchers use the waterfall model is because it is
simple, easy to understand and easy to use. Each phase is processed and
completed one at a time. It works well with smaller projects like ours where
requirements are very well understood.
SYSTEM FLOWCHART

START

Enter Username
and password

Display Error
message

Check False
username
& password

True

Main Form

Order Order History Inventory

A B C

Figure 2.0 Flow Chart of Main Form

 A

Enter Order
Details

Add to cart
True

Cancel / True Cancel /

Item Delete Item
order? order?

False False

Proceed to payment / Print

Receipt

Figure 2.1 System Flowchart of Ordering

 B 1 D

END
Show Payroll
History

Display History
C

1
Display Employee
Information

Add Employee Update Employee Delete Employee

Information Information

False
Enter Employee Update Employee
Information Information
Delete?

1 True
1

Figure 2.2 System Flow Chart of Order history and Inventory

DATA DICTIONARY
Users
No. of
No. Name Description Characters
1 fName First Name 20
2 lName Last Name 20
3 iAge Age 3
4 iEmail Email-Address 30
5 iusername User Name 20
6 iPwd Password 20
Table 1.0 Users Table
Employee Information
No. of
No. Name Description characters
1 efName First Name 20
2 elName Last Name 20
3 eiAge Age 3
4 eiEmail Email-Address 30
5 eContact Contact Number 20
6 ePos Position 20
Table 1.1 Order Table
Payroll History
No. of
No. Name Description characters
1 PName Employee Name 40
2 oDate Date 20
3 oAmount Amount 10
Table 1.2 Inventory Table
DEVELOPMENT TOOLS
The programming language that the researcher used is VB.NET (Visual
Basic .NET). is a multi-paradigm object-oriented programming language,
implemented on the .NET Framework Microsoft launched VB.NET in 2002 as the
successor to its original Visual Basic language Although the .NET portion of the
name was dropped in 2005.
The researcher also uses SQL or Structured Query Language. SQL is a
domain specific language used in programming and designed for managing data
held in a relational database management system (RDBMS).
The researcher uses Visual Studio 2010 Express as the software used for
VB.NET. Microsoft released Visual Basic 2010 on April 2010. Microsoft had
planned to use dynamic language runtime (DLR) for that release but shifted to a
co-evolution strategy between Visual Basic and sister language C# to bring both
languages into closer parity with one another.
The researcher uses Microsoft Access 2016 as the software used for
database. Microsoft Access is a database management system (DBMS) from
Microsoft that combines the relational Microsoft jet database engine with a
graphical user interface and software development tools.
The researcher also used Adobe Photoshop CS6. Adobe Photoshop is a
raster graphics editor developed by Adobe Systems. Adobe Photoshop CS6,
released in May 2012, added new creative design tools and provided a redesigned
interface with a focus on enhanced performance.
SOFTWARE PRODUCT FEATURES
Login
This is where the manager or the operator logs in to access the system. On
the login page there are two types of account the manager and the cashier, the
difference is that only the manager type can fully access the system like adding
items on inventory and creating new user accounts.
Ordering
 In Ordering, it includes the product information of what he/she is going to
order. It has a high level of transparency into the transaction and can make it easy
for them to point out if there are mistakes in the order.
Order History
In this feature the system has a record of all the ordered products saved on
a database for the manger to easily identify which products has the most order and
the least orders and also if the costumer have a problem on his/her order it can
easily be found on the order history.
Inventory
In inventory, this is where they can see the product availability and ca be
check if the stocks are running low in number. Only the manager can add, delete,
and update, the product information on the inventory.
SYSTEM REQUIREMENTS
Hardware Requirements
Hardware Description Price
Processor AMD A6-7400K 3.5-3.9
GHZ 256 SPs P 2,500.00
RAM 2gb DDR3 Kingston P 1,199.00
Hard disk drive Seagate 320gb P 995.00
Monitor 15.6’ AOC LED Monitor P 2,000.00
Mouse A4tech Mouse P 160.00
Keyboard A4tech Keyboard P 320.00
Table 2.0 Hardware Requirements
Software Requirements
Software Price
Windows 7 Ultimate 64bit P 1,480.00
Microsoft Visual Studio 2010
Professional P 30,950.00
Microsoft Office 2016 Professional P 12,300.00
Adobe Photoshop CS6 P 34,950.00
Table 2.1 Software Requirements