CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

1.1 Introduction

Information is what is needed to make current and future decisions and are data that have been
evaluated in the context of a specific problem situation. Most business experts would content that it is the
proper management of data and information that is one of the keys to a successfully managed operation.
However, most decision makers are more often than not overwhelmed with the large amount of data, but
only limited supply of information. The value of information is directly related to the decisions the managers
have to make.

A major decisions making component in any way organization is stock keeping and checking. It
can be a real challenge for most business and may become a major problem especially if the inventories
are long and in and outflow is huge. Manual reports are time consuming and difficult to construct.
Inadequacy, duplication, irrelevance and efficiency are just few of the many problems with the current
manually operated systems. List of files, and papers in these files are difficult to document and maintain,
thus prone to risk of loss or damage, making the system efficient.

Increasing use of computers to solve day to day and long term problems is obvious. It is no longer
a question of it we need a computer to assist in managing the farm of business but rather when. Computer
software available to perform specific chores is costly and rarely meet specific needs of any setup
especially when computer literacy is inadequate. Tailor made programs often help. Present study pertains
to the development of a computer inventory system for a store in a general organizational set up such as
the university. Yet, it can be applied to specific situations in any agricultural operation with minor
modification.

The main objective of the proposed inventory system was to facilitate the overall operation of the
organization. Specific objectives were to develop an information system that is flexible, accurate, efficient
and user friendly. It should not only be cost beneficial but also satisfy the economic objective of the
organization, provide data security from accidental loss of data and should be acceptable to the
organization for a smooth flow of information from one step to the next and should also remove
redundancy.
1.2 Background of the Study

The advancement of technology in society makes life easier; the only burden that 20 th century has
is the accelerated lifestyle and living an active pace of life. The computerization of almost all the systems in
the society has made all transaction fast and secure.

We have a lot of transaction processing system and one of this is the Computerized Supply
Inventory System and the transaction in an organization. Now in a new era of computer and
telecommunication industry, the inventory can be made through the use of computer anywhere. This
system will help them to their inventory using the fastest and easiest way using the modern technology.

Inventory can be classified by different perspective. By stage of product realization, inventory can
be classified as raw material, work-in process, or finished goods. By venue, inventory can be with the
retailers, wholesalers, suppliers, manufacturers etc. By the purpose inventory can be in pipeline and as
work-in process, for safety against out of stock, for anticipation of large demand, for decoupling of activities
and of players and for psychology to create and increase demand.

1.3 Conceptual Framework

Input Process Output

Item Barcode Supply Inventory

Report
Item name
computerized
Supply
Item Description
Quantity
 The staff encoded the supply information like name of item, barcode, item name description,
quantity is input. The system automatically inventorying the item and the supply of each item every day or
every week even the month and this is the process, the output will be the inventory and sales report that
will receive of the staff that encoded for the supply or item information.

1.4 Statement of the Problem

1.4.1 General Problem

Difficulty in checking overstock and out of stock supply.

1.4.2 Specific Problem

Time consuming in looking for existing items in the school.

Time consuming in preparing of inventory and updating records.

Unexpected losses of important records.

1.5 Objective of the Study

1.5.1 General objectives

How to develop and implement a computerized supply inventory system of Honorato Guzman
Baquiran College?

 To develop a Computerized Supply Inventory System of HGBCollege that will help and
make their transactions of inventories fast, smooth and secured.

1.5.2 Specific Objectives

To develop a module that will easily to monitor the supplies and easy to generate a report.

 The proponent should create a module that were monitor fast and easy the entire
supply inside the storage/stockroom and the same time to easy to generate report.
1.6 Significance of the Study

 The purpose of this study is to make the computerized supply inventory system of
HGBcollege competent and well-organized.
 To the admin their transaction for accessing for an inventory will be more efficient and
much easier.

1.7 Scope and Limitations of the Study

The study focuses on the need for existing Supply Inventory System. The study is limited to
Honorato Guzman Baquiran College.

The major reason of the study is focus on the designing the Computerized Supply Inventory
System of HGBCollege. Through this study, the proposed system will greatly help the school in updating,
maintenance of records of their tools and equipment and executing of reports systematically. The proposed
system includes certain processes limited to achieve the propose including the product entry, update
stocks, report and utilities. The system has admin account where in the user is limited to access to the
sales module only.