1.

1 Overview of the Current State of Technology

Inventory is the supply of raw materials, partially finished goods called work-in-

progress and finished goods, an organization maintains to meet its operational needs. It

represents a sizeable investment and a potential source of waste that needs to be

carefully controlled. Inventory is defined as a stock of goods that is maintained by a

business in anticipation of some future demand. The quantity to which inventory must fall

in order to signal that an order must be placed to replenish an item.

Using an extension of a standard inventory-dependent demand model provide a

convenient characterization of products that require early replenishment. The optimal

cycle time is largely governed by the conventional trade-off between ordering and

holding costs, whereas the reorder point relates to a promotions-oriented cost-benefit

perspective. The optimal policy yields significantly higher profits than cost-based

inventory policies, underscoring the importance of profit-driven inventory management.

To work towards perfect order metrics, there has to be aggressive inventory

management, restructuring supply chain operations, and updating standards to the

perfect standard. When updating the metrics, this would include the cases shipped vs.

the orders on-time delivery, data synchronization, damages and unusable products,

days in supply, the ordering time cycle, and shelf level of service.

Inventory problems of too great or too small quantities on hand can cause business

failures. If an organization experiences stock-out of a critical inventory item, production

halts could result. Inventory management indicates the broad frame work of managing

inventory. The inventory management technique is more useful in determine the

optimum level of inventory and finding answers to problem of safety stock and lead time.

Inventory management has become highly developed to meet the rising challenges in

most Corporate entities and this is in response to the fact that inventory is an asset of

distinct feature.
1.2 Technology Application Context

The goal of this project is to assist small business owners who manage

convenience stores. Specifically, to keep track of their inventories and product

supplies. This initiative supports effective inventory control, which guarantees

that the proper and marketable products are stocked in the correct quantities, as

well as preventing overstocking.

This project helps the businesses retain less inventory on hand while boosting

order accuracy. It is a tool for organizing inventory data, the business may save a

lot of money and time by reducing the quantity of inventory it has on hand.

The developed application is a convenience store inventory system that can

track inbound and outbound goods as well as inventory in real time. The

information is kept in an inventory database, which includes information such as

part names, quantities, vendors, and location.

1.3 Statement of the Problem

The main problem that this research addressed is as follows: how should an

inventory system designed and implemented?

This can be broken down into the following specific problems:

1. How can the computerized inventory system affect the existing manual

inventory?

2. How the business owners can maintain the accurate data from the incoming

and outgoing products by using the system?

3. How does inventory system affect the profitability of the business?

1.4 Research Objectives

 1.4.1 General Objective

The general objective of this research is to develop an inventory system

for a convenience store in keeping track of records makes it easier to monitor

and track transactions, and it allows employees to enter transaction details

more quickly.

1.4.2 Specific Objective

In order to attain the general objective, the following specific objectives are

derived:

The specific objectives are:

 To develop a system that will lessen the time being used in looking for existing

item in the warehouse,

 To develop a system that speeds the production of inventory reports and the

updating of records. The system will provide all of the data required to create

such reports, and

 To create a module that generates monthly sales and inventory data.

1.5 Scope and Limitations of the Study

The study will focus on the inventory system of a convenience store. It will

create a system that can track stocks and generates sales and inventory data.

The application will only give information about the stocks, sales and data only.

1.6 Significance of the Study

The study aimed to develop a software application that could be beneficial to

the following entities:

 Owner and Staff. The created system has the potential to reduce the

challenges of controlling inventory counts, which is a vital activity in company

logistics and a major concern in the entity's daily operations. Because of the

electronic system's ability to search and update records fast, they would be able

to do a yearly physical count in less time.

Customers. Customers may experience less annoyance as a result of the

system. It would be simple to determine whether or not the item they wish to

purchase is still available, as well as how many stocks are still accessible.

Researchers. This can benefit the researchers by allowing them to broaden

and increase their knowledge of sales, inventories, and the system as a whole.

Future researchers. They will benefit from the study because the

documentation will aid them in future research and system presentation.