CHAPTER 1

1.1 INTRODUCTION

The term inventory derives from the French word inventaire and the Latin word

inventariom which simply means a list of things which are found. The term inventory

includes materials which are in raw form, or are in process, in the finished packaging,

spares and the others which are stocked in order to meet all the unexpected demands or

distribution in the future. Any business that sells products needs a reliable method for

inventory management point-of-sale software and warehouse tracking, computerized

inventory management systems make it easy for businesses to stay updated consistently.

A “Point of sale System”( POS) is the actual software and hardware you use to

manage your business. It’s the tool you use to analyze and order your inventory,

employees, customers, and sales. Traditionally, POS systems were on-premise, which

means they used an on-site server and could only run in a specific area of your store.

That’s why your desktop computer, cash register, receipt printer, barcode scanner, and

payment processor were all set up at your front desk and couldn’t be moved (well, moved

hassle-free).

Inventory system are design to tell you where each product produces the greatest

profit. Most of business relies on inventory system play this vital role by accounting for

all goods or products. Inventory system is a process done by a business that sells product

in order to help analyze how the business is performing it is also help for checking and

auditing of the sales of the company it is faster and more reliable rather than doing

manually.

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 A point of sale system is the heart of a business and used for many essential

tasks such as inventory management, labor reporting, menu customizations, price

adjustments, staff management, sales reporting, customer management, marketing

initiates, and so much more.

1.2 GENERAL OBJECTIVE

The proponents endorse a proposal which can help to implement good and accurate

system to the company, to satisfy the current needs of the business by making a

computerized sales and inventory system that will help them in their business and to

develop and implement a system for R’Lights that will enhance the company’s operation.

1.3 SPECIFIC OBJECTIVE

 Reduce Errors - Through this system, fewer errors will be avoided because the systems

will be easy to use.

 Data security -It ensures that data is kept safe from corruption and that access to it is

suitable controlled. Thus, data security helps to ensure privacy. It also helps in protecting

personal data.

 Shorten Data Processing Time – in processing the inventory, it will not consume

enough time to process.

 Create a consistence database to store inventory details.

 Give facility to search for the existing inventory items.

 Confirm the security of data.

Confirm higher accuracy of data.

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1.4 SCOPE AND DELIMITATION OF THE STUDY

The scope of the system are the followings the system is secured by a User name

and its password it has a capability to secure all records. For inventories the system has a

capability to easy invent all the product in the store is it can also accurate generation of

reports system includes file maintenance that would automatically add, delete, and save

information of files.

The delimitation of this system is once you delete a record you can’t retrieve it

Also, can’t receive notifications when inventory levels reach out of stock threshold and

the system is offline.

1.5 DEFINITION OF TERMS

Inventory – Is the process of making an itemized list of supplies on hand.

Inventory System – Is the system of recording the properties of the supply.

Point-of-sale- of or relating to the place (such as a check-out counter) where an item is

purchased.

Data – Information, a form that is suitable for storage in or processing by a computer.

Data Loss – Refers to the unforeseen loss of data or information.

Data Security – Protect sensitive digital from unauthorized transfer.

Record – It is the collection of related fields with information that usually pertains to only

one subject.

Data Integrity- Refers to the validity of data, meaning data is consistent and correct.

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 Researcher – Person who study something methodically.

Suppliers – A person that provides or sells available or needed products by a company or

any retail enterprises.

1.6 NOTES

www.meriamwebsterdictionary.com

www.studymode.com

https://smallbusiness.chron.com

https://www.posusa.com

4
 CHAPTER 2

2.1 ANALYSIS OF THE EXISTING SYSTEM

2.1.1 THE ORGANIZATION

 Nature of business

Merchandising Business

This type of business buys products at wholesale price and sells the same at retail

price. They are known as "buy and sell" businesses. They make profit by selling the

products at prices higher than their purchase costs.

A merchandising business sells a product without changing its form. Examples are:

grocery stores, convenience stores, distributors, and other resellers.

2.1.2 Vision/Mission/Goals/Objectives

 Mission

To provide every customer a good quality product with less cost

 Vision

To make the community lighten and make the life of consumer comfortable

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2.1.3 HISTORICAL BACKGROUND

R’lights is a small type business that sells different kind of lights like light bulbs,

chandeliers, lamps, Strip lights and other kinds of decorative lights. It is the first and

only light shop/store in the town of Daet Camarines Norte that built in year 2017. R’

Lights is owned and managed by Architect Rina G. Talento, a 43 years old

professional and business woman. She started the business when her client offered a

space in a building where she can put up a small business which is located at Tang

building Vinson’s Avenue. As an interior designer, she came up to an idea to create a

business which have a connection to her profession which is the interior designing of

a houses, buildings, hotels, finest restaurant and some other establishments. As

architect Rina is so fascinated with lights, she was end up into a business of selling

different kinds of lights.

At first year in the business industry, R’ Lights does not have a permanent

supplier of their products. The owner needs to buy the light products in Manila for

their shop. As she personally handled the business, she spent a week or two in the city

looking for the most affordable and high-quality light products that she can sells at

her light shop for the most convenient and reasonable price. Despite those hardships

and efforts, the first year of managing the business does not goes along smoothly.

Like some other businesses, R’ Lights experienced some struggles especially when it

comes to their inventory and point of sales. As they are using a manual process of

inventory, the records of their products where just written on a record notebook that

sometimes got misplaced or accidentally thrown away by the employee in charge. In

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 year 2018, R’ Lights have their permanent supplier for their products but their

problems concerning inventory and point of sales is still unsolved.

In this present year, they are still looking for the best option to solved their

problems in inventory and point of sale since the shop cannot spend a large amount of

penny to buy a system since it will cost a lot of money. R’ Lights today boomed its

name in the market that is why our team decided to develop a computer base

inventory system. It makes their jobs easier and more convenient. The proposed

system can improve the speed of time that they spend in their every job. It is also

having a capability to secure their files because the system is protected by a user

name and password that can access by the authorized person only. As the sales

percentage of the light shop increased in about 20% of the total sales in the past two

years since it was built.

2.1.4 SOURCE OF FUNDINGS

Putting up a business needs a lot of patience, dedication and money. Miss Rina G. Talento

used her monthly salary as an Architect and Interior Designer, her saving in the bank to start a

business. Aside from that, she applied a loan from a certain bank to have a sufficient money to

funds her small business.

2.1.5 FUTURE PROJECTS/ EXPANSION PLAN

The plan of the owner is to expand her business here at Camarines Norte and she plan to put

at near of SM Daet when the establishment is finished constructing, she thinks the she will have

more customer because the SM Daet will be the consumers' shopping center as it is the most

dominant mall not only in Daet but in the whole Province.

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 2.1.6 ORGANIZATION STRUCTURE

Owner/Manager

Cashier

Sales Pers on

Figure 1.1 ORGANIZATION STRUCTURE

2.2 THE BUSINESS PROCESS

2.2.1 Nature Operation

The sales and Inventory System for R’Lights was developed in order to establish

a system which aims to solve a problem that currently exists within the R’Lights located

in Vinson’s Avenue Daet, Camarines Norte. No existing system signifies difficulty in

making sales and inventory transaction resulting to a delay in making reports. In the

sense, keeping track of the in and out of products is another problem to be considered as

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well. In order to solve the existing problem, the researchers proposed the sales and

Inventory Systems for R’Lights.

The user requirements are analyzed to identify the information needs for the end

of the user, the organization environment and the existing system. The user desires

computerization of customer order, internal order, items details and purchase order which

are done manually at the present. The requirements have been analyzed and dived into

small modules for easy access.

Proposing the system using the System Development life Cycle was applied as

an organized way to solve the concern of the company. Aside from the information

gathered during the interviews with the manager of R’Lights, the group search of

companies that use inventory system both in foreign and local areas.

The study aims to automate the sales and inventory process of R’Lights, to

easily monitor the products, to simply the process of making inventory reports and

generate precise inventory reports on time. Such objectives will be a big help in

maintaining an efficient flow operation while generating fast and accurate needs for

submission and compilation.

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2.2.2 System Design (Diagram/Discussion)

ccc

Figure 1.2 Transaction Sequence Model

2.2.3 Data Flow Diagram

 Context Flow Diagram (CFD)

Request Product
Order Product
Produce Product
Serve Product 0.0 Payment

Customer Produce Receipt Admin

Payment
Record Request Supplies
Book
Receive receipt Receive Supplies
Receive Receipt
Payment For Supplier
Request Supplies
Produce Supplies
Produce Receipt

Payment

Supplier

Figure 1.3 Context Flow Diagram (CFD)

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 DFD Level 1

Figure 1.4 Data Flow Diagram

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2.3 Resources (Matrix/Discussion)

Resources Element Observation

 Human Resources and Specific Task

Store owner/Manager Managing transactions of the stores.

Implementing rules and regulation inside the

busineszs premise. Controls all the operations

and over-seeing the possible improvements.

Maintaining the business profit by providing

the customers with quality and fast light

products.

Sales Clerk Entertaining the customers and assisting them

to find the products that they are looking for.

Responsible for the cleanliness and

orderliness of the store products with the help

of manager’s guidance.

 Supplies/Product Resources

Light bulbs A simple and most common use lights in

houses. Comes with different size and watts.

Chandeliers Fancy way of designing the houses with this

eye-catchy lights dazzling on top and getting

the visitors attention.

Wall lamps Installed in every corner of room or house.

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 Ceiling lamps This type of lamp is installed in rooms

ceilings. It is the most sold product the store.

Strip light This type of lamp is use to fill gaps at every

wall corner. With this, spaces are filled with

blending design.

Table lamp/ Lamp shade Commonly use in bedrooms with small

amount of light that is suitable for nights

during sleep.

Table 1.1 Resources Matrix/Discussion

2.4 Maintenance Scheme

A maintenance plan will include preventive maintenance procedures as well as

provision for inventory, troubleshooting and repair of equipment. When implementing an

equipment maintenance program, some of the initial steps will include:

 assigning responsibility for providing oversight;

 developing written policies and procedures for maintaining equipment, including

routine maintenance plans for each piece of equipment that specify the frequency

with which all maintenance tasks should be performed;

 developing the format for records, creating logs and forms, and establishing the

processes to maintain records; and

 training staff on the use and maintenance of the equipment, and ensuring that all

staff understand their specific responsibilities.

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2.5 Business Transaction Analysis

2.5.1 Findings

The following are based on the findings of the study:

R’Lights can greatly benefit by using the developed inventory system. The

inventory system has the following significant features: Functionality; Reliability;

Usability; Maintainability; and Portability. It can help to make their work more

efficient. R’ Lights can give more convenient service to their customers.

2.5.2 Advantages

Having a computer base inventory system helps the user in tracking

inventories. In addition, it is also helps tracking the orders and sales. It is more

reliable to use computer base inventory system than doing manual inventory

system. It also adds products and reduce or avoid product redundancies, search

products and then add supplies. Many of the computerized inventory

platforms integrate with accounting software to track cash flow. This makes the

process of transferring inventory costs and assets between programs seamless and

reduces the need for additional bookkeeping costs. Financial statements are more

easily generated with shared data between inventory and bookkeeping.

Another advantages of inventory system are the followings:

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Quick, Accurate Counting

Even if you use a perpetual inventory system, you'll need to do a physical

count occasionally to make sure your inventory records are accurate. One of the

greatest advantages of a computerized inventory system is that it makes for faster,

more accurate counting.

faster and easier than writing down stock numbers manually or flipping through

pages of inventory sheets, looking for the correct item. It also means you won't

have to transfer those numbers manually to your accounting software or inventory

database, which eliminates another possible source of errors and several hours of

data entry time. Instead, it's a quick electronic upload.

Better Receiving and Shipping

Computerized inventory systems make shipping and receiving orders

simpler as well, and leave less room for error. You can simply scan the product

into inventory as it's received, and it will show in your on-hand inventory. In

much the same way, when you send out an order to your customers, you can scan

each item out of inventory.

Reduced Shrinkage and Missing Inventory

Every time you count your inventory, you'll find that some of what you're

supposed to have just isn't there. There are a number of potential reasons for that,

with shoplifting and employee theft leading the list. Your own in-house

administrative errors and vendor fraud are significant factors too.

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 Better Inventory Management

If you use a periodic inventory system, your book inventory count will

usually be outdated by the time your accountant finishes updating the data. This

means you'll need to always carry at least a small amount of extra inventory to

cover your projected sales, or your projected production if you're a restaurant or

manufacturer. That ties up money and storage space you'd otherwise have at your

disposal.

2.5.3 Disadvantages

The limitation of this system is once you delete a record you can’t retrieve it.

Also, can’t receive notifications when inventory levels reach out of stock threshold and

the system is offline.

System Crash

One of the biggest problems with any computerized system is the potential for a

system crash. A corrupt hard drive, power outages and other technical issues can result in

the loss of needed data. At the least, businesses are interrupted when they are unable to

access data they need. Business owners should back up data regularly to protect against

data loss.

Reduced Physical Audits

When everything is automated, it is easy to forego time-consuming physical

inventory audits. They may no longer seem necessary when the computers are doing their

work. However, it is important to continue to do regular audits to identify loss such as

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 spoilage or breakage. Audits also help business owners identify potential internal theft

and manipulation of the computerized inventory system.

2.6 Analysis and Recommendation

2.6.1 Possible Solutions

The possible solution that can help the store is to have an inventory system

that can easily manage their products and easily compute their sales and

inventory. An inventory system is a process whereby a business keeps track of the

goods and material it has available. Today’s competitive environment is forcing

companies to optimize the procurement processes and inventory levels while at

the same time ensure accuracy of controls and implementation of standard

procedures for the flow of materials.

By reducing opportunities for errors in your counting, shipping and

receiving processes, computerized inventory systems can help bring that number

down. With a computerized inventory system, you'll always know your inventory

levels with just a glance. You may be able to carry less inventory or even go to a

full-blown, just-in-time inventory system, with product arriving from your

suppliers as it's needed that can represent a real cost saving. Using an inventory

system and point of sales can secure all the products of the company and can

monitor quickly and properly the in and out of the money. When everything is

automated, information and data can be more secured than a written record.

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 2.6.2 Proposal Concepts

Inventory system are design to tell you where each product produces the greatest profit.

Most of business relies on inventory system as it plays a vital role by accounting for all

goods or products. In order to help analyzing how the business checking and auditing their

sales, Inventory system makes it faster and more reliable rather than doing manually. Any

business that sells products needs a reliable method for inventory management

point-of-sale software and warehouse tracking, computerized inventory management

systems to make it easy for businesses to stay updated consistently for inventories.

The system has a capability to easy invent all the product in the store, is it can also

accurate generation of reports system includes file maintenance that would automatically

add, delete, and save information of files.

2.7 Design of The Propose System

2.7.1 Technical Objectives

The technical Objective of this project is to develop inventory system for R’

Lights and to ensure efficient and timely identification of vital corporate assets:
To provide Inventory System access to all necessary personnel.
To provide a full range of reports that will satisfy informational requirements.
To reduce labor of inventory management, centralize control and automation.
Develop an automated system that will be able to record, store, retrieve and
generate reports of inventory useful to management in decision-making.

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2.7.2 Scope

o Technical Description

The system will be secured by a User name and its password for the owner

and it has a capability to secure all records. For inventories the system has a

capability to easy invent all the product in the store, it can also accurate

generating of reports system includes file maintenance that would

automatically add, delete, and save information of files.

o Features

The Inventory and Point of Sale System can lessen the workload of the

manager or other employees to checked their list of products if it is still

available.

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2.7.3 Logical Design (Diagram / Discussion)

Product
Supplier
Supplies
Product Code
Product_Name Supplier_ID
Supplies_ID
Shape Supplier_Name
Supplies_Date
Product_Light_Color Supplier_Contact
Suupplies_Quantity
Quality Supplier_Product
Retail_Price
Watts Supplier_Address
Type_of_relay

Category Purchase Customer

Category_ID Purchase_ID Customer_ID

Category_Name Purchase_Date Customer_Name
Purchase_Total Customer_Address
Quantity Customer_Contact

User

User_ID
User_Password
User_Name

Figure 1.5 ENTITY RELATIONSHIP DIAGRAM

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2.7.3Transaction Sequence Model

Figure 1.6 Transaction Sequence

21
 Order Product

Serve Product

Payment

Sales Person
Customer

Search Product

Paymet Record
Search Result
Supplies
Inventory System Duplicate
Produce Supplies
Provide Product

Supplier

Check The Product

Monitoring Supplies

Sales Monitoring
Owner / manager Inventory System Server

2.7.4 Conceptual Design

THIS FORM IS FOR

LOGGING IN, THE
SYSTEM YOU CAN
ALSO FIND HERE
THE CREATE
22 ACCOUNT BUTTON
FOR
REGESTRATION OF
Figure 1.7 LOGIN FORM

Figure 1.8 MAIN FORM

FORM THAT YOU

CAN VIEW THE
INFORMATION OF
THE ACCOUNT
YOU CAN ALSO
DELETE AN
ACCOUNT IN THIS
FORM
23
Figure1.9 USER ACCOUNT INFORMATION

FORM THAT THE

USER CAN
REGISTER OR
CREATE AN
ACCOUNT

Figure 2.1 USER REGISTRATION FORM

FORM THAT THE

USER CAN
CHANGE
PASSWORD OR
CHANGE USER
NAME

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Figure 2.2 EDIT USER ACCOUNT

THIS FORM IS
SHOW IF THE
ACCOUNT IS
INVALID OR
INCORRECT

Figure 2.3 INCORRECT ACCOUNT FORM

THIS FORM IS
SHOW THE
CUSTOMER
INFORMATION
THAT PURCHASE
THE PRODUCT, IT
IS ALSO FOR
DELETING THE
INFO OF THE
CUSTOMER

Figure 2.4 CUSTOMER INFORMATION FORM

THIS FORM IS
FOR ADD
PRODUCT THAT
YOU RECEIVE
FROM THE
SUPPLIER

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Figure 2.5 PRODUCT INFORMATION

THIS FORM IS
FOR ADD A NEW
CATEGORY
PRODUCT OR
NEW ITEM
PRODUCT
Figure 2.6 ADD CATEGORY

THIS IS THE
SEARCH FORM
TO FIND THE
THAT YOU HAVE
IT OR NOT

Figure 2.7 SEARCH PRODUCT

THIS FORM IS TO
SHOW THE
SUPLLIER INFO
AND PRODUCT
CAN SUPPLY

Figure 2.8 SUPPLIER INFORMATION

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 THIS FORM IS TO
ADD A SUPPLIER
INFORMATION

Figure 2.9 ADD SUPPLIER

THIS FORM IS
SHOW THE
SUPPLY ARRIVE

Figure 3.0 SUPPLIES VIEW RECORD

THIS FORM IS
SHOW THE
SUPPLY ARRIVE
AND THE UPDATE
THE QUANTITY OF
PRODUCT THAT
YOU HAVE

Figure 3.1SUPPLIER
FORM

27
 THIS FORM IS
SHOW THE
PRODUCT THAT
YOU SOLD

Figure 3.2 PURCHASE FORM

THIS FORM IS
RECEIPT HAS
COMPUTE THE
TOTAL AMOUNT
THAT PURCHASE
AND INSERT THE
CUSTOMER INFO

Figure 3.3 RECEIPT FORM

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2.7.5 Data Flow Diagram

 CFD

Figure 3.4 CUMMULATIVE FLOW DIAGRAM

29
  DFD Level 1

Figure 3.5 DATA FLOW DIAGRAM LEVEL 1

 DFD Level 2

Figure 3.6 DATA FLOW DIAGRAM LEVEL 2

2.7.6 Resources (Matrix / Discussion)

 Design

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 Items Discussion

A system software that manages computer

hardware and software resources and

provides common services for computer

Operating System
programs. The operating system is a

component of the system software in a

computer system.

VB.NET is a multi-paradigm, object-oriented

VB.NET programming language, implemented on the

.NET Framework.

SQL Server is a relational database

SQL Server management system, or RDBMS, developed

and marketed by Microsoft.

Table 1.2 Resources Design

 Development

Hardware Resources Discussion

PC/Laptop This is where the software will be installed. It will

be use as the tool for monitoring the transaction of

the store sales and inventory.

Software Resources

Sales and Inventory System This is the software to be installed in the PC or

laptop of the store. It has database which is very

helpful when it comes in storing a lot of

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 information and data about the transactions of the

business.

Human Resources

Manager The manager is responsible in checking the daily,

weekly, monthly and yearly profit of the business

with the help of the develop system.

Sales Clerk This is the person in-charge of entertaining the

needs of the customer. Assisting the customer on

where to find their desire products and

maintaining the cleanliness and orderliness on the

store.

Developer These are the person that will create the system

that will be use in processing the transaction of

the store. Responsible on debugging and

maintaining the performance of the system and

updating it time-to-time.

Inventory Clerk This the person who is in-charge of the supplies.

The Inventory Clerk is responsible for the items

that the store needs.

Table 1.3 Resources Development

o Notes

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http://www.sqlservertutorial.net/getting-started/what-is-sql-server/

https://www.merriam-webster.com/

https://www.techopedia.com/definition/16458/visual-basic-net-vb.net

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