CHAPTER I
INTRODUCTION AND ITS BACKGROUND
Introduction:
Computers make works easier and faster. With this thing, you can create anything like programs that may help you make your work easy. Now, we have Sales inventory system which can be consider a big help when it comes to large businesses. It can make your work more detailed, faster, accurate and less error. The researchers conduct an interview with the owner of Shapers Family Shop at 10518 Grove Street, Lopez Avenue, Brgy. Batong Malake, Lopez Avenue, Los Baños, Philippines. (Abdul Hakeem Esmail, 2011) manual inventory is a handmade list of materials or goods used in certain business. Like in Shapers Family Shop, they are still using a manual inventory. With this process, they might encounter some problems or difficulty. Manual inventory relies heavily on the actions of people, which increases the possibility of human error.
People might forget to record a transaction or simply miscount the number of goods. This may results in needless additional orders that increase the company’s inventory carrying costs, meaning the business could run out of a crucial item at the wrong time. (Chris Joseph, 2011) Meanwhile, there is this thing called sales and inventory system. This system can replace the cost and time consuming processes that were once completed by hand while providing companies with more accurate data. This system is used to track the merchandise and goods of retail stores, grocery stores, hardware stores, etc. Automated inventory systems play a large role in today’s businesses, especially the retail industry. This is because businesses want the ability to access and organize data in a quick and efficient manner. (Lexi Hartman, 2005)
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... Inventory System is designed for a business that desires a control over stock levels and inventory tracking. This system ... time. Using this type of system, a company/business makes strategic business decisions regarding raw material ... because of the non-availability of goods. Huge inventories are a drain on resources, ... using computer technology and a system can lessen the works of an individual with ...
Background of the Study
In the year August 1, 1990, Mr. Vital started a business named, Shapers Family Shop at 10518 Grove Street, Lopez Avenue, Brgy. Batong Malake, Lopez Avenue, Los Baños, Philippines . This shop has 3 components; Computer shop, Boutique Shop and Parlor Shop. It provides the customers t-shirt printing, renting of computers, body accessories, document or thesis printing, scanning and hair treatments. Shapers Family Shop uses a manual inventory system that causes some human error and time consuming for the transactions. The other problem is that, they only have limited staff who helped them handling the inventory.
After hearing the background of the business and the common problems that they have encountered, the proponents planned to help them to lessen the errors and the time consumed by providing a sales and inventory system. Sales and Inventory System is a kind of software that allows businesses to input their inventory, track and manage the incoming and outgoing products that were delivered and sold.
This research study aims to create a sales and inventory system for Shapers Family Shop that the owner and the staff may use to make the records of their sales and products accurate. It can also make their work easier and more detailed because it will lessen the time they use in recording the goods or merchandises.
PROBLEM DEFINITION
This section states the main and specific problems that basically point to the need of an advance method of montoring the sales and inventory system of Shapers Family Shop. It also cites the inconvinience and problems identified on the current system Main problem of the study:
Shapers Family Shop is using a manual inventory system that encounters unorganized list of products and sales, unknown total income at the end of the day and time consuming for listing and counting manually the products sold and sales. It does not update at the end of the day with updated inventory counts. This means you must go through the inventory items each time you need to place an order for new products or supplies for the inventory. The specific problem of the study:
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The study, therefore, sought to answer the following questions 1.How much is the estimated income in one day?
2.How can the employee list the items sold during a single work day? 3.How many is the estimated sold products in one day?
4.How can the owner view the list of all products?
Objectives of the Study
This section discusses the main and specific objectives of the study that will solve the problems which has been identified.
Main Objective of the study:
The main objective of the project is to design and develop a Sales and Inventory System that will show the list of sold products, compute the income for the day, lessen the consumed time in recording the sales and minimize the possibility of having an error while recording the sales. The specific objectives of the study:
Specifically, the study aims to
1.To make the computation of daily income accurate.
2.To lessen the difficulty in listing the products sold.
3.To make it easy to count the list of products sold.
4.To make it easy to view and search the products.
RESEARCH FRAMEWORK
This section discusses the theories that the proponents came up from the related studies that they gathered. This help the proponents to understand better and analyze the different dimensions of the study. Theoretical Framework
This table shows the Tangible benefits of the Shapers Sales Inventory System.
Tangible Benefits Worksheet
Shapers Sales Inventory System
(Year 1-5)
A.Cost Reduction or Avoidance30, 000
B.Error Reduction 5,000
C.Increased Flexibility10,000
D.Increased Speed of Activity10,000
E.Improvement of the Management35,500
Planning or Control
F.Other ______________________0
TOTAL Tangible Benefits P90, 500
This table shows the One-Time cost of Shapers Sales Inventory System.
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One-Time Cost Worksheet
Shapers Sales Inventory System
(Year 1-5)
A.System Development50,000
B.New Hardware And Software purchase65,000
C.User Training5,000
D.Site Preparation0
E.Data or System conversion0
TOTAL One-Time CostP120, 000
This table shows Recurring Cost of Shapers Sales Inventory System.
Recurring Cost Worksheet
Shapers Sales Inventory System
(Year 1-5)
A.Application software maintenance10,000
B.Incremental data storage expense 5,000
C.Incremental Communications 5,000
D.New Software and Hardware leases 0 E.Supplies and other expenses10,000
TOTAL Recurring Cost P30, 000
This table shows the Cost –Benefit Analysis of Shapers Sales Inventory System.
SCOPE AND LIMITATIONS OF THE STUDY
Scope and Limitation
The study focused mainly on the sales inventory system of Shapers Family Shop. The proposed system has the modules containing all the information about their sales and the items being process. All information is stored in the database which contains security features in order to protect the data from the unauthorized use. This study will be conducted in Los Baños, Laguna. It involves interviews to the owner of the shop and observations of their process and lifestyle that may help to identify problems on their business. This study intends to resolve the following problems that were mentioned in Main and Specific Problems of the Study. It will also help them to have a consistent and organized process for their business.
The respondents of this study are the owner of the shop and their staff. This study will be conducted for a week only. The first day will be the interview to the respondents and the next day/s will be the thesis proposal.
The researchers will be using VB.Net and MYSQL.
Significance of the Study
The proponents decided to develop a sales inventory system for Shapers Family Shop. It specifically aimed to resolve each problem and lessen the difficulties of the business and its staff.
There are several beneficiaries of this study and these include the Shapers Family Shop itself. With the functions catered by this system, the performance of the work inside the business may improve. The expenses of the company which are reserved for the materials to be used in the current manual system will be minimized because this system does not require massive amount of papers for the filing and documentation.
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This system is regarded to be very useful to the owner of Shapers Family Shop. Since they are the ones who will use the system, it will make their work fast and error-free. There is a huge difference between the usage of their current system and the usage of this system, because this system features some functionality that reduces time and effort in placing items and sales description, easily monitor the sales and generate reports for improving their works.
The primary beneficiaries also include future researchers, in which they can use this study as a reference material. This study shares information to future researchers about the sales monitoring, as well as the inventory system of the said business.
Lastly the proponents benefitted in this study, especially during the data assessment process and system development. The proponents acquired several skills that can be used for their future jobs in terms of dealing with clients, as well as developing a system that may contribute to the IT industry.
