Chapter 1: Introduction

Context of the study

Web based inventory management system is used in managing, monitoring and
maintaining the Business inventory operations. This system removes errors and
lessens issues when it comes to the traditional methods of measuring stock levels.
Web based management system keep tracks of the in and out process of products.
Sales management System helps business in managing customer relationships.
It simplifies business processes that help in forming strategic plans to stay organized.
It entitles all management of activities related to customer sales such as sales
reporting, orders and invoicing.

The team will develop a web technology system for managing the inventory and
sales of Cuna Hardware that will automate the activities in managing and monitoring
sales and inventory information.

Background
Cuna hardware is a family business owned and managed by Julian Go Cuna,
the late father of Adamson G. Cuna. The business originated from Dagupan City. Its
original name is Megasco, due to the success of the business they have decided to
expand their business in Baguio City in the year 1993.
Cuna hardware has three branches, which are located at Naguilian Road, Pico
La Trinidad Benguet and wangal benguet which is their main branch. The business
offers selling of different construction materials. They also provide construction
supplies to other Hardwares. 88L
Each branch deals with 50-70 transactions per day, this includes delivery
transactions to other hardware establishments. Items sold vary from 500 to 800 each
day. Each branch has a computer and an internet connection. The use of telephone is
the only way for the three branches to communicate.

Sales Management
Cuna Hardwares main business is to sell construction supplies and machines.
Each branch makes use of a paper based spreadsheet

in recording their daily sales

inventory which is collected by the owner at the end of the day. When a customer
wants to buy a certain item the secretary will check that certain item on their stock
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record which is on a paper based spreadsheet that is placed in a clear book. If the item
is available and the customer would like to buy it, the secretary will issue a cash
invoice receipt for direct payments. For big orders like construction sites, the mode of
payment could be in a down payment basis where the customer first would pay the
half of the total amount in this transaction the secretary would issue a charge invoice
receipt there the down payment is listed same as the remaining balance, a duplicate
receipt will be given to the customer. Once the customer paid for the remaining
balance the secretary will now give the official charge invoice receipt and marks it as
paid followed by the date. For the main branch they dont make use of the daily sales
inventory since the owner stays there.

Inventory Management
Each branch makes use of a paper based spreadsheet in recording their sales
inventory. Every item sold is deducted in the inventory list. The main branch doesnt
make use of their inventory list

Re ordering of Products
If a product is unavailable. Every branch could automatically order from the
supplier, but the owner needs to verify the list of orders to be ordered. The owner is
responsible for the go signal.

Receiving delivered products

If the products arrived, the secretary will double check the list of the items and
update the inventory list. The owner is responsible for the go signal of the delivery
coming from the supplier.

1.1Statement of the Problem

The project focuses in the development of Cuna Hardwares inventory and sales
management system. It specifically answers the following questions:

How will the system be implemented and deployed?

What are the functional requirements for Cuna Hardwares Sales

and Inventory Management System?

What technologies will be used in developing the inventory and
sales management system of Cuna Hardware

1.2Scope of the Project

The project will primarily focus on creating a system specifically for the Cua
Hardware. The project will cover the inventory and transaction process of the
company.

The system will be a web based application that will provide the

company employees efficiency in their work. The web app will have the ability to let
the owner view the updates in the different business operations of the company
branches. It will also be used by the secretaries as well as the managers to view
and entertain incoming orders. It will also provide the customers a hassle-free
experience on buying their desired product.

1.3Statement of Objectives
The main goal of the project is to develop a web based inventory and sales
management system of Cuna Hardware that would help improve its business
operations.

To implement and deploy a web based application for the inventory and sales
management system of Cuna Hardware using the selected technologies and

system architecture.
To determine features that could be implemented in the development of the
system and functional requirements of the proposed system.

1.4Significance of Study
The proposed project would help the company in making their system organized
with this way the company would be able to keep track of their different stocks on
a daily basis as well as their sales. The system would help the owner check its
different branches. This would make the daily business operations of the business
establishment faster at the same time accurate.

Chapter 2: Methodology
The model that the team will be using in this methodology is the scrum model.
This development model was chosen due to its incremental and iterative nature. The
advantage of using scrum development model is the direction of the project is
adjustable or changeable since the basis of the progress of the project is the results or
the assessment of every sprint.
There are five phases in the scrum development model, this phases are the
initiate, plan and estimate, implement, review and retrospect, and release. In the
Initiate phase, the processes that are included are the processes that are related to the
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initiation of a project. The initiate phase is where the vision for the project is being
created, also this phase is where a scrum master and stakeholders will be identified,
another is that this phase is where the forming of the scrum team will occur, and last
is the conducting release is being planned and the prioritized product backlog is being
created. Therefore this phase is the first phase on creating a project. The plan and
estimate phase is where the used stories is being create, approve, estimate and
commit, this is also where a task is being estimated and a sprint backlog is being
created. The implement phase is where a task is being executed and a project product
is being created. The Review and retrospect phases is where the accomplish work and
the deliverable is being review, also in this phase the developer can improve the
method that was been used in to the project. And the last is the release phase, this is
where a complete deliverable or a project is being delivered to a customer and also this
is where the lessons learned will be identified, documented and internalize.
Chapter 3: Outcomes and Results
Analysis
Functional
Process-oriented
-

Update stocks (real time)

Track location of stocks and their quantity within the Company.
Raises a signal whether a product has reached the minimum

quantity of availability.
A Customer may cancel his/her order, wherein the products in the

cancelled order will be counted back to the inventory.

The need to produce a report that shows the list of sales transaction

and their corresponding details

The need to automatically calculate the due date of the last
payment for the installments/down payments

Information-oriented
-

Quantity of stocks and their location.

Record of customers from the day they availed the product.
Daily records of total sales.
Categorize types of hardware through the use of Tags.
Records of items returned (i.e. Defected items) by the Customer

based upon warranty.

Recommended orders and new items are displayed.
Records the information such as item name, item description and

category
Show the return transaction that took place in the company
Show items that are frequently returned by the customers
Show the total number of orders for a particular item.
Show all Cheque information that the company received
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The need to capture information regarding the suppliers

The need to capture information about the categories of their

products
The need to produce a report that shows the list of product models

in the inventory and the corresponding details

The need to produce a report that shows the list of suppliers and

their corresponding details

The need to produce a report that shows information about the
available stocks of a product

Design Specification
Activity Diagram

Data Flow Diagram

Data Dictionary
A

Accountant

Employee_ID + Employee_Name + Employee_Address

+Employee_ContactNo

Approved_Invoice

{Invoice} + Confirm_Approval + Proval_Date

Customer_AddressNo

{digit}

Customer_City

{character}

Customer_fName

{character}

Customer_lName

{character}

Customer_M.I

{character}

Customer_Street

{character}

Category

{character}

Check_Availability

[Yes/No]

Confirm_Approval

[Manager_Approval | Manager_Dissaproval]

B
C

Customer

Customer_ID + Customer_Name + Customer_Address

+ Customer_ContactNo

Customer_Address

Customer_AddressNo+

Customer_Street

Customer_City

Customer_ContactNo

{digit}

Customer_ID

{digit}

Customer_Name

Customer_lName + Customer_fName + Customer_M.I

Date_Ordered

[MM/DD/YYYY]

Date_Issued

[MM/DD/YYYY]

Date_Purchased

[MM/DD/YYYY]

Date_Supplied

[MM/DD/YYYY]

Employee_AddressNo

{digit}

Employee_City

{character}

Employee_fName

{character}

Employee_lName

{character}

Employee_M.I

{character}

Employee_Street

{character}

Employee_Address

Employee_AddressNo

Employee_Street

Employee_City

Employee_ContactNo

{digit}

Employee_ID

{digit}

Employee_Name

Employee_lName + Employee_fName +Employee_M.I

{digit} + {character}

{digit} + {character}

Inventory_Details

[Total_Sales |Returns]

Invoice

Invoice_No

Foot

Gallon

H
I

Supplier_ID

Supplier_Name+

Product_ID +
Product_Name + Supplier_Amount +
Supplier_Quantity+ Unit + Date_Supplied

Invoice Store

{Invoice} + Invoice_Date

Invoice_Date

[MM/DD/YYYY]

Invoice_No

{digit}

{digit} + {character}

Length

{digit} + {character}

Liter

{digit} + {character}

Manager_fName

{character}

Manager_lName

{character}

Manager_M.I

{character}

Manager

Manager_ID + Manager_Name + Manager_ContactNo

Manager_ContactNo

{digit}

Manager_ID

{digit}

Manager_Name

Manager_lName +Manager_fName +Manager_M.I

Manager_Purchase_Req

Product_ID +Product_Name + Purchase_Quantity +

J
K

Kilogram

uest

Measurement

Unit + Purchase_Date + Supplier_ID

[Foot|Gallon|Kilogram|Length|Liter|Meter|Pc|

10

Sq._Foot|Sq._Meter|Yard]

Meter

{digit} + {character}

(New)Purchase_Request

Order_ID + Product_Name +Product_Quantity + Unit

No

Order

+
Product_Amount + Date_Ordered

Order_ID

{digit}

Ordered_Products

Product_ID + Product_Name + Supplier_Quantity +

Unit + Supplier_Amount + Date_Supplied

Pc

{digit} + {character}

Product

Product_ID + Product_Name + Date_Purchased

+ Category + Product_Quantity + Unit +Warranty +
Product_Amount + Supplier_ID

Product_Amount

{character} + {digit}

Product_ID

{digit}

Product_Name

{character}

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Product_Quantity

{digit}

Product_Request

Product_Name + Product_Quantity + Unit

Product_State

[Invalid/Replacement]

Proval_Date

[MM/DD/YYYY]

Purchase_Date

[MM/DD/YYYY]

Purchase_Details

Product_ID

Product_Name

Unit

Product_Quantity

Purchase_Quantity

{digit}

Purchase_Record_Detail

Invoice + Invoice_Date

Product_ID +Product_Name + Purchase_Quantity +

Purchase_Request

Unit + Purchase_Date + Supplier_ID

Purchase_Store

[Manager_Purchase_Request | Purchase_Request]

Receipt_No

Receipt

Product_ID

Product_Name

Sold_Quantity +
Unit + Product_Amount + Warranty_Date

Receipt_No

{digit}

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Reports

[Sales_Record_Details | Purchase_Record_Details |
Inventory_Details ]

Returns

Receipt_No

Return_Quantity

Unit

+Product_Status

Return_Quantity

{digit}

Sales

Order_ID

Sales_Details

Sales_ID + {Order}

Sales_ID

{digit}

Sales_Record

[Manager_Purchase_Request | Purchase_Request]

Sales_Record_Details

[Sales | Returns]

Sold_Quantity

{digit}

Sq._Foot

{digit} + {character}

Sq._Meter

{digit} + {character}

Supplier

Supplier_ID + Supplier_Name

Supplier_Amount

{character} + {digit}

Supplier_ID

{character}

Supplier_Name

{character}

Supplier_Quantity

{digit}

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Measurement

[True/False]

Warranty_Date

[MM/DD/YYYY]

Warranty_Information

Receipt_No + Date_Issued + Warranty_Date

Yard

{digit} + {character}

Yes

(New) Order

True

Unit

V
W

X
Y

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Entity Relationship Diagram

15

Data Schema
CASH (Payment_ID, Amount)
FK Payment_ID References PAYMENT Nulls Not Allowed

CHEQUE (Cheque_No, Payment_ID, Amount, Cheque_Date_Issued, Cheque_Expired,

Bank)
FK Payment_ID References PAYMENT Nulls Not Allowed

CUSTOMER

(Customer_ID,

Customer_Name,

Customer_Address,

Customer_Contact_No)

ONLINE (Order_ID, Order_Date)

FK Order_ID References ORDER Nulls Not Allowed

(Order_ID,

ORDER

Product_Name,

Product_Quantity,

Unit,

Product_Amount,

Date_Ordered, Customer_ID, Product_ID)

FK Customer_ID References CUSTOMER Nulls Not Allowed
Product_ID References PRODUCT Nulls Not Allowed

PAYMENT

(Payment_ID,

Payment_Date,

Payment_Time,

Payment_amount,

Customer_ID)
FK Customer_ID References Customer Nulls Not Allowed

PRODUCT (Product_ID, Product_Name, Date Purchased, Category, Product_Quantity,

Unit, Warranty,

Product_Amount, Supplier_ID)

FK Supplier_ID References SUPPLIER Nulls Not Allowed

RECEIPT (Receipt_No, Product Name, Quantity, Amount, Sales_ID)

FK Sales_ID References SALES Nulls Not Allowed, Delete Restrict, Update
Restrict

RETURNS

(Return_No,

Product_Name,

Quantity,

Product_Status,

Sales_ID,

Supplier_ID)
FK Supplier_ID References SUPPLIER Nulls Not Allowed
Sales_ID References SALES Nulls Not Allowed

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SALES

(Sales_ID,

Product_ID,

Product_Name,

Product_Quantity,

Unit,

Product_Amount, Date_Ordered, Receitp_No)

FK Product_ID References PRODUCT Nulls Not Allowed
Receipt_No References RECEIPT Nulls Not Allowed

SUPPLIER

(Supplier_ID

Supplier_Name,

Supplier_Address,

Contact_number,

Product_ID)
FK Product_ID References PRODUCT Nulls Not Allowed

WALKIN (Order_ID, Order_Date)

FK Order_ID References ORDER Nulls Not Allowed

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Prototype

Home page of the system when accessed by the user.

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Products tab that provides different categories of products that are sold in Cua
Hardware.

This page consists of general information about Cua Hardware.

This page consists of contact information of Cua Hardware that can be used by the
user for comments and suggestion.

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Organized Data

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Chapter 4: Conclusions and Recommendation

The main problem of the business process is paper-based sales record, wherein,
they have to keep valuable data in tangible form. Because of data being tangible,
certain issues arise such as, inaccuracy and inconsistency of data caused by human
error, permanent loss of data caused by events. Another problem is that each branch
have their own independent inventory in which the Manager needs to go to monitor or
collect daily transaction of the business process. This paper-based record helps them
to keep track of their business transaction, however, sometimes it leads to inaccuracy
because of changing prices in the paper records when balancing the inventory and in
statement of assets and liabilities.

Having a centralized inventory which will help the Manager to monitor the
inventory of each branches to main branch, at the same time, it reduces the cost and
time travelling each branches to collect business transactions. This main branch can
access the inventory of the other branches while the branches can only access their
own inventory. For every transaction made, the inventory is being updated to keep
track of the number of supplies. The main branch will check the inventory of the other
branches for the availability of the item.

References

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