Inventory

Republic of the Philippines
EULOGIO AMANG RODRIGUEZ

INSTITUTE OF SCIENCE AND TECHNOLOGY
Nagtahan, Sampaloc, Manila
COLLEGE OF ENGINEERING
CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
This chapter presents the theoretical framework, statement of the problem,
as well as the hypothesis, significance and scope and limitation of the study.
Today, computer has become essential part of life. But it is evident that
most of the countrys institutions still do not use the high technology. Records of
sales, daily transaction and inventories are still done manually specifically in soft
drinks and alcoholic drinks distributor dealer. People know that soft drinks and
alcoholic drinks are highly in demand in our country and many dealers are striving
to serve countless customers as possible with the best of their abilities. But as the
years goes by, the number of customers has grown and various cases arise that
the manual method of managing customers transactions, inventories and updating
sales, is no longer practical.
Dealer knows that number of customers continually increase, managing a
drinks and beverages stores can also become increasingly difficult, especially if
everything is done manually
In this study, researchers develop a system that will minimize all works of
manual methods, therefore allowing owners ease in updating inventory a system
that is fully automated, user-friendly, time effective and efficient.
1
THEORETICAL FRAMEWORK
The framework was designed to display what can be the solutions to the
frequent problems of the soft drinks and alcoholic drinks distributor when recording
the sales and stocks in terms of manual recording. The Inventory Control
Management Database System was named as Refrigerantes e Bebidas it helps
them so easily and how they can be managed to overcome it. With this system, it
can improve the work performance of the employees.
The framework can easily get all the list of the products of the inventory
which is faster than normally sorting it. And it can manage the users or the
employees that can add sales and sales report which is good in managing the
work given. Having these kinds of benefits may affect the workers morale and
work effectively.
STATEMENT OF THE PROBLEM
The main problem concerning the soft drinks and alcohol drinks distributor
is that they do not have a centralized and accurate system for their inventories
which make their work strenuous and difficult to track their product quantities.
Related to the main problem, this study sought to answer the following problems:
What could be the problem of the current system?
What needs to be improved to avoid this problem?
Whats the level of security in the current system?
How to organized and update the records easily?
2
HYPOTHESIS
This research study contains different ideas, perspectives, and insights of
each one of us for the reader to understand our study. The following hypotheses
includes:
1. The study will help the administrators to efficiently monitor the data and
keeps the records accurate.
2. The distributor will greatly benefit with the proposed system as it will
record the data faster.
3. The proposed system will help also the users, or the employees, to
operate the sales.
4. The work of the administrators and the employees will be lessened and
they may share the work of each other.
SIGNIFICANCE OF STUDY
The significance of this study to Inventory Control Management Database
Project is that it will provide easy-to-use and easy-accessed system thus;
transactions will be more reliable and faster that they do not have to hire another
employer to do the job. It gives more accurate and secure records of sales and list
of products.
Owner
The system will make it easier for the owner to manage the inventory
and convenient when it comes to records.
3
Owner staff
Staff can benefit a lot from this study, as they are an integral part of
the whole management.
Customers
Customers are the owners principal assets. And the reason why this
study is conducted is to provide a solution to owners need to better serve
their customers.
Researchers
The researchers have developed their writing, analysis, and
interpretation skills needed to make a good system.
Future Researchers
This will benefit other researchers who wish to have similar studies
as they can get background information from the result of this study which
will serve as template to modify their research.
SCOPE AND LIMITATION
Along the process, sale incurred by the owner will computed and updated
automatically during every transaction and recording of products will be made
accurate, fast and reliable due to reduction of human errors accuracy of data,
provided by the system. The system will also provide automated and dynamic
searching of products to respond inquiries; it will generate accurate records on the
inventory, recent transaction can be viewed in the sales report; and lastly it will
provide system security to protect the business data and stored in the database
4
obliging user to log in and open their specific account, which in turn, are granted
by the system administrator, manager, or owner.
LIMITATION
The system is limited only to its point of sales function such as managing sales,
sales report and product managing such as adding new product and new
category. The system cannot print sales and inventory reports. The system is
intended for inventory control and database management only.
DEFINITION OF TERMS
A statement that describes what something is expressing the essential
nature of something, explaining or making definite and clear.
1. PHP PHP (recursive acronym for PHP: Hypertext Preprocessor) is a
widely-used open source general-purpose scripting language that is
especially suited for web development and can be embedded into HTML.
2. Inventory The value of materials and goods held by an organization
(1) to support production (raw materials, subassemblies, work in process)
(2) for support activities (repair, maintenance, consumables)
(3) for sale or customer service (merchandise, finished goods)
3. Database A database is a collection of information that is organized so
that it can easily accessed, managed and updated. A structured set of data
held in a computer, especially one that is accessible in various ways.
5
4. Admin Admin can be referred as the owner.
5. User User can be referred as the employees.
6. Data flow diagram A (DFD) is a graphical representation of the "flow"
of data through an information system, modeling its process aspects.
A DFD is often used as a preliminary step to create an overview of the
system, which can later be elaborated.
7. Flowchart a diagram of the sequence of movements or actions of people
or things involved in a complex system or activity. A graphical
representation of a computer program in relation to its sequence of
functions (as distinct from the data it processes).
8. Stocks the supply of goods available for sale in a store.
9. Products something that is made or grown to be sold or used of a service.
10. Reports an official document that gives information about a particular
subject.
11. Security the state of being protected or safe from harm.
12. Staff a group of people who work for a business.
13. Transaction the act of process of doing business with another person or
company
14. Accuracy the ability to work or perform without making mistakes
15. Consistency of the same quality or good each time
6
CHAPTER II
REVIEW IN RELATED LITERATURE AND STUDIES
FOREIGN STUDIES
(Henderson, Kj, 2005) the study has three major advantages by using of
inventory system these are (Time savings, Accuracy, and Consistency) which
helps a lot for a business man to increase the sales of their business.
Time Savings
As the old saying goes, time is money. The amount of time that can
be saved by a business is, perhaps, the biggest benefit of using a
computerized inventory system. The only thing a manager would have to do
each day is print out the report highlighting the inventory to be restocked.
Accuracy
An additional benefit of using a computerized inventory system is the
accuracy it ensures. Eighteenth century English poet Alexander Pope is
often quoted as having said, To error is human. When an inventory list is
maintained by hand, the margin of error widens with each update. If one
mathematical calculation is wrong or one typo is made, disaster may occur.
For instance, if a clerk accidentally adds a zero to the end of a purchase
order, a business could potentially end up paying for 10,000 units of
merchandise as opposed to the 1,000 that is actually needed.
7
Consistency
A small business operates most efficiently when its processes are
executed in a consistent manner. By using a computerized inventory
system, a business owner can ensure that all orders, reports and other
documents relating to inventory are uniform in their presentation, regardless
of who has created them.
LOCAL STUDIES
(Ibarra, Venus C., 2008) this study aims to determine whether companies in
different industries in the Philippines use different ending inventory valuation
methods. Data were gathered from 26 companies that are engaged in retailing or
manufacturing nonfood products, drugs and medicines, food and beverages, fast-
food outlets and gasoline trading. Descriptive and inferential statistical analyses
were conducted to determine significant relationships between the nature of their
businesses and the ending inventory valuation method used. The findings of the
study revealed that companies whose inventories are subject to obsolescence or
expiration, use first-in-first-out (FIFO); companies whose inventories are subject to
deterioration use FIFO; companies whose inventories are varied and whose costs
of acquiring inventories are unstable use weighted average.
8
CHAPTER III
RESEARCH METHODOLOGY
This chapter discusses the research available for the study and what is
applicable for it to use in response for the statement of the problem. It consists of
research design, population frame and sampling, description of the respondents,
research instrument, data gathering procedure and statistical treatment of data.
RESEARCH METHOD AND DESIGNS
In this study, descriptive research methodology with normative survey was
used. It is concern with the purposive process or gathering, analyzing, classifying
and tabulating data about prevailing condition practices, process.
The researcher conducts the survey to the selected respondents and
gathers their information regarding their age, gender, course of study, and their
name. This information is helpful to improve the current inventory system.
POPULATION FRAME AND SAMPLE
Stratified random sampling is utilized. This is a type of random sampling
that includes surveying a selected group of subjects from a larger group of people.
Through this useful sampling method, most researchers can sample each
subpopulation of the main population separately. This is an effective and easy way
to get unbiased results from these populations.
The respondents of the study were determined using Slovins formula.
When it is not possible to study an entire population, a smaller sample is taken
9
using a random sampling technique. Slovin's formula allows a researcher to
sample the population with a desired degree of accuracy. It gives the researcher
an idea of how large his sample size needs to be to ensure a reasonable accuracy
of results.
Slovin's formula is written as:

=
1 + 2
Where:
N = Total population
n = Number of samples
e = Confidence Level
Given:
N = 1000 students
e = the researchers used a confidence level of 86%, which will give a margin error
of 0.14
Solution:
1. Computation for the Confidence Level
= 100% 86%
= 14% 0.14
2. Sample Size
1000
=
1 + 1000 (0.14)2
10
1000
=
20.6
= 48.54
49
DESCRIPTION OF RESPONDENTS
The respondents are selected within random students (4th year and 5th year
students) of College of Engineering (CEN) enrolled in Eulogio Amang Rodriguez
Institute of Science and Technology (EARIST).
RESEARCH INSTRUMENT
The survey questionnaire is the primary instrument used to gather data and
information needed in the study. In questionnaire, the researcher used Five-Point
Likert Scale, it is a measurement which five responses categories ranging from
strongly disagree to strongly agree it requires the respondents indicate a
degree of agreement or disagreement which each of series of statements related
to the stimulus objects
The Five-Point Likert Scale and its corresponding weight are used to
evaluate the level of acceptability of Inventory Control Database Management
Project as evaluated by the following scale below:
Weightings Description
1 Strongly Disagree
11
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Likert Weightings
6
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
DATA GATHERING PROCEDURES
The following are the procedures undertaken in gathering data:
1. The researchers prepare a title proposal to be approved by our subject
teacher.
12
2. Upon the approval of the request, the researcher will administer the
survey questionnaire to the selected respondents after evaluation of
finished product.
3. Collect the answered survey questionnaires.
4. Tabulate, compute, analyze and interpret the data.
5. Present the results and data in tabular and textual presentation.
STATISTICAL TREATMENT DATA
The following statistical tools are used in the treatment of the data:
Percentage (%): The percentage is used to determine the quantitative relation to
the whole response. The process of gathering the percentage was dividing the
frequency (sum of responses) by the total number of responses.
Formula:
%= (f/n) x 100
Where:
% = Percentage
f = Frequency
N = Total number of respondents
Weighted Mean: This is used to aggregate a set of scores, to determine the
quality and test the level of agreement or acceptance.
13
Written Formula:
Where:
= weighted mean
f = frequency
= summation
n = total number of respondents
The Five-Point Likert Scale and its corresponding weight are used to
evaluate the level of agreement for Inventory Control Database Management as
evaluated by the selected respondents.
Options Verbal Interpretation Equivalent Point
5 Strongly Agree 4.20-5.00
4 Agree 3.40-4.19
3 Neutral 2.60-3.39
2 Disagree 1.80-2.59
1 Strongly Disagree 1.00-1.79
14

Inventory

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Inventory

Uploaded by

Copyright:

Available Formats

Republic of the Philippines

EULOGIO AMANG RODRIGUEZ

THE PROBLEM AND ITS BACKGROUND

This chapter presents the theoretical framework, statement of the problem,

the manual method of managing customers transactions, inventories and updating

sales, is no longer practical.

Dealer knows that number of customers continually increase, managing a

everything is done manually

manual methods, therefore allowing owners ease in updating inventory a system

that is fully automated, user-friendly, time effective and efficient.

Management Database System was named as Refrigerantes e Bebidas it helps

can improve the work performance of the employees.

STATEMENT OF THE PROBLEM

What could be the problem of the current system?

What needs to be improved to avoid this problem?

Whats the level of security in the current system?

How to organized and update the records easily?

This research study contains different ideas, perspectives, and insights of

keeps the records accurate.

record the data faster.

operate the sales.

they may share the work of each other.

The significance of this study to Inventory Control Management Database

Project is that it will provide easy-to-use and easy-accessed system thus;

and convenient when it comes to records.

the whole management.

study is conducted is to provide a solution to owners need to better serve

The researchers have developed their writing, analysis, and

interpretation skills needed to make a good system.

will serve as template to modify their research.

SCOPE AND LIMITATION

automatically during every transaction and recording of products will be made

searching of products to respond inquiries; it will generate accurate records on the

by the system administrator, manager, or owner.

intended for inventory control and database management only.

A statement that describes what something is expressing the essential

nature of something, explaining or making definite and clear.

1. PHP PHP (recursive acronym for PHP: Hypertext Preprocessor) is a

widely-used open source general-purpose scripting language that is

2. Inventory The value of materials and goods held by an organization

(1) to support production (raw materials, subassemblies, work in process)

(2) for support activities (repair, maintenance, consumables)

(3) for sale or customer service (merchandise, finished goods)

3. Database A database is a collection of information that is organized so

held in a computer, especially one that is accessible in various ways.

4. Admin Admin can be referred as the owner.

5. User User can be referred as the employees.

6. Data flow diagram A (DFD) is a graphical representation of the "flow"

of data through an information system, modeling its process aspects.

A DFD is often used as a preliminary step to create an overview of the

system, which can later be elaborated.

7. Flowchart a diagram of the sequence of movements or actions of people

or things involved in a complex system or activity. A graphical

representation of a computer program in relation to its sequence of

functions (as distinct from the data it processes).

8. Stocks the supply of goods available for sale in a store.

9. Products something that is made or grown to be sold or used of a service.

10. Reports an official document that gives information about a particular

11. Security the state of being protected or safe from harm.

12. Staff a group of people who work for a business.

14. Accuracy the ability to work or perform without making mistakes

15. Consistency of the same quality or good each time

REVIEW IN RELATED LITERATURE AND STUDIES

be saved by a business is, perhaps, the biggest benefit of using a