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Chapter 1

THE PROBLEM AND ITS SCOPE

Introduction

Recently, people are looking forward to the advantages that technology is offering.
Technology comes from discoveries of man; therefore, it includes the utilization of both
primitive and highly advanced tools and methods of works. The inventions and therefore the
development of technology permitted people to expand their work on the shortest possible
time. With the help of technology, people are now using the foremost important and most
highly developed machine man has ever invented: the computer.

Computer has changed the way people work specially within the field of industry and
commerce. Most businesses have used this in finishing up different business transactions.
Computer has been greatly valued for its skill to execute tasks more hastily and more
accurately than any individual had. These tasks include solving numerical calculations,
storing necessary information, and organizing files which will be employed by management
and other departments within the company in making economic decisions.

Point of Sales and Inventory System could also be a computer may be a simple way
of checking and listing of the sales of the company, it's faster and more reliable rather than
doing manually. The system can minimize human errors in editing and be easily access
anytime by the company. Sales and inventory system makes the company simpler, more
productive and is convenient for the company and its customers. The system is making to
help the establishment show more relevant items to the purchasers.

However, even with the existence of those highly developed technologies, some
business firms still prefer the manual system, which needs more effort, time, costs, and
resources, due to its simplicity. Yet, it is apparent that as the business gets larger, its
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processes becomes complicated and thus requires a more convenient tool, which will help
attain the company’s goals and objectives. Organizations have to consider, acquire, allocate
and control certain factors which are necessary to achieve these goals and objectives.
Inventory management, being one of these factors, has always been a major preoccupation
for the company’s survival and growth.

A manual inventory system tracks inventory with a pen and clipboard, a log books, or
with an Excel spreadsheet. Manual inventory entails regularly updating inventory counts
through physical relying on a day to day, alongside determining the transactions are suffering
from inventory movement. These are the drawbacks of using a manual inventory; system
time consuming, labor intensive since it requires users to physically count inventory, at risk
of human error, no real time reporting, poor communication among employees, requires
employees to stay a written log of inventory getting into and out and burdensome paperwork.
For a really small business with limited income, the manual inventory method could be
effective. Nerveless, most businesses with no computerized inventory management system in
place may experience lower productivity, inventory shortages and missing equipment.

In general, it's necessary to weigh the value of a listing management system versus
the value of employees’ time to trace inventory and count inventory. you'll find that a listing
control solution pays for itself since employees are ready to spend time on other things than
monitoring inventory.

Statement of the Problem

This study aims to develop an automated Inventory System with Point of Sales (POS)
to solve the problems of the existing manual process like purchasing, sales monitoring and
inventory management.
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The present sales transaction is highly labor-intensive to operate that require

continuous monitoring to ensure that each transaction is recorded and accounted. The process
of buying something in the store is time consuming because they do it manually and writes
every record of sales in the logbook. Using the manual process will take time to
accommodate when there are many costumers to attend to. Lack of security in terms of their
sales and inventory or their products. The inventory is managed and update on an excel
spreadsheet which has been an outdated form of recording and maintain the inventory of
materials as it is really difficult to enter the data and then update the data on daily basis. It
takes a lot of time to monitor and update their sales every day because they have to search
and compute it manually which causes a delay on their targeted day to report the sales.

But with the aid of Computerized Inventory Management System with Point of Sale,
it will fasten the process of purchasing. The implementation of database that will saves time
and effort in monitoring sales, a file maintenance module that will handle the files, records
transaction and important data of the business.

Statement of Objectives

Overall, our objective is to give the users need in accurate process and provides easier
and secured inventory system. In order for the researchers to come up those specific
objectives and goals, researchers must dig more information about the problems. The user or
the manager of the store be will able to record, compute and manages the inventory system in
easier way and convenient.

This study pursued the following specific objectives:

 To design, implement and develop a module that will handle the security for the
system.
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 To design, develop and implement a file maintenance module that will handle
the files, records and important data of the business
 To design, develop and implement a sales module that will handle the sales
transaction of their company
 To design, develop and implement a generated module that will handle the sales
and inventory reports
 To design, develop and implement an inventory module that will handle
inventory of products.
 To design, develop and implement a systematic barcode reader that stores
information about the products and perform its operation.

Scope and Limitations

Products and services that depend on raw materials, parts and other supplies
need consistent inventories to operate effectively and to maximize profits. As stock arrives, it
is scanned into the system and placed for sale. When a purchase is made, stock is scanned at
the cash register and the system updates, so inventory is always current. Scope may refer to
different aspects of how inventory counts are conducted or to the way inventory information
is used. Mrs. Payla, the manager of the store may use inventory information to control the
costs of raw materials and to maximize margins. It may also require having staff who are
dedicated to inventory management. On the other hand, a small business may not need more
than an occasional and rather informal scan of its cleaning supplies inventory to function
efficiently.

Significance of the Project

The purpose of this project is to make the offline user-friendly automated

system transaction of their merchandise store competent and well-organized. This will be
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also beneficial to the management of the store and its members that it will be more efficient
and much easier for them to use.

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This segment presents a review of documented sources on the meaning, essence and
development of Inventory management and Point of Sale (POS). The researches sought to
spotlight how sales and inventory systems have transformed because the industry pursue to
incorporate more of technology. With these changes in system design, it's therefore important
to review these technologies and human computer interactivity that make this revolution
possible. The researchers also studied the literature to acknowledge what advantage the
industries stand to derived from this new system of point-of-sale and inventory.

According to Mr. Eugene F. Brigman, Fundamentals of economic Management, 5th

edition published at 2015, Companies nowadays are increasingly employing Inventory
System. A computer starts with a list counts in memory. Withdrawals are recorded by the pc
as they're made, and therefore the inventory balance is continually revised. When the
recorded point is reached, the pc automatically places an order, when this new order is
received, the recorded balance is increased. Retail stores have carried this method quite far,
each item incorporates a magnetic code, and as on item is confirmed, it passes over an
electronic reader, which then adjusts the computers inventory balance, at the identical time
the value is fed to register tape. When the balance drops to the recorder point, an order is
place. The researcher aims to develop an automated inventory system which is technically,
operationally, and economically. the strategy utilized by the researcher to develop an
automatic inventory system is Descriptive Method. The researcher conducts several
interviews so as to collect information about this existing conditions of the inventory system,
knowing its problems and enhancing it by developing an automatic inventory system.
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Questionnaires were also distributed to all or any interviewees for added information. Using
the descriptive method, the researchers also observe the functionality of this inventory
system, which help them discover that Electronic Data Processing is Advantageous than
other.

According to Mathew Cote, the ability of Point of Sale, published at April 2015. There
are three main systems that may increase the profitability of a business when updating from
manual checkout processes. the primary could be a Point of Sale (POS) system, the second is
a listing Management (IM) system, and also the third could be a Customer Relationship
Management (CRM) system. Updating POS and IM are explored within the scope of this
project. The initial POS system includes the technology accustomed complete and record
sales transactions on sales floor. Typically, it involves barcoded items, scanning devices, a
checkout interface or terminal, and extra features. This recorded information enters a
database which is either stored on a corporation server (normally bought a software package)
or stored on a cloud-based server (Software as a Service [SaaS]). A POS system is that the
foundation for the opposite two systems to foundation.

The best thing about having a computerized Point on Sale System in your retail
business is: as new stocks arrives and as it is sold, it keeps the stock levels viewed and
updated, making it is easier to identify which items are sold and which items are not. A Point
of Sale System is also good in checking for any product that are out of date stock that needs
to be disposed. If you are still relying on your manual inventory setup on the shelves or in the
warehouse, you should think twice about your method, for there are many advantages in
using a POS System. One advantage of a Point of Sale System is its ability to help your
business achieve detailed real-time stock level information. In addition, a Point of Sale
System also give you information such as public holidays and major sporting events, which
can be of great help in determining the stock level of seasonal products. You can now
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efficiently and effectively handle your stock management accurately and secured (Ganderton,
2010).

The aim of inventory management is to carry inventories at all-time low possible cost,
given the objectives to make sure uninterrupted supplies for on-going operations. When
making decisions on inventory, management should find a compromise between the various
cost components, such as the prices of supplying inventory, inventory-holding costs and costs
resulting from insufficient inventories (Hugo, Badenhorst-Weiss and Van Rooyen 2002:169).

Under the Korean Red Ginseng Enterprise Sales and Inventory System, the
researchers came up with a computerized sales and inventory system. The proponents used
database to quick access of files and for easier and faster processing of the selling and
inventory transaction. The program was designated to come up with reports like monthly
reports, inventory reports, sales invoice and list of thing. In reference to the proposed system,
the proponents proposed a replacement and faster way of processing business transactions.
The system also helped the user to understand the supply of the products. It also helped the
manager to observe the stocks and to urge immediate notice for acquisition of additional
products. (J. De Leon, M. Ferrer 2009)