Sale and Inventory Management System
Sale and Inventory Management System
Sale and Inventory Management System
Version: (3.0)
Presented To:
JUNE ARREB DANILA
Marvin Monteagudo
Irvin Villanueva
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ABSTRACT
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TABLE OF CONTENTS
1.1 Project Background ...............................................................................................5
2.1 Sales and Inventory Management System: History and Concepts ........................10
CHAPTER 3: METHODOLOGY
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3.6.1 Interview and Observation……………………………………………….17
CHAPTER 5: CONCLUSION
REFERENCES.................................................................................................................59
APPENDICES..................................................................................................................61
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CHAPTER 1
INTRODUCTION
PROJECT BACKGROUND
The retail industry is one of the industries that is growing in fast pace where
the number of retail business keep on increasing from time to time to meet
the demand from consumers of specified areas. There are different types of
retail shops available for the consumer to choose ranging from hypermarket
to mini market according to their convenience. Most of the shops can be
found in residential areas, streets, or a shopping mall. Retail store sells a wide
range of goods and services from wholesaler or supplier to the end-user.
Thus, the nature of the retail business required good management of
inventory level to meet the demand of the customers.
The traditional way retailer keeps their sales and inventory details is in
spreadsheets which are not effective anymore when the size of the shop gets
bigger. This is because more items will be made available in a larger quantity,
thus tracking the sales made with inventory level in the shop would be
complicated and time-consuming for the retailer. Besides, the situation gets
worst when the retailer does not have a proper method to determine items
purchased by their customers.
Thus, this project will provide a solution for retailers that are still using
traditional ways in keeping their inventory data like ‘Tokyo Gadgets Store, by
creating POS and Inventory system Management System is a computer-based
system that provides the shop structure for maintaining and controlling
goods to be stocked. The approach of Sales and Inventory Management
System is commonly used to avoid product overstock or outrages by
integrating daily ‘Point of Sales’ with store’s inventory level
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PROBLEM STATEMENT
Problem Identification
POS and Inventory is one of the important departments that must be well
managed to ensure daily business activities run smoothly. However, Tokyo
Gadgets Store still does have an Inventory management system or POS as
they are not equipped with a computerized system in running their business.
As a result, the security level of all data, documents, and anything that related
to daily transaction and inventory is very low. A lot of documents have been
kept for each good and for each supplier which consumes a lot of time and not
effective for future references. Besides, due to poor POS and inventory
management, Tokyo Gadgets Store also faces problems in identifying the
quantity sold for each item per day and the available inventory level of the
items lose product and money. Existing inventory management also does not
provide any means of detecting aging Products like Power Bank, connector
Rex Pods, Tablet, Laptop, etc. Failure to identify the aging of certain Items
causes the store to incur losses profit because when the item like to Tokyo
Gadget Store is just stock for a long period time and the item lose their value
due of being stock for a long period time.
As the current system used just acts as calculated to calculate the total
amount of each customer purchase and does not any database link with it, the
system does not have the capability of generating a report on point of sales at
the end of the day. Thus, there is no proper guideline in making reports in the
store’s logbook which result in different kind of reports being prepared each
time. The simple report which is about the total sales of the day is determined
based on the amount of money in the cashier deck does not provide any input
for the owner to make the right decision regarding the business operation. In
case there is a shortage of cash at the cashier's desk or any stolen cases, the
owner cannot detect it as the current system does not have a database to
store the total sales of the day.
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Another identified problem is that the customers who made their purchases
at the store usually do not receive a proper receipt as references. Instead,
only the receipt contains prices being generated by the system. Thus,
customers face a problem when they wanted to change the items bought due
to damage, expired, or wrongly purchase as the receipt does 13 not indicate
the name of items which makes it hard for the customers to prove that they
bought them within 3 days in Tokyo Gadget Store.
This new system that will be developed will contain a database that enables
data storage and retrieving of each transaction and data about the inventory
of each item in the store, manage the product releases and storage and
summarize the point of sales. This would generate a faster improvisation of
work with less time and effort. As the concept of the POS and Inventory
Management System is to reduce paper works and ineffective ways of
managing inventory, this system is expected to assist in making the right
decision in the process of managing inventory aligned with the sales level in
the store.
OBJECTIVES
As the available existing system provides limited functions to the user, thus
this project will contain enhanced and more flexible functions to the store.
The objectives include:
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iii. To automatically generate a weekly report on sales and
inventory activities
SCOPE OF STUDY
Within the boundary of this project, the system aims in having the following
aspects:
• Report
Generates daily, weekly and monthly reports to know the
number of inventory in the products.
Generates daily, weekly, monthly and yearly reports to know
the status of the sale.
o To know if they can hit their target sale on that date.
o To know what product is most profitable.
o To know if there is needed to improve on marketing
because this day or profitable.
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•POS and Inventory- facilitate the transaction of each customer The
development of the system will be based on an offline system or
window-based system which does not require any internet connection
to operate it. To implement the system, the first thing is to collect
information about the products and requirements from the owner to
see the feasibility of developing the system for the Tokyo Gadget store.
Then the process of identifying the methodologies and tools to be used
will take place in the first half of the project. Together with that, the
interface of the system also will be developed. The second half of the
project will be mainly on implementing and testing the system until it
is completed. It is estimated to take around 3 months to complete this
project.
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will be conducted only regarding the Tokyo Gadget Store sales & inventory
system and within the time frame, it is believed that can be done.
CHAPTER 2
LITERATURE REVIEW
POS systems may be used in a variety of ways. They are most useful for small
businesses that sell products. POS systems that track inventory are especially
useful in businesses that sell products or those that use products they want to
track in their production process. These systems are a useful tool in the toolbox
of businesses that engage in inventory management.
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ADVANTAGES OF SALES AND INVENTORY MANAGEMENT
SYSTEM
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• Inventory management increase customer satisfaction
Tim Bajarin (Jun 2013) writes in his article ‘Bringing the Checkout Counter to
You’ that the station or aisle where individuals transport and place products
they have chosen to purchase from the location is a checkout counter or
cashier stand. The typical process that occurs at checkout is that cashier scans
and rings up each item on the cash register and obtains the total. The
transactions at the checkout process using a POS system that the retail store
adopts according to its needs. According to Kaplan, Karen in his article on Los
Angeles Times entitle of "Do-It-Yourself Solution: Small Grocery Chain Has
Big Plans for Its Retailing Software", stated that POS term is applicable for a
retail shop or store, the checkout counter in the store where transactions
between customer and store can occur. The term Point of Sale is often used in
connection or relative with the hardware and software for checkouts POS
systems are being utilized in many different industries since its technology
merge ranging from restaurants, hotels & hospitality businesses, casinos,
salons, and as well as retail environments.
Currently, most retail POS Systems were the most sophisticated, powerful,
and user-friendly computer networks in commercial usage. Moreover, the
POS systems carry out more than just POS tasks where POS solutions
available that include fully integrated accounting, inventory tracking &
management, open-to-buy forecasting, customer relation management
(CRM), service management, rental services, operation reporting, and payroll
modules (Quorion,2011). POS software is only good as its integration with the
many different popular software and services nowadays. For example
accounting programs, where all of the daily activities and transactions would
automatically import into accounting without any labor input.
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CHAPTER 3
METHODOLOGY
The advantage of using this model is that it allows developers to make multiple
iterations and updates to a software quickly, without requiring to restart a development
schedule from scratch every single time.
RAD is considered to be a methodology that requires minimal planning that will in-turn
favour rapid prototyping.
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Prototype: A prototype is a working model that is functionally equivalent to a
component of the product.
Step that are included in Rapid Application Development:
• Phase 1: Requirements planning
• Phase 2: User Design/Prototype
• Phase 3: Rapid construction
• Phase 4: Cutover
When to use Rapid Application Development?
• When you need a project done quickly
• When you can reliably rest your prototypes
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PROJECT PHASES
There are four phases in the project activities which comprise of:
i. Planning:
- The problem faced by the chosen shop is identified and the
solution is proposed
- The objectives and scope of the project are defined clearly
- The project activities are planned according to the time frame
ii. Analysis:
- Data is gathered and analysis on literature is done
iii. Design:
- Data is gathered and analysis on literature is done
- Interview session with Rahmath Store are conducted for
requirements collection purposes
iv. Implementation:
- Coding of the project is initiated until the system is completed
- Testing is carried out to test the usability of the project
- Make it available for the user
In the first part of the project, research and gathering information play a role.
Two research methods used in the project are:
In the second part of the project, tools that are used to develop the system are as
follows:
PRELIMINARY STUDY
i. Background of Interview
I’m Thomson Dy, 23 years old, I started doing business when I was 18 back
when I was in manila. I put up my min restaurant in Quezon city since my mon
has her restaurant in Bicol and I learned a bit from her. That’s when I started
to have an interest in doing business and up until this day I have discovered
my skills in business, especially in retail. Tokyo Gadget started last October
2020 when there was a hype of digital-based technology like computer and
the like it.
ii. Purpose of Interview
• To uncover further problems regarding POS and Inventory
management using manual ways
• To understand the current methods and approach being used in doing
daily sales transaction by the staffs
• To identify the main features or functionalities to be integrated into the
project prototype
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2. The problem is more about managing the Inventory of Products that
(In and out) the daily sales and same time we encounter a problem in
sale management and inventory management that done by our
employee like their lose item base on inventory but we can never find
it where have been even we look at the receipt and on lab book we can’t.
Then only we can think is done by my employee I can only think on
scenarios on that case. We can’t judge our employee if we don’t have
any solid evidence to prove that our employee is guilty.
5. Our store has a rule the 2-week replacement for all Item with that to
weeks if customer what replace the Item we ask for the reason why
they what to replace the item, if the item is manufacture defective
product we offer to the customer a replacement on the same product
but if the customer doesn’t have them to replace the item a refund the
money we allow that we just ask for customer permission for basic
information like name, reason, and signature and we ask for the receipt
of the product that they buy if they don’t have a receipt we ask to just
back get the receipt if they say that the loss we do not allow that and
we deeply explain our rule.
6. I wanted to use and modernize the current system that we use but do
not have on my plan right now.
7. If the Software is very helpful in managing the Sale and Inventory. I use
it for my business is big help managing the business you can do many
things and big help because I do many things just to monitor may store
in Bicol.
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8. What I want is online and when you login in the system and the data is
online for me can access the system even if I home or I out of town I can
easy to access just need internet and I what that attendance of my
employee for me can monitor my employee performance.
The system has an inventory table and admin and employee access for
the security of data, system is simple and easy to operate even the user
the gonna use the system can easily use it. The database I want the data
can see daily sales, weekly can generate report to the sale inventory
report monthly. The data can print in a table.
PLANNING
An interview was conducted with Tokyo Gadget Store’s owner about his opinion on
the need for a Sales & Inventory Management System. The interview also hints about
the proposed system of how they would respond if a system is available.
• Project Sponsor
The person who initiates the project is the owner of Tokyo Gadget Store and
the workers together with the owner serves as the primary point of contact
for the project.
• Business Need
This project has been initiated to develop Sales and Inventory Management
System to provide a better way of inventory control and tracking therefore
store can manage the movement of goods more efficiently.
• Business Requirement
The system will be the first system used by Tokyo Gadget Store thus it will be
made as offline system. The system provides enables the owner to keep track
on the inventory level of each goods with presents of database. The
functionalities that the system should have are as follows:
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User Log in
Admin Log in
Manage Sale
Add Item at Inventory Database
Update Inventory Database base on POS
Delete allow Delete item Inventory Database only Admin can delete
Generate Report on Sales
Generate Report on Inventory
Notification om low Inventory level
Calulate Sale
• Business Value
Author expected that with this system, the users able to process customer
transaction easily with minimal error or zero error. Furthermore it is going
to be more efficient in managing inventory and sales data because all data in
available in database.
Feasibility Analysis
i. Technical Feasibility
Technical aspect is the most important part in the system development. As
the system is offline based, visual basic will be used to develop the interface
and the functions of the database. For the database aspect, Microsoft Access
will be used which will link the system interface with the data storage.
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Basic analysis has been done in investigating the economical feasibilities of
the project. The financial analysis demonstrates that the new system will
reveals a positive economic feasibility. In term of software designing and
license, it can be found on open source in the Internet thus, owner does not
need to purchase the software from the vendor.
In term of special staff training, the new system will not need any extra cost.
Normally, newly develop system will need for special training for the user,
however in this case the system the handling part is very easy and eliminate
the need for training. Besides, a friendly interface makes staff work with less
stress.
Even though initial cost of implementation is quite high, the owner will enjoy
the benefits of switching to the new system in a long term in term of
efficiency and effectiveness of business operation. Firstly, they can reduce
the cost or the loss incur due to overstock of food based products that have
expired date. Secondly, the system also reduces the risk of having products
that out of stock in the store will eventually cause the customers to find the
products in other store. Besides, customers satisfactions also expected to
increase as the system will provide them with proper receipt for references
upon implementation.
Turnover rate of each items reported by the system also helps the owner to
make appropriate inventory level decision of the item precisely. Apart from
all the benefits, costs related to manual works and documents required to
maintain the inventory level will be reduce and eliminated gradually as all
the data will be stored in the database.
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Administrator: The administrator will have easier access of inventory data
and update it. He prints out daily and weekly statistical report to check on
the store business performance.
The Staff: The to-be system will ensure the transaction handle by them will
directly send to database. Thus, the staff will gain advantage upon the
implementation of the system as this can reduce the human-error by
calculating the transaction manually and compare it with the amount of
money in the cashier and the inventory level available.
Functional Requirements
After the staff interviews and the study carried of the documents, the functional
requirements of the Tokyo Gadget Store were identified. The functional requirements of
the system vary for each user group. Hence the functional requirements of the system are
categorized for each user. The following are the functional requirements of the system.
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– Add product details and prices into the system
– Check the inventory status, minimum and maximum stock point and order point
– Update the inventory according to the sales done in previous day
– Create inventory reports of items category-wise, price-wise
– Generate inventory-trend graphs.
The operations operated over the database objects are transaction. The minimum required
user transactions are described in this section which should be implemented during
physical database design process. The transaction requirements for the company were
discovered during the company’s document analysis and fact collecting techniques used
to collect user’s views and ideas about the system.
Data entry
Enter the detail of suppliers
Enter the details of products
Enter product category details
Enter product brand details
Enter product store details
Enter new and existing staff’s details
Enter role details of each staff
Enter customer details.
Enter order, order details.
Enter dispatched order details.
Enter payments details.
Data update/deletion
Update/delete staff details.
Update/delete product details.
Update/delete product category details.
Update/delete product brand details.
Update/delete product store details.
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Update/delete payment details.
Data query
List the details of staffs.
List details of each staff roles.
List details of suppliers.
List details of each product.
List products in stock.
List products reaching minimum stock level.
List products hitting re-order level.
List products by category
List available category details.
List products by brand
List available brand details.
List products by store
List available store details.
List customer details.
List all incoming order details
List all dispatched order
List payment details for recent orders
List orders with credit payments and customer details
List total number of order.
List orders with full payments (balance 0).
In this chapter, the required users’ transactions are described. The reports that need
to be generated using the systems are described in this chapter. The design of the
reports shall be designed by the physical designer meeting the needs of the
company’s current report formats.
Nonfunctional Requirements
I.Software Requirements
a) MS Windows 2016 higher
b) MS Access
c) MS C#
II.Hardware Requirements
a) Pentium-II 500 MHz
b) 300 MB hard disk space
c) 256 MB RAM
d) 10Base-T Network Interface Card
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e) Laser Printer
III.Security Requirements
a) User name and Password identification for all users
b) MS Windows Primary Domain Controller
IV.Reliability/Survivability Requirements
a) 8:00am – 9:00pm availability on those days
b) Data restoration within 24 hours of data loss
c) Daily/Nightly back-ups of database
V.Interface Requirements
a) Simple interface
b) No large user manual required
c) Short training session
VI.Lifecycle Requirements
a) System upgradeable
b) Development time < 6 months
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System Flowchart
This is the logical structure that represents the blue print of proposed system in other words,
it defines as the algorithm of the software in a concise and logical order. The process design
is represented diagrammatically in the form of system flow chart as shown below
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Figure no 3: Sequence diagram
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Figure no 4: Subsystem Decomposition
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Figure no 6: Registration
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Figure no 7:Home Menu
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Figure no 9:Module Product
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Figure no 11:Module Category
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Figure no 14:Stock Module
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Figure no 16:Product List
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CHAPTER 4
Reference
Choice of Programing Language
https://docs.microsoft.com/en-us/dotnet/csharp/programming-guide/
POS history
https://ehopper.com/articles/what-is-
pos/#:~:text=History%20of%20POS.%20To%20answer%20the%20question
%20%E2%80%9Cwhat,accounting%20books%20and%20also%20keep%20
their%20money%20safe.
All Icon download
https://icons8.com/icon/set/shopping%20cart/nolan
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