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CHAPTER I
INTRODUCTION
The Present era is the age of Information technology. Easy access to information and
interfacing of database with decision making process are quite vital in the process of computer
technology. The whole economy of any country depends on the business position of the country
and how the business is adopting the new technology. In addition to this any business, can
survive in this competing market only if the business is running with the growth of the current
technological advancements. Presently the database available in book format is not easily
accessible. Like in other areas, the area of business and marketing too, sales and inventory
system is becoming quite pertinent. Monitoring of product stocks and sales of the business, but
in order to overcome those matters, the researchers must conduct several practices such as
observation, interview and countless researching regarding on how the system will be developed.
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PC Square Inventory And Sales
track activity and inventory. The Business and Customers can both benefit from a thorough
solution, where single transaction entry records necessary details on the customer, products
purchased, price, invoice number, and date while also updating inventory stock. Using
computerized sales and inventory systems allows for much greater accuracy in stocking and
product management. They encourage ease of interaction between employees and customers as
transaction are processed and items move from business to the consumer. Computerized sales
help provide better insight into which branch makes higher sales, and how much sales does every
branch made. Computerized sales and inventory systems save time for business by speeding up
transaction while raising accuracy. This allows for confidence in accounting and accountability
among employees as it is easy to verify how much money and what time transactions took place.
They also allow for consistent experience in terms of customer service. People know there is
always uniform interaction at the register that requires tendering payment, taking a receipt and
transition of ownership of products and services. This generates confidence in a business and
ensures ongoing consumer relationships. Computerized systems are the most common method of
In using this computerized sales and inventory system you can establish the benefits you
and your business handling may have. First is time savings. The amount of time that can be
saved by a business is perhaps the biggest benefit of using a computerized inventory system. In
cases where a shop maintains all data manually, its manager must reconcile each sales receipt
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PC Square Inventory And Sales
Depending on the size of the establishment and how many different products are sold,
this can be a daunting and time consuming task. It that same store, however, used a computerized
point of sale or POS System, the master inventory list would be updated electronically each time
a sale is made. An additional benefit of using a computerized inventory system is the accuracy it
ensures. 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. And
lastly is the consistency. A small business operates most efficiently when its processes are
proprietor can ensures that all orders, reports and other documents relating to inventory are
uniform in their presentation, regardless of who has created them. This will allow ease of
reading. In addition, uniformity creates a professional appearance, which can go a long way to
stock, easy to retrieve and accurate customer transaction record, and reliable sales report based
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PC Square Inventory And Sales
The main problem is to manage an electronic shop using offline point of sale system
which only includes monitoring of product stocks, and sales of a single branch.
These problems have initiated the researchers to develop such system, which will be helpful for
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PC Square Inventory And Sales
General Objectives
The general objectives behind developing this system is to solve problems in managing
of an electronic shop, which includes preservation and efficient retrieval of customer transaction
record, generating printed receipt based on the transaction, monitoring of product stocks, and
Specific Objectives
To design and develop a user account feature that will handle the user accounts
information.
To design and develop a log in feature that will be having three level of access of for data
security.
To design and develop an inventory feature that can add and update new products, and
the business.
Scope
The researchers aim to develop a web-based Sales and Inventory System for PC Square
to improve their existing offline point of sale system. The system will consist of some significant
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The system will provide a security feature which will have three level of access.
1. Proprietor is the only user that has the privilege to monitor sales and inventory of all the
branches, and the only one that can add Branch Manager, and includes the privilege to
and has the privilege to add and update products information and stocks. Has the access
and responsible for adding cashier account and includes the privilege to deactivate
and responsible in issuance of receipt based on the transaction made, by using cart
Theres a feature for all accounts to update their information including their username and
password.
Transaction between Cashier/User and Customer can be done just by using cart system.
Cashier/User can add the desired item to the Cart as long as the product is available. The
Cart contains the summary of the customer desired products and details such as unit details,
serial number, regular price, discount, discounted price, and the total cost. If the customer
wants to cancel the desired item/s, Cashier/User can remove a specific product off the Cart.
The system also includes the functionality to compute the total costs, customers change by
inserting the cash received. The functionality to generate receipt was also included with
maintaining and monitoring of products. Branch Manager can view a table of all products
containing the branch, category, brand, model, description, replacement, warranty, original
price, discount, selling price, stock and column for update product information and add
stock button. To search for a product, filtering is available. Updating of products information
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was included in this feature which allows the Branch Manager to add and update products
information. In order to add new products, the Branch Manager must input the required text
fields such as brand, model, description, replacement, warranty, original price, selling price,
within 1 week. If the sold product was diagnosed and proved by the technician there will be
a required form to be filled up. Generating of printed report was also included.
Limitation
The researchers proposed system has also limitations including the following:
uploaded.
Branch Manager not allowed to view other branch sales.
Ordering to other branch was not included.
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PC Square Inventory And Sales
CHAPTER II
Management, 5th ed., Companies are increasingly employing Inventory System. A computer
start with an inventory counts in memory. Withdrawals are recorded by the computer as they are
made, and the inventory balance is constantly revised. When the recorded point is reached, the
computer automatically places an order, when this new order is received, the recorded balance is
increased. Retail stores have carried this system quite far, each item has a magnetic codes, and as
on item is checked out, it passes over an electronic reader, which then adjusts the computers
inventory balance, at the same time the price is fed to cash register tape. When the balance drops
to the recorder point, an order is place. The researcher aim to develop a automated inventory
According to Johnson and Kaplan [JOHN1991]. It seems that around1880 there was a
change in manufacturing practice from companies with relatively homogeneous lines of products
of scope - the gains of jointly producing two or more products in one facility. The managers now
needed information on the effect of product-mix decisions on overall profits and therefore
needed accurate product-cost the huge overhead of the information processing of the time.
However, the burgeoning need for financial reporting after 1900 created unavoidable pressure
for financial accounting of stock and the management need to cost manage products became over
shadowed. In particular, it was the need for audited accounts that sealed the fate of managerial
cost accounting. The dominance of financial reporting accounting over management accounting
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remains to this day with few exceptions, and the financial reporting definitions of 'cost' have
distorted effective management 'cost' accounting since that time. This is particularly true of
inventory. Hence, high-level financial inventory has these two basic formulas, which relate to the
accounting period. (First the Cost of Beginning Inventory at the start of the period +inventory
purchases within the period + cost of production within the period = cost of goods available.
Second the Cost of goods available cost of Ending inventory at the end of the
The benefit of these formulas is that the first absorbs all overheads
of production and raw material costs into a value of inventory for reporting. The second formula
then creates the new start point for the next period and gives a figure to be subtracted from the
sales price to determine some form of sales-margin figure. Manufacturing management is more
interested in inventory turnover ratio or average days to sell inventory since it tells them
something about relative inventory levels. (Inventory turnover ratio (also known as inventory
turns)= cost of goods sold / Average and Inventory =Cost of Goods Sold / ((Beginning Inventory
+ Ending Inventory) / 2)) and its inverse Average Days to Sell Inventory = Number of Days a
Year / Inventory Turnover Ratio = 365 days a year /Inventory Turnover Ratio. This ratio
estimates how many times the inventory turns over a year. This number tells how much
cash/goods are tied up waiting for the process and is a critical measure of process reliability and
effectiveness. So a factory with two inventory turns has six months stock on hand, which is
generally not a good figure (depending upon the industry),whereas a factory that moves from six
turns to twelve turns has probably improved effectiveness by 100%. This improvement will have
some negative results in the financial reporting, since the 'value' now stored in the factory
as inventory is reduced. While these accounting measures of inventory are very useful because of
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their simplicity, they are also fraught with the danger of their own assumptions. There are,
in fact, so many things that can vary hidden under this appearance of simplicity that a variety
unit perishability has significant effect on inventory policy for a large number of commodities. A
significant amount of research has been presented which addresses the trade-offs between
ordering, carrying, shortage, and outdate costs for perishable inventory. A model of
the perishable inventory system which incorporates the effects of consumer realized product
expiration. This model represents a synthesis of two distinct directions in the perishable
inventory literature, and addresses the simultaneous determination of inventory ordering and
outdates policy for a perishable item with random demand and random lifetime.
improvement in customers relationship because of the timely delivery of goods and service.
Smooth and uninterrupted production and hence, no stock out. Efficient utilization of working
capital helps in minimizing loss due to deterioration, obsolescences damage and pilferage.
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provide a way to store and retrieve database information that is both convenient and efficient
material. It helps the concerned to secure many economics through bulk purchase such as low
freight, higher discount, lower price, better use of available resource etc. It ensures timely and
optimum utilization of men, money, material, equipments, time and thereby reduce the total cost
According to the article of Abilla, Pete [ABILL2011]; they tackle the different causes
of using inventory system. First, to Stop products from spoiling, if you have too many products
in your warehouse, you increase the risk that they will become obsolete, damaged, spoiled or
stolen before you can sell them all. Depending on which industry youre in, youre probably
more worried about some of these risks than others. For example, if youre in the technology
industry, you dont want your expensive products to become outdated, damaged or stolen, but
you probably dont care about their freshness date. Food producers, on the other hand, put
product spoilage high on the list of inventory management concerns. Second, to Stop paying
hidden costs, having too much inventory doesnt just increase your risk of paying more in the
future; it costs you more money all the time. Where will you store the extra inventory? You may
need to buy a larger warehouse than you really need or rent trailers if your warehouse isnt big
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PC Square Inventory And Sales
enough. Plus, you have to provide security to prevent theft. And dont forget about the money
thats tied up in inventory that you could have used to hire personnel or grow your business in
other ways. Third, to Stop disappointing customers, on the other end of the inventory spectrum,
if you have too few products in your warehouse, you face a whole other set of risks. Your
customers dont want to wait too long to get their orders shipped to them. So if you run out of the
products theyre looking for or if you are picking, packing and shipping processes are too slow,
you could drive customers away. Fourth, to Stop wasting time, inventory management can be
everything in business. How fast you reorder products, ship customer orders and update your
inventory records could make or break your company. Thats why an automated inventory
management system is so important. Scanning product barcodes and setting up automatic reorder
points can save valuable time by streamlining complex processes. Fifth the Start planning ahead,
you cant afford to be purely reactionary in your inventory management. You need to start
planning ahead and being proactive. Instead of being unprepared for sudden spikes in sales, try
to notice these trends ahead of time by monitoring social media channels for mentions of certain
products and looking at historical records to spot seasonal upticks in sales. All of this is easier
said than done. It goes back to having a powerful inventory management system to free up your
Wal-Mart runs its stores on a perpetual inventory system. This system records the
quantity of items sold as items are purchased. The computer system at Wal-Mart constantly
keeps up with additions or deductions from inventory and tells management what items are on
hand. The organization also conducts counts of employee manual counts of inventory
periodically. When an item arrives at the Wal-Mart distribution center it is scanned into the
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inventory system. When the items are purchased by the consumer, the point-of-sale system
reduces the inventory from that purchase. According to Wal-Marts Gail Lavielle, a leaner
Inventory will help clear out store clutter and help Wal-Mart focus on specific brands and
Inventory Management if they meet the terms; (Good Inventory, Extending Stock Classification
for Greater Control, A worked example showing the impact of moving from 3 to 6classes, Buffer
Stock Methodology, Simple buffer stock, Stochastic buffer stock, A worked example showing the
Management and Control are inventory control ensures an adequate supply of materials and
stores minimizes stock outs and shortages and avoids costly interruptions in operations. It keeps
down investment in inventories, inventory carrying costs and obsolescence losses to the
inter-department transfers within a company. It provides a check against the loss of materials
for allocating material costs to products, departments or other operating accounts. Perpetual
inventory values provide a consistent and reliable basis for preparing financial statements.
Inventory is one of the most important in monitoring a stock that take place in business
activity. The inventory system does the entire task in computing the value with inventory (cost
and quality) and handling data or information. Inventory System maintains an orderly flow of
supplies, raw materials, or finished goods through an office shop/factory because of items in any
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inventory. Represents cost, they need to be controlled. The purpose of inventory system for
management are to keep inventory levels and cost at desire minimums while maintaining to
proper safeguards over materials to places and people who need them. Inventory review refers to
the time interval between counting inventories. Periodic review systems have a set schedule for
conducting an inventory count. Transactional review systems update the inventory count after
each transaction. Periodic review is less resource intensive but more prone to creating shortages
and inventory discrepancies while transactional review is more accurate but requires more
resources. Inventory costs can be broken into several categories: the actual cost of the
inventoried product, the cost of storage and the cost of unmet demand if inventory is not
available to fill orders. Additional costs include transportation and ordering costs incurred when
replenishing inventory. Each of these costs is unique to individual businesses and can vary
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PC Square Inventory And Sales
CHAPTER III
Methodology
The Proprietor of the PC Square Sales and Inventory System covered the monitoring of
sales, inventory, and user accounts. The Branch Manager covered the monitoring and managing
Operational Feasibility
The Proprietor who is the one can add Branch Manager Account in the database. The
Proprietor can monitor the user accounts. The Branch Manager is responsible for adding new
Environme Method
nt By using
PHP and
PC MySQL
SQUARE Efficient,
accurate Systematic
and
Windows Proprietor,
Information
orgaized
XP and Branch
above
Dual Manager,
Custom
Core and erCashier
Peopl Figure 3.1 Fishbone Diagram
above
Technolog e
y
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PC Square Inventory And Sales
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PC Square Inventory And Sales
SOFTWARE SPECIFICATION
The figure below listed the Software used in PC Square Sales and Inventory System
Recommended:
Figure 3.3
The Figure 3.3 presents the specification of softwares that is used in creating the PC
HARDWARE SPECIFICATION
The figure below listed the Hardware used in PC Square Sales and Inventory System
Recommended:
Figure 3.4
The Figure 3.4 presents the specification of hardware that is used in creating the PC
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PC Square Inventory And Sales
CHAPTER IV
Through the related studies and practices the researchers made the better ways for the
The figure above shows the actual sales report based on the the transaction made using
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PC Square Inventory And Sales
The figure above shows the actual printed receipt based on the transaction made using
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PC Square Inventory And Sales
The figure above shows the login form of the propose system.
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PC Square Inventory And Sales
The figure above shows the form for adding new accounts.
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PC Square Inventory And Sales
The figure above shows the sales record based on the transactions made using cart feature
The figure above shows the page for replacing products sold.
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PC Square Inventory And Sales
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PC Square Inventory And Sales
The figure above shows the cart feature of the propose system.
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PC Square Inventory And Sales
CHAPTER V
CONCLUSION
By using a computerized system, the process of the business had been simplified,
improved and modernized resulting to a more productive, effective and less expensive operating
expenses. The proposed system had met their stated objectives. It has been an instrument to
conduct faster sales transaction and kept track of all the records. The updating of stocks in the
inventory was also efficient that resulted to accurate records. Conflicts and confusions were also
avoided because the system had reduced the existence of the bulk of papers for the records of the
business. And lastly, it is foreseen that this will make the employee more effective that will make
RECOMMENDATION
To upload the system online for better performance and to reach the systems full
capability.
To add CCS3 to make the system responsive that can fit with different screen sizes.
Add a feature that can manage the outgoing products or the products that are not
marketable enough.
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APPENDICES
DEFINITION OF TERMS
Developer - one who programs computers or design the system to match the requirement of a
system analysis.
Inventory - a complete list of items such as property, good in stock or the content of a building.
Proprietor a person who owns a business or property, who has the legal right or exclusive title
to something.
Cashier - is a person who handles the cash register at various locations such as the point of sale
in a retail store.
language that is especially suited for web development and can be embedded into HTML.
database is stored in the form of related tables. MySQL databases are typically used for web
application development.
Database Management System (DBMS) - is a program that uses HTTP (Hypertext Transfer
Protocol) to serve the files that form Web pages to users, in response to their requests, which are
forwarded by their computers' HTTP clients internal IT systems are available that would not be
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Data Flow Diagram (DFD) - is a graphical representation of the "flow" of data through an
Graphical User Interface (GUI) - is a type of user interface that allows users to interact with
electronic devices through graphical icons and visual indicators such as secondary notation,
service.
Password - a secret word or phrase that must be used to gain admission to something; a string of
Database - is an organized collection of data; that is organized so that it can easily be accessed,
Cross-Platform, Apache, MySQL, PHP and Perl (XAMPP) - Everything needed to set up a
web server.
Report Informational work made with the specific intention of relaying information or
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BIBLIOGRAPHY
1. Abilla, Pete (2011). Why Use An Inventory Management System, online: retrieved from
http://www.shmula.com/why-use-an-inventory-management system/9501 on
September 5, 2016
2. Citeman Operations Management (2006). Benefits of inventory management and control, online:
retrieved from http://www.citeman.com/1209-benefits-of-inventory-management-
and-control.html on November 29 2016
3. Eugene F. Brigman (2000) Fundamentals of Financial Management, 5th ed., Hinsdale: Holt,
Richard and Winston Sounders College Publishing, pp. 840-841
4. Thomas Johnson, (1991) Relevance Lost. Publishing Company, Harvard Business School Press)
p.126
5. Timothy S. Vaughan (1994) A model of the Perishable Inventory System with referent
to consumer-realized product expiration, Vol. 45, Published by: Palgrave Macmillan
Journals on behalf of the Operational Research Society. p. 519
6. Kumar, Anil. (2009). Operations Management. New Age International Limited Publisher.
7. Silberschatz, Abraham (2002). Database System Concepts. McGraw Hill Companies, Inc.
8. Vilegave, Kailash (2012). Inventory Management, online: retrieved from
http://www.slideshare.net/vilegavekailash/seminar -on-inventory-management-by-
kailash-vilegave?qid=2bb07e89-5 7e5-4255-a351-
e0f4cfdd9d1d&v=&b=&from_search=29 on November 29 2016
9. Gail Lavielle,(2006) Wal-Mart Inventory System online retrieved from
https://www.academia.edu/4295554/CHAPTER_II
10. Dr. Geoff Relph,(2003); Professional Inventory Management retrieved form
http://www.inventorymatters.co.uk/professional-inventory-management/?
type=publication
11. Warren R. Planret,(2002). http://www.studymode.com/course-notes/The-Inventory-System-
1128684.html
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