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Nowadays, as nearly the whole world is working with the help of modern

technology, working manually in things such as enlisting in a logbook the stocks

of items in the store is a big waste of time. Not to mention the things that might

happen to the records like losing the written data. In the present days having a

database that can be used as Inventory System is the most convenient way of

storing data.

An inventory system ensures managing organization’s inventory-related

tasks, such as shipping, purchasing, receiving, storage, turnover, tracking and

recording. Inventory management confirms the item locations, vendor and

supplier information, product specifications and total count of materials.

According to Nicole Pontius (2019), when considerable number individuals think

stock organization, they think retail applications. While retail exercises depend

strongly on stock organization, stock organization system are comprehensively

used in a collection of endeavors, from amassing to utilities, social protection,

preparing, government, and that is just a hint of a greater challenge. Stock

organization system streamline and join the methodology for controlling the

stream and upkeep of stock to ensure that the ideal proportion of stock is

available at the perfect time and of the right quality.

According to Nicole Pontius (2019) without a stock organization system,

the stock and things that course through affiliation will unavoidably be in disarray.

A stock organization system the stock and things that course through affiliation

will unavoidably be in perplexity. A stock organization structures the stock and

things that course through affiliation will unavoidably be in disarray. A stock

organization structure enables an association to keep up a united record of each

advantage and thing in the control of the affiliation, giving a lone wellspring of

truth for the region of everything, vender and supplier information, conclusions,

and the full scale number of a particular thing right currently in stock.

Different affiliations have mechanized their stock association strategies

and now depend upon data structures when settling on basic choices.

Regardless, if the data is off base, the utmost of the framework to give a high

accessibility of things at the irrelevant working expense can be undermined. In

this paper, instructive and reenactment indicating show that even a little rate of

stock hardship undetected by the data structure can incite stock oversight that

irritates the restoration framework and makes exceptional out-of-stock conditions.

Undoubtedly, compensation fiascos due to out-of-stock conditions can far

outperform the stock hardships themselves. This affectability of the execution to

the stock mistake winds up being impressively progressively prominent in

structures working in lean conditions. Stirred by an altered thing obvious proof

progression being tackled the Auto-ID Center at MIT, unmistakable strategies for

adjusting for the stock misstep are shown and reviewed. Examinations of the

frameworks uncover that the stock screw up issue can be successfully treated

even without adjusted thing ID movements in explicit conditions.

According to Mengyao (2013) into the digital age, there is huge data

information waiting for processing and transmission, which makes the further

development and use of the database, is particularly urgent. As some small and

medium-sized supermarkets in the domestic market, they are falling behind the

large and medium-sized supermarkets, but for these enterprises’ resource

management, information storage and processing also shows the urgent need.

To adapt to market competition, it requires efficient handling and management

methods, so it is indispensable that accelerate the process of the

computerization of supermarket.

With the growth of the technology, the computer operation and

management gradually simplified, computer knowledge increased popularization.

At the same time, the fast changing of market economy and intense competition,

it is must become inevitable trend that the supermarket industry uses computer

to manage inventory, sales, and etc. As small and medium-sized supermarkets,

their main business is selling products. But at present a lot of questions exist in

the system operation, all sales orders are artificial fill, time-consuming and prone

to errors; inventory is artificial bookkeeping and unable to keep track of the most

accurate inventory situation; For sales data, it often spend a lot of time and

energy to calculate the sales performance of each business membership and

each good sales.

The TM Grocery is managed by the owner with his four employees. The

store consists of two divisions; grocery and ‘bigasan’ or rice retailer. The

business sells different products or items like a typical grocery store that we can

see everywhere. Like some other convenience store, the business does their

physical counting of stocks manually. Technically, TM Grocery is only using a

manual system that may cause to duplication of documents and work

redundancy. The business is just depending on their manual listing of products

and inputs of data which is possible to commit errors. The business cannot view

their proper records of sales or income in a given time of the year. It also does

not have its proper listings of product. In some instances, lost items are just

being ignored by the owner.

Handling a whole business is a difficult job to do, especially if the

deliveries from the supplier came. The owner or the employees that are assigned

will list the products delivered, arrange the products on the shelves and many

more. So it is possible that the owner or the employees will get confused,

especially if the customer and the supplier come in the same time. For example

when there’s a customer and a supplier came. They will get confused because

someone will attend to the needs of the customer while accepting the delivered

products. Their ways of managing the sales and inventory is that they manually

save records, accounts and their transaction which results to un-liquidated


Statement of the Problem

The general purpose of these research will answer the question: If the
inventory system is developed will it be functional and efficient to be used for TM

Moreover, the research would like to address the following questions:

1. How did the researchers create an efficient form of inventory system?

2. How will the researchers develop and implement an inventory module that
will handle the inventory of products?

3. How will the researchers develop and implement a module that will handle
the security for the system?

Significance of the Study

The significance of this study to TM Grocery is that it will provide easy-to-

use and easy-accessed system therefore; transactions will be more reliable and
faster that they do not have to hire too much employees to do the job. It gives
more accurate and secure records of sales and list of products.

Store Owners. This research will provide an Inventory System that can be

used by the store owners to store data and information without the uncertainty of

losing it.

Authorized Personnel. The product will be provided is designed to be

configured and access easily. It will lessen the workloads unlike the manual

process, saving the time for both customer and the employee.

Future Researchers. This research will serve as a reference to help the
researchers in future who will work to create a research related in Inventory
System. Giving them the ideas about Inventory System and lend them ideas to
create more efficient kind of Inventory System.

Scope and Delimitation

The scope of this Research study mainly focuses on file maintenance,

product maintenance, transaction, create an account and reports.

To design, develop and implement a module that will handle the security
for the system.
User Accounts – this contains the function for adding, and editing
user name and password. Of course the authorized user can only
be the one using the system.
Owner – can access the entire system.
In case they have the followings:
Staff – can access only the inventory

To design, develop and implement a file maintenance module that will

handle the files, records and important data of the business.

Products – It contains all the record of adding of products.

Employees – It contains all the record of adding and deleting of

To design, develop and implement a sales module that will handle the
sales transaction of their business.

Acquisition – list of items that are needed to be checked for

possible damages, and to the company can return the damaged
item to the specific supplier.
To design, develop and implement an inventory module that will
handle the inventory of products. All items that are available in the
company are monitored by the use of the following inventory methods:

Critical level – items that are low on stock will be monitored by the
system in order to have sufficient stock.

To design, develop and implement sales module that will handle

the inventory of products. This system provides sales transaction for the
store. It holds information data regarding their sales operations.

To design, develop and implement a generated module that will

handle the sales and inventory reports. This will provide the generation of
reports which are necessary in proper evaluation of the company’s sales
and inventory records.

 Product Maintenance

 Employee Maintenance

 Supplier Maintenance

 Product Transaction

 Accept Deliveries

 Purchase Order (Directly on the supplier)

 Acquisition

 Inventory Report

 Receiving Report

 Product List

 Supplier List

The proposed system for TM Grocery cannot transact with the use
of credit card and cannot read or support barcodes and scanners.



For all the more comprehension of the examination, the researchers

utilized diverse perusing materials identified with the stock framework. These

materials, for example, books, papers, postulation papers, and web articles that

are basic in expanding the information of the researchers. This will likewise direct

the researchers for pointing their objective targets by getting thoughts on other

related investigations and make greater improvements as could reasonably be


Related Literature and Studies

William Cato and R. Keith Mobley (2001)

According to William Cato and R. Keith Mobley (2001) the effective

resource management and reliable equipment are essential for optimum

performance. Both depend upon accurate, timely management of massive

amounts of data and on the effective use of maintenance resources. (2010)

Based on (2010), computer-based system is a complex

system wherein information technology plays a major role. It makes the work

easier, faster and more accurate. Due to that fact, the automated scheme has

become essential to small and big companies for they are expected to give the

best services possible. Nevertheless, some businesses still prefer sticking with

the system that is not integrated with technology. Probable causes are computer

illiterate staff and lack of funds. Companies, especially the big ones are

recommended to switch from manual to automated systems because this will

improve the efficiency and productivity of the business which will uplift the

industry’s reputation.

One of the most sought after automated systems of different companies is

a purchasing and inventory system which comes hand in hand. A purchasing and

inventory system is very important in every organization because a good

purchase and inventory management can create excellent productivity. Primarily,

inventory work consists of input, output and restock. Input is a process of buying

new products into the inventory and replacing the old products with the new

ones. Meanwhile, output is a procedure of taking out the products from the

inventory for sales or usage and refill is a process of increasing the number of

existing products in the inventory in order to fulfill the insufficient products or

escalating demands. Most of the retailing market is using traditional way in the

inventory management system where a person is assigned to check and record

the stock by hand using pen and paper. It is where operations with regards to all

the stock will be archived.

Thomas M. McHugh (2011)

According to Thomas M. McHugh (2011) computerized inventory

management systems provide many benefits that are hard to obtain using paper

methods or an in-house spreadsheet. Systems that are specific to the lab can be

used relatively quickly without a significant learning curve or system

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customization. The ability to analyze the inventory, item usage, purchasing

history, and other areas (e.g., lot numbers, equipment) are important

improvements to spreadsheets and paper systems. If the system includes

equipment tracking, it can be used to determine the capital asset as well as track

the service history and lifespan of equipment. The ability to streamline and

automate many of the inventory control tasks will be increasingly important to

reduce hands-on time while improving the analysis of trends, reducing stock-outs,

and avoiding expiring reagents. The ability to ensure that the right reagent in the

right quantity is present at the right time is critical to laboratory operations. Given

that reagents are approximately one-half of most labs' operating budgets, a

continued focus on this expense will assist the laboratory in continuing to provide

accurate and timely laboratory testing at the lowest cost.

U.S. Small Business Administration (2010)

According to the U.S. Small Business Administration, “Inventory refers to

stocks of anything necessary to do business” (U.S. Small Business

Administration, 2010). The U.S. Small Business Administration publication

describes what constitutes successful inventory management balancing cost

versus benefits of inventory, including maintaining a wide assortment without

spreading the rapidly moving items too thin, increasing inventory turnover without

sacrificing service, keeping stock low without sacrificing performance, obtaining

lower prices by making volume purchases, maintaining an adequate inventory

without an excess of absolute items.

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Computerized Sales and Inventory system for Ronmon Trading

(de Alday, Espino, Ragudo, 2010)

Based on the research entitled “Computerized Sales and Inventory

system for Ronmon Trading” (de Alday, Espino, Ragudo, 2010), the replacement

of the manual system with the proposed system provided more efficient and

accurate processing of transaction. The said system is much reliable, eliminated

errors and inaccurate information, and provided integrity valuable reports.

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 easy access of files and for easier and faster

processing of the selling and inventory transaction. The program was designated

to generate reports such as monthly reports, inventory reports, sales invoice and

list of items. In connection with the proposed system, the proponents proposed a

new and faster way of processing business transactions. The system also helped

the user to know the availability of the products. It also helped the manager to

monitor the stocks and to get immediate notice for acquisition of additional


The Proponents acquires knowledge about the file processing and report

generations through this study. It also gives the proponents ideas to create the

proposed system’s reports in online sales and inventory system. Automation is

mandatory, thus automated report generation for precise reports is to be included

in the proponent’s proposed system.

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Osaka Sales and Inventory System

(Laranang, Maaño, and Nañola, 2009)

The study entitled “Osaka Sales and Inventory System” (Laranang,

Maaño, and Nañola, 2009) states that business nowadays takes the advantage

of using modern technology to improve their status and ensuring an efficient and

newer way to make their work easier. They state that the main problem of the

Osaka Iridology is what modern effective tool must be use in creating and

developing a sales and inventory system that will manage efficiently their

transaction. So they develop a system that inclusively for the transaction of

Osaka Iridology, such as monitoring of their medicine and their daily sales.

In the study from Averion, Gaela, and Libo (2009) entitled “Monitoring and

Inventory for discovery”, it stated that:

It will minimize the difficulty of the manager in processing inventory

because physical counting products, stocks and computing inventory summary

will be the system job. It will monitor the availability of products, items to prevent

under stocking, over stocking and running out of stock. The system will also

simplify the transaction between dealer and supplier relationship because of the

updated supplier information and price list of items will correspond to

collaboration with other supplier.

Sales and Inventory System for Schema Mega center

Also stated in the research, “Sales and Inventory System For Schema

Mega center” (Almeda, Dañez, Geronimo), the proposed system are not just only

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accurate, reliable, and fast in processing transactions rather it is also provided

more systematic way of transacting with the members and through the billing

system also helped the employees to save a lot of time on transaction processing.


With the assistance of this writing and studies, we gather data and

information about the framework that we will create and actualize in this task.

Coming up next are the recorded data and information embraced from the writing

and studies:

 This causes us recognize the losing highlights of their framework that we

can include into our framework.

 The issues that we were going to experience during the advancement of

this venture.

 This additionally offers us thought regarding the limitations, highlights and

goals about the framework.

 The accompanying additionally discloses to us what reports ought to be

created in this framework including the motivation behind each report.

 This encourages us recognize the issue and stream about Sales

Monitoring Inventory System.

As indicated by Neil Kokemuller, by utilizing of Inventory framework they

have a few burdens by utilizing of this. These are (Customer Needs, Inventory

Costs, Coordination, and Risks).

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Client Needs, adjusting the objectives of maintaining a strategic distance

from stock outs while limiting stock expenses is at the core of in the nick of time

stock. One of the fundamental advantages of computerized and productive stock

renewal frameworks is that you can quickly react to decreased stock levels.

Organizations are currently prepared to draw back on stock in a given item class

and increase stock in another as client needs and interests change.

Inventory, costs minimization of stock administration expenses is an

essential driver and advantage of without a moment to spare practices. You

additionally have less probability of tossing out item that gets old or terminates,

which means decreased waste.

Coordination, A disservice of dealing with a without a moment to spare stock

framework is that it requires critical coordination among retailers and providers in

the appropriation channel. Retailers frequently put real trust in providers by

matching up their PC frameworks with providers so they can all the more

straightforwardly screen stock levels at stores or in dissemination focuses to start

quick reaction to low stock levels. This normally means develop of innovation

framework, which is exorbitant. This planned exertion is more including in

general than less time serious stock administration frameworks.

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Conceptual Framework


Visual basic 6.0

Hardware Rapid
Min ram : 4 gb Application TM Grocery Store
Min hd space: 12 mb Selling and Inventory
Microsoft windows 4.0 Development System
or higher
OS family, windows Model

Cd-rom, mouse or
compatible device.
Mid processor type.
Intel 486 or higher

Figure 1 Conceptual Framework

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Hypothesis of the Study

Based on the problems and objectives of this study, the following

hypotheses are formulated for this research.

There is no significant relationship between low productivity and poor

inventory management.

There is no significant relationship between proper inventory policies and

productivity in a manufacturing company.

Inventory Management practices have no significant effect on Firm performance

and service delivery.

Definition of Terms

Accuracy. It is the ability to work or perform without making mistakes.

Database. It is the collection of organized data like information. We can
store, search and manage information using database.
Employee. The person who works for another person or for a company
for salary.
Inventory - It is the complete list of the things that are in a place.
Liquidation. To determine the liabilities and the portion of assets.
Products. It is something that is made or grown to be sold or used.
Reports. It is an official document that gives information about a particular
Security. It is the state of being protected or safe from harm.
Stocks. It is the supply of goods that is available for sale in a store.
Transaction. It is the act of process of doing business with another

person or company.
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In this section, it covers the research method and its design, sources of

data, research instrument, population and sample, data gathering procedure and

the method used.

Research Design

This chapter presents theories associated in obtaining necessary

data, design and development of the system. It involves discussion on the
proposed conceptual framework diagram, the methods and approaches used the
tools and models.

A. Context Diagram of the Proposed System

Admin Transaction
TM Grocery
Report Store Inventory

Figure 2 Context Diagram of the Proposed System

Figure 2 shows the context diagram representing the system. This type of
diagram usually pictures the system at the center, with no details of its interior
structure, surrounded by all its interacting systems, environment and activities.
The Diagram explains the main Input, Process and Output of the System where

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the Admin from the Input area in the left side decide to process his/her desired
outcome. After it process in the System which illustrates at the center of this
diagram, it barely results with an output of transaction consist of adding items.
When the transaction process finished, the recorded files will be seen in the
inventory that process again in the system that later develops a report back to
the Admin.

On the aspect of developing the system, the researchers will use the
following tools:

Flow Chart. It is the graphical representation of the process that involved

in the system. It has predefined graphics that describes the process the data
involved to achieved desired output.

Visual Basic 6.0 Definition. Visual Basic 6.0 was the final edition
of the software. This version improved the productivity an ability for web
applications, which led to the development of Visual Basic. NET. Visual Basic 6.0
cannot be developed on Windows Vista, Windows 7 or Windows Server 2008.
Microsoft ceased mainstream support in 2005, and all support in 2008.

Population and Sample of the Study

The target population will be on TM Grocery store which is located at

Bangkal, Malolos, Bulacan. This existing store has its store owner and has

existing 4 personnel. However, this business does not have branches located in

town, finance sales, inventory, etc.

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Sampling Design

Since this investigation is intended to actualize the proposed Inventory

System, the researchers utilized interview and meeting as instruments in social

occasion information and data through permission to conduct an interview.

Research Instruments

Since this study is designed to implement the proposed Inventory System,

the researchers used interview as instruments in gathering data and information.

The researchers have ask permission from the owner/employees of TM Grocery

store before gathering data and the information needed in their current system

through asking a permission to conduct interviews.

Data Gathering Procedures

The investigation was watched every one of those strategies followed in

research. The researchers were acquainted with each respondent came at,

completely clarifying the motivation behind the research. The researchers

likewise assembled the certainty of the respondents by guaranteeing them that

their perspectives were private and was utilized distinctly for scholastic purposes.

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Data Analysis

Narrative analysis. This method involves the reformulation of stories

presented by respondents taking into account context of each case and different

experiences of each respondent.

The stock of an association, for the most part, comprises of thousands of

things with changing costs, utilization rate and lead time. It is neither alluring

nor conceivable to give equivalent consideration of everything being equal.

ABC examination is a fundamental scientific apparatus which empowers the

board to focus its endeavors where results will be more prominent. The idea

applied to stock is called as ABC analysis. Statistics uncover that only a

couple of things represent the main part of the yearly utilization of the

materials. These couple of things are known as A class things which hold the

way to business. Different things are known as B and C which are various in

number yet their commitment is less significant. ABC examination, therefore,

will, in general, isolate the things into three classes A, B, and C based on

their qualities. The arrangement is made to give the right consideration and

control requested by things.

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This chapter presents the data, comparison and interpretation of the

information gathered in the study to address the problem presented in chapter 1.

This also includes the process of developing the inventory system for TM Store in

Bangkal, Malolos City, Bulacan.

The Development of Inventory System

The researchers collected information regarding inventory systems,

studied on how to create an efficient system and how it works. With the help that

came from various online researches and including videos, the researchers was

able to produce an inventory system using Visual Basic 6.0 Definition.

1.0 Process Transaction

1.1 Add Transaction Information

1.1.1 by Item Name

1.1.2 By Quantity

1.1.3 By Sales Price

1.2 Delete Transaction Information

2.0 Process Inventory

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Experimental Method

Response 1.1 Response

Admin Transaction System
Transaction Add Transaction
Information Information

Figure 2. Add Transaction Information

In this diagram, it discussed about the Admin, Transaction, and System.

The Admin transact information and it processes on the System. Moreover, it is

like a cycle where after it reaches at the system it responses back to the Admin.

Response Response

Admin 3.0 System

Process Process Inventory

Figure 3. Process Inventory

In this diagram, it discussed about the Admin, Inventory, and System. The Admin
process inventory and it proceeds to the System afterwards. When it reaches at
the System it responses back to the Admin. Where the Admin can now view the
Inventory Sales.

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The flowchart of user restriction










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The flowchart of user management










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The flowchart of employee management







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The flowchart of inventory management







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Screenshots of the Proposed System

Log in Account

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Employee Management Record

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Item Category Manager

Stock Monitoring Section

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Supplier Masterlist

System Information

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Sales Management

System Log In History

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This chapter presents the summary of the finding, conclusions and the

corresponding recommendations for the study.


The inclusion of Sales and Inventory System into the TM Store provides a

comprehensive sales and inventory system that is capable of providing and easy

access sales and inventory conditions to customers.

There are problems that TM Store encountered. One of it is that, their

records don’t coincide in their manually recorded data’s. Another problem is that

they often forgot to record the products that have been sold. The solution to

these problems is to make automated or computerized sales and inventory

system. Making this system can help them process their inventory easily. It is a

hassle free and an easy access system. The system can Add, and Delete data’s.

It also has a transaction process so that in every product that the costumer will

buy, will automatically recorded to the inventory. The flow on how the system

works is that the user must input his or her username and password in for him or

her to access the inventory, transaction process and adding and deleting of data.

The inventory consist of the list of the products, the quantity and its price. While

the transaction process consist of inputting data such as the Item name, Item

price and the quantity of the product. By clicking the submit button, it will

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calculate the change and you can now save the data. After saving, it will

automatically appear on the inventory sales.


“Sales and Inventory System” software developed for a business has been

designed to achieve maximum efficiency and reduce the time taken to handle the

Payroll activity. It is designed to replace an existing manual record system

thereby reducing time taken for calculations and for storing data. The system

uses Visual Basic 6.0 Definition for the database.

The system is strong enough to withstand regressive daily operations under

conditions where the database is maintained and cleared over a certain time of

span. The implementation of the system in the organization will considerably

reduce data entry, time and also provide readily calculated reports.


The following recommendations are presented based on the findings and

conclusion of the study.

1. The researchers can also add an archive feature in the system.

2. The researchers can improve the graphic design of the system. Like

using HTML or Adobe Photoshop.

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Claro, Angel Elizabeth V. an ICT student of AMA College of

Malolos. Class Representative of B12 ICT and a member of

Executive Committee. Loves to read and write books and a music


Duka, Bill Yvan P., 17 years of age. Former student of Bulihan

National Highschool, currently studying in AMA Computer College of

Malolos. Taking Information and communications technology. Loves

to play online games and watch Animes, Tv Series, and Movies,

Santiago, Kathleen Ann S., 17 years old. ICT Student at AMA

Computer College Malolos. Loves to read, make art, and watch


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Morelos, John Ryan Christopher M., 20 years of age. From Plaridel

Bulacan. Currently studying in AMA Computer College of Malolos.

Grade 12 Student Major in Information and Communication

Technology. 'ICT'. And my hobby is playing basketball and computer

games, Player of Inter Brgy.

Meneses, Paolo Jenesis, 17 years old an Information and

Communication Technology student at AMA Computer College

Malolos. Likes to working out on gym, and play mobile games.

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