Computerized Sales and

Inventory System
New Menton Builders Incorporated
Chapter 1
I.Introduction
II.Background of the Study
III.Statement of the Problem
IV.Objective of the Study
V.Scope and Limitation
VI.Significance of the Study
 Introduction

• Sales and Inventory System for New Menton (SISNM)

integrates the sales and inventory in one easy to use
program. It can be able to track down sales, orders,
payments and stock levels with its database

• The system provides an intuitive interface for querying

product price, product description, and stock availability,
ordered and delivered items, customer information, and
balance account; for assessment of sales and inventory;
and computation.
 Introduction

• This system helps in creation of purchase order, receiving

list, cash and sales invoice or receipt for the clients and
automatically computes the total and tally of sales and
inventory as well as the commission of the sales agents.

• SISNM helps improve the company’s profitability,

inventory control and management; make stronger
customer relationship; and eliminate or reduce supply
gaps, bad stock return and replace the manual process
being practiced in New Menton
 Background of the Study
• The New Menton Builders Supply Inc. started from being a
hardware and construction supply retailer, as Menton
Hardware during January 1994 in Old Sta. Mesa, San Juan
with sole proprietorship of Mr. Antonio Mendoza.

• New Menton is selling more than a hundred hardware and

construction supplies under different categories, and these
products comprise of various types and variety of brands.

• New Menton has an estimated revenue of 800 thousand

pesos per day and in a month of 25-day sale; they acquire
over 20 million pesos.
 Background of the Study
• The Operations Personnels are the ones responsible in record keeping
of all important details involving New Menton and for more than a
decade they still utilizes the manual process of storing huge amount of
records in sales and inventory.

• With the conducted survey and interview, the researchers found out
that a lot of problems arise due to this time-consuming exhausting and
outdated process, like imbalanced inventory, missing hardware and
construction supplies, lost records and long lines in the counter.
Therefore, the researchers came up with the proposal of developing
and implementing a system that enhances the sales and inventory
control and management of New Menton.
 Statement of the Problem

General Problem:

The study intends to develop a system that solves the

problems due to slow, tiresome and unreliable manual
inventory system of New Menton Builders Incorporated.
 Statement of the Problem
Specific Problems:

• Imbalanced tally of sales and product inventory

• Pile and hard to manage records of sales and inventory
• Data inaccuracy in the sales and inventory reports and
records of customer information, and their balances.
• Erroneous data due to strenuous activity
• Time-consuming and slow data inquisition
 Problem 1: Imbalanced tally of sales and product
inventory
Cause:
This problem may cause from human error like overlooking of figures,
wrong calculation and miscomprehension due to manual process of
encoding data of all products and other information, i.e. writing down
in a record book.
Effects:
The data inaccuracy may result to overstock or out of stock of products in
the store and even loss.
Solution:
To develop sales and inventory system that is easy to manipulate and do
accurate computations when required so that it produces a balanced
record of purchased and remaining stocks.
 Problem 2: Imbalanced tally of sales and product
inventory
Cause:
The company is in the business for 16 years and used to keep records of inventory,
sales history and other important files in paper inside the filing cabinets. Many
of the employees are aged and computer illiterate that’s why it’s hard for them
to adjust and use new technologies like computer to help organize these
papers. They started using flash drives and spreadsheet application as storage
just few years ago, but they still depend on the hard copy or written records,
because the records in the spreadsheet are hardly updated.
Effects:
When they receive numerous calls or inquiries, it takes time to give an answer and
close a deal to their customers because it’s hard to look in those cabinets or
bundle of papers in their worktables and find the most recent status of their
inventory.
Solution:
To make a computerized system that has a secured database that would organize
and hold the records, and would make it easier for the employees to query
timely information.
 
 Problem 3: Data inaccuracy in the sales and inventory
reports and records of customer information, and their
balances.

Cause:
This incident happens for the reason of lack of security and inaccurate
data verification.
Effects:
The process becomes more tedious because the employees needed to
double check after encoding everything. Sometimes they have to
repeat the procedure because of vast errors.
The company might also face serious legal irregularities or deficits, worse
is bankruptcy because of this problem.
Solution:
To develop a system that would automatically calculate for mathematical
computations to reduce miscalculations. A system that also
immediately verifies the data entered and its integrity to avoid lapses.
 Problem 4: Erroneous data due to strenuous activity

Cause:
In recording or writing and checking of all incoming and outgoing
products, it compels greater work force to finish and determine the
inventory in due time and when it is needed.
Effects:
The employees get worn-out and affect their efficiency in doing their tasks
that’s why the accuracy of the stored data are also affected.
Solution:
To create a system that simplifies the process of record keeping and
lessens the amount of work to be done to avoid errors.
 Problem 5: Time-consuming and slow data inquisition

Cause:
The customers have to wait to verify their orders and buy their needed
supplies because the salesperson takes time to determine the quantity
available.
Effects:
It constructs poor customer service and diminishes future business
transactions and income to the company.
Solution:
To implement a system that has a helpful search feature that fastens and
makes data management and inquiry easier.
 
 Objective of the Study

General Objective:

To develop and implement a sales and inventory system

for New Menton Builders Inc. that would improve the
speed, reliability, accuracy, and security of the current
system.
 Objective of the Study
Specific Objectives:
 
• To develop a sales and inventory system that generates accurate
numeric figures and information that eminently helps in decision
making of the management department.
•  To speed up the process of record keeping and calculations and to
lessen the immense and laborious duty tasked to the operations
personnels.
• To secure the important data and information stored in the database
by imposing user authorization and effective data verification.
• To implement an intuitive system that any permissible employee can
easily use.
• To improve and systemize the process of sales and inventory in the
company.
 
 Scope and Limitation
Scope:

• User and Administrator Accounts

• Automated verification and computation
• Search and Sort Module
• Generation of reports
• Commission Module
 1. User and Administrator Accounts

• The system grants access of authorized accounts in order to secure

data and other records stored in the database.
• There is an administrator and user accounts, these accounts require
username and password for verification and security purposes.
• The system checks the entered username and password; and records
the login date and time.
• The administrator has the access in the database, and has the ability to
control and manipulate the data stored.
• While the user accounts can only enter, view and use data in the
database in printing receipts, invoices and reports.
 2. Automated verification and computation

• This feature maintains the accuracy and reliability in the system.

• It checks possible errors from overlooking like misspellings
• It verifies if the entered data match the previous information in the
database.
• It also does mathematical computation to avoid miscalculation,
specifically in the total of receipts and invoices.
• It automatically updates the inventory of incoming and outgoing or
purchased items and sales from cash payments and receivables from
the customers, as well as the company’s liabilities to the suppliers as
payables.
 3. Search and Sort Module

• This feature makes it easier and faster for the user and administrator
to search and sort data in the inventory if they need to look or find a
specific product.
• The user may choose and search product names and its information
alphabetically or by category.
• It instantly query needed information by automatically suggesting
stored data such as product names, product number, it may also use in
selecting customer names and their accounts in the database.
 4. Generation of reports

• This utility allows and makes the creation of invoices, real-time sales
and inventory reports, order slips and other hard copies simpler. The
user may search and print for these information:
• Product listing that consists product names, product numbers,
descriptions and the number of stock, or specific list of products such
as those items in critical level.
• Daily, weekly, monthly, or annual sales report or the company’s total
sales.
• Sales and cash invoice, delivery receipt, product order.
 5. Commission Module

• This feature is attached to the sales for it computes and records the
commission in the database depending on the percentage of the sales
agents once they brought income to the company.
 
 Limitations
The following are beyond the coverage of the proposed system:
 
• Generation of product labels or barcodes and barcode scanning
features are not covered by the proposed system.
• It doesn’t have Email or electronic mail software that automatically
send reports through internet.
• It cannot also determine location of the products since the company
has only one warehouse.
• Automatic ordering system or a type of system that voluntarily sends
order to the suppliers once their had been a stock level reached the
critical level.
• Printing of sales reports in formal accounting papers such as ledgers,
balance sheets or income statements is not also included in the system
capabilities.
  
Significance of the Study
• New Menton Builders Incorporated
• The Proponents
• IT Students
• Future Researchers
• Future System Developers
• The Society
 Chapter 2
I. Review of Related Literature
II. Review of Related Studies
III. Conceptual Framework
IV. Theoretical Framework
 Review of Related Literature
• Mr. Kenneth H. (2009) stated that computerized system is a great help
in computing the total number of stock faster than using manual
inventory system.
• Inventory Control System is a set of hardware and software based tools
that automate the process of tracking inventory. The kinds of inventory
tracked with an inventory control system can include almost any type
of quantifiable goods, including food, clothing, books, equipment, and
any other item that consumers, retailers, or wholesalers may purchase.
• . Modern inventory control systems are almost exclusively based on
barcode technology. Barcodes have the ability to encode wide variety
of alphabetic and numeric symbols that is what makes them ideal for
encoding merchandise for inventory applications.
 Review of Related Studies
• Quantum Sales and Inventory Management System (SIMS) that tracks
purchasing, daily sales, inter-branch sales, return merchandise, pull-
out and expenses.

• Total Network Inventory of Softinventive Lab is a computer audit and

network inventory software for office and large-scale enterprise
networks. Total Network Inventory interrogates all computers and
notebooks on a network and reports back with complete information
about the operating systems, service packs, hot fixes, hardware,
software, running processes, etc. on remote machines.
Conceptual Framework
 Theoretical Framework

• Systems Analysis and Design

• VisualBasic .NET
• Database Concepts
 Systems Analysis and Design

• The systems development life cycle (SDLC) is the procedure of

understanding how an information system (IS) can support business
needs, designing the system, building it, and delivering it to users. It is
also a project management technique that divides complex projects
into smaller, more easily managed segments or phases.
SDLC phases:
• INITIATION PHASE
• PLANNING PHASE
• DESIGN PHASE
• TESTING PHASE
• IMPLEMENTATION PHASE
• PROJECT EVALUATION
 VisualBasic .NET

• Visual Basic (VB), created by Microsoft for building stand alone

Windows-based programs, derived heavily from Basic. Developers can
use it for quickly building Graphical User Interface (GUI) applications.

• Visual Basic .NET (VB.NET) is a version of Microsoft's Visual Basic

designed, as part of the company's .NET product group, to make Web
services applications easier to develop. According to Microsoft, VB
.NET was reengineered, rather than released as VB 6.0 with added
features, to facilitate making fundamental changes to the language.
VB.NET is the first fully object-oriented programming (OOP) version of
Visual Basic, and as such, supports OOP concepts such as abstraction,
inheritance, polymorphism, and aggregation.
 Database Concepts

According to Database Management System 3rd Edition (R.

Ramakrishnan and J. Gehrke), DBMS is a very large, integrated
collection of data and also a software package designed to store
and manage databases. The system can deal with data
independence and efficient access, condensed application
development time, data integrity and security, uniform data
administration, immediate access, recovery from crashes and
maintain large dataset
 Chapter 3
I. Methods of Research
II. Test Sampling
III. Statistical Treatment of Data
 Methods of Research
According to Donald Campbell, "All research ultimately has a qualitative
grounding". On contrary, "There's no such thing as qualitative data.
Everything is either 1 or 0”, said Fred Kerlinger

The proponents made use of the following methodologies in order to

determine and understand the problems confined in the system of
New Menton in the present situation:

• Qualitative research
• Quantitative research
• Descriptive research
 Qualitative research

• Qualitative research seeks out the ‘why’, not the ‘how’ of its topic
through the analysis of unstructured information, things like interview
transcripts, emails, notes, feedback forms, photos and videos. It does
not just rely on statistics or numbers, which are the domain of
quantitative researchers. Qualitative research is used to gain insight
into people's attitudes, behaviors, value systems, concerns,
motivations, aspirations, culture or lifestyles.
• The research method used in the initial data gathering which is an
interview is a qualitative type of research. The proponents interview
the manager about the broader information, environment or setting
and policies of the company in connection with sales and inventory.
From the interview, we further comprehend with the operations and
difficulties, we knew what are the possible system requirements we
should apply on how to improve the existing manual process.
 Quantitative research

• Quantitative research measures how many people think, act in a

particular way. These surveys generate statistics through the use of
large-scale survey methods such as questionnaires or structured
interviews, that are tend to include large samples.
• The researchers conducted a quantitative research in the form of a
survey consist of close-ended questions. This sampling technique was
used to quantify or scientifically form a basis through statistical facts
and data.
 Descriptive research
• Descriptive type of research is also called observational, because you
observe the subjects without otherwise intervening. It is primarily
concerned with describing the nature or conditions and degree in
detail of the present situation. It is mainly done when a researcher
wants to gain a better understanding of a topic, although this research
is highly accurate, it does not gather the causes behind a situation.
• The researchers utilized the descriptive research in forming questions
for the interview and survey. The result is used to interpret the
problem that came into conclusion as well as to attain the latter
objectives.
 Test Sampling
• The proponents decided to have two sets of data gathering, the first set
is for the operational staff, which is the projected beneficiaries as main
users of the system, and second set is for the customers, the ones that
will be affected by the conception of the system.
 Test Sampling
• In the first set, there are 10 persons involved in the system that serve
as samples in this study or the respondents to the conducted data
gathering, 5 inventorists, the people who manually count the inventory
of products and 5 operational staff, who are responsible of writing and
keeping the records of sales and inventory of the company.
 Test Sampling
In the second set, the customers are the sample population that will
participate in the research study. In order to calculate the ideal sample
size of target population, the proponents made use of the Slovin’s
formula:
N
n = N / (1 + (N*e^2)) or n =
1 + (N*e2)
Where:
n = number of samples
N = total population
e = margin of error
 Test Sampling
• When it is not possible to study an entire population, a smaller sample
is taken using a random sampling technique. Slovin's formula allows a
researcher to sample the population with a desired degree of accuracy.
It gives the researcher an idea of how large his sample size needs to be
to ensure a reasonable accuracy of results.
• The total population (N) is based on the average number of customers
in a day according to the initial data gathering or interview with the
management department. The common range stated in the interview
is more than 100 customers per day, so the researchers use the exact
number of samples, which is 100.
 Test Sampling
• In order to have
confidence that your
survey results are
acceptable, it is critically
important to estimate the
margin of error (or
confidence interval) is
given by 1/√N, where N is
the number of
participants or sample
size (Niles, 2006).
 Test Sampling
100
n=
1+ (100*.102)

100
n=
1+ (1)
Therefore, the number of
samples for the survey for the n = 50
customer is 50.
 Statistical Treatment of Data

Survey for the Employees

1. Question 1. How long have you been employed in the company?

How long the operational employees and inventorists

are working in New Menton?

Less than a year

more than a year
40% more than 2 years
more than 5 years
60%
 Statistical Treatment of Data

Question 2. How many customers order and buy products

in a day?

Number of customers per day

30%
less than 20
30-50
50-100
more than 100
 Statistical Treatment of Data

Question 3. How many times do you order from the

suppliers in day?

Number of times the company orders from the suppliers

per day

20%
less than 10 times
11-15 times
16-20 times
50% more than 20 times

30%
 Statistical Treatment of Data

Question 4. How do you keep track of your inventory?

Method of Inventory

by writing
by entering data
into the computer
others

100%
 Statistical Treatment of Data

Question 5. Is the quantity of the products can easily be

determined once asked by an employee or customer?

Number of products can easily be determined?

yes
no

100%
 Statistical Treatment of Data

Question 6. How long does it take to know the quantity of

a product in the inventory?

How long does it take for quantity inquiry

10%
20%
3-5 minutes
6-10 minutes
15-20 minutes
more than 20
minutes `

70%
 Statistical Treatment of Data

 If your answer is 15-20 minutes or more, how frequent

does this happen?

How frequent is the 15-20 minutes or more quantity

inquiry?

always 0%

often 78%

seldom 22%

sometimes 0%
 Statistical Treatment of Data

Question 7. How often do you do product inventory?

Regularity of inventory

10%

10%
daily weekly

monthly annually

80%
 Statistical Treatment of Data

Question 8. How often do you make a sales report?

Regularity of sales report

10%

daily
weekly
monthl
30% y
60% annuall
y
 Statistical Treatment of Data

Question 9. Is the tally of purchased products and

inventory always correct?

Number of times the tally did not match

above 20 times 0%

15-20 times 30%

6-15 times 60%

1-5 times 10%

 Statistical Treatment of Data

Question 10. Do you wish to have an automated sales and

inventory system?

Wish to have automated sales ad inventory

system?

yes
no

100%
 Statistical Treatment of Data

 If yes, when do you want to implement it?

When do you want to implement it?

after a year 0%

after 6 months 10%

after 3 months 30%

as soon as possible 60%

 Statistical Treatment of Data
Survey for the Customers
Question 1. How long have you been a customer in New Menton?

How long have been buying to New Menton?

4%
10%

Less than a year

14% more than 1 year
more than 2 years
more than 5 years

72%
 Statistical Treatment of Data
Question 2. Is the quantity of the products can easily be
determined once you ask?

Fast and easy quantity inquiry?

28%
yes
no

72%
 Statistical Treatment of Data
Question 3. How long does it take it know the
quantity/availability of a product?

Time span of product inquiry

4% 6%

20% 3-5 minutes

6-10 minutes
15-20 mnutes
20 minutes or more

70%
 Statistical Treatment of Data
 If you answer is 15-20 or more, how frequent does this happens?

How frequent the is the 15-20 minutes or more

quantity inquiry?

sometimes 16%

seldom 57%

often 22%

always 5%
 Statistical Treatment of Data
Question 4. Do you think having a computerized sales and inventory
system will help improve New Menton’s customer service?

Will it help improve customer service?

18%

yes
no

82%
 Statistical Treatment of Data
Question 5. Do you wish New Menton has an automated sales and
inventory system?

Wish New Menton has SISNM?

2%

yes
no

98%
 I. Cost and Benefits Analysis
Payback Analysis
 Payback Analysis

1,000,000.00

800,000.00

600,000.00
CUMMULATIVE COST
400,000.00 CUMMULATIVE
BENEFITS
200,000.00

-
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
(200,000.00)

(400,000.00)

(600,000.00)

(800,000.00)
 Chapter 5
I. Context Diagram (Existing System)
II. Data Flow Diagram (Existing System)
III. Context Diagram (Proposed System)
IV. Data Flow Diagram (Proposed System)
V. Data Dictionary
I. Context Diagram (Existing System for Inventory)
Context Diagram (Existing System for Sales)
II. Data Flow Diagram (Existing System for Inventory)
Data Flow Diagram (Existing System for Sales)
III. Context Diagram (Proposed System)
IV. Data Flow Diagram (Proposed System)
 V. Data Dictionary
*Data Elements

Customer Details
Supplier Details

Derivation Formula: n/a

Description or
Comments: Unique data for supplier
Hardware and Construction Supplies Inventory Details
Title
*Data Process

 
Title
*Data Flow
Title
Title
Title
External Entity
Data Store
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title
Title