Introduction

People now a day are exposed to technology and are much skillful using it than previous generations. Technology is useful and helpful in the business world. The extensive record will not be a problem to a post-industrialized society. Specifically, the unreliable and slow processing, in recording and keeping of the transactions with the suppliers, in the distributed commodities and production of goods and services had been simple.

According to Jay Conrad Levinson, “Marketing is not an event, but a process. It has a beginning, middle, but never an end, for it is a process. You improve it, perfect it, change it, even pause it. But you never stop it completely”. In the world of the marketing industry, the processes are nonstop and the business operates continually.

Inventory is a number of goods owned and stored by a business that is intended either for resale or as raw materials and components used in producing goods that the business sells.

According to the given statement above, the proponents came up with an idea of creating a system that focuses mainly on the Inventory system of the Marketing which can help a lot to the company and to the personnel to lessen the time of their work and have an accurate record of stock in and out of commodities. This system is seen to address the immediate need of the firm.

Background of the Study

Manna Marketing is a distributor where the supplies of goods are kept. Manna Marketing is an inside suppliers of BreadKo Bakery which is located at Lilya Street, Barangay Bata Bacolod City. This was established on September 1, 2014. According to the Bible, the word “Manna” is the food that God gave to the Israelite in the desert after they escaped from Egypt. In other words, it is an unexpected or a sudden source of help that a person can receive.

From that thought, since the Manna Marketing is an inside supplier of BreadKo which is making and selling bread to its different branches. And Manna is representing as bread to those Israelite, that’s why the management had an idea to have a business that is connected to supplying of bread. It currently has ten employees in accounting department that are working for the company. Living upon its biblical meaning, Manna Marketing took up a business connected to supplying raw materials for bread makers. This company presently employs ten personnel in accounting department who help in the operations.

The business operation is concerned with the receipt of goods from the suppliers and corresponding distributions of the Stock Keeping Unit (SKU) to the customer. The company is using a manual method, where the proponents have observed that employees have a difficulty of monitoring the flow of commodities being supplied and distributed, inaccurate inventory status, inefficient searching of previous records, and an authorized personnel can access the manual system without permission.

Statement of the Objective

Manna Marketing Inventory System is an Inventory System and its aims are:

  1. Help the manager and authorized personnel to monitor the stock in and stock out of commodities.
  2. Generates accurate inventory status report.
  3. Introduce search box for an immediate result finding of records.
  4. Provides username and password to have an access to secure the security of the system.
  5. Generates daily reports of stock in and stock out.

Conceptual Framework

Conceptual Framework

The conceptual framework shows the flow of the system and how data are processed. It starts when the users open the system and log in for an access. An option if they want to go to the supplier, customer, SKU, Ingredient Stock, Invoice, or in Reports Module. They can view the list of customer, supplier, and ingredients. Users can also view the number of damage over the good packs in the SKU module. The automated system allows the users to generate an invoice for stock out an ingredient in Invoice module and it allows printing the invoice and it will save the records for the daily report. The Report Module is an access to the maintenance of the system and to the reports of stock in and stock out of supplies.

Scope and Delimitation of the Study

The system focuses on Inventory System that can be accessed in

Local Area Network.

Scope

The purpose of the system is to be able to:

  • Record the inventory of stock in and stock out of the supply of ingredients and products.
  • The manager and authorized personnel can access to the maintenance.
  • The system can use even without the internet connection.
  • Trace users and corresponding transactions affected.
  • The manager and authorized personnel can print the report.

Delimitation 

  • Only manager and authorized personnel can view product, supplier, customer, and can generate reports.
  • The authorized manager can access the maintenance.
  • The system is not programmed designed for mobile phones and tablets.
  • The only manager can view the activity log.
  • The system is tailored for Manna Marketing and may not be suited for other firms of similar nature.

Significance of the Study

A system has its unique functions or significance to the effectiveness and efficiency of the firm’s operations. The Proponents developed the Manna Marketing Inventory System to help the company based on its critical automation needs with reference to its operations.

There are various people who could benefit from the use of the system, as in the case of manager and authorized Personnel, the proponents, and the future researchers.

 The Manager and Authorized Personnel. This study will help the Manager and the Authorized Personnel to monitor the stock in and stock out of the commodities and will make the work faster with an accurate inventory status and reports. It will benefit the Manager and the Authorized personnel because it will keep and secure all the records.

The Proponents.  This study has developed the learning skills and the ability to create and analyze the requirements for the system. It helped the proponents to enhance the ability to assign each role for the documentation. Every proponent has a role in the study of the entire system and contributes ideas that will enhance on making system functionalities. The proponent applied all the learning experiences that they encountered in preparing the system and the study.

The Future Researchers. This study will help the future researchers on defining their study will serve as their guide for similar system analysis and design.

Definition of Terms

Business

Conceptually, the activity of making, buying, or selling goods or providing services in exchange for money. (“Merriam – Webster Dictionary”, n.d)

This study adopts the same operational definition.

Commodity

Conceptually, it is a something that is bought and sold. (“Merriam – Webster Dictionary”, n.d)

Operationally, it is goods or stocks that are brought stored and will be sold to its customer.

Data

Conceptually, information that has been translated into a form that     is more convenient to move/process.(“whatIs.com”,n.d)

This study adopts the same operational definition.

Database

Conceptually, is a collection of information that is organized so that it can easily be accessed, managed, and updated. (“Techtarget.com”, n.d)

This study adopts the same operational definition.

File

Conceptually, it is a collection of data or information that has a name. (“Webopedia”, n.d)

Operationally, it serves as the operational definition of the study.

Inventory

Conceptually, it is the raw materials, work-in-process products and finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale.(“Investopedia”,n.d)

Operationally, it is referred to a complete list of supply of goods or raw materials that are stored in a warehouse.

Invoice

Conceptually, it is a document that shows a list of goods or services and the prices to be paid for them. (“Merriam – Webster Dictionary”,n.d)

This study adopts the same operational definition.

Marketing

Conceptually, is a form of communication between you and your customers with the goal of selling your product or service to them.(“encyclopedia”,n.d)

Operationally, it is a way of selling products to a customer in a market.

Process

Conceptually, is a set of interrelated activities that interact to achieve a result.(“encyclopedia”,n.d)

This study adopts the same operational definition.

Production

Conceptually, it is the processes and methods used to transform tangible inputs and intangible inputs into goods or services. (“Business Dictionary”,n.d)

Operationally, it serves as the operational definition of the study.

System

Conceptually, it refers to the hardware and software components that run a computer. (“Webopedia”,n.d)

Operationally, this refers to the inventory system developed for manna marketing

Supplier

Conceptually, it is a person or entity that is the source of goods and services. (“Yourdictionary.com”,n.d)

This study adopts the same operational definition.

Review of Related Literature and Systems

This chapter contains a compilation of related studies, both foreign and local that is related to the proposed system.

Local Studies

Azatri Inventory System

It is a local study for a system that can capably monitor all the materials and products fro receiving, production, and distribution areas online. It generates, the accurate inventory and estimated cost of each product were correctly calculated using an intended formula.

Freedom East Hardware Enterprise

Freedom East Hardware Enterprises is a local study located at Rizal St. Bacolod City. The study covers the sales and inventory of The firm. It includes generates of receipts, daily and monthly sales report daily and monthly monitoring of stocks. ( Jean Rose P. Baltazar, et.al., 2009 )

Foreign Studies

Jeonsoft Inventory System

Jeonsoft is a foreign study which it provides easier and faster way to monitor the movement of the business stocks of goods. From item entry, releasing of items, inventory adjustments, transferring of goods items from one warehouse to another and production, it can keep truck of inventory.

Wal – Mart Inventory System

Wal – Mart runs its stores on a perpetual inventory system. The system records the number of items sold as items are purchased.

(The Associated Press, 2006)

The proponents are fully aware that the Wal-Mart has a lot of branch whole over the world and it has a branch here in the Philippines but the system published outside the country and my proponents decided to make it as one of the foreign studies.

Related System 

Related System

Synthesis

The system that was presented were obtained from both foreign and local system study that were made a basis for the developed of inventory system. It has also described the features that are available on the system that are not available with reflect each other.

All the related system presented share similar nature to the study but were observed lack of security in keeping the records and the present inventory status report and its preview.

Methodology

This chapter will showcase how the system flows and the phases it goes through. This will also provide a User’s Acceptance Survey, the target population of the study, the cost-benefit analysis. This chapter will also discuss the functionalities and detailed description of the different components of the system.

The concept behind the Modified Waterfall Model is that it involves validation and verification between phases and there is a lesser need for documentation and revisions as it allows overlapping of phases. Therefore, the proponents found it fit to present the project in a simpler and easier to understand manner.

Modified Waterfall Model

Requirement Specifications

Operational Feasibility

Manna Marketing doesn’t have an automated system for their all transactions. This system proposed, will be a big help for them to lessen their time and effort for doing their work. With this proposed system they can do their work faster, efficiently and effectively.

Program Environment 

Front End 

Hypertext Markup Language, a standardized system for tagging text files to achieve font, color, graphics, and hyperlink effects on World Wide Web pages. Hypertext Markup Language revision 5 (HTML5)

is markup language for the structure and presentation of World Wide Web contents. HTML5 supports the traditional HTML and XHTML-style syntax  and other new features in its markup, New APIs, XHTML and error handling.

Cascading Style Sheets (CSS) is a style sheet language used for describing the presentation of a document written in a markup language.

A cascading style sheet (CSS) is a Web page derived from multiple sources with a defined order of precedence where the definitions of any style element conflict.

Javascript is an object-oriented computer programming language commonly used to create interactive effects within web browsers. JavaScript is a programming language commonly used in web development. It was originally developed by Netscape as a means to add dynamic and interactive elements to websites. JQuery is a concise and fast JavaScript library that can be used to simplify event handling, HTML document traversing, Ajax interactions and animation for speedy website development.

Back End 

PHP is a server-side scripting language designed for web development but also used as a general-purpose programming language.

Originally created by Rasmus Lerdorf in 1994, the PHP reference implementation is now produced by The PHP Group.

MySQL is an open source relational database management system.

Information in a MySQL database is stored in the form of related tables. MySQL databases are typically used for web application development

(often accessed using PHP).

Technical Feasibility 

Hardware Specifications (Minimum Requirements) 

Client:

  • Dual-Core Processor
  • 1 or 2 GB RAM
  • 265MB Video Card

Server:

  • Dual-Core Processor
  • 2GB Internal Memory
  • 500 Hard Drive

Software Specifications (Minimum Requirements) 

Client:

  • Google Chrome (latest version)
  • Internet Explorer (latest version)
  • Mozilla Firefox (latest version)
  • Windows 7 (or later) Operating System

Server:

  • Google Chrome
  • Internet Explorer
  • Mozilla Firefox
  • System Architecture

System Design

With the design of the system, the proponents decided to make the system simple and user-friendly so that it will make easy for the user to understand and used the system.

Implementation

This system will be implemented offline after thorough testing.

Testing

The Testing phase, the proponents made an appointment with Manna Marketing staff and with their manager to test out the system.

Deployment

In Deployment phase, the system will be given to the Manna Marketing and it was deployed by the staff and manager for utilization.

Maintenance Phase

The system requires maintenance every six months in order to keep the system’s functionality on track and to deliver great service to its customers.

Population of the Study

The target populations of the study were the computer literate. However, since most people are computer natives, the population of the study can also expand to other companies which may use the system for replacement of their manual transaction

Requirements Analysis

To know what the users want for the system, the proponents made an appointment with the manager of the Manna Marketing to gather all the requirements needed and determine the automation features for the inventory.

System Architecture

The admin has all the access in the system like add, edit, delete, or view the files and can be seen by the authorized employee when he/she logs in on his/her account. The authorized employees can view the files and can generate reports of stock in and stock out of ingredients.

Feasibility Schedule

The feasibility schedule contains the record of the amount of time the proponents spent on the system.

Gantt Chart 

Gantt Chart

 Figure 4 shows the Gantt chart of the tasks that have been done by the proponents with the time allotted for the establishment of the entire system.

Cost Benefit Analysis

Cost benefits analysis or the CBA, is the estimated cost and sum of the amount cost and benefits of the system, to determine whether the company can gain benefit from the system.

Table 2: Developmental Cost

 

Developmental Cost

Duration Cost Total Amount
Programmer 10 Months Php 5,500.00 Php 55,000.00
System Analyst 10 Months 7,500.00 75,000.00
Computer Set 20,000.00 20,000.00
Printer (Epson) 8,000.00 8,000.00
Ethernet Cable (80 meters) 5.00 400.00
RJ – 45 (6) 10.00 60.00
Bond Paper (5 Reams) 10 Months 140.00 2,800.00
Ink 10 Months 300.00 3,000.00
Total Php 164,260.00

This table shows the developmental cost of the researched system. The developmental cost includes the programmer and system analyst salary and the expenditures in researching and creation of the researched system.

Table 3: Operational Cost

 

Operational Cost

 

Duration

 

Cost

 

Total Amount

Electricity 12 Months Php 2,000.00 Php 24,000.00
Maintenance Fee 12 Months 1,000.00 12,000.00
Computer Set (2) 12 Months 20,000.00 40,000.00
Total Php 76,000.00

This table shows the Operational cost of the researched system. The operational cost includes the maintenance cost and expenditures in using the researched system.

Table 2.2: Total Developmental and Operational Cost

    Total Amount
Total Developmental Cost Php 164,260.00
Total Operational Cost 76,000.00
  Total Php 240,260.00

       

                 This table shows the total amount of developmental and operational cost of the researched system.

Table 2.3: Benefits of the system

Benefits of the system (Annually) Amount/Value
Efficiency of work/Output of Employee Php 66,000.00
Security of data 7,000.00
Confidentiality of data 8,000.00
Work management of Employee 90,000.00
Backup of data 7,000.00
Ink 3,600.00
Bondpaper 1,680.00
Total   Php 183,280.00

This table shows the computed benefits of the researched system to the company. The proponents have researched on what are the presumed amounts or value of each item that will benefit the company over its traditional method per year.

Cost-Benefit Analysis

Figure 5, shows a chart of the Cost and Benefits analysis. The Return on Investment comes out of 63%.  The Payback Period was computed by taking the sum of the Present Value of system Benefit (Php 166,784.80) subtracting it to the Present Value of System Cost (Php 69,160.00) to get its Net Present Value and get the sum of Net Present Value (Php 97,624.80) subtracting it to the negative value of System cost (Php -164,260.00), and dividing the difference Net Present Value (Php 97,624.80). Resulting in 2.68 which is round to 3, making it a 3 month payback period. Payback period = Initial Investment/Cash Inflow.

The ROI was computed by taking the sum of the Toal Present Value of system benefits (Php 832,700.06), subtracting it to the Total Present Value of System Cost (Php 509,552.47), and dividing the difference Total Present Value of System Cost (Php 509,552.47). The quotient is Php 832,699.06 which is equivalent to 63% of ROI or Return on Investment. The formula that the proponents used can be seen in Figure 5.

Cost Benefits Analysis

Figure 5 shows the activity of the admin and the authorized personnel in the system. The admin can access all the transactions that the system provides. Registered users have the privilege to view the system.

Object Modeling

Use Case Diagram

Use Case Diagram

Figure 5 shows the activity of the admin and the authorized personnel in the system. The admin can access all the transactions that the system provides. Registered users have the privilege to view the system.

Activity Diagram

Administrator Activity Diagram

The administrator logs into the system.T he admin can view the different transactions of the company. The admin can view supply and or delivery details and reports and can also change, add, edit, and delete files.

User Activity Diagram

Authorized Personnel Activity Diagram

Once the users are successfully registered, the user can log in to her/his account to view the supplier, customer, invoice, and reports but he/she cannot add, edit or delete a file without the consent of the administrator.

Domain Class Model

Domain Class Model

This domain class model shows the various entities, their roles, attributes, and relationships.

Summary of Findings, Conclusions and Recommendations

This chapter presents the summary of the findings, and the conclusions and the recommendations for the system study.

Summary of Findings 

This study was conducted for the purpose of designing an automated inventory system for the company, to objectively result to a faster, efficient, and effective inventory system. The descriptive method of research was utilized and the survey technique was used for gathering date. A questionnaire served as an instrument for the collection of data.

The proponents conducted a survey to the employees of   the company. There were 11 employees in their department, one manager and 10 active employees. The survey was conducted after the system had all the requirements, functionalities and features embedded.

The findings suggested that on the level of the users’ experience in terms of effectiveness of the system a mean score of 4.22 was obtained, interpreted as ‘Very Satisfied’. As to the experience of the user in the efficiency category, it obtained a mean of 4.30, it interpreted ‘very satisfied’. On its system quality category the users, it raked a mean of 3.88 interpreted as ‘Satisfied’. On timeliness category, the users gave a mean of 4.1 interpreted as ‘satisfied’. On productivity category the user gave a mean of 4.22 interpreted as ‘very satisfied’. And on the last category which is the system satisfaction the users gave it a mean 4.43 interpreted as ‘very satisfied’. In overall, the systems rating is collected a mean of 4.19 is interpreted as ‘satisfied’ rating.

Conclusion 

The proponents conclude that the system is fully operational and dynamic, as of the sum data gathered. This condition is on the premise that it has addressed the necessary automation requirement of the firm after the thorough system study.

 Recommendations 

As the proponents had made an inventory system for the company, the system shall have maintenance for every 6 months to maintain and update its functions and also for the security of its databases.

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