AMA COMPUTER COLLEGE-CAVITE CAMPUS

Governor’s Tower I Bldg., Governor’s Drive,

Langkaan 1, Dasmarinas City, Cavite

Research Output
Date: February 26,2018 Doc Ref # :
Name of Proponent(s) Deborah Micah Reandino

James Allen F. Inojales

Maria Alliah M. Aspra

John Conrad G. Dabu

Kamarudin A. Buday

Manuela A. Tabada

Jannie P. Hicayo

Aila Celeste

Proposed Title “Inventory Management System for Aaron Groceries

Store”
Chapter 1 – Introduction

Inventory System is the management of inventory and stock. As an element of supply

chain management, inventory management includes aspects such as controlling and

overseeing ordering inventory, storage of inventory, and controlling the amount of

product for sale.

Aaron-Groceries store is a retail store that mostly sells food and other product of

groceries. It is a large store that can sell any items of products that need to take down by

employees. The employee of Aaron groceries store can’t easily identify the products

because of the crowded supplier and consumer of the groceries. Aaron-Groceries store

needs to use inventory system because it will help the employees and the owner to lessen

their works and they can easily manage their products.

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Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

Aaron Gutierrez is the owner of Aaron Groceries Store and it’s established on

September 20, 2005. The grocery has been operating for 12 years already but until now

they still using the traditional system, that’s why Aaron Groceries store can’t handle

properly because of a lot of costumer.

The definition of Inventory System is easy to understand. Inventory System is all

about having the right inventory at the right quantity, in the right place, at the right time,

and at the right cost.

Stocking the right amount of inventory is crucial. If you order too little, your

customers will start looking elsewhere. If you order too much, there’s a chance you’ll be

stuck with lots of extra stock that you’ll be forced to sell at clearance prices, or risk

having them become obsolete.

In a poll by Get App, business owners were asked how they decided when to reorder

inventory. A resounding 46% of them decided based on information from previous

months. If you’re part of that 46%, you want to make sure you’ve got the right inventory

data - which means looking for a solution that’ll automatically track your inventory

movements as much as possible.

In fact, even if you chose to use inventory forecasting software (15%) or Excel

formulas (13%), you’re still going to need information from the previous months. (If

you’re wondering about the remaining 26%, they selected “Other” - we’re still betting

information from previous month’s factor in somewhere though!)

You don’t want to pay more for your products than you have to, but lower prices

aren’t always better. Suppliers often promise price quantity breaks - you just need to

order 20% more stock to save 10% - and you may find yourself digging into your savings
 AMA COMPUTER COLLEGE-CAVITE CAMPUS
Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

to make this purchase

One recurring theme to good inventory management highlighted above is the need to

track inventory movement constantly, instead of doing it periodically. Automation is one

of the biggest advantages of making the move to inventory management software - you

won’t have to worry about missing reorder points or overselling by accident.

By automating the inventory management process as much as possible, you’ll be able

to reduce the likelihood of human error. Once you take the plunge and make the move to

inventory management software, you’ll have more time on your hands, giving you more

time to focus on what’s really important - growing your business.

Statement of the Problem

This study aims to address the Inventory Management System, most specifically the

grocery store that is surrounded by consumers everyday - with this system the grocery

store has the ability to measure inventory accurately.

The following areas will be covered in this research study:

a) The beneficiaries need to identify the stocks manually.

b) The process of recording of the stocks was done through a log book and usually causes an

error.
c) The beneficiaries has to check and ensure the quality and availability of the stocks

manually before being able to record the status of the stocks.

Purpose/Objective of the Study

The main objective of this study is to develop a system for Aaron groceries that

can help the owner to manage the stocks and monitor his/her business.

The following are the objectives for this study:

a) The propose system that will show the details of every single of stocks in the store.
 AMA COMPUTER COLLEGE-CAVITE CAMPUS
Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

b) To develop secured system by creating account that the owner, manager or the assign

staff can only have an access on this.

c) To create a system that can monitor if the stocks is on the crucial stage.

Significance of the Study

The finding of this study is to provide an Inventory system for the growth of the

beneficiaries and ease their work loads. The Inventory Management System has an ability

to track inventory status in a friendly way. The proposed system may help to lessen the

company is failures and it is more efficient and manageable

The beneficiaries of this study are the following:

Store Owner

This system would be able help and keep track of the stocks of the products in the store

and ensure a smooth flow of transactions in the shop.

Company

The company will have a report of inventory in just a minute. They do not

need to cease the operation of the business to get the inventory report. The

company will have more time to focus to other part that can help to the growth

of the business.

Employees

This system can greatly help the employee/s working as they would not have to

check the quantity of a certain product manually by walking around the store and

counting it.

Future Researchers

Future researchers can use this study as guide or reference for their own study as they
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Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

would be able to learn and take something off this study that can help benefit them.

Scope and Limitation

The focus of the study is to use computerized inventory system for Aaron Groceries

Store. The inventory system improved owners work efficiency and ability to manage

product by computerizing routinely and time consuming task such as the time spent in

taking down product information. The research also describes the advantage of

computerized inventory system for Aaron Groceries Store and it also helps owner or

admin to take down product easier and more smoothly managing.

The system is mostly focused on the product and stocks of items in the store. It records

and manage information of the products available, the system also monitors the store

products that can be added, edit and delete on the database. Additionally, the system can

automatically recognize the product if it is in low critical level or not and it can discover

the best seller product of the store. The research is only in Aaron Groceries Store and the

inventory system has two accounts and which is for admin and for employee, the account

of employee can take down list the amount of products while the account of administrator

can access all the services system offers and list of product. The admin can add, edit and

delete the items and product.

 The researchers will use Visual Basic 2012 for designing the system.
 The researchers will be use Oracle 11g Express Edition for establishing database.
 The researchers will use one computer for the system.
 The researchers will use two accounts and it is for the admin and employee.
Hypothesis

Conceptual Framework

Chapter 2 – Review of Related Literature

2.1 Foreign Literature
 AMA COMPUTER COLLEGE-CAVITE CAMPUS
Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

(2012), entitled “Inventory System”, Computer has a big rule in our nation today

because of our technology. Wherever you go computer still exist, especially in business it

makes the procedure easy and secure by programming the manual system into a

computerizing system. The rule of technology in our life today has a big impact.

Everything now is becoming high technology, from manual to computerization. In

computerizing system, it is easy to document and secure data. Especially in terms of

Sales and Inventory system, every day you are counting your products then reconcile it

with your sale while when you use the computerized system you can save more time

because it is automatically count and total the remaining item and the items that was

already both and sold. An additional benefit 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. A small business operates most efficiently when its processes are

executed in a consistent manner. By using a computerized inventory system, a business

owner can ensure that all orders, reports and other documents relating to inventory are

uniform in their presentation regardless of who has created them.

(2014), entitled “Perpetual Inventory System”, there is immediate process for

inventory and sales in the stock record. It is a stock administration system where store

balances of inventory are recorded after every transaction. It disposes of the requirement

for the store to close down always for stock taking for perpetual inventory systems

considers persistent inventory checking. Perpetual inventory systems keep a running

account of the company’s inventory.

(2014), entitled “The Essentials of Managing Inventory” by Waller and Esper,

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Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

managing a client and employee relationships is a critical aspect of managing supply

chains. In many cases, the combined relationship concept has been treated as the bottom

line of supply chain management. A closer examination of supply chain relationships,

particularly those involving product flows, reveals that the core of these relationship is

inventory movement and storage. Much of the activity involved in managing

relationships is based on the purchase, transfer, or management of the inventory. As such,

inventory plays a critical role in supply chains because it is a salient focus of supply

chains.

2.2 Local Literature

(2012), entitled “Online Sales Monitoring and Inventory System” KONEK.COM

management once said, “Manual method is very hassle and time consuming process of

inventory. It has many drawbacks as there are many mistakes while recording large data

and it disturb some important transaction sometimes”. Konek.com is a hardware store

located at Mabini St., Molave Zamboanga del sur. It was owned and managed by Mr. &

Mrs. Roy Megapatan. They started at a very small scale business selling cell phone

accessories. But because of the company’s dedication for hard work and determination to

rise among others, the very small hardware store becomes one of those who are trusted

when it comes to supplying electronic devices such as computers, computer accessories,

cell phones, cell phone accessories, flash drives and etc. in its community. Today

KONEK.COM, having three branches with in the municipality, boasts its tag as one of its

community’s leading hardware store.

(2014), entitled “Sales and Inventory System” by Eahm05, In business like

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Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

merchandising, Sales and Inventory system plays an important role. It is used to track all

the transactions made by the business and responsible for monitoring the items supplies.

All the business transactions must be properly recorded and must be fully secured by

password. A Computerized system is the best solution and most innovative answer for

their needs. The researchers had been motivated to do a study on this topic according to

the above observation. The result may help others to understand more about computer-

generated data processing, especially on how to deal with computers in terms of speed,

accuracy and data security. Monitoring the transactions and other significant information

regarding the customer is the main concern of this study.

2.3 Foreign Studies

(2013), entitled “Development of a Inventory of Caterpol Ltd.” The main objective of

the study is to develop a service application which focuses in the inventory management

of Caterpol Ltd. The system provides basic tool for tracking, monitoring sales of

inventory of the company. The output and the result of the study is the development of an

online system that will provide the company a secure registration, login system, inventory

system, users, orders, suppliers, customers, history- logs, company, order pdf generation,

export Mysql data file to Excel file.

(2015), “Automating the purchasing and inventory control functions”, Factors

involved in computerizing the purchasing and inventory control functions in hospital

pharmacies are described. When initiating an automated purchasing and inventory control

system, a feasibility study should first be conducted to determine the extent of automation

needed to develop a cost-effective system. The design of the system will depend on the
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extent to which the department of materials management is involved with other hospital

departments. The advantages and disadvantages of decentralized versus centralized

systems are discussed, and criteria for selecting hardware and software vendors are

presented. A return-on-investment analysis should be performed to validate the benefits

or savings expected from implementing the new automated system. Factors to consider

during implementation of the new system and future developments affecting purchasing

and inventory control systems, such as bar coding, are discussed. With the current

concern about rapidly rising health-care costs and the need to enhance productivity, the

development and implementation of automated purchasing and inventory control systems

are important strategies for institutions to pursue now.

(2013), entitled “Computerized Monitoring and Inventory of Stock with Warning

Level” by Bello, lots of firms have thousands of items of inventory have need some form

of control. The usage calculations and data keeping chores would soon become

devastating were it not for the computer and it has unique information storage and

retrieval capabilities. Automation can dramsatically affect the phases of inventory

management, including counting, and tracking of inventory items; recording and

improving of item storage locations; documenting changes to inventory; and anticipating

inventory needs, including in handling the inventory requirements.

2.4 Local Studies

(2013), entitled “Computerized Sales and Inventory System for Anthony's General

Merchandise and Construction Supply”, Many people use computers in their daily

lives. Some use it for transactions, some use it for educational purposes and others use it
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Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

for data storage. Though it might sound unnecessary but in some cases when storing a file

for such a big company, can you manage it properly? Organizing, finding a file, etc. With

computers, it can help you simplify the process of storing and managing the files you

need for future use and make finding files easier than the manual process. Computerized

Sales and Inventory System is a product of human knowledge with a use of technology so

why not use technology as an advantage and benefit ourselves. This proposed system

aims to lighten works and solve the problems involving strict and complex recording and

calculations. Anthony’s General Merchandise & Construction Supply is still under the

manual method since the business started back in April 2000. The business is located first

at Riverside then they transferred to Road BHS near Quezon City Polytechnic University.

It is a family owned business by Mrs. Herminia Baguino. They have 1 cashier, 3 sales

persons, 2 drivers, 4 delivery men, 1 staff that is in charge of the warehouse. The cashier

is the person who keeps the money in their money box, the sales person are those who

talks to the customers and responsible in providing the customers’ needs. The driver and

delivery men are those workers who are responsible for the delivery of the items to the

customers.

(2012), entitled “LC Pc Net Sales and Inventory System” , technology has taken a big

leap forward in 21st century, with computer programs, electronics upgrading by the

month & even by the day. Technology has influenced & greatly simplified almost in

every aspect of a student’s life today. It is amazing what technology has done to our

society and how dependent we have become on it. Having computers in the workplace

has enable the business to our more efficiently and has contributed in having on all
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around better businesses, using computers cut down our work time, we don’t have to

write everything out by hands or type out on typewriters. This increase in usage of

computer proves that computers have affected every aspect of our lives and have become

one of the necessities. Many developers have contributed to such an advancement and

widespread of computer technology. Nowadays there are so many companies using

technical system to improve the quality of service of their company, but there are some

companies still using manual computing for their product inventory like LC Pc Net Sales

& Services.LC Pc Net Sales & Services is owned by Mr. Leo Boongaling. It is

established on April 2010. It is the first company that he built in order to apply his

knowledge and skills in his past schooling, together with his friends as employee. And it

is located at 2nd floor L. Boongaling Commercial Complex # 2 Rizal Street Poblacion

Candelaria, Quezon. Their products are such peripherals. And in the ground floor they

have Louis and Nathalie Computer Shop.

Chapter 3 – Research Design and Methodology
This chapter will presents or explains the methods and procedures that will be use in

the study. It will describes the subject of the study, the instruments that will be use, the

procedures of data gathering and the statistical treatment of the data.

This study will create an Inventory Management System for Aaron Groceries Store

that will help the owner to manage the stocks and monitor his/her business efficiently and

accurately.

3.1 Research Design

This study will use the descriptive methods of research. Descriptive, its main

cause is to get the coherent view of the characteristics of the subjects that are visible in

the study. The main purpose of the methods is to explain the data and the information that
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will going to collect. Descriptive methods is the widely used in the world as the methods

of research that will results an accurate data and enough interpretation of the data.

According to the results of the instruments of research, survey, the researchers will know

the full detail of the study. Chart, graph and table will use to presents all the data orderly

and clearly as the answers of the questions of the study.

3.2 Research Setting

The setting of the study is the Aaron Groceries Store where located in Tropical

Village, San Francisco, Gen. Trias, Cavite. Research will allow the owner to use or test

the system to secure that the quality of the system is free from any errors or bugs to

guarantee the assumption of the beneficiary to the system.

3.3 Respondents of the Study

Respondents Number
Owner 1
Employees 5
Costumers 44
Total 50
Table 3.1 Row Population

3.4 Data Gathering Procedure

The researchers prepared a letter asking the permission of the owner to conduct a study

on their store. After this, the researcher conducted the interview to the respondents to get

the information needed for this study.

The questionnaire was answerable by using the Likert Scale as shown below:

Strongly Agree 5
Agree 4
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Neutral 3
Disagree 2
Strongly Disagree 1
Fig. 3.4.1 : Likert Scale

The following criteria were applied to know the performance of the software. The

criteria were based on the combination of ISO 9126-1 Evaluation Criteria for study of the

researchers.

Functionality: The functionality characteristic allows drawing conclusions about how well

software provides desired functions. It can be used for assessing, controlling and

predicting the extent to which the software product in question satisfies functional

requirements.

Reliability: The reliability characteristic allows drawing conclusions about how well

software maintains the level of system performance when used under specified

conditions.

Usability: The usability characteristic allows drawing conclusions about how well software

can be understood, learned, used and liked by the developer.

Efficiency: The efficiency characteristic allows drawing conclusions about how well

software provides required performance relative to amount of resources used.

Maintainability: The maintainability characteristic allows drawing conclusions about how

well software can be maintained.

Portability: The portability characteristic allows drawing conclusions about how well

software can be ported from one environment to another.

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3.5 Statistical Treatment

The data were gathered through descriptive analysis and survey questionnaires. The

researchers used the Average Method.

Formula of Statistical Mean:

Average=

Where:

: Total Scale (Score)

N: Total Number of Question 3.6 Materials

The materials needed for the beneficiary to have the Computerized Library

Management System.

3.6.1 Software Requirements

Software Price

Operating System(Windows XP, 7) 5,000.00

Visual Basic 2012 N/A

Oracle 11g N/A

3.6.2Hardware Requirements

The minimum hardware and software requirements for the system:

 AMA COMPUTER COLLEGE-CAVITE CAMPUS
Governor’s Tower I Bldg., Governor’s Drive,
Langkaan 1, Dasmarinas City, Cavite

Hardware Price

Pentium 4 3.0 GHz Processor 500.00

1GB RAM 500.00

LED Monitor 3,000.00

40GB Hard Disk Storage 1,500.00

Secure 500 Watts 3x220V Output AVR 500.00

Etc(Mouse, Keyboard) 1,500.00

Reviewed by: Endorsed by:

Research Coordinator College Dean

Date: Date: