Chapter 1 INTRODUCTION

An Inventory System is a set of software programs that are used to store, organize and

manage all the information in a company's database. It handles a wide variety of business

inventory task including: sales, stocks from the supply chain, shipping, purchasing, tracking,

reordering, customer service and marketing that the system can track and control. According to

Tim Crosby, the system works through the use of barcode scanners, labels and radio-frequency

identification or RFID that can identify the products that the customers are buying. It transmits

the information by scanning the barcode that will be sent to the system and analyze the

numbers to determine and monitor which item is being sold to the customers.

There are three types of manufacturing inventories and these are: raw materials, work in

process and finished goods. The raw materials are the basic material that will be needed in

production, the manufacturing company buys these materials from their supplier. The work in

progress or WIP is the use of raw materials that will be processed and produce to make a finish

product. The finished goods are the final products that is made on the processes of raw

materials and work in progress that are ready to sell. These types of inventories can help the

companies or business to buy the right number of products that will be used to avoid wasted

materials.
1.1 Statement of the Problem

Inventory issues, such as having too many or too few items on hand, can result in lost

sales. If an organization runs out of an essential inventory item, production may be

discontinued. Inventory management refers to the overall framework for inventory management.

The inventory management technique is more useful in understanding the optimal quantity of

inventory and finding solutions to safety stocks.

Since the information is first documented on hard copies and then entered into a

spreadsheet tool, a significant amount of time is wasted. With the existing approaches, checking

for a certain record takes a very long time, and a lot of paper and ink is wasted, making the

system inefficient.

Data duplication is a common issue with flat files, resulting in a variety of issues such as

update and delete errors, to name a few. Since the manual recording system is easily

manipulated, log books can be misplaced, and it also wears out, leading to data loss that is

crucial to the firm. As a result, an Inventory Management System was required to be

implemented in order to further improve the system.

The inventory system improves the company and business by allowing it to track the

supplies and raw materials needed to build a finished product that meets the customer's

demand, but there are some inventory problems in the system that cannot be avoided, such as

employee errors that did not receive much training on the system, which can cause inaccuracy

in the inventory records, leading to the purchase of failed products and materials. Overstocking

and understocking of supplies can result in an inaccurate data in the inventory, resulting in the

loss of funds and delayed orders from customers. A misplaced inventory is the incorrect delivery
location on the system, which causes both customers and suppliers to waste time looking for

the missing materials.

The general objective of the proposed system for the client is to manage and monitor the

inventory that will to have a sufficient stock that is needed in advanced to achieve orders from

the customers with the right products on time. The specific objective of the proposed system is

to generate a secure system for authorized users to prevent unauthorized users from accessing

the system database.

To determine the incoming and outgoing stocks to avoid a failed ordering process, and to

minimize unnecessary items that are not needed which can help to save money in the business

when ordering a supply again.

Objectives:

Our inventory system purpose is to guarantee that the supply is continuously and in good

condition to avoid getting an over-stock or under-stock of the products and materials. To help

the client manage their records that are paper-based to save it in the system’s database and

organize the products and materials to maintain their quantity and order when they are needed

to be use. And to be ensured that the system’s record and data is safe and secured.

The implementation of this has a considerable advantage to the business people dealing

with goods in that, due to the problems that the businesses are having, the designed system

might be more essential to the company in the following ways. The business can save some

more money on expenses because it won't need to buy as much paper and ink.

Customers are better serviced since information access with the new system is significantly

faster by monitoring your inventory. Suppliers benefits as well, because of a new approach

makes it easier to identify which items need to be supplied.

Chapter 2

Background of the Study

Throughout the century, the people are always buying and selling products in the market,

this means that inventory system always existed in some form that helps us on our daily lives

from the beginning to modern technology. On the ancient methods, the earliest form of inventory

management is way back 50,000 years were people used a tally stick (i.e., small wooden stick)

to count and record the quantities and document numbers. On the industrial age, the modern

automatic computation machine is developed in the 1890 census by Herman Hollerith, they are

called the punch cards that is designed to record and process information. On the modern

technology in the mid-70s, the barcode and radio frequency identification (RFID) has become

the primary tool on inventory that scan and collects the identification number of every items.

Nowadays, these modern tools are still efficient and helpful to track the inventory.

Inventory Management System includes data information, logistics, purchasing,

inspection, material handling and warehousing, supplier control, and occasionally inventory

security (Keaf, 2003). The main goal of inventory management is to discover and maintain

optimal levels of investment in all types of inventories, as well as to optimize the flow of goods,

data, and other related resources such as human resources and energy from the point of origin

to the final point of consumption (customer). (Knot, 2005) 

The inventory system is designed to be essential on companies and businesses in order

to keep the items organized and sorted, as well as to track the incoming and outgoing of stocks,

so that the company or business does not cease to function. It can increase work productivity to

provide a faster and better service. It is also in charge of quality inspection and management of

products that can help to meet the customer’s demand.

 The researchers proposed an Inventory System to assist the client with their daily work by

creating and maintaining a well-organized and manageable business. This will help to ensure

that they are able to monitor the progress of the supplier's stocks, products and services that

will help to improve their business operation and increase the profits.

Chapter 3

Introduction

This Chapter discusses the research design, sampling design, data collection methods, data

processing, data analysis, and interpretation, method, and development tool used to develop

the Inventory Management System (IMS) will be detailed in this part. The process used to

construct the system will be described in full, with figures and flow charts included.

Research Design

The quantitative research design was used by the researcher. The study attempted to

describe various kinds of inventories, the costs associated with managing inventory control, and

the impact of inventory management on the company's operations. The study also used a

qualitative research design that included data description and analysis.

Research Instruments

The researchers will gather information and data from both primary and secondary sources.

In order to obtain Primary Data, the researcher will use questionnaires as data collection

instruments. Stocks and Supplies will be used for Secondary Data. The following are the

instruments or tools:
Questionnaires

This tool will be utilized because the target respondents is proficient and thus capable of

filling out the questions. It gives respondents enough time to provide detailed responses.

Questionnaires may also be self-administered and provided a simple way of obtaining data from

a wide population sample.

Data Collection Procedures

The researcher will receive a letter from Cavite State University, Imus Campus granting the

researchers permission to perform the research. The letter will be given to the client, requesting

permission for the researchers to conduct the research. Following that, the researcher will

create questionnaires to be used in data collecting.

The researcher must make appointments with respondents for interviews and questionnaire

delivery. After gathering the data, the researcher will analyze and interpret it before writing the

research report.

Data analysis

The collected data obtained will be analyzed, coded, measured, and tabulated. In order to

compute percentages and totals, a quantitative method will be applied. Tables will be used to

present and summarize data so that it may be easily interpreted and shown. Data from

questionnaires will be coded using tallies, and the coded data will be statistically analyzed.
Scope and Limitations

The research will be complex in data collecting and report preparation. In other

circumstances, the response rate may be low since respondents are always busy with office

work, and some may not respond and return the questionnaires.

Method to develop (IMS)

First, web-based (IMS) tools are chosen depending on their features and limitations.

Following that, a level 2 data flow diagram is constructed to determine the data flow from server

to user. The web-based (IMS) flow chart is then created based on the features and limits. The

conceptual design of the GUI is then generated to visualize how the (IMS) will look when

finished. Following that, a fully functional GUI will be developed. After that, the (IMS) will be

debugged until everything runs smoothly.

Figure 3.1: Method to develop Web based Inventory Management System (IMS)

The program must be user-friendly so that it is easy to understand and use by the user

without the need of training. The software's basic feature is to register items for both check in

and check out. Aside from that, the user can include a description to help the user identify the

item. The database will be regularly updated. The database will be a MySQL database hosted

by the free software XAMPP. Furthermore, there is a low stock reminder feature that alerts the

user whenever the item quantity of a specific product is less than 5, allowing the user to restock

accordingly. Based on the figure 3.1, it can be concluded that the language used to develop this

Inventory Management System are PHP, MySQL Database, PDO, OOP, HTML, CSS,

JavaScript (jQuery and Ajax), and bootstrap for the design.