ANALYSIS AND DESIGN OF SALES AND INVENTORY MANAGEMENT SYSTEM FOR

YOCHANG GENERAL MERCHANDISE

Dianne S. Acosta1, Maria Lavelle R. Alquizar2, Cj Alexes Junio3 ,Dyrien Cris Talara4, Mark Van Buladaco5
1234
Student, Bachelor of Science in Information Technology, Davao del Norte State del Norte College 5Faculty,
Davao del Norte State College
Thus, this project will provide solution for
retailers that are still using traditional way in keeping
Background of the Study their inventory data like ‘Yochang Store’ in Ising
Citizens have lately focused on the benefits Carmen Davao del Norte by creating inventory
that the system provides. Technology is derived from system. Sales and Inventory Management System is a
human discoveries; thus, it includes the use of both computer- based system that provides the shop
primitive and highly advanced tools and work structure for maintaining and controlling goods to be
methods. Inventions and technological development stocked. The approach of Sales and Inventory
allowed people to expand their work as quickly as Management System is commonly used to avoid
possible. Today, with the aid of technology, people are product overstock or outrages by integrating daily
using the most important and highly advanced ‘Point of Sales’ with store’s inventory level.
machine man ever invented: the computer. The If there is any single word that describes
computer has changed the way people work in industry today’s business is “change”. The essence of the
and commerce especially. It has been utilized by market and other factors are changing businesses. The
several businesses when carrying out numerous drivers of change, in Cravens' (2010) words, include
corporate transactions. The machine was strongly deregulation, global excess capacity, global
regarded for the capacity to accomplish activities more competition, changing customer expectations, and
quickly and more reliably than any person could. changing global lifestyles and work [1]. These changes
The Sales & Inventory System is an have led organizations to embark on activities that will
automated version of the system for manual sales and provide a source competitive advantage to stay in the
inventories. It can manage all the information competitive edge. Retail organizations play a critical
surrounding a product. Details include personnel role in society, and in the supply, the chain is
details Inventory, Sales Information, Information of irreplaceable They deal directly with the users of
goods, Regular descriptions of the transaction. We products and make it easy for consumers to access
require a ton of in case of manual program Time, products easily. They play the role of breaking the
workforce. Nearly all the work here is computerized. bulk, facilitating the flow of the channel of
So, it maintains accuracy. Point of Sales and Inventory distribution, communicating feedback to the
System is a computer that is an easy way to check and manufacturing organizations, and carrying out
list the company's sales, it's faster and more reliable promotions on behalf of the manufacturers and
than doing it manually. The system can minimize consumers where product flows. Corporate chains,
human editing errors and the company will be able to volunteer chains, and supplier cooperatives are the
access them easily at any time. Sales and inventory main forms of retail organizations.
systems make the enterprise more efficient, We are engaged in highly computerized
productive, and convenient for the enterprise and its technology in today's century, to make individual
customers. lifestyles more comfortable and easier particularly in
The traditional way retailer keeps their sales the business world. After the creation of the
and inventory details is in spreadsheets which are not computerized system, the manual method is now
effective anymore when the size of the shop gets called the first operation. Online transactions are now
bigger. This is because more items will be made very common for broadening the company's target
available in a larger quantity, thus tracking the sales market. To the customer, it becomes more efficient
made with inventory level in the shop would be considering that it can save time and is considered
complicated and time consuming for the retailer. trouble-free. The selling system and inventory system
Besides, the situation gets worst when the retailer does which provides a web-based system is the most widely
not have proper method to determine items purchased utilized system by many businesses. An advanced
by their customers. sales system provides a more reliable record of the
company's sales as compared with its actual costs.

Electronic copy available at: https://ssrn.com/abstract=3643181

 Besides the data details, the organization Tim Crosby (2012) in his study on ‘How
requires to determine matters related to inventory can Inventory Management Systems Work’ stated. That
be easily produced. Also, the warehouse management inventory management system is the rule of thumb to
that guarantees enough amounts of the high-demand know which products are sold and which take up shelf
supply and appropriate products. This method of space for companies as well as smaller enterprises and
inventory and inventories will help prevent vendors [4]. The system balances the goal of ensuring
overstocking the product. Because the stock cycle is a customers always have enough of what they want
stop for unneeded items requiring time, space, and against a retailer’s financial need to maintain as little
funds that could have been used on more critical stock as possible (Tim Zierden,2009) [5].
assets, the fund will not get back easy when the
company overstock. Point of Sales and Inventory Objectives of the Study
System is a machine that is a simple way to monitor The main goals of this paper is to propose
and document the company's purchases, it's quicker Sales and Inventory Management System Analysis
and more accurate than performing things manually. and Design for Yochang General Merchandise to
The program will eliminate human editing mistakes so improve their business process and organizational
the client should be able to view them quickly at any operations productive to fir the customer’s standards.
time. Sales and distribution networks allow the
company more effective, competitive, and Specific Objectives
comfortable for the business and its consumers.
1. Conduct System analysis of the sales and inventory
Inventory control is, according to Andersen process of the company.
(2007:61-87), the activity that organizes the
availability of items for the clients. It coordinates the 2. Design a process model and data model for sales and
procurement, production, and distribution functions to inventory process of the company.
meet the marketing requirements Must-have.[2] This
3. Provide a design for the system that can monitor
role includes supplying current items for sale, new
stocks and stock ups and inventories quickly and
products, consumables; spare parts, Outdated
efficiently.
products, and all other materials. Inventory allows
enterprises to support customer service, Logistics, or 4. Design a system that can record, compute and
manufacturing operations in situations where the produce an accurate sales and support.
purchase or manufacture of the goods is not
appropriate. Capable of satisfying the demand. Carr Significance of the Study
(2003) adds that the benefits of a good inventory
management system are: This study is beneficial and helpful for the
following:
a. Reasonable the sales-in-inventory
relationship can be better maintained. Without control Yochang General Merchandise.
over inventories procedures in place, can overload the
store or department. The developed Inventory System would
create positive impression towards the owner and
b. Inventories Control systems provide an
staffs, revealing the entity’s perseverance to adopt
enterprise with the information needed to identify
technology advancement to improve their current
slow-selling merchandise. Discovering such items
system.
early in the season will allow a business to lower prices
Customer -They will be given more quality
or make a change in marketing strategy before
service which will be more convenient for them. The
consumption demand disappears altogether.
new system will lessen the time spent by customers in
c. Commodities Control systems enable the buying and paying process.
buyers to identify best-sellers early enough in the
season so reordering can be possible Positioned to
Manager - If the manager wants to check the
increase total store or department sales.
status of their sale, he just needs to login into the
d. Shortages and shrinking merchandise can system than to check it manually.
use inventory control systems to identify these.
Excessive shrinkage should show more efficacy to
reduce employee theft or shoplifting, merchandising
controls must be put in place.[3]

Electronic copy available at: https://ssrn.com/abstract=3643181

 Owner - The owner will also benefit from the CHAPTER II
system because he or she can manage the system
which provides everything for the user, he can also METHODOLOGY
benefit from the accurate records the system could
produce. In this study, method is one of the most
Staff. - The staff will have an easy way of important to understand and to analyze the process and
recording the orders. They will not have problems in to show the different tools that the researchers used.
product orders since it’s now computerized. They will
not be having a hard time searching and updating the Existing Business Process
stocks.
The yochang merchandise is using a
Future Researcher. Future researchers will manual system in calculating there inventory and
be able to use this project as a sample study guide if
computing there sales. The merchandise have a
they ever conduct a study to develop a system related
to such system. This project can serve as its reference; sets of computer but only for writing the list. They
they can use the data for further studies in this project. use Microsoft excel for computing their monthly
sales and inventory.
Scope and Limitation
Proposed System Development Methodology
The proposed system for Yochang store has
its functional and non-functional features. Includes the The proponent propose a design a process
ability to establish automatic product restocking. To model and data model for sales and inventory process
set a limit on how many items you need to stock up on. of the company. A system that can monitor stocks and
The inventory management system places an order stock ups and inventories quickly and efficiently.
with your supplier to restore the low items once a
product falls below the limit.
2.1 System Methodology Used
 It has a capability to add stocks 100 up items
every day. RAPID APPLICATION DEVELOPMENT (RAD)

 The proposed system has ability to record all This paper use one of 'rapid application' when
sales per day. developing the system development (RAD)' the
categories of methodology used to ensure smooth user
 The proposed system can generate reports and developer with different IT background. RAD-
both the inventory and sales for the store each based methodology allows users to quickly and in the
day. hands of some part of the system to adjust the SDLC
phases. Users can thus better understand the system
System development will be based on offline and propose revisions that will bring the system closer
system which requires no internet connection to to what is needed.
operate it. The first thing to do to implement the
system is to collect information from the owner about Phased Development-based Methodology
the products and requirements to see the feasibility of
developing the system for Yochang store. To design, Since the system contains many modules, it
develop and implement a generated module that will binds together to function as a complete system
handle the sales and inventory reports. This will Application, phased development-based is the best
provide the generation of reports which are necessary methodology for anticipating this problem where it
in proper evaluation of the company’s sales and breaks the overall system into a series of sequential
inventory records. versions. Therefore, system prototype is developed
based on one module after another. The analytical
phase identified the overall concept of the system and
then categorized the requirements into a series of
versions.

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 This allows the author to identify navigation and Implementation. The activities are divided into small
usability issues when developing one of the modules activities to provide a guide on how this project works.
before spending much time developing the complete
system. GANTT Chart

The benefit of staggered development-based

methodologies of bringing a successful program into
the hands of customers rapidly provides the customer
with business value faster. In addition, because users
start working with the system sooner, they are more
likely to identify significant additional requirements
sooner. These are some of the reasons the author
selects this methodology for process development.

Project Planning
Figure 2: GANTT Chart Of Project Activities
The project planning phase comes at the start The Figure 2 above shows the activities of the
of the project: it’s after the initiation phase where all proposed system that has four phased which is
you’ve really done is got approval to go ahead and put Planning, Analysis, Design and Implementation which
the basics in place and before the delivery phase where is the project activities is manageable.
you do the work. This includes the Gannt Chart and
Work breakdown Structures that can help to have a FEASIBILTY STUDY
progress on the project.
The initial investigation points to the question
Work Breakdown Structure of the feasibility of the project. Machineability is done
to identify the best system that fulfills all the
requirements. That requires an identification
There are basically four phases in the project
definition, evaluation of the schemes suggested, and
activities which comprise of:
selection of the right program for the job. The
requirements of the system are specified with a set of
constraints such as system objectives and the
description of the outputs. It is the duty of the analyst
to evaluate the feasibility of the proposed system to
generate the above results.
Feasibility is the study of impact, which
happens in the organization by the development of a
system. The impact can be either positive or negative.
When the positives nominate the negatives, then the
system is considered feasible. Here the feasibility
study can be performed in three ways such as technical
feasibility, Economic Feasibility, and Organizational
Feasibility.
ORGANIZATIONAL FEASIBILITY
The everyday transaction of the Yochang
Store was recorded manually from the receipt and the
Figure 1: Work Breakdown Structure products. But with the proposed system it has a
capability to record, update and total of the sales
The Figure above Shows that the work management. The Sales and Inventory Management
breakdown structure of this study. The first one is the help the store to upgrade from manual to automatic.
title which is “Sales and Inventory Management
System for Yochang General Merchandise”. It was The Sales and Inventory management system
followed by Planning, Analysis, Design and is highly recommended solution for the business needs
of a small business retail company. The Sales and

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Inventory management system would automate the ECONOMIC FEASIBILITY
inventory control function of the Store Managers so
that the time can be better spent on managing the day
to day functions of the stores. The application would Resources Efficiency Percentage of
also provide the real-time information to the corporate Rate of Improvements
office. Resources
In order to use it the production system, the Point-of-Sale 80% 60%
Sales and Inventory management system needs to System
incorporate additional features like security, Inventory System 80% 50%
scalability and it needs to be integrated to other RAM 70% 20%
business critical applications in the organization. Computer 60% 50%
Although manpower is needed although the risk of Data Organization 50% 50%
familiarity with the application is moderate, since Manpower 80% 50%
users / staff have never used it Informatic system.
Therefore, in order to enforce the system,
brief introduction on the handing over of the system is Table 2: The total requirement of the system
required. In addition, as most of the store's staff are not
IT literate, the to-be system is user-friendly and easy
The table 2 shows the technological
to operate. A further effort must, therefore, be made to
availability of the system the budget requirement of
train and educate the users of the new way of the
the system. Also, the price shown above is transparent
system. It also shows the improvement of the
until the system is implemented. Analysis of the cost
resources in terms of availability and capability.
benefits is typical to this end performed. It is the cost
TECHNICAL FEASIBILITY versus the comparative study of the benefits and
savings expected on the system proposed. Although
This feasibility study includes all the initial implementation costs are high, the owner will
available resources of the proposed system. enjoy the benefits long-term switching to the new
system in terms of efficiency and efficiency of
business operations.
System Prize/Amount Total Prize
Requirements In addition, customer satisfactions are also
Receipt Printer ₱ 4,500.00 ₱ 3,500.00 expected to grow as the program can provide them
Desktop Unit ₱ 12,000.00 ₱ 12,000.00 with enough receipt for references upon
Bond paper (1 Rim) ₱ 150.00 ₱ 150 .00 implementation. If we do, we can achieve the
maximum usability of the corresponding resources.
Receipt paper roll ₱ 10.00 ₱ 10.00
The system is therefore economically feasible.
Programmer ₱ 10,000.00 ₱ 10,000.00
RAM ₱ 6,000.00 ₱ 6,000.00 REQUIREMENTS ELICITATION
TOTAL: - ₱ 31,660.00 Background of Interview
Table 1. Yochang Store Available of list Resources Interview and observation had been
conducted on April at Yochang Store in Ising, Carmen
Davao del Norte. The interviewee is the owner of the
The Table 1 Shows the availability of the Store who started the business 11 years back named
resources which is the point of sales system, inventory Mr. Erwin Guillena and Mrs. Jerelyn Guillena.
system, RAM, computer and data organization. It also
stated that the resources are available for the Yochang Purpose of Interview
Store.
 To uncover further problems regarding
inventory management using manual ways

 To understand the current methods and

approach being used in doing daily sales
transaction by the staffs.

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  To identify the main features or TECHNOLOGY AND TOOLS
functionalities to be integrated into the
project prototype. Visual Basic by Microsoft

Summary of Interview Results

Microsoft Visual Basic is a Microsoft
 More than 50 types of goods range are Integrated Software Ambient (IDE). On all
available in the Yochang Store. Most of it is platforms supported by Microsoft Windows,
from food-based products, stationary, Windows Mobile, Window CE, .NET
medicine, newspaper and many more. Framework. NET Compact Framework, and
Microsoft Silverlight, it is used to build console
 Due to wide range of products being offered and graphical user interface applications in both
to the customers, they are having difficulties native code and managed code.
in handing their inventory.
Microsoft Access
 The main problem in their store is that they
do not have any means in detecting which Microsoft Access, also known as Microsoft
products are moving out from the store. Thus, Office Access, is a Windows database
they must check the inventory manually or management system that incorporates Microsoft's
sometimes customers will notice that some relational Jet database with a graphical user
products are out of stock. This can cause loss interface and software-development tools. It is a
for them as the possible customers could not member of the Microsoft Office suite of
get the products they want and make sale at application included in the Professional and
the store. higher editions. Microsoft Access is used to
develop application software and supported by
 Besides, they also could not keep track on Visual Basic for Applications.
expiring date of food-products based as each
product have different expire date. This also Photoshop
had caused the store to be stack up with It uses a layer-based editing system that
expired products. enables image creation and altering with multiple
overlays that support transparency. Layers can also act
 They also do not issue receipt to customers as masks or filters, altering underlying colors.
but rather a simple calculation the total Shadows and other effects can be added to the layers.
receipt. This means that they rely on the Photoshop actions include automation features to
Yochang price tag on the products as the reduce the need for repetitive tasks.
proof if customers wish to exchange the
products. Algorithm

 Even the machine does serve its purpose as An algorithm shows the proper sequence of
calculator, however it fails to solve inventory steps that should be followed in order to obtain the
problem of Yochang Store required output.
Flow Chart
 They also do not use any computerized
system because they scared to change their It is the graphical representation of the
ways of doing business since long time ago. process that involved in the system. It has predefined
Besides, they also scared that their workers graphics that describes the process the data involved to
do not know how to handle and use the achieved desired output.
system.
Environmental Model
 Needs from Yochang Store are taken into The Environmental Model was used to
consideration and for further analysis in describe or show the limitations and the interaction
solving the problem faced by the store. between our proposed system and the environment
which it reacts. It focuses on the events that occur
outside the environment and those that need a response
from the system. In doing so thus eliminates irrelevant

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stimuli that occur outside the system. It is worthy to vendors or clients. Updating firewalls and anti-virus
note the environment model is the most important part software can mitigate this potential issue.
of making complete model, for it give a bird’s eye
view of the major steps and processes, and enable the Non-Functional Requirement
user to visualize relationships, the important element 1. Operational Needs
and movement that exist in the system and to show the
system react with the environment The system must be operated within the computer.
Because Yochang Store doesn't have one, they must
CHAPTER 3 buy to install the system.
THE PROPOSED SYSTEM It needs to be able to update database based on
We have the option in our proposed program each customer's point of sale. In addition, the system
to incorporate descriptions of the Inventory by can produce daily, weekly, and monthly sales
themselves. Another advantage of the system is that performance reporting.
editing the Inventory details and deleting an Inventory 2. Power requirements
is very easy when it's found unnecessary. The
Inventory marks are added in the database, so This system should not take more than 5 seconds
Inventory can also view the marks whenever it wishes. to load information and should not delay the user
response for more than 2 seconds.
• Our proposed system has several advantages
3. Security Requirements
• User-friendly interface
Not all staff can access the system apart from the
• Rapid access to the database staff who are responsible at the cashier for processing
• Less error the sale of customers. The information about sales is
confidential and only accessible by the admin.
• More storage capacity
Functional Requirements
• Search facility
1. Log In
• Search and feel environment
The system asked some information to log in
• Rapid transaction the system.
All manual difficulties in managing the sales and 2. Sale process
inventory transaction every day.
Allow users to scan items each customer
Problems and Weaknesses of the Current System purchases. The system displays the item description
and processes the total sales and generates receipts for
The proposed system has some weakness: the customers.
System Crash 3. Inventory Level Tracking
The potential for a system crash is one of the Administrator able to track each item's inventory
biggest problems with any computerized system. A level according to the sales made.
corrupt hard drive, power outages and other technical
issues can lead to the loss of the data required. 4. Database Update
Companies are interrupted, at least, when they cannot
access the data they need. Enterprise owners will Allow admin to update the data from the inventory
periodically back up data to protect against data loss. in the database that will be used to process the sale.

Stealing Information’s 5. Generate report

You can look for any way to get company or Reports will be generated on the store's daily,
consumer information. An inventory system weekly and monthly sales so that the owner can view
connected to point-of-sale devices and accounting is the company's performance and take appropriate
a valuable resource to hack into in search of potential action.
financial information or personal details of owners,

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 The ability to record a sale against a client and/or Entity-Relationship Diagram
builder specifying the applicable line items, quantities,
discounts. The ability to receive the sale as an account
or as cash sale. The ability to merge detailed lines into
the invoice to restrict the granularity visible to the
customer but to retain the details for inventory and
reporting / inquiry purposes. The ability to generate a
purchase order or purchase order recall automatically
when stock levels are insufficient to fulfill the order.
Data and Object Modelling
In this section we create data flow diagram,
entity-relationship and data dictionary to further
understand our analysis and design of Sales and
Inventory management system.
Data flow diagram
Figure 4: Entity Relationship Diagram
The Diagram of the Entity Relationship
where it represents the database to be developed for
the system. Each class will capture and store
information that is used for Yochang Store operations.
Each class contains attributes which describe the
object's properties and state. Some of the class also
includes actions or functions that the class can execute.
The diagram also illustrates the relationship between
one class and another.
Data Dictionary

Figure 3: Data Flow Diagram

The Inventory Management System DFD
Diagram is an Graphical representation data flow
diagram, and Commonly used for formal visualization
design data processing by means of an information
system, An effective process modeling technique with
a high level description of the device by showing what
data types Input and output from the machine must be
how, where the Sequentially, data will come from and
go to and where the result of the data is stored via
functional Progressive transformations. Figure 5: Data Dictionary
The method is indicated as a single process
that provides the financial system with data. It contains
both data is obtained and received from Owner,
Supplier and Consumer.

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Process Modelling Step 4: If yes: print "name of item, price of item,
quality, received amount"
This chapter describes data flow
diagramming, one of the most commonly used process Step 5: If no, back-click
modeling techniques.
Step 6: Calculate the price * quality of the item-the
Use Case Diagram amount received
Step 7: Click here to submit
Step 8: Print Change
Step 9: Decide which transaction to save
Step 10: If yes, proceed to Sales in Inventory
Step 11: If no, back-click
Step 12: Decide on transaction deletion
Step 13: If yes: Print "Delete all”
Step 14: If no, click Data Save
Step 15: Stop the program

Figure 6: Use case diagram of Sales and Inventory

Management System
The use-case diagram which is a graphical
overview of the usage cases included in the system.
The diagram illustrates a system's main functionality,
and the actors that interact with the system. The
diagram basically has three main actors that are the
system users, admin and customers who derive value
from the system and represent the system's
functionality in the use case.

The functions that operate at the front end are

basically handled by the use and the back end or the
adding of information is done by the admin. Customer Figure 7: System flowchart of Sales and Inventory
present to support user-connecting function. System

System Flowchart System and User Plan

Step 1: Program Start System testing was divided into three parts,
which are developer testing, user testing and customer
Step 2: Initialize sales of new transactions and testing. The testing comes with the intent to ensure that
inventories the system meets identified requirements stated in the
early stage.
Step 3: Decide whether to update new transaction

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A. Testing Developers The design of the interfaces is also
categorized as user-friendly due to lack of workplace
Admin and user entry data is stored in the IT experience. Individuals are not even with an IT
Microsoft Access database. Since then the transactions background can manage the program. The software
involve a lot of database interactions, the performance "Sales and Inventory System" developed for a
of the used database is important to test. To measure company was designed to achieve maximum
the reliability of the developed database a group of 50 efficiency and reduce the time required to handle all
to 100 product records was inserted. In addition, the the tra. It is designed to replace an existing manual
test also includes syntax, functionality, and logical recording system which reduces the time taken for
errors. calculations and data storage. The system is strong
B. User reviews enough to withstand regressive daily operations under
conditions that maintain and clear the database over a
This testing is carried out after the software certain span of time. The system's implementation
development is complete. The users have been briefing within the organization will significantly reduce data
about how to operate the system and how to interact entry, time, and provide readily calculated reports.
with the interface. Comments of users appropriate to
the system such as software interface-related errors, The system is strong enough to withstand
errors in functionality, command structure and errors regressive daily operations under conditions where the
in entry were recorded. It was done for the selected database is maintained and cleared over a certain time
target users that are Yochang Store's owner and staff. of span. The implementation of the system in the
This testing was done to compare the efficacy of organization will considerably reduce data entry, time
controlling inventory using this system via POS. and provide readily calculated reports.

The procedure followed in conducting the Recommendation

user test as follows: The System functions, therefore, developers
· Users were split into two groups: Automatic have few suggestions for continuation of future works.
and Manual groups. The automated was trained and Firstly, developing integration between the
instructed in the management of sales and inventories system and Yochang Store's supplier system. By
and system used to process sales. Automatic group integrating the two systems, Yochang Store system
then use system to handle customer transactions while can send inventory order requests directly to the
Manual group use the current way to attend the clients. supplier when the stock level is low. Thus, Yochang
Overall the transaction process was captured in the test Store needs to order from the supplier manually, which
during a given time period. can cause delay in the product delivery.
· The users were given a set of questionnaires Second, implementing decision-making
to obtain information about their use of the system support functions within the system. Because just like
satisfaction and performance after the user has data mining techniques, or approaches may be used to
completed the test. Comments from users regarding study sales patterns built. Yochang Store can use it
the Sales and Inventory Management System they from the pattern analysis to do marketing strategies
were recorded. from the result, management can be done to its
CHAPTER 4 customer or even to its stock arrangement. All this
action is thought to boost the store's sales greater than
CONCLUSION AND RECOMMENDATION the current one.

Conclusion
In short, project works are relevant to the
goals set. The research is under way designed based on
preliminary study conducted with Yochang Store.
Accordingly, System development activities which are
planned and evaluated are based on the results
retrieved from Observation Interview. Not just that,
since this would be the first system which the store will
use, the functions focused only on solving the main
problem with the management of inventories and
sales.

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