COLEGIO DE STA.

TERESA DE AVILA
School of Information Technology
1166 Quirino Highway, Brgy. Kaligayahan, Novaliches, Quezon City

Proposal
A. Basic Information

Project Title:

DESIGN AND DEVELOPMENT OF INVENTORY MANAGEMENT SYSTEM

FOR CARBWORKZ PRODUCTS AND SERVICES.

Topic/Keywords:

INVENTORY MANAGEMENT, CRYSTAL REPORT, STOCK LEVEL,

DATABASE, AND DATA VALIDATION.

Researchers: Groesbeck Christian, Palamara Bryan G., Jacobo Janzelle DV., ACHA Jhon
Arthur U., QUIBOL John Ryan M.

B. Technical Description

Background of the Study:

For many businesses and companies, such as corner convenience stores, independent
grocery stores, neighborhood hardware stores, or construction companies, inventory is
simply goods they keep on shelves and materials to generate sales and workload
efficient[1]. Many industries and small businesses especially the construction
industries rely on materials daily to be able to create projects such as infrastructure and
repairs, this is why inventory management plays a big role in these types of companies
to better and smoothen their management work in their inventory. Traditional ways of
inventory management include manually listing the materials/products one by one,
these old methods are not an issue or a problem but doing this in a progressive and
very busy company that prioritizes materials/products is not a very efficient method to
do, in this day and age technology are making the work of humanity very easy in a fast
and very efficient way, and here are the new and reliable forms or method of doing
inventory management will come and play its part, a software called “INVENTORY
MANAGEMENT SYSTEM”. The availability of decision support and productivity
software is providing opportunities for small and big businesses to develop systems
that utilize operations research models to support decision-making[2]. Computer-based
technologies which can be used to improve the effectiveness of business decision-
making have experienced tremendous growth in the last decade[2]. This is why many
big companies apply this already in their businesses because of the potential and
opportunity that they saw in this new method of managing their inventory. By
proposing an Inventory Management System to businesses and other industries as the
replacement for old manual ways, the project aims in providing the system with
enhanced and more flexible functions for the companies and businesses. The objective
of the system is to provide functions for managing goods in the store more
efficiently[3].

The company named “CARBWORKZ PRODUCT AND SERVICES” is a company

that specializes in doing construction and other infrastructure works, this company is
founded by “MR. ARNOLD BALOLONG (CEO/MANAGER)” and “MS.
CHERRY NOCUM (ACCOUNTING/FINANCE)”, these two amazing individuals
starts their company on January 13, 2017, before they started their company. They are
both working separately in their own field of expertise. The company now is 7 years
old and still counting, and they are responsible for some Government projects such as
Schools, roads, and Housing projects, and they are also installing furniture in malls and
condos, but as the company is growing, the demand is also growing especially the
materials that they need to operate this projects of their company, that is why they need
“INVENTORY MANAGEMENT” that will lessen the burden for them organizing
materials in their inventory, some staff of them that in charge of their inventory tried to
solve this matter by making them inventory management using Spread Sheet. For a
company that is dealing with lots of materials for their work, this inventory
 management using Spread sheet lessens the burden for them organizing their inventory
on daily basis, Spread Sheet is a good method for many companies to do their
inventory management but it also has its cons regarding in a fast-growing construction
company that is handling different kinds of materials and equipment’s.

The company CarbWorkz is a company dealing with infrastructure and furniture work,
so it is natural that they also have an inventory of the materials that they will be going
to use for their line of work before they are using Spread sheet to manage their
inventory, but since the pandemic hit, they have rarely used the inventory management,
they rarely checked it on daily basis, the materials are in mess, the circulation and
distribution of the materials are in disorder, they can’t even monitor now their stockpile
efficiently so they don’t know what materials are now needed to re-stock, to
summarize it, because of the failure of their inventory management, it slowing the
workload for the workers that working in the field, these circumstances burden them a
lot and costing them greatly.

Based on the current problems of the company, the proponents will propose an
Inventory Management System that will handle stocks monitoring . The objective is
to design an inventory management system with a reliable supply monitoring using a
computerized approach [4]. This system will solve all their problems in terms of
inventory, from the stocks to the distribution of the materials, it will make their
workload and stocks management easy and efficient. Inventory forecast is lets you find
out which products are going to out of stock soon and what’s in abundance. The
biggest advantage of forecasting is it gives you control and wisdom of spending the
resources wisely. No matter what business you are in, having the right security for
inventory is essential. If you have Inventory Management System, the proper
protection should be put in place. Right from protecting your assets to the data it
accumulates should be safe and adequately backed up. Generally, the inventory should
be securely optimized, to protect our data from hacking.
Objectives: General and Specific Objective:

The General objective of this study Is aimed to Design and develop an Inventory
 Management System for CarbWorkz Products and Services.

1. The researchers aim to achieve the following specific objectives.

 Inventory management system that organizes their materials and Equipment’s.
 Reliable reports of inventory.
 Material Availability.
 Purchase Management & Supplier Management.
 Bills of Material (BOM)

2. To develop the proposed Inventory Management System using the following

technologies and materials.
 Microsoft Visual Studio 2013
 MySQL Database Server
 SAP Crystal Reports for VS 2013

3. To test the developed system in terms of;

 Functional;
 Reliability;
 Usability;
 Portability
 Efficiency
 Maintainability

4. To evaluate the level of acceptability of the developed system using the ISO9126A
Evaluation Instrument.

How did others solve the problem? (15 articles)

1. A small business inventory DSS: Design, development, and implementation issues

(Sohail S. Chaudhry, Linda Salchenberger, and Mehdi Beheshtian 3) Computer-based
technologies which can be used to improve the effectiveness of business decision-
making has experienced tremendous growth in the last decade. Innovations in
 information technology have resulted in increasing capabilities and decreasing costs of
software and hardware, the development of friendly user interfaces, and common
representations like spreadsheets and relational databases. Despite the accessibility of
sophisticated information technology, the successful implementation of decision
support systems utilizing operations research (OR) models in small businesses remains
a complex and elusive issue. In this paper, we discuss small business decision support
systems (SBDSS) and propose a framework for their development. We present a
specific SBDSS that implements OR inventory.
2. Inventory Control Systems for Small Business by (ENGMING LIN) Since the Small
Business Administration sponsored the Small Business Institute Counseling (SBIC)
Program, thousands of small business firms have benefited from this program. Reading
SBIC case reports, one could find that inventory control is one of the common
problems among small businesses. Some managers realize the importance of inventory
control but don't know how to handle it with limited resources. Some are unaware of
the existence of inventory problems. Many small business firms do not keep any
records at all.
3. Sales and Inventory Management System by (RAHMAT BEE ABDUL ALEEM) The
retail industry is one of the industries that is growing at a fast pace where the number
of retail businesses keeps on increasing from time to time to meet the demand from
consumers of specified areas. There are different types of retail shops available for
consumers to choose ranging from hypermarkets to minimarkets according to their
convenience. Most of the shops can be found in residential areas, streets, or shopping
malls. Retail-store sells a wide range of goods and services from wholesalers or
suppliers to end-user. Thus, the nature of the retail business required good management
of inventory levels to meet the demand of the customers.
4. Discrete-time control of production-inventory systems with deteriorating stock and
unreliable supplies by (Przemysław Ignaciuk) the principal effort to construct
inventory management policies for production and goods distribution systems focused
on performing stochastic analysis using known system parameters and statistics. In
recent years, however, many products and business sectors tend to experience sudden
shifts in customer preferences leading to increased variability of demand. The demand
parameters (mean, variance, and even type of distribution) change within the planning
horizon thus reducing the effectiveness of the classical stochastic approach. Moreover,
 as the companies expand service coverage to larger geographical areas and diverse
markets, both delivery time and supply process uncertainty increase. In such
circumstances, a viable alternative to the classical approach is the application of the
theory of dynamic systems. It is perceived that instead of conducting stochastic
optimization in the presence of uncertainty.
5. A Study on Inventory Management and Control (PRATAP CHANDRAKUMAR. R1
GOMATHI SHANKAR) The term stock alludes to the merchandise or materials
utilized by a firm with the end goal of generation and deal. It additionally incorporates
the things, which are utilized as strong materials to encourage generation. There are
three fundamental sorts of stock: crude materials, work-in-advance, and completed
merchandise. Crude materials are the things bought by firms for the use underway of
the completed item. Work-in-advance comprises all things as of now during the time
spent creating. These are quite made items. Completed products comprise those things,
which have just been delivered but not yet sold.
Stock constitutes one of the vital things of current resources, which licenses the smooth
operation of creation and deal procedure of a firm. Stock administration is that part of
the administration of the current resource, which is worried about keeping up ideal
interest in the stock and applying a successful control framework to limit the aggregate
stock cost. Stock enhancement in the production network, ABC investigation is a stock
order technique which comprises parenting things into three classes, A, B, and C: A
being the most profitable things, C being the minimum significant ones. This strategy
plans to draw directors' consideration on the basic few (A-things) and not on the paltry
numerous (C-things).
6. Inventory management, cost of capital, and firm performance: Evidence from
manufacturing firms in Jordan (Ashraf Mohammad Salem Alrjoub, Muhannad Akram
Ahmad Ashraf) Several studies have examined the relationship between inventory
management and firm performance. However, most of these studies ignore the impact
of inventory types on the relationship. Moreover, the relationship is influenced by
some factors such as the cost of capital which has not been considered. This study
examines the moderating effect of the cost of capital on the relationship between
inventory types and firm performance. The data of 48 firms for the period 2010–2016
which formed 279 firm-year observations were used in this study. With the use of
Pearson correlation and panel Generalized Method of Moments (GMM) estimation, the
 findings show that inventory management with consideration of its types influences
firm performance in the long term. In addition, it is also found that cost of capital
moderates the relationship between inventory management and firm performance.
However, the interaction between the cost of capital and inventory types has different
implications. It is suggested that firms should consider the cost of capital when
deciding on inventory types and align their inventory control to fit in to the changes in
their business environment.
7. Impact of IT Capability on Inventory Management: An Empirical Study (Xin Tian,
Haoqing Wang) quired the robotics project of Kiva Systems, using robots for sorting
and moving goods. Alibaba and JD.com Today's inventory management is gradually
becoming informalized and intelligent. For instance, Amazon acquired the robotics
project of Kiva Systems, using robots for sorting and moving goods. Alibaba and
JD.com have also successively applied robotics to warehouse management. In addition
to robotics, there are also some other information technologies including Electronic
Data Interchange (EDI), and Radio Frequency Identification have also successively
applied robotics to warehouse management. In addition to robotics, there are also some
other information technologies including Electronic Data Interchange (EDI), Radio
Frequency Identification (RFID), Global Positioning System (GPS), etc. Intelligent
warehousing has the following advantages: flexible (RFID), Global Positioning System
(GPS), etc. Intelligent warehousing has the following advantages: flexible structure,
compact storage space, flexible throughput capacity, and short response times, thus
making it popular structure, compact storage space, flexible throughput capacity and
short response times, thus making it popular (Zou, Koster, and Xu, 2018). (Zou, Koster
and Xu, 2018). A growing body of researchers has been studying informalized and
intelligent warehousing. Arrais et al. (2017) indicate the potential benefits of robot
technology, and propose approaches to developing more robust A growing body of
research has been studying informalized and intelligent warehousing. Arrais et al.
systems. Boysen, Briskorn, and Emde (2017) study the order queuing problem in the
warehouse, summarize (2017) indicate the potential benefits of the robot technology,
and propose approaches to developing a more robust influence on the number of lane
openings and the picking effort. Weidinger, Boysen and Briskorn (2018) systems.
Boysen, Briskorn, and Emde (2017) study the order queuing problem in the warehouse
and summarize its influence on the number of lane openings and the picking effort.
 Weidinger, Boysen, and Briskorn (2018) optimize the rack allocation and rack position
of the robot warehouse and study the scheduling rules in line with optimize the rack
allocation and rack position of the robot warehouse and study the scheduling rules in
line with the characteristics of the Kiva warehouse. Although there are many studies
related to intelligent storage, they usually focus on optimization problems. And there
are few empirical studies based on operation data in the real world. Terwiesch et al.
(2020) think that the "data ocean" in the Internet environment provides unprecedented
opportunities for the field of empirical research. The main reason for the lack of
empirical research on intelligent warehousing is the unavailability of data. Using panel
datasets from one company, we empirically examine the impact of IT capability on
inventory strategy, inventory operation, and the out-of-stock level. We find that IT
capability has a positive effect on the inventory strategy and inventory operations, and
hurts the out-of-stock level. The results indicate that IT capability has a positive impact
on enterprise operation and management. Especially with the rise of labor costs, the
significance of smart warehousing becomes more prominent.
8. Development of an emission inventory system from transport in Greece by (Panagiotis
Symeonidis, Ioannis Ziomas, and Athena Proyou) Atmospheric emissions of various
pollutants from mobile and stationary sources affect the quality of life and public
health. The impact of these emissions may appear on a small scale (urban smog) or
regional scale as a result of the transportation of pollutants in the atmosphere (acid
deposition, tropospheric ozone). Moreover, mankind is facing global air pollution
problems, like the greenhouse effect and the depletion of the ozone layer, which are
both associated with local air pollutant emissions.
9. Automated Inventory System Using Portable Data Acquisition Module for Bell
Electronics Corporation (Zarina Ira V. Bernabe, Monchie C. Dela Cruz, Karen K. Jao)
The inventory system is an effective way of monitoring and tracking different materials
that are transferred in and out of a company’s warehouse or establishment usually for
accounting purposes. It is also important for a company to monitor all the transactions
and movement of goods to keep an account of all their stocks. However, in some
establishments, the inventory of materials is done manually in such a way that an
employee writes down the information on different materials every time it is
transferred in and out of the room. The same case applies to Bell Electronics
Corporation; as a result, the inventory system becomes prone to human error and
 would be more time-consuming which will most likely be a loss for the company.
10. Managing multi-item common vendor inventory systems with random demands
(Sameer Kumar, Charu Chandra) For many small businesses, such as corner
convenience stores, independent grocery stores, neighborhood hardware stores, or
family pharmacies, inventory is simply goods they keep on shelves to generate sales.
Despite the investment required to maintain appropriate levels of inventory, they invest
little effort in monitoring it. Perhaps, the high cost of implementing technology
solutions has delayed a more rapid overhaul of inventory management systems in such
operations (Broome, 1999; Nevill et al., 1998). Increased competition from super-
centers and larger grocery chains is leading smaller business operations to continue
efforts in coordinating fulfillment of customer demands and resultant replenishment
schedules. This emphasis on coordination builds upon quick response mandates, the
current underway way in the consumer marketplace for achieving inventory
effectiveness, which is critical to the success of an organization in any business sector
(Apparel Industry Magazine, 1997).
11. The impact of inventory management practice on firms’ competitiveness and
organizational performance: Empirical evidence from micro and small enterprises in
Ethiopia (Daniel Atnafu, Assefa Balda) Micro and Small Enterprises (MSEs) have
strategic importance in developing countries like Ethiopia; they contribute to national
income, employment, exports, and entrepreneurship development. The development of
MSEs is the central focus of the Ethiopia industrial development strategy as it is stated
in Growth and Transformation Plan (GTP). Therefore, in the development process of
any country, the performance of MSEs based on competition, productivity, and
efficiency will play a significant role in the economy. It is observed from the literature
that making use of formal inventory management practices is one of the ways to
acquire competitiveness.
12. A Study on Inventory Management towards Organizational Performance of
Manufacturing Company in Melaka (Fararishah Abdul Khalid, Samantha Reina Lim)
Inventory exists in most organizations, especially for manufacturing companies it acts
as a significant amount of current assets. As inventory plays a critical role in an
organization, inaccuracies in an inventory will cause the organization to have chain
problems, including loss or poor productivity, manufacture of excessive outcomes,
reduction of customer loyalty, accumulation of overpricing inventory, etc. There is a
 trend showing that the manufacturing industry has been in rapid growth since the year
2016, and the trend is believed to continue for a few more years. The growth in
advanced technology and innovation is also one of the potential factors that lead to
increased productivity in the industry. Inventory is defined as a list of goods and
materials which are available in stock for business (Sharma, 2016). Statistical tests
show that perceived improvements in organizational performance are associated with
improvements in supply chain quality management practices (Chu Hua Kuei, 2001).
High levels of inventory held in stock affect adversely the procurement performance
out of the capital being held which affects cash flow leading to reduced efficiency,
effectiveness, and distorted functionality (Koin Violet Resia, 2014). The main purpose
of this research is to investigate the relationship between inventory management and
organizational performance. Focusing on how inventory management can bring impact
the performance of an organization, the research goes in-depth into the strategies of
inventory management analyzing its pros and cons. This research is the study of
inventory management towards organizational performance in Melaka. In this
particular study, the research outlines the inventory strategy that potentially affects the
organization’s performance. Based on the different organizations, the strategy, and
techniques used to manage inventory vary. It identifies the relationship between
inventory management and organizational performance, experimenting with whether
there is a positive relationship between both variables.
13. Designing a Computer-Based Inventory System of Crystal Clear Water Refilling
Station: A Case Study (Samantha Dominique C. Bucao, Alyana Bianca G. Carreon,
Troy Joseph D. Lauengco and Dr. Michael N. Young) Over the years, the demand for
water refilling stations has increased. To cope with the increasing demand, these small
establishments need to become more efficient. This study aims at providing water
refilling stations with an inventory management system to allow owners to monitor
their items regularly. A detailed interview was conducted to gather the necessary data
needed to create the new inventory system by utilizing information system tools. An
information system is a software that will help organize and analyze the data by turning
raw data into useful information.
14. Value-Based Inventory Management by (Michalski Grzegorz) The basic financial aim
of an enterprise is the maximization of its value. At the same time, a large both
theoretical and practical meaning has the research for determinants increasing the firm
 value. Most financial literature contains information about numerous factors
influencing the value. Among those factors are the net working capital and the
elements creating it, such as the level of cash tied in accounts receivable, inventories,
and operational cash balances. A large majority of classic financial model proposals,
relating to the optimum current assets management, were constructed with net profit
maximization in view. To make these models more suitable for firms, which want to
maximize their value, some of them must be reconstructed. In the sphere of inventory
management, the estimation of the influence of changes in a firm’s decisions is a
compromise between limiting risk by having greater inventory and limiting the costs of
inventory. It is the essential problem of corporate financial management.
15. Performance improvement of inventory management system processes by an
automated warehouse management system (Anas M. Atieh*, Hazem Kaylani, Yousef
Al-Abdallah, Abeer Qaderi, Luma Ghoul, Lina Jaradat, Iman Harris) the impact of a
warehouse management system on supply chain performance that provides fewer
resources effort, a more efficient, and reliable inventory management system. The
supply chain procedures carried out in the warehouse were reviewed before
customizing software that can handle the necessary transactions. The software was
tested for enhancing the workflow and providing timely and efficient handling. Data
was collected from the warehouse of a leading telecommunications service provider in
Jordan. Furthermore, the facility layout was studied and we introduced a production
station within the warehouse, which resulted in better space optimization/utilization of
the warehouse. The production station consists of three steps: bundling, labeling, and
repackaging. The system handles three phases of the product lifecycle: receiving,
processing, and distribution of SIM and prepaid scratch cards. Each phase of the
product lifecycle was discussed in detail and the process/procedure gaps were
identified. This work can serve both as a practical guide and an industrial example for
some researchers to compare the software inventory management system with the
traditional manual system in the telecommunications sector in Jordan. It also highlights
the gap between theory and practice; to motivate researchers to develop and customize
new systems for mitigating supply chain disruptions.

How do you intend to solve the problem:

 The problem of our host company is their messed up inventory management, from
stocks to materials they can’t keep up monitoring them, organized inventory
management is what they need, so we intend to solve this problem by creating them
“INVENTORY MANAGEMENT SYSTEM”, this is a software capable of organizing
their materials and stocks in a very fast and efficient way, we intended also to add
more features to this system for their personal needs, such as keep them notify
whenever there is a stock/materials that are now need to re-stock, adding software that
will monitor their materials on the daily basis to gather information and data to create a
report of it if needed without workers manually listing or monitor it just to summarize
it all, and lastly the security level of the users, we will going to put a log in format to
restrict unauthorized personnel to used and browse the inventory, with the help of log
history, they can detect whose the one operating the system at what time and when.

Target users / Beneficiaries:(Describe each Beneficiary)

1. EMPLOYEES
 An employee is someone who gets paid to work for a person or company.
2. FUTURE RESEARCHERS
 Someone who studies a subject, especially in order to discover new information
or reach a new understanding.
3. COMPANY
 A company is a legal entity formed by a group of individuals to engage in and
operate a business—commercial or industrial—enterprise. A company may be
organized in various ways for tax and financial liability purposes depending on
the corporate law of its jurisdiction.

Significance of study:

The Inventory management system is a way for many companies and businesses to
operate without burdening themselves with organizing their inventory which is a very
crucial and big factor in doing business, its importance is proven to be very big in these
industries that I’ve been said, for them to identifies which and how much
stocks/materials to order at what time, Stock is basic for everything to get their assets
 proficiently and adequately. The requirement for consideration is to execute
appropriate determining by the organization and enhance the correspondence process
between the staff with offices. To direct ABC examination on the organization stock to
decrease the Deadstock and utilization of materials keeping in mind the end goal to
deliver an item by appropriate determining of interest[5]. Today's inventory
management is gradually becoming informalized and intelligent[6], this is why
companies and businesses good inventory management not only can efficiently take
care of your stocks, but by doing so it can also cut the cost of expense for the company,
and by practicing the inventory management on this kind of firms, The results indicate
that higher levels of inventory management practice can lead to an enhanced
competitive advantage and improved organizational performance[7]. This is why in the
case of the company “CARBWORKZ PRODUCT AND SERVICES”, this inventory
management system that we are proposing, can be a game changer for their company
in every aspect of it, especially since their line of work is consisting of constructing
and building something which is we all know that the core of all of that is lies in their
materials. So if they cannot circulate and manage it well, future bigger problems are
inevitable, one of the factors identified to affect firm performance in developing
economy is high financing costs[8], this is one of the future problems that they might
come upon when they don’t prioritize good and reliable inventory management, the
Inventory system is an effective way for monitoring and tracking different materials
that are transferred in and out of a company’s warehouse or establishment usually for
accounting purposes[9], so our system is a perfect fit for our host company, if they
utilize our system well, it will help their company in every aspect of it.

References:

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[3] R.B.A. Aleem, (2016) 451–455.
[4] P. Ignaciuk, IEEE Trans. Syst. Man, Cybern. Syst. 45 (2015) 338–348.
[5] G. Shankar, Invent. Manag. Control 3 (2017) 1524–1532.
[6] X. Tian, H. Wang, Procedia Comput. Sci. 199 (2021) 142–148.
[7] D. Atnafu, A. Balda, Cogent Bus. Manag. 5 (2018) 1–16.
[8] A.M.S. Alrjoub, M.A. Ahmad, Invest. Manag. Finance. Innov. 14 (2017) 4–14.
[9] Z. Ira, V. Bernabe, M.C. Dela Cruz, K.K. Jao, J.A. Tio, A.S. Gonzales, DLSU Eng. e-
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