Sad Defense

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Chapter 1Introduction


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1.1 BACKGROUND OF THE STUDY

Cutting Edge Company is a store ownedby SPC or Star Paper Corporation.

It was incorporated on February 19, 1974.It is a premium men's lifestyle gift storeshowcasing the world's best brands in outdoorand travel gadgets, home and office tools,games, hobbies and electronics. Brands includeVictorinox Swiss Army Knives, Bicycle playingcards and game sets, Brunswick billiardproducts, Parker pens and accessories, Buckknives and more.


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1.1 BACKGROUND OF THE STUDY(continuation)

The Cutting Edge Company doeshave only 4 branches. They dont have any

updated website or even social networkingpages to coordinate with the customers.

Transactions were done manually, likebook keeping, billing, information and

inventory, it gave a hard time recordingordered items and keeping the records ofstocks.


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1.2 Statement of the ResearchProblem What problems are commonly encountered on the current Sales

and Inventory System of Cutting Edge Company?

How can we reduce costs for stocking, order fulfillment andmaterial handling while improving customer service using theproposed system?

What are the specifications of the system to make it user-friendly?

Cannot specify the exact amount of sales and item sold.

Complications on sales and Inventory due to human errors.

Laboriousness and time consuming when it comes to generatingsales and inventory reports for obvious reasons that it is donemanually


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1.3 General Objective

This project is aimed at developing anonline Sales and Inventory System (OSIS)

CUTTING EDGE COMPANY.


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1.3.2 Specific Objective To provide for a quick and efficient retrieval of information without any lag.

To implement the software by conducting training to employees.

To control inventory right at the cash register with point-of-sale (POS) software systems.

To make better decisions about ordering and merchandising products.

To provide costumers accurate information, fast transaction and accessibility.

To help employees in the effective and efficient performance of their tracks morespecifically in the recording and monitoring of sales and inventory transactions as well as thepreparations of reports.

The system will serve to a more in depth development and implementation of sales

and inventory system and related studies.

For future Researcher, This system will serve as guide to a more in-depth development andimplementation of sales and inventory system and related studies.


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1.4 Significance of the Study Customer. This system will provide them an accurate information, fast

transaction and accessibility.

General Manager. This system will provide him with accurate, speedy and

updated information and reports, keep track with the movements ofinventories and efficient flow of sales transactions used indecision making.

Employees. This system will help them in the effective and efficientperformance of their tracks more specifically in the recording and monitoringof sales and inventory transactions as well as the preparations of reports.

Researcher. This system will serve to a more in depth development andimplementation of sales and inventory system and related studies.

Future Researcher. This system will serve as guide to a more in-depthdevelopment and implementation of sales and inventory system and relatedstudies.


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1.5 Scope and Limitation

This study is delimited tothe assessment of the existing sales and

inventory systems flow implemented by thecompany and the introduction of onlinesales and inventory system. It is furtherdelimited to the identification of thesignificance of the new system to

the company, the costs relevant to itsimplementation and the persons involved inits operation.


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1.6 Methodology of the Study

This chapter contains the discussion ofthe research design, the locale of the

study, the respondents of the study,research instruments, and validation ofinstruments, research procedure andstatistical treatment of the data used in

the study


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Chapter 2Review of Related Literature

and Studies


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Foreign LiteratureAccording to Jeff Wourio, online sales and

inventory system are designed to immediately record anyand all sales and inventory transactions. Not only does that

mean timely and accurate sales tracking, but this systemalso lets one readily identify inventory levels, particularlywhen what you have on the books doesnt jibe withactual stock. Little is more maddening to a business ownerthan watching his or her staff bogged down withinefficient, unproductive responsibilities, from double-checking his inventory disparities to seemingly endlesscash-register reconciliation. Perhaps the greatestadvantage to a comprehensive point-of-sale network isthe freedom it can afford on personnel to devote theirenergy to what genuinely matters the most helpingcustomers.


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Foreign Literature

According to Donald Reimer and RaviNayar they disclosed that maintaining the

right inventory levels is tough challenge. Ifnot properly managed, the inventory canresult in a significant expense. Looking overthe shoulder is the lender who is concerned

about the cost of carrying too muchinventorywhich can affect profitability.


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Foreign LiteratureAccording to www.udatasolutions..com/lumbergear.asp

that was founded in 2002,Unique Data Solutions began consultingwith hardwood lumber companies to grasp the unique

requirements of the hardwood lumber industry, and after years ofresearch and development, Lumbergear software was rolled out.Despite the fact that we come from modest beginnings and havecome a long way, they continue to provide their customers withquality service and innovative technology solutions.

Lumbergear sales and inventory software is a powerful,affordable and easy to use lumber business management systemthat increases efficiency in the workplace. They give control ofhardwood lumber inventory and costs. The system also features acore set of modules that make it possible to run lumber operationseffectively, and get products to customers on time.


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Foreign LiteratureThe Quasem Dry Cells Ltd is an old and premier manufacturing

company of Bangladesh. The factory of the company is situated in Tangaildistrict. The company mainly produced various types of batteries. The demand ofthe product of the company is high. So, the company has to follow a properinventory management system. The company follows Safety Stock inventory

management system.

Safety stock system helps the company to fulfill its market demand. Forinstance, the demand of inventory is likely to fluctuate from time to time. Inparticular, at certain points of time the demand may exceed the anticipatedlevel. In other words, a discrepancy between the assumed and actual usagerate of inventory is likely to occur in practice. Similarly, the receipt of inventoryfrom the suppliers may be delayed beyond the expected lead-time. The delaymay arise from strikes, floods, transportation and other bottlenecks. Thus, a firmwould come across situations in which the actual usage of inventory is higherthan anticipated level and or the delivery of the inventory from the suppliers isdelayed. The


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Continuation effect of increased and or slower delivery would be a

shortage of inventory. That is, the firm would face a stock-out situation. This, in true, as explained in detail below,would disrupt the production schedule and alienate thecustomers. The company would, therefore, be well advisedto a keep a sufficient safety margin by having additionalinventory to guard against stock-out situation. Such stocksare called Safety Stock. This would act as a buffer orcushion against a possible shortage of inventory causedeither by increased usage or delayed as the minimumadditional inventory to serve as a safety margin or buffer or

cushion to meet an unanticipated increase in usageresulting from an unusually high demand and or anuncontrollable late receipt of incoming inventory.


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Local LiteratureSalavador P. Catelo denoted the

importance of the Philippine Retail Food over

the past decade. The Philippines witnessed asubstantial growth in the retail industry. Althoughthere is dearth of recent literature and statisticsto support this observation, a reconnaissance ofplaces especially in the urban areas can attestto this. Growth is seen not only in terms ofnumbers but more visible in terms of size,investment on structure and modernization inoperation.


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Local literatureMotor Image Pilipinas (MIP), exclusive distributor of Subaru in

the Philippines reported a year-end sales performance of 602 units,marking an increase of 100 percent from 2007. It also registered thebiggest growth in performance in the Philippine automotive industry

based on the figures released by the Chamber of AutomotiveManufacturers of the Philippines (CAMPI). Subaru has been the fastestgrowing automotive brand since its arrival in 2006 and Motor Imagehas announced plans to expand its business in 2009.

Since its arrival in 2006, Motor Image Pilipinas has continuedto sustain its growth in the market with Subaru establishing itself as thepremiersport-luxury in the country. In 2008, Motor Image launchedthree new models that further strengthened its position in the market;the luxury SUV Tribeca, the 300-hp WRX STI and the third generationcompact SUV, the Forester. Aside from these three models, MotorImage has also made available other well- known Subaru models suchas the Outback, the Legacy and Impreza 2.0R variants


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Local LiteratureAccording to www.helium.com Henry Sy started

to work at an early age of 12, usually manning the smallfamily sari-sari store and preparing the traditional way

of recording the sales and inventory control. Shortly, Sythought of selling small portions of their grocery items toaccommodate customers buying small volumes ofproducts. Thus, the concept of retail marketing cameto his mind. He entered the buy-and-sell industry toobtained funds to start his own retail business. Syimported retail products from the US and sold it in the

Philippines and the rest as they say was history. Mr. Sy isnow the CEO and the founder of the SM PrimeHoldings- one the largest publicly-listed companies inthe Philippine Stock Exchange.


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Local LiteratureA Research Study of Longjas Trading Online Sales

and Inventory was conducted by the students of LeyteNormal University Computer Science Department. They

develop a system with high levels of reliability andavailability required of business-to-consumer Websites thatrequires not only great technology, but also greatoperational processes. Building a scalable, highlyavailable application is a necessary process in becomingfunctional as an e-commerce entity.

They have tried developing the most basicmodules required in an online business, using MySQL-server, PHP and Apache Web server. All of the keyprocesses and tools are covered in this store from retailstorefront to back end management.


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Relation to the Study

We use the same following language inmaking the system such as PHP and MySQL

Server. Like in other company that wediscuss we hope that the company wechoose have the good outcome.


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Chapter 3Theoretical Framework


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3.1 Statement of Assumption The system includes a website where products from all

branches are sold.

A proposed online sales and Inventory for the cutting edgecompany will surely make the flow of their system ERROR-FREE.

The system has a High-level and Detailed Design.

It improves cash flow, visibility and decision making

The users are knowledgeable on the use of computers.


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3.2 Operational Defenition Customer Customer class Order Employee Point of sale (POS) Bookkeeping Inventory report. Inventory. Online. Program. Online Ordering System


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3.3 Theories used in the Study

Database Management System foronline sales and inventory system, which will

help to provide the management ofinformation, creation of sales and inventoryreports and automation of businessprocesses.


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Chapter 4Existing System


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4.1 Description of the SystemThe Cutting Edge of Star Paper Company has proven

us that they give good services to their customers. Theirexisting system is manual sales and inventory system.

Transactions in Cutting Edge are done through walk-inmethod where the customer may walk in to the store andtransact. The process of this method is simple yet effective.The customer will talk to the receptionist, and the receptionistwill get the selected items. After punching the bar code of theitem the buyer will pay for it. After that, the transaction isconsidered done.

They also have website for checking their productsbut you cant buy or check any prices on their site and itmakes their site unproductive.


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4.2 Definition of data capture

There is no data that is need for thecustomer to buy.


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4.3 Inputs

Name of Document: Customer Fill-upForm for contacting Cutting Edge

Origin: websites

No. of Copies: 1

Purpose: for questions and other purposes


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4.4 Processes

4.4.1 ORDER

Begin

If Client is registered then

Proceed to Select Product

Else

Proceed to RegisterEnd


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4.4 Processes

4.4.2 REGISTER

Begin

Input Customer Info

Save info to Customer database

Proceed to Order

End


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4.4 Processes4.4.3 Select Product

BeginSelect products on the site

If Client is finish on selecting product then

Proceed to payment

Else Proceed to select product

End


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4.4 Processes

4.4.4 Payment

Begin

Select the type of payment

Confirming the of items

Proceed to deliver productEnd


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4.4 Processes4.4.5 DELIVER PRODUCT

Begin

Deliver productAccept payment

Issue Receipt

Issue Delivery Receipt

Save transaction to Transaction DatabaseProceed to Generate Report

End


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4.4 Processes

4.4.6 PROCESS TRANSACTION

Begin

Accept Payment

Issue Receipt

Save Transaction to TransactionDatabase

Proceed to Generate Report

End


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4.4 Processes

4.4.7 GENERATE REPORT

Begin

Get Record from TransactionDatabase

Generate Report

Hand report to Manager

End


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4.5 Files

Transaction LogContains Information onthe transaction made by Customers.

Customer LogContains Informationabout the Customers

Product ListContains products availableon the store


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4.6 Outputs

Sales Report

OriginStaff

Number of Copies1

PurposeUse files as report for daily,weekly, monthly, quarterly and annualreports

RecipientManager

Control ProcedureFiled by Date


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4.6 Outputs

Transaction

OriginStaff

Number of Copies1

PurposeTo record transaction made

RecipientTransaction Log



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4.6 Outputs

Receipt

OriginStaff

Number of Copies1

PurposeProof of purchase

RecipientCustomer



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4.7 DFDContext Level


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4.7 DFD Level 0


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4.8 Problem Areas Time inefficiencytakes the transaction longer for

knowing the stock. Ineffective websitethe website is unproductive

because you cant see the price or buy theproduct when you see it you still need to go to theshop.

Time consuming finding files will be more timeconsuming in manual rather than online.

Difficult to keep old recordsthe segregation and

the redundancy can be a problem with old files. Lot of paper work using of paper can be useless

when it should be use once.

Documents

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