chapter1-3

1 Asian Development Foundation College Tacloban City Chapter I The Problem and its Background Introduction From the very earliest moments in the modern history of the computer, the people and the business world have witnessed the proliferation of computer system that obliges to meet the goal of Information technology. We

have

the

completely

new

world

of

information

and

communication readily available through computer. With its excellent standards and innovative brand of services, its aims are to provide business to prefer outrageous performance of Online Sales and Inventory System of ACME Tacloban Hardware. Through this advancement in information, traditional business managers are threaten with decrease of sales and fluctuation of profit if they would stick to their old manual system of handling business transactions. That is why computerized system is recommend to make transactions faster, accurate, efficient and effective. This study is gear towards this goal. Online Sales and Inventory of Tacloban ACME Hardware is an inventory control system that is design to enhance the productivity of a company‟s material department. This system will help them to transact through online, and for delivery.

Computer Studies Department

2 Asian Development Foundation College Tacloban City Since the transactions were done manually, like book keeping, billing, information and inventory, it gave a hard time recording ordered items and keeping the records of stocks. Thus, proposed Online Sales and Inventory System of Tacloban ACME Hardware will help them to lessen to eliminate problems on sales, storage and retrieval of inventory data for the inventory status. Statement of the Problem This study aimed to develop an Online Sales and Inventory System of ACME Hardware. Specifically it sought to answer the following questions: 1. What problems are commonly encountered on the current Sales and Inventory System of Tacloban ACME Hardware? 2. What must be proposed to improve the current Sales and Inventory System? 3. What are the input needed to develop a system that can improve the current Sales and Inventory System? 4. What are the assessment of the respondents on the developed Online Sales and Inventory System of Tacloban ACME Hardware in terms of: a. Content b. Usefulness

Computer Studies Department

3 Asian Development Foundation College Tacloban City Theoretical Framework There are various problems in the existing sales and inventory system has been detected using manual system in the preparation of the Sales and Inventory in every company. The problem in the record transaction as: Delays, errors, omission, and the like result of misinformation to the management of the availability of stock and sold items. Because of this problem its affect the effective decision on the part of the management. A proposed online sales and inventory system would eliminate all this problems. Efficiency in the process obtained and brings satisfaction for both management and company. Sales and Inventories are materials stored, waiting for processing, or experiencing processing. They are everywhere throughout all sectors of the economy. Observation of almost any company balance sheet, for example, reveals that a significant portion of its assets comprises inventories of raw materials, components and subassemblies within the production process, and finished goods. Most managers don‟t like inventories because they are like money placed in a drawer, assets tied up in investments that are not producing any return and, in fact, incurring a borrowing cost. They also incur costs for the care of the stored material and are subject to obsolescence. In the last two decades there has been a spate of

Computer Studies Department

4 Asian Development Foundation College Tacloban City programs developed by industry, all aimed at reducing inventory levels and increasing efficiency on the shop floor. Nevertheless, in spite of the bad features associated with inventories, they do have positive purposes. Raw material inventories provide a stable source of input required for production. A large inventory requires less replenishment and may reduce ordering costs because of economies of scale. In-process inventories reduce the impacts of the variability of the production rates in a plant and protect against failures in the processes. Final goods and inventories provide for better customer service. There are other kinds of inventories, including spare parts inventories for maintenance and excess capacity built into facilities to take advantage of the economies of scale of construction. Because of their practical and economic importance, the subject of inventory control is a major consideration in many situations. Questions must be constantly answered as to when and how much raw material should be ordered, when a production order should be released to the plant, what level of safety stock should be maintained at a retail outlet, or how in process inventory is to be maintained in a production process. An inventory is represented in the simple diagram of Fig. 1. Items flow into the system, remain for a time and then flow out. Inventories occur

Computer Studies Department

5 Asian Development Foundation College Tacloban City whenever the time an individual enters is different than when it leaves. During the intervening interval the item is part of the inventory. Flow in Inventory level

(Residence Time)

Flow Out

Figure 1. A system Component with inventory Figure1 represents a manufacturing process that takes a fixed amount of time. A product entering the box at one moment leaves the box one hour later. Products arrive at a rate of 100 per hour. Clearly, if we look in the box, we will find some number of items. That number is the inventory level. The relation between flow, time and inventory level that is basic to all systems is inventory level = (Flow rate) (Residence time) (1) where the flow rate is expressed in the same time units as the residence

time.

For

example,

we

have

inventory

level

=

(100

products/hour) (1 hour) = 100 products. These questions are amenable to quantitative analysis with the help of inventory theory. The application of scientific knowledge of managing sales and inventory control which is called computer-assisted instruction is given importance today. What is given emphasis in the job market are variety of issues and opportunities for the graduates to realize and be aware the importance of computer skills they need to acquire to the present demand of the modern version of computer era.

Computer Studies Department

6 Asian Development Foundation College Tacloban City Conceptual Framework The study would focus on trying to come up with a better alternative in terms of Sales and Inventory System, which at the present is being done manually for the most part. The said alternative would be the Online Sales and Inventory System of Tacloban ACME hardware. It is expected that upon its implementation, all processes connected to Online Sales and Inventory System of ACME would be more efficient and effective. Input     

Objective Problems Encountered Gathered Resources from books Hardware Software

Process      

Interview Questionnaires System Analysis System Evaluation Programming & Debugging System Testing

Output

Online Sales and Inventory System of Tacloban ACME Hardware.

FEEDBACK Fig. 1.1: A schematic diagram of the development of the proposed Online Sales and Inventory System of Tacloban ACME Hardware.

Computer Studies Department

7 Asian Development Foundation College Tacloban City Scope and Delimitation of the study This study is delimited to the assessment of the existing sales and inventory

systems

flow

implemented

by

the

hardware

and

the

introduction of online sales and inventory system. It is further delimited to the identification of the significance of the new system to the company, the costs relevant to its implementation and the persons involved in its operation. The study is further delimited to the suggestions which are offered by the researchers with regards to the use of the proposed system. The study limited itself to the respondents mentioned above, because the researchers believed that such information needed for the purposes of the study could be gathered. This proposed system study is an important aspect in coming up with Online Sales and Inventory System of Tacloban ACME Hardware. One of the objectives of the study was to keep track the outgoing products, availability of products, and the number of items or remaining products. In this research study the manual process or system used by the said hardware was replaced by the automated one. Significance of the Study With the implementation of the Online Sales and Inventory System of Tacloban ACME Hardware will be able to closely monitor its inventory

Computer Studies Department

8 Asian Development Foundation College Tacloban City and sales flows, accurate and updated reports, systematic record keeping and other intangible advancement thus providing quality service to its clients. Specifically, information offered by the study would be greatly beneficial to the following: 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 of inventories and efficient flow of sales transactions used in decision making. Employees. This system will help them in the effective and efficient performance of their tracks more specifically in the recording and monitoring

of

sales

and

inventory

transactions

as

well

as

the

preparations of reports. Researcher. This system will serve to a more in depth development and implementation of sales and inventory system and related studies. Future Researcher. This system will serve as guide to a more in depth development and implementation of sales and inventory system and related studies.

Computer Studies Department

9 Asian Development Foundation College Tacloban City Definition of Terms The following terms are defined operationally, some conceptually to give the reader a clear understanding of the terms used in the study. Cost benefit. Analysis is done to determine how well, or how poorly, a planned action will turn out. Customer. As a person or organization that a market believes will benefit from the goods and services offered by the marketer‟s serve as client that buys items. Employee. Refers to the people or the working taskforce of Tacloban ACME Hardware, who serve the clients by way of verifying the clients order. Inventory report. This is a written document describing the list of supplies on hand. Inventory.

This is the making of an itemized list of merchandises or

supplies on hand. The process of listing articles, supplies of materials with the description quantity and value of each item. Online.

Refers to the proposed computerized system that can be

accessed by the user from one pc to another through internet. Online Ordering System.

E-commerce functions where a company

allows customers to order products or services via other website. Process.

Is a naturally occurring or designed sequence of operations

or events, possibly taking up time, space, expertise or other

Computer Studies Department

10 Asian Development Foundation College Tacloban City resource, which produces some outcome. A process may be identified by the changes it creates in the properties of one or more objects under its influence. Profit.

Net income from business.

Program.

An organized list of instructions that, when executed, causes

the computer to behave in a predetermined manner. Without programs, computers are useless. Software.

Is the collection of computer programs and related data that

provide the instructions telling a computer what to do.

Computer Studies Department

11 Asian Development Foundation College Tacloban City Notes http://fcit.coedu.usf.edu/network/chap1/chap1.htm http://fcit.coedu.usf.edu/network/chap1/chap1.htm http://en.wikipedia.org/wiki/Flowchart http://www.dcag.com/webdocs/invent01.htm http://www.snowbd.com/warehouse.htm

Computer Studies Department

12 Asian Development Foundation College Tacloban City Chapter II Review of Related Literature and Studies Foreign Literature According to Jeff Wourio, online sales and inventory system are designed to immediately record any and all sales and inventory transactions. Not only does that mean timely and accurate sales tracking, but this system also lets one readily identify inventory levels, particularly when what you have on the books doesn‟t jibe with actual stock. Little is more maddening to a business owner than watching his or her staff bogged down with inefficient, unproductive responsibilities, from double-checking his inventory disparities to seemingly endless cash-register reconciliation. Perhaps the greatest advantage to a comprehensive point-of-sale network is the freedom it can afford on personnel to devote their energy to what genuinely matters the most helping customers. According to Donald Reimer and Ravi Nayar they disclosed that maintaining the right inventory levels is tough challenge. If not properly managed, the inventory can result in a significant expense. Looking over the shoulder is the lender who is concerned about the cost of carrying too much inventory – which can affect profitability. Fortunately, there are management information systems that exist which use microcomputers and variety of industry specific software. The

Computer Studies Department

13 Asian Development Foundation College Tacloban City cost of carrying inventory today has become a major expenditure and requires immediate attention. The benefits of inventory control far outweigh the costs. Any reduction in inventories, whether it is raw material, work-in-process, finished goods or supplies, can have a dramatic impact on your bottom line. Industry averages suggest that a 20 percent reduction in inventory is achievable with an online inventory control system. For a company with a yearly sales volume of $1 million, such a reduction would result in savings of $14,400 per year and would free up $48,000 of new dollars for reinvestment. For a company with a yearly sales volume of $10 million, the figures are proportionately higher:$144,000 per year in savings and $480,000 in a new dollar for reinvestment. According to www.udatasolutions..com/lumbergear.asp that was founded in 2002,Unique Data Solutions began consulting with hardwood lumber companies to grasp the unique requirements of the hardwood lumber industry, and after years of

research and development,

Lumbergear software was rolled out. Despite the fact that we come from modest beginnings and have come a long way, they continue to provide their customers with quality service and innovative technology solutions. Lumbergear sales and inventory software is a powerful, affordable and easy to use lumber business management system that increases efficiency in the workplace. They give control of hardwood lumber

Computer Studies Department

14 Asian Development Foundation College Tacloban City inventory and costs. The system also features a core set of modules that make it possible to run lumber operations effectively, and get products to customers on time. The aforementioned lumbergear system specifically helps manage and maintain inventory and costs for hardwood lumber and distribution, and wholesale operations. Lumbergear is flexible system that can be used by wholesalers, kiln facilities, hardwood and softwood lumberyards, brokers, lumber sales, and sawmills. LumberCell is a new software add-on that works hand in hand with Lumbergear in real-time. A mobile transaction processing system, and is compatible with the most hand held devices such as Blackberry, Pocket PC, and others. LumberCell allows mobile workers to be productive on the road. A Non-Parametric Asymptotic Analysis of Inventory Planning with Censor and Demand of Columbia, School of Operations Research and Information Engineering, Cornell University, Ithaca, NY 14853. They conduct a stochastic inventory planning with lost sales and instantaneous replenishment, where contrary to the classical inventory theory; the knowledge of the demand distribution is not available. Furthermore, they observe that only the sales quantity in each period and lost sales are unobservable, that is, demand data are censored.

Computer Studies Department

15 Asian Development Foundation College Tacloban City The manager must make an ordering decision in each period based only on historical sales data. Excess inventory is either perishable or carried over to the next period. In this setting, they propose nonparametric adaptive policies that generate ordering decisions over time. It shows that the T-period average expected cost of our policy differs from the benchmark newsvendor cost-the minimum expected cost that would have incurred if the manager had known the underlying demand distribution. Local Literature Salavador P. Catelo denoted the importance of the Philippine Retail Food over the past decade. The Philippines witnessed a substantial growth in the retail industry. Although there is dearth of recent literature and statistics to support this observation, a reconnaissance of places especially in the urban areas can attest to this. Growth is seen not only in terms of numbers but more visible in terms of size, investment on structure and modernization in operation. Digal (2001) pointed out that the Philippine retail industry‟s performance comprises about 11 percent of the Gross Domestic Product (GDP) in 1997. There are clear indications that this magnitude has been more or less maintained in the past 3 years. Total retail sales in 2002 increased by 11.1 percent and its GVA contributed 10.6 percent to GDP in the same year. About seventy-three percent (72.84 %) of this share

Computer Studies Department

16 Asian Development Foundation College Tacloban City was in the trade sub-sector while 25.43 percent was in the service sector. From 1981 to 1997, the industry grew by 5.83 percent annually, outpacing the average annual GDP growth rate of 2.27 percent over the same period. Combined with the wholesale sector, the industry absorbed 15 percent of the country‟s employed labor in 1998 (Digal, 2001). The food, beverage and tobacco industry contributed 37 percent of the total employment in the wholesale and retail industry in the Philippines in 1995. Within the food sector, 87 percent of the total employment comes from small food retailers with less than 10 employees (Digal, 2001). In the Philippines, food retailing industry involves a wide array of sellers from the sidewalk vendors, wet and dry markets, sari-sari stores, groceries, supermarkets, hyper marts, warehouse and discount clubs and convenience stores. Food means brisk business. Food is intricately linked with its culture and traditions. In the family, food accounts for 43 percent of total expenditures. Outside the home, eating has become lucrative for the retail business. Expenditures for dining out, excluding corporate representation registered an average growth rate of 15 percent to 20 percent per annum in the last 10 years. In the quick service or fast food segment, the total market in 2000 was over PhP 30 B. (Palma, 2005). According to the Family Income and Expenditure Survey (FIES) of the National Statistics Office (NSO), household spending on food

Computer Studies Department

17 Asian Development Foundation College Tacloban City increased by 26 percent from 1997 to 2000. Personal consumption expenditure (PCE) on food and beverages in 2002 reached about PhP 448 B from PhP 401.7 B in 1998, or an average annual growth rate of about 3 percent (Omana, 2005). Motor 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 the biggest growth in performance in the Philippine automotive industry based on the figures released by the Chamber of Automotive Manufacturers of the Philippines (CAMPI). Subaru has been the fastest growing automotive brand since its arrival in 2006 and Motor Image has announced plans to expand its business in 2009. Since its arrival in 2006, Motor Image Pilipinas has continued to sustain its growth in the market with Subaru establishing itself as the premier sport-luxury in the country. In 2008, Motor Image launched three new models that further strengthened its position in the market; the luxury SUV Tribeca, the 300-hp WRX STI and the third generation compact SUV, the Forester. Aside from these three models, Motor Image has also made available other well- known Subaru models such as the Outback, the Legacy and Impreza 2.0R variants. According to www.helium.com Henry Sy started to work at an early age of 12, usually manning the small family sari-sari store and preparing

Computer Studies Department

18 Asian Development Foundation College Tacloban City the traditional way of recording the sales and inventory control. Shortly, Sy thought of selling small portions of their grocery items to accommodate customers buying small volumes of products. Thus, the concept of retail marketing came to his mind. He entered the buy-andsell industry to obtained funds to start his own retail business. Sy imported retail products from the US and sold it in the Philippines and the rest as they say was history. Mr. Sy is now the CEO and the founder of the SM Prime Holdings- one the largest publicly-listed companies in the Philippine Stock Exchange. Related Study Foreign An Online Inventory Control System can also help company with new inventory management techniques such as Just-in-time („JIT‟). Such techniques cut the use of company resources such as warehousing, equipment and personnel. However these techniques require error-free environments and better control over inventory since the buffer zone to compensate for the errors is less. Computer technology has provided opportunities for improving instruments management. Online inventory management system has the capability to manage and process large volumes of data quickly and provide reports that help the healthcare facility do a better job of managing its surgical instrument inventory. It is important to be aware

Computer Studies Department

19 Asian Development Foundation College Tacloban City of which systems are currently available in the marketplace and what they offer. Most computer management systems track the instrument set through all processes and service. Others have additional options, such as instructional features online, instruments preventive maintenance reminders, and employee tracking for productivity. Although an automated system may require a substantial initial investment, it has proven to be a cost effective instrument management program. According to Valerie DeVries, RN, sterile processing manager at Lenox Hill\hospital in New York City. “It may cost thousands of dollars, but it‟s worth it”. Now we can find the trays. At Lenox Hill, we have a outrageous volume of instruments inventory. “However, the system requires

maintenance,

backup,

and

someone

to

sit

and

input

consistently”. When it comes to inputting data, bar coding, is a valuable tool. Inputting data using a bar code system is a definite time saver over annual input as long as the information is recorded at time of use. Bar coded trays and a bar code scanner provide improved tacking of instrument sets. Using a tray system that provided a location for labeling as well as the ability to bar code is a clear advantage. Improving information management has become the critical issue for most small retailers, says Judy Newdom, a principal of Computer Sciences Corporation national retail practice, based in Cleveland, As a

Computer Studies Department

20 Asian Development Foundation College Tacloban City result, cash registers at many small businesses have been transformed into Online POS Systems. Silverman say he selected the upgraded CounterPoint software after evaluating other packages because it would run on the assortment of POS hardware his firm already had. Switching to competing POS software would have required Blades to purchase new hardware, he says. The new version of CounterPoint gives the company a quicker, a more accurate, and more detailed picture of its sales and inventory than the previous version. Moreover, the program can be tied into the firm‟s accounting software. Dynamics, from Great Plains Software Inc. of Fargo, N.D. This enables each sale to be entered instantly into the accounting ledger. The aforementioned related studies seem to reveal the strengths and weaknesses of the Sales and Inventory System both local and abroad. Thus, the writes cited the aforementioned studies since it served as a guide to the present study. The “Quasem Dry Cells Ltd” is an old and premier manufacturing company of Bangladesh. The factory of the company is situated in Tangail district. The company mainly produced various types of batteries. The demand of the product of the company is high. So, the company has to follow a proper inventory management system. The company follows “Safety Stock” inventory management system.

Computer Studies Department

21 Asian Development Foundation College Tacloban City Safety stock system helps the company to fulfill its market demand. For instance, the demand of inventory is likely to fluctuate from time to time. In particular, at certain points of time the demand may exceed the anticipated level. In other words, a discrepancy between the assumed and actual usage rate of inventory is likely to occur in practice. Similarly, the receipt of inventory from the suppliers may be delayed beyond the expected lead-time. The delay may arise from strikes, floods, transportation and other bottlenecks. Thus, a firm would come across situations in which the actual usage of inventory is higher than anticipated level and or the delivery of the inventory from the suppliers is delayed. The 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 the customers. The company would, therefore, be well advised to a keep a sufficient safety margin by having additional inventory to guard against stock-out situation. Such stocks are called “Safety Stock”. This would act as a buffer or cushion against a possible shortage of inventory caused either by increased usage or delayed as the minimum additional inventory to serve as a safety margin or buffer or cushion to meet an unanticipated increase in usage resulting from an unusually high demand and or an uncontrollable late receipt of incoming inventory.

Computer Studies Department

22 Asian Development Foundation College Tacloban City RFID Tracks Jewelry Sales, Inventory of Middle East, they created a study wherein once the tag is applied to a piece of jewelry, a store employee uses a handled interrogator

to capture the tag‟s unique

identification number, then again on a daily basis for inventory management. Any attempt to cut the cord disables the tag, making it impossible to transfer it from one piece of jewelry to another one that is cheaper in an attempt to disguise a theft. The data related to those daily read is transferred to an inventory database managed by TJS‟s software service, and TJS forwards a daily report to the bank. The database contains detailed information on each piece of jewelry. The system can be operated as a stand-alone system or integrated with the store‟s IT system. Handheld interrogators manufactured by Feig Electronics, or by PDA reader module supplier ACG, can be waved a few inches above the jewelry to retrieve information about the item from the database. When the store sells a product, employees scan the label once, and then cut the tag, disabling it. The tags are then returned to Sokymat, which removes the chips from the hard plastic cases and put them into new casings. While the system offers special advantages to the Middle East, where bank ownership is an attractive option, the system has also caught the attention of jewelry retailers worldwide. “From a technical point of view, it‟s a solution for the whole world,” Nasser says. “Not everyone needs a financing solution; instead, it‟s about inventory

Computer Studies Department

23 Asian Development Foundation College Tacloban City management.” TJS charges the stores a monthly fee for the system, depending on the size of the retailer. By June, Nasser says, its system will be deployed at 25 locations. The company is not the only one offering an RFID solution for jewelry retailers. French RFID systems manufacturer Tagsys and Swiss auto-ID software solutions provider Solid have co-developed a 13.56 MHz RFID system aimed at increasing inventory accuracy and reducing theft. Swiss watch and jewelry maker de Grisogono has developed the system at its stores in Geneva and Paris, and also plans to roll it out across all 15 worldwide retail locations by the end of the year. A prototype warehouse sale order and inventory system via Pocket PC phone using GPRS communication has been created for sales departments in tire factories to manage with sales orders effectively and efficiently.

This

prototype

will

work

as

the

order-center

for

administrators, sale persons and customers. This warehouse sales order system has been created using PHP, which is server side script and MySQL, which is a database program. The application has five sections: Firstly, a product data management system and sale order data management through website. Secondly, a sale person-order system through website via a computer PC or laptop. Thirdly, a customer-order system through website via a computer PC or laptop. Fourthly, sale person-order system

Computer Studies Department

24 Asian Development Foundation College Tacloban City through website via a pocket PC phone. Fifthly, a summary report system for the manufacturing department and director. The system will require an internet network for a computer PC or laptop, and the GPRS communication network for a pocket PC phone. After the application was implemented by sale persons, customers and administrators, the result of order products through websites was very satisfactory. It decreased the order processes, and at the same brought information technology to apply to the sale process. It reduces the processing time by 77.98 percent and increased satisfaction for all users. Local Study Michael Cruz‟s of De La Salle College of Saint Benilde a graduate of Bachelor of Science in Business Administration, Major in Information Services Management by 2004-2007 and Senior Business Systems Analyst of KFC Philippines. He conducted a research study on Enterprise Content Management to any store or company which tackles sales and inventory control that aims to help concessionaires in their inventory stocking and as well as in preparing their sales report. A Research Study of Longjas Trading Online Sales and Inventory was conducted by the student‟s of Leyte Normal University Computer Science Department. They develop a system with high levels of reliability and availability required of business-to-consumer Websites that requires not only great technology, but also great operational processes. Building

Computer Studies Department

25 Asian Development Foundation College Tacloban City a scalable, highly available application is a necessary process in becoming functional as an e-commerce entity. They have tried developing the most basic modules required in an online business, using MySQL-server, PHP and Apache Web server. All of the key processes and tools are covered in this store from retail storefront to back end management. Another research study with the title name “Sales Inventory” for Gaisano Capital Tacloban Branch”, that was conducted by the group of researchers of Eastern Visayas State University Bachelor of Science in Information Technology Students. The study also deals with sales inventory wherein the customer will purchase the item, and then the cashier will scan the barcode to the barcode reader machine and automatically compute the sold items, available and generate sales inventory report. The objectives of their research study is to have an accurate sales, stock, availability of an items, lessen the work load of the management employee and have smooth flow of sales inventory.

Computer Studies Department

26 Asian Development Foundation College Tacloban City Notes http://www.oppapers.com/essays/Online-Customer-Database-AndInventory-System/423743 http://www.oppapers.com/essays/A-Study-On-InventorySystem/356638 http://sensoria.in/TU/knowledge-pool/35/225.html?start=1 http://www.microsoft.com/business/enus/resources/technology/business-software/7-reasons-to-switch-to-apoint-of-sale-system.aspx http://systems.almyta.com/Inventory_Management_History_4.asp http://systems.almyta.com/Inventory_Management_History_4.asp http://answers.yahoo.com/wuestion/index?qid=20090304011531AAvb1 XT http://www.udatasolutions.com/lumbergear.asp http://www.columbia.edu/~th2113/files/DataLostSales-MOR-2008Oct1.pdf http://www.pecc.org/food/papers/2005-2006/Philippines/ppecc-catelopaper.pdf http://www.tsikot.com/subaru-sales-in-the-philippines-doubles-in2008/ http://www.helium.com/items/1913377-the-most-successfulbusinessmen-in-the-philippines.

Computer Studies Department

27 Asian Development Foundation College Tacloban City http://www.reportbd.com/aricles/119/1/Inventory-ManagementSystem-amp-Safety-Stock/Page1.html www.rfidjournal.com/article/articleview/2348/2/1definitions_off http://tesla.eg.mahidol.ac.th/Internet/TH/articles/abstract/13.pdf http://entertainment.ezineseeker.com/sales-and-inventorymanagement-with-bum-buys.com-162b55524f.html http://www.apdip.net/projects/ictrnd/2004/L62-ph/index_html http://www.dlsu.edu.ph/research/journals/dlsuengj/pdf/vol1no1/11.p pd http://ph.linkedin.com/pub/michael-cruz/19/b6/b63

Computer Studies Department

28 Asian Development Foundation College Tacloban City Chapter III Methodology This chapter contains the discussion of the research design, the locale of the study, the respondents of the study, research instruments, and validation of instruments, research procedure and statistical treatment of the data used in the study. Research Design The descriptive method of research will be use in this study with the questionnaire as the main tool in gathering the needed data. Also use to obtain information concerning the current status of the phenomena to describe “what exists” with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo and deals with everything that can be counted and studied to justify the validity of the research study that is beneficial to the company, schools and future researcher. The method revealed the personal background of the company and the status of the system, as well as certain perceptions of the type of system, how the present system works, as well as certain files and the common problem encountered in using their present system. The different personnel in the company will also be interviewed in order to document the exact work of each employee and so that the data

Computer Studies Department

29 Asian Development Foundation College Tacloban City that have been gathered will be analyse and interpreted by the researcher in the development of the propose system. Research Locale of the Study The study was conducted at Tacloban ACME Hardware at Rizal Ave., Tacloban City. The main objective of their company is to meet the satisfaction of Utheir customers and to have a quality products.

Tacloban ACME Hardware

B U R

Rizal Avenue

G O S

DAMAR Salazar Street

S T

Del Pilar Street

R E E

ADFC

T

Computer Studies Department

Sto. Nino extention

JOLLIBEE

30 Asian Development Foundation College Tacloban City Respondents of the Study The respondent of this research includes the Branch Manager (1), sales lady (4), Cashier (1), Delivery Boy (1), Stockman (1), and Customer (250) with the total of two hundred fifty eight (258) respondents of Tacloban ACME Hardware. Research Instruments Since this study is designed to implement the proposed Online Sales and Inventory System, the researchers used questionnaire and interview as instruments in gathering data and information. Validation of Instruments The gathered data by the researcher was validated by Krystel Ann Doyon, branch manager of Katrina Research Procedure The researcher have ask permission from the branch Manager of Tacloban ACME Hardware before gathering data and information needed in the study regarding the history of the business and the problems encountered in their current system through a proposal letter and permission to conduct interviews. Statistical Treatment of Data The data gathered will be tallied, organized analysed and interpreted with the use of appropriate tools such as the following.

Computer Studies Department

31 Asian Development Foundation College Tacloban City Percentage Formula: P= Where:

f n

* 100

P = Percentage f = Frequency n = Total number of Respondents Weighted Mean. This was used to determine the respondents assessment of the system in term of content, manner of presentation, and usefulness of materials.

̅= The qualitative description of the weighted mean was determined using the following scales.

Computer Studies Department