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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

companys material department. This system will help them to transact

through online, and for delivery.

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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

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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 dont 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

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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

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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 Flow Out

(Residence Time)

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.

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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 Process Output

Objective Interview
Problems Questionnaires
Encountered System
Gathered Analysis Online Sales and
Resources System Inventory System
from books Evaluation of Tacloban ACME
Hardware Programming & Hardware.
Software Debugging
System Testing

FEEDBACK

Fig. 1.1: A schematic diagram of the development of the proposed

Online Sales and Inventory System of Tacloban ACME Hardware.

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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

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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.

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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 marketers 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

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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.

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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

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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 doesnt 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

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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

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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.

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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 non-

parametric 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 industrys

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

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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 countrys 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

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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

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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-and-

sell 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

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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 its 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

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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 firms

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.

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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.

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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 tags 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 TJSs 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 stores 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, its a solution for the whole world, Nasser says. Not

everyone needs a financing solution; instead, its about inventory

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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

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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 Cruzs 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 students 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

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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.

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Notes

http://www.oppapers.com/essays/Online-Customer-Database-And-

Inventory-System/423743

http://www.oppapers.com/essays/A-Study-On-Inventory-

System/356638

http://sensoria.in/TU/knowledge-pool/35/225.html?start=1

http://www.microsoft.com/business/en-

us/resources/technology/business-software/7-reasons-to-switch-to-a-

point-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-2008Oct-

1.pdf

http://www.pecc.org/food/papers/2005-2006/Philippines/ppecc-catelo-

paper.pdf

http://www.tsikot.com/subaru-sales-in-the-philippines-doubles-in-

2008/

http://www.helium.com/items/1913377-the-most-successful-

businessmen-in-the-philippines.

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http://www.reportbd.com/aricles/119/1/Inventory-Management-

System-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-inventory-

management-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

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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

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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
B
Hardware
U

R
Rizal Avenue
G
DAMAR JOLLIBEE
O

S Salazar Street

T
Del Pilar Street
R

E
Sto. Nino extention
E
ADFC T

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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.

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Percentage Formula:

f
P= * 100
n
Where:

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.

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