Inventory System

Inventory System Rochelle Joyce Camalig Aljay Saraga Edlyn Hainto Mark Ulysses Bayot Paul John Parrenas Acknowledgement The group would like to acknowledge Mr. Danillo Albay, SAD professor, for giving our team the opportunity to create this system. The group also acknowledge the company Golden Key Auto Supply and General Merchandise for letting us examine its system. I. Mission and Vision Mission As a wholesaler and retailer of automotive spare parts, the company aims to serve the needs and requirement of various type of automobile.

It aims to provide high quality parts and materials for the proper maintenance and repairs of the vehicle. Vision The business envisions itself to become the number automotive parts supplies in the Cavite region. II. Organizational Chart III. Historical Background: The Golden Key Auto Supply is a Filipino business. Based in Dasmarinas, Cavite, the auto supply was founded by Salvador E. Young in June 1999. The Young’s family was in the automotive parts dealer for almost forty years. It started at Sorsogon, Sorsogon in 1976 and had established branches at Samar, Tabaco Albay and in Makati.

As the family migrated to Cavite, they decided to put up the Golden key Auto Supply at Dasmarinas, Cavite. In 2008, they renamed the business to saviour Auto supply. IV. Background of the Study Many auto supplies nowadays usually lack an efficient inventory system. This is usually because most small time dealers don’t care much about the existing system due to the reason that the business is still small and just growing. This is why in unexpected incidents such as lost of certain items, problems arise. This shows the importance of inventory systems in such businesses.

The purpose of this study is to construct an efficient inventory system for Golden Key Auto Supply. Golden Key Auto Supply was a part of Young’s Auto Supply. It often encounters problems regarding its inventory system. Usually, some items disappear without any record. This is why items should be tracked properly. These problems occur because the company follows no officially established system. They just keep a record of the sales which they determine using the receipts. But they also admitted that not all items are being given receipts. This is the reason why the record becomes unreliable.

Another problem is that they only keep one copy of the record. Having no back up files may result to loss of data. With these regards, the group decided to work on a system for Golden Key Auto Supply. V. Statement of the Problem A company, especially a company that sells items should have an efficient inventory system. Companies that do not have strong inventory system may lead into bankruptcy due to the sneaking out products. The first problem of the Golden Key Auto Supply and General Merchandise is that it has no established inventory system. Many small companies have also his kind of problem. They say that they have a system that can organize the flow of their inventory but this system does not followed all the time. So the tendency is, the information needed to make an inventory report is not very accurate. And in this matter continues, the company may shrink down to bankruptcy. Another problem is lacking of safe keeping of the company’s records. Records are essential to make an inventory report. So if the company’s record are lost, or changed, company may suffer from difficulties in recording and retrieving their record of transactions, purchase and etc.

The result is data can be corrupted to use it for steal the company’s capital and earning. The third fatal problem of the company is not all the items sold are not being given receipts. This may affect the records. The group got information from the company itself that the low cost items are sometimes being taken for granted and not being given receipts. This might be only seem small, but if these build up, this will result to a significant loss. VI. General Objectives: Generally, this proposal intends: . To give the company chosen an inventory system to lessen the errors in their inventory report To make the company’s inventory system more organized through our proposal Specifically this proposal intends: . To make sure that all the products that was stored safely . To made the inventory report and auditing accurate. . To ensure that the product s and the inventory are well recorded . To avoid the product stealing inside the company . To stable the flow of the products running inside and outside the company VII. Proposal: The current system followed by the Golden Key Auto Supply is proven inefficient due to the problems that aroused. In this regard, the group roposes a system that will substitute the current system. The researchers proposed an automated inventory system. This system will help the company in tracing the items/products supplied and sold to the costumer. The researchers also think that this system can avoid products stealing inside the company and it can help the company to made accurate inventory report. This system will help them to organize their inventory system. VIII. Paradigm The paradigm used in this study is the System Development Life Cycle (SDLC) because it is easier and more systematic than the other paradigm.

The SDLC have five phases, Planning Phase, Analysis Phase, Design Phase, Development Phase and Implementation Phase. In the Planning Phases, we gathered all the requirements needed for the system. Since the system is an inventory system, research about the company’s existing system wad conducted. The group found out that Golden Key Auto Supply and General Merchandise has no officially established system. Knowing this, the group started with sending questionnaires to the company’s proprietor to gather all the information needed. In the Analysis Phase, the group divide the task needed.

One of the task is the interview the owner of the company, one of the group so this task and in the other member try to analyze the gathered data. The group also used some related issues and article s from the internet to analyze the system of the company. In the Design Phase, the group had an overview of the company’s system using different diagram. The diagrams used are Data Flow Diagram, Hierarchal Input and Output, Input and Output, Entity Relation Diagram and the System Flow Chart. All this diagrams used to understand deeper the system needs by the company.

The group design a proper inputting, processing and outputting of the new items for the company. In the Development Phase, the group constructed the system that will be able to help the company with its inventory. As the group knows that the company’s inventory system is done manually so that the group proposed to the company helps to organize the inventory system. Implementation and maintenance will take place if the system is accepted. The researchers conclude that the proposed system can help them in providing an accurate inventory that there not going to think about the stealing of products.

IX. Diagrams This study focuses only to the inventory system of Golden Key Auto Supplies and General Merchandise. The researchers of this study make different diagrams to show the relationship between entities in the company. This study used five major diagrams – Data Flow Diagram (DFD), Hierarchal Input, Process and Output (HIPO), Input, Process and Output (IPO), Entity – Relationship Diagram (ERD) and the System Flow Chart. Data Flow Diagram Data -flow diagram (DFD) is a graphical representation of the “flow” of data through an information system.

DFDs can also be used for the visualization of data processing (structured design). Golden Key Auto Supply and General Merchandise’s data flow diagram shows the graphical representation of the inventory system. The company order their supplies from the supplier and record the arrival of the ordered supplies. They record it manually using a notebook that all the supplies are listed. After listing it to the notebook they put it on the stock room. When a customer order an items to the company, the sales man check the availability of the item to the stockroom and if it is available they subtract the item purchased by the customer.

Then the costumer gives the payment and the company issues receipt. Hierarchal Input, Process and Output The HIPO (Hierarchy plus Input-Process-Output) technique is a tool for planning and/or documenting a computer program. A HIPO model consists of a hierarchy chart that graphically represents the program’s control structure and a set of IPO (Input-Process-Output) charts that describe the inputs to, the outputs from, and the functions (or processes) performed by each module on the hierarchy chart. This diagram shows the HIPO of the company.

It shows that the inventory system of the company has a simple input, process and output. In the input, is the supplier supply one or many item it update the stocks of the company, then in the process, the update stocks must generate reports and its output will manage the date. Input, Process and Output Input, Process and Output (IPO) is used to show the simple inputting, processing and outputting of data in the company. Golden Key Auto Supply and General Merchandise use this IPO chart. In this diagram, new item is added to the stockroom.

The item ordered by the customer is subtracted to the stock room and the company generate receipts and the receipts are used for making the Inventory Reports that forms a Inventory File. Entity Relationship Diagram An entity-relationship (ER) diagram is a specialized graphic that illustrates the interrelationships between entities. ER diagrams often use symbols to represent three different types of information. Boxes are commonly used to represent entities. Diamonds are normally used to represent relationships and ovals are used to represent attributes.

System Flowchart X. Recommendation: Since the current system did not serve its purpose of solving the inventory problems, the group recommends our system to be used by the company, Golden Key Auto Supply and General Merchandise. The manual system used by the company is not very effective since the inventory data is kept unsafe, with no back up file. In our system, an automated system will be used. This system produces hardcopies and back up files of all the files needed for inventory. This system’s cost is suitable enough for a small company. XI. Conclusion After the group have examined the system of the current system of the company and after the group have developed a system, the group arrived at a conclusion that the use of manual system is not very effective. This is because some of the steps maybe skipped due to unexpected circumstances, like an employee forgetting a certain step or having some data loss. In an automated system, the steps will have to be followed because its sequence will be recorded electronically. Time will also be used efficiently because the adding and subtracting of items from the inventory will be done by a computer. XII. Appendixes

Appendix A Gantt Charts Planning Analysis Design Development Evaluation Appendix B Questionnaires 1. What kinds of products are you selling? Our company are selling auto spare parts and accessories of the different types of cars. 2. Specify the products being sold. 3. Which products are usually purchased? 4. How many suppliers do you have? 5. Specify the suppliers from whom you get your products. 6. Do you have any other branches? 7. Do the branches coordinate with each other for the products? 8. Do you offer other services rather than your products? 9. Give us an estimate on the number of items sold each day. 0. Are you associated with other companies? 11. Do you keep a record of your daily sales? 12. Are the records kept safe? 13. Do you keep your own copies of each receipt? 14. Are all items sold being given a receipt? 15. Do you regularly monitor the number of products you have in your inventory? 16. Do you use a manual or an automated system for your inventory? 17. How are the items stocked arranged? 18. Do you have anyway of knowing whether an item is missing? 19. Where there any case wherein the sales were affected because of a problem in the inventory? 20. What do you do in such cases?