CHAPTER 1

INTRODUCTION

Background of the Study

Computers, like any other technological tool, started as an imaginative

idea but have become substitutes to manual and/or traditional methods, among

other uses.

People use computers for a variety of purposes-- from playing games to

creating reports for their jobs. Others use computers to transact businesses;

while some computers are used to teach other people. With the rapid

technological advancement, people are able to simplify their lives with these tools

RIZ Hardware, formerly known as G Community Hardware was

established in 2009. The owner has decided to change the company name into

WYNE Hardware, however, the Department of Trade and Industry denied the

recent company name due to some security measures, so the owner decided to

change it again into RIZ Hardware.

Owned by Ms. Gina Aguilar, the company is located at CL Montelibano

Drive, Zone II, Barangay Villamonte, Bacolod City, and is currently made up of

five employees. They sell Plywood, PVC Pipes, Bolts, Paints, Nails, Screws,

Deformed Bars and etc.

During the initial interview conducted with the owner, the researchers

learned that the company uses the manual system of processing sales and cash

invoice in their premises which made it difficult for them to track sales and

inventory. The customers inquire about a particular product where the sales clerk

determines its availability. Items bought are then recorded in the sales and

inventory logbook.

In the inventory area, the owner will count the total sales of the day or

month as recorded in the sales and inventory logbook.

In the initial interview, the researchers found that the respondents face

difficulty in tracking the sales and inventory. Due to this manual process, the

company faces difficulty in identifying the products bought and released.

Moreover, they also experience difficulty in identifying which product needs to

restocked.

With the development of the study “RIZ Hardware Sales and Inventory

System with Barcode Technology” the company will be provided a system that

would allow the owner or the authorized personnel to easily track their sales and

inventory, as well as effectively generate Daily, Weekly and Monthly sales and

inventory report.

The system is composed of dashboard containing the active products in

the company; the list of products or items;the list of their suppliers; and a report

center in which it can generate Daily, Weekly, Monthly and Yearly sales and

inventory report.

STATEMENT OF THE PROBLEM

This study aims to develop the system entitled “RIZ Hardware Sales and

Inventory System with Barcode Technology “.

Specifically, this study aims to answer the following problems:

1. Difficulty in tracking inventory due to manual listing of stocks.

2. Difficulty in tracking Sales of the stocks.

3. Lack of security for company files due to manual method of processing

sales and cash invoice that can be easily accessed by anybody in the

company.

4. Difficulty in generating daily, weekly, monthly and yearly sales and

inventory reports due to manual method.

GENERAL OBJECTIVE

The researchers aim to create a Sales and Inventory System with Barcode

Technology. The main objective of this study is to provide a system that will use

barcode technology to easily track sales and inventory of the stocks

SPECIFIC OBJECTIVES

Derived from the general objective stated and to answer the statement of

the problem, below are the specific objectives of the study.

1. To create a system that will use barcode technology to easily track

inventory.

2. To create a system that will allow the manager or the owner to easily

track sales and inventory of stocks by checking it in the report center.

3. To create a user log-in system to secure company files which is

accessible only to the authorized personnel.

4. To provide a report template that generates daily, weekly, monthly and

yearly sales and inventory report.

1.7 SIGNIFICANCE OF THE STUDY

This study will be significant to the following individuals:

Company. The system is significant to the company with the improvement of

their system. Furthermore, this study will help the company in their sales and

inventory. The system will help them track their sales and inventory easily and

effectively.

Owner. This study will allow the owner to track their sales and inventory easily

and effectively.

Employees. This study will ensure the level of security for the company’s files by

creating administrator and user accounts to access the system.

Researchers. This study will serve as the fulfillment of their endeavor as

students and as evidence of their work.

Other readers. This study will benefit others to gather more information and use

this as reference for future researches.

SCHEMATIC DIAGRAM

Input Process Output

Figure 1.1

Schematic Diagram of the Study

As shown in Figure 1.1, the researchers conducted an informal interview

with the owner of the company, RIZ Hardware. The researchers then studied the

results based on the perception of the proponents on the existing problems within

the company and the level of need in developing the system, “RIZ Hardware

Sales and Inventory System with Barcode Technology”.

SCOPE AND LIMITATIONS

This study is limited only to the development of RIZ Hardware located at

CL Montelibano Drive, Zone II, Barangay Villamonte, Bacolod City. The focus of

the study is only to develop RIZ Hardware based on the owner’s perception

Send Letter of Transmittal

Interview with the respondents

Planning

Analysis

Design

Development

Implementation

RIZ Hardware Sales and Inventory System with

Barcode Technology

regarding the problems they encounter towards traditional or manual manner in

their business transactions.

The proposed system is composed of a program for tracking Sales and

Inventory of the stocks, and for generating daily, weekly, monthly and yearly

sales effectively with the use of barcode technology. The system also comes with

an administrator account or an authorized personnel account to provide a level of

security to company files

In the program, there will be tabs which consists of Products Section

where all the products of the company are listed and can generate sales and

inventory report; Items Section where the owner can add, delete, and edit items

anytime; An Order Section where all of the products that needs to be delivered or

restocked listed; A Report Center Section where in this section it generates daily,

weekly, monthly and yearly sales and inventory reports of the company; and the

Settings Section where the owner can change the security settings with the

system (e.g. changing of passwords).

Definition of terms

The following terms are important to the study; hence they have been

defined conceptually and operationally for better understanding.

Inventory. Conceptually, this refers to a certain amount of stocks of these

items is always maintained (Narayan, 2008).

Operationally, Inventory is a list of items or contents within a company or a

business.

Barcode. Conceptually this refers to a Uniform Product Code (UPC) that

uniquely identifies an object, encoded as a sequence of visible stripes or bars

that are easily read by machine (Plant, 2007).

Operationally, a Barcode is a readable code in the form of numbers and a

pattern of parallel lines, printed and identified the product.

Database. Conceptually, a Database includes descriptions of the

relationships to be maintained between records in different datasets, of any

indexes or other features to facilitate searching, and of any special processing to

be done to ensure that the integrity and consistency of the data is maintained

(Riolo, 1986).

Operationally, a Database is a set of data in a computer and accessible in

various ways.

Computer. Conceptually it is defined as an electronic device that

performs a given task on the basis of given instructions (Singh, 2009).

Operationally, Computer is a device for storing and processing data and a

device that computes.

Sales/Sale. Conceptually, Sales or Sale includes the following:

Merchandise sold for cash or credit at retail and wholesale by establishments

primarily engaged in retail trade; amounts received from customers for layaway

purchases; receipts from rental or leasing of vehicles, equipment and etc. (U.S.

Department of Commerce, 1977).

Operationally, Sales or Sale is defined as the exchange of money or the

action of selling a product or a thing.

Technology. Conceptually, Technology is a process which through and

explicit or implicit phase of research and development, allows for commercial

production of goods and services (Dussauge, 1992).

Operationally, Technology is an application of knowledge, especially in

industry.

Security. Conceptually, it implies an absence of threat. This can be

viewed as an absolute – either on is secure or one is not, threats exist or they do

not – or, as is more usual, as a relative condition – one can have varying degrees

of security, more or less protection from threat (Robinson, 2008).

In this study, Security it is the state of being free from threat or danger.

Business. Conceptually, Business may be defined as an activity; in which

different persons exchange something of value whether goods or services for

mutual gain or profit. It may be called an organised and systematized activity for

profit (Maheshwari, 1989).

Operationally, Business is defined as the exchange of goods to gain

money.

Stocks. Conceptually, it is the amount of money a business company is

worth (Baterman, 2010).

Operationally, Stocks is defined as the goods or the merchandised kept on

a business establishment.

System (Business). Conceptually, it is a combination of all resources,

organizations, and institutions which are directly or indirectly related to the

production and distribution of goods and services for the satisfaction of human

needs (Wheeler, 2010).

Operationally, a System (Business) is defined as the flow of a company or

an establishment that makes their status stable throughout a period of time.