Oikos Animal Clinic Sales and Inventory Management System

In partial fulfilment

of the requirement for the degree

Bachelor of Science in Information Technology &

Bachelor of Science Computer Science

By

ANO-OS, KENNETH

GALLARDO, MARQUZ EFFRAIM

MAGTULIS, ALEXANDER JOHN

TABUNGAR, JOSHUA

Dr. Erald P. Pantoja

Adviser

December, 2019
Chapter I: Introduction

1.1 Background of the Study 1

1.2 Statement of the Problem 1-2

1.2.1 General Problem 1-2

1.2.2 Specific Problems 1-2

1.3 Objectives 1-3

1.3.1 General Objective 1-3

1.3.2 Specific Objectives 1-3

1.3.3 Scopes and Limitation 1-3

1.4 Significance of the Study 1-4

1.5 Definition of Terms 1-5

Chapter II: Review of Related Literature and Studies

2.1 Related Literature 2-1

2.1.1 Foreign

2.1.2 Local

2.2 Synthesis 2-2

2.3 Related Studies 2-3

2.3.1 Foreign

2.3.2 Local

2.4 Theoretrical Framework 2-4

2.5 Conceptual Framework 2-5

2.6 Definiton of terms 2-6

Chapter III: Methodology

3.1 Introduction 3-1

3.2 Type of Research Method 3-2

3.3 Research Design 3-3

3.4 Context Flow Diagram 3-4

3.5 Activity Diagram 3-5

3.6 Data Dictionary 3-6

CHAPTER I

Introduction

1.1 Background of the Study

A sales and inventory system is a software-based business solution used to simultaneously

track sales activity and inventory. Manufacturers and trade resellers can both benefit from a
thorough solution, where single transaction entry records necessary details on the customer,
products purchased, price and date while also updating inventory levels. Using computerized sales
and inventory systems allows for much greater accuracy in stocking and product management.
They encourage ease of interaction between employees and shoppers as transactions are processed
and items move from the business to the consumer. Computerized sales help provide better insight
into which products are most popular. It also allows for enhanced marketing, stocking and
oversight of critical sales objectives. Computerized sales and inventory systems save time for
businesses by speeding up transactions while raising accuracy. This allows for confidence in
accounting and accountability among employees as it is easy to verify how much money and what
time transactions took place. They also allow for consistent experiences in terms of customer
service. People know there is always uniform interaction at the register that requires tendering
payment, taking a receipt and transition of ownership of products and services. This generates
confidence in a business and ensures on going consumer relationships. Computerized systems are
the most common method of inventory control and sales processing in retail markets. In using this
computerized sales and inventory system you can establish the benefits you and your business
handling may have. First is time savings. The amount of time that can be saved by a business is
perhaps the biggest benefit of using a computerized inventory system. In cases where a shop
maintains all data manually, its manager must reconcile each sales receipt with every piece of
physical inventory. Depending on the size of the establishment and how many different products
are sold, this can be a daunting and time consuming task. If that same store, however, used a
computerized point of sale or system, the master inventory list would be updated electronically
each time a sale is made. The only thing a manager would have to do each day is print out the
report highlighting the inventory to be restocked. Second is accuracy. An additional benefit of
using a computerized inventory system is the accuracy it ensures. Then an inventory list is
maintained by hand; the margin of error widens with each update. If one mathematical calculation
is wrong or one typo is made, disaster may occur. And lastly is the consistency. A small business
operates most efficiently when its processes are executed in a consistent manner. By using a
computerized inventory system, a business owner can ensure that all orders, reports and other
documents relating to inventory are uniform in their presentation, regardless of who has created
them. This will allow ease of reading. In addition, uniformity creates a professional appearance,
which can go a long way to impress associates, such as potential investors.

The company Oikos is a small animal clinic that is managed by one person, the owner. The
business gives service and sells different items for pets or products. The business does their
physical counting of stocks manually. Technically, Oikos Animal Clinic is only using a manual
system that may cause duplication of documents and work redundancy. The business is just
depending on their manual listing of products and inputs of data which is possible to commit errors.
The business can’t view their proper records of sales or income in a given time of the year. It also
doesn’t have its proper listings of product. In some instances, lost items are just being ignored by
the owner. Oikos Animal Clinic doesn’t have any extra employee today. But before, the business
had one cashier on that time. And basically, it reduced the income and force to remove employees.
How, the owner is the one who does all work in the business. Handling a whole business is a
difficult job to do, especially if you are alone. The owner is the one who accepts the deliveries
from the supplier, list the products delivered, arrange the product on the shelves and many more.
So it is possible that the owner will get confused, especially if the customer and the supplier come
in the same time. For example, when there’s a customer and a supplier came. The owner will get
confused because he will attend to the needs of the customer while accepting the delivered
products. Their ways of managing the sales and inventory is that they manually save records,
accounts and their transaction which results to un-liquidated expenses. Some expenses were not
being recorded especially when the attendant or the owner has to get an emergency need for the
business. Moreover, the expenses don’t have any unsupported transparency records. Records don’t
coincide thesales and the cash on hand. The given tally or the recorded amounts have their
differences especially in the recorded amounts and the cash on hand.

1.2 Statement of the Problem

 1.2.1 General Problem

Difficulty in checking overstock, under stock and out of stock products

1.2.2 Specific Problems

1. Time consuming in looking for existing items in the warehouse

2. Time consuming in preparing of inventory and updating records.
3. unexpected losses of important records

1.3 Objectives

The proponents will create a module that will generate the reports that includes sales and
inventory reports, statistical reports, customer reports, and back order reports for the Sales and
Inventory for System with Decision Support system.

1.3.1 General Objective

The developers aim to provide Sales and Inventory with Decision Support System to
improve their manual process and also to become more progressive and productive to fit the
costumer’s standards.

1.3.2 Specific Objectives

The proponents will create a module that will integrate the Point of Sales and for the
availability of the products. The proponents will use MySQL that will serve as the database and
querying of the tables. The proponents will also use Visual Basic for building an application for
this module.

 To create a module that will monitor the Sales and Inventory.

 To create a module that will integrate Point of Sales and module for the availability
of products.
 To design, develop and implement a module that will handle the security for the
system.
 To design, develop and implement a file maintenance module that will handle the
files, records and important data of the business.
  To design, develop and implement a sales module that will handle the sales
transaction of their company.
 To design, develop and implement a generated module that will handle the sales
and inventory reports.
 To design, develop and implement an inventory module that will handle the
inventory of products.

1.3.3 Scopes and Limitation

The proponents proposed system for Oikos Animal Clinic can do file maintenance, product
maintenance, transaction, product transaction, create an account and reports.

Scopes of the system are the following:

 Security
 The System has a capability to secure and retrieve a password of
admin/user if he/she remembered their pin code
 Inventory
 The System has a capability to easily inventory all of the products
in the storage room.
 Generation Report
 The System has a capability to generate accurate reports.
 File Maintenance
 The System includes file maintenance that would automatically
Add, Delete, Save, Update and Retrieve information files
 To be able to know the remaining stocks
 To be able to know how much items are already sold
 To be able to know what product are in critical stage
 To be able to know what are the Items/Products are fast moving
 To be able to know what are the Items/Products that are going to be
pulled out for slow moving
 Limitation of the system is the following:

 Some data are not based on the database

 Can show all information about each product
 Not an Online transaction
 No major credit card transaction during payment, only cash payment
 The proposed system is intended only to Oikos Animal Clinic

To design, develop and implement a module that will handle the security for the system.

User Accounts - this contains the function for adding, and editing username and password. (f
course the authorized user can only be throne using the system.

User Level - A security access control system.

Owner - can access the entire system

In case they have the following:

Staff - can access only the inventory

To design, develop and implement a file maintenance module that will handle the files, records
and important data of the business.

Products - It contains all the record of adding of products.

Employee - It contains all the record of adding and deleting of employees.

To design, develop and implement a sales module that will handle the sales transaction of their
company.

Purchased Order - a module that handles generating of purchase ordered for the supplier when
they came.

Bad Order (customer) - list of items buys by the customer to the business, but needed to be return
because of some damage product and must change with new ones but this must be within the store
only.
Acquisition - list of items that are needed to be checks for possible damages, and to the company
can return the damaged item to the specific supplier.

Critical level - items that are low on stock will be monitored by the system in order to have
sufficient stock.

To design, develop and implement sales module that will handle the inventory of products. This
system provides sales transaction for the company. It holds information data regarding their sales
operations and provides an auto generated receipt for their customers.

To design, develop and implement a generated module that will handle the sales and inventory
reports. This will provide the generation of reports which are necessary in proper evaluation of the
company’s sales and inventory records.

Maintenance

 Product Maintenance
 Employee Maintenance
 Supplier Maintenance

Transactions

 Product Transaction
 Accept Deliveries
 Purchase Order (Directly to the supplier)
 Back Order (Customer)
 Bad Order (Customer)
 Acquisition

Reports

 Inventory Report
 Product List
 Supplier List
 Supplier Product List
  Product Suppler List
 Transaction Reports (Receipt)
 Returned Product List

The proponents proposed system for Oikos Animal Clinic cannot transact with the use of credit
card and cannot read or support barcodes and scanners.

1.4 Significance of the Study

The significance of this study to Oikos Animal Clinic is that it will provide easy-to-use and
easy-accessed system thus: transactions will be more reliable and faster that they do not have to
hire another employer to do the job. It gives more accurate and secure records of sales and list of
products.

 Admin - manages the adding of stocks, updating the inventory, and determining
the users of the system
 Customers - have the benefits of the printed receipts right after purchasing an item.
 Future researchers - would see the possibilities of upgrading the system.
 Researcher - student, teacher, programmer and web-developer can benefit in this
system through a detailed document.

1.5 Definition of Terms

Inventory - a complete list of the things that are in a place

Module - a computer program that does a particular job

Proponent - a person who supports something

Maintenance - the upkeep of property or equipment

Animal Clinic - for surgery, diagnosis, or treatment of diseases and injuries of animals
Stocks - the supply of goods available for sale in a store

Products - something that is made or grown to be sold or used

Transactions - the act of process of doing business with another person or company

POS - the time and place where retail transaction is completed and a point at which a customer
makes a payment to the merchant in exchange for goods or after provision of a service

Reports - an official document that gives information about a particular subject

Liquidation - to determine liabilities and a portion of assets

Business - the activity of making, buying, or selling goods or providing services in exchange for
money

Employee - a person who works for another person or for a company for salary

Insufficient - not having or providing enough of what is needed

Inquiry - a request for information

Delivery - the act of taking something to a person or place

Security - the state of being protected or safe from harm

Staff - a group of people who work for a business

Purchase - to get something by paying money for it

Order - a product/s that someone has requested from a business

Supplier - to provide someone or something that is needed or wanted

Accuracy - the ability to work or perform without making mistakes

Consistency - of the same quality or good each time

CHAPTER II

Review of Related Literature and Studies

Computer-based system is a complex system wherein information technology plays a

major role. It makes the work easier, faster and more accurate. Due to that fact, the automated
scheme has become essential to small and big companies for they are expected to give the best
services possible. Nevertheless, some businesses still prefer sticking with the system that is not
integrated with technology. Probable causes are computer illiterate staff and lack of funds.
Companies, especially the big ones are recommended to switch from manual to automated systems
because this will improve the efficiency and productivity of the business which will uplift the
industry’s reputation. One of the most sought after automated systems of different companies is a
purchasing and inventory system which comes hand in hand. A purchasing and inventory system
is very important in every organization because a good purchase and inventory management can
create excellent productivity. Primarily, inventory work consists of input, output and restock. Input
is a process of buying new products into the inventory and replacing the old products with the new
ones. Meanwhile, output is a procedure of taking out the products from the inventory for sales or
usage and refill is a process of increasing the number of existing products in the inventory in order
to fulfill the insufficient products or escalating demands. Most of the retailing market is using
traditional way in the inventory management system where a person is assigned to check and
record the stock by hand using pen and paper. It is where operations with regards to all the stock
will be archived.
2.1 Related Literature

Foreign Literature

According to Hold (2010) article, “Inventory refers to stocks of anything necessary to do

business”. The U.S Small Business Administration publication describes what constitutes
successful inventory management balancing cost versus benefits of inventory, including:
Maintaining a wide assortment without sacrificing service; Keeping stock low without sacrificing
performance; Obtaining lower prices by making volume purchases; and Maintaining an adequate
inventory without an excess of obsolete items.

According to the article of “Paperless Receipt Solution (PRS) System”, by James Dyson
Foundation (August 9, 2015), Configure One’s Web-based E-Catalogue software called Concept
E-Catalogue, is easy to implement and easy to use. Designed for both B2B (business to business)
and B2C (business to consumer) operations, it fully integrates with Configure One’s configurator
and CPQ software. The combined solution of Concept E-Catalogue, Concept E-Commerce, and
Concept Enterprise product configurator provides you with a complete storefront solution that
drives incremental revenue for your company. Featuring extensive content management tools, the
E-Catalogue software may be administered and maintained without programming skills, freeing
up your IT team.

According to J. De Leon and M. Ferrer (2010) Under the Koread Red Ginseng Enterprise
Sales and Inventory System, the researchers came up with a computerized sales and inventory
system. The proponents used database to easy access of files and for easier and faster processing
of the selling and inventory transaction. The program was designated to generate reports such as
monthly reports, inventory reports, sales invoice and list of items.

According to the thesis of Carlo Magno “There was a ground swell to move from paper
signature and documents because the task of record management was huge. We had file cabinets
full of backup materials. By converting from manual process, we would be able to eliminate a lot
of paper. We could go further with the automation of manual process and remove manual
paperwork if people trusted the technology.

According to the U.S. Small Business Administration, “Inventory refers to stocks of

anything necessary to do business” (U.S. Small Business Administration, 2010). The U.S. Small
Business Administration publication describes what constitutes successful inventory management
balancing cost versus benefits of inventory, including maintaining a wide assortment without
spreading the rapidly moving items too thin, increasing inventory turnover without sacrificing
service, keeping stock low without sacrificing performance, obtaining lower prices by making
volume purchases, maintaining an adequate inventory without an excess of absolute items.

Local Literature

(Kentwatak, 2013) Computerized Sales and Inventory System for Anthony’s General
Merchandise and Construction Supply The business is located first at Riverside then they
transferred to Road BHS near Quezon City Polytechnic University. It is a family owned business
by Mrs Herminia Baguino. Computerized Sales and Inventory System is a product of human
knowledge with a use of technology so why not use technology as an advantage and benefit
ourselves. This system aims to lighten works and solve the problems involving strict and complex
recording and calculations.

(Penalosa, 2011) Online Sales and Inventory of Tacloban ACME Hardware is an inventory
control system that is designed to enhance the productivity of a Company’s material department.
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.

(Dela Cruz, Mesina, etal., 2011) A Transaction Processing System (TPS) is a system that
supports the processing of an organization’s transactions. For many businesses, a transaction refers
to an exchange of goods or services for money. The orders can be filed whenever a payment has
done. For every transaction, a decreased on the stocks occurs and all the transactions will be
recorded. Records can be used in generating reports such as sales report, inventory report, and list
of items in critical level.

According to Gemma Navarro (2012) Computer is general purpose device which can be
programmed to carry out a finite set arithmetic or local operation. Computer has a big rule in our
nation today because of our technology. Wherever you go computer still exist, especially in
business it makes the procedure easy and secure by programming the manual system into a
computerizing system. The rule of technology in our life today has a big impact.
 Online Sales Monitoring and Inventory System (Jan 2011) The problem of the conducted
research is about the company’s sales monitoring and inventory system. Keeping records of sales
and inventories manually are the current method used by the company. Due to this current method
of inventory system, the company has encountered several problems regarding the monitoring and
stocks checking. KONEK.COM management once said, “Manual method is very hassle and time
consuming process of inventory. It has many drawbacks as there are many mistakes while
recording large data and it disturb some important transaction sometimes”.

2.2 Synthesis

2.3 Related Studies

Foreign Studies

(Jamjam, 2011) This system records the number of items sold as items is purchased. The
computer system keeps up with additions or deductions from inventory and tells management what
items are on hand. When the items are purchased by the consumer, the point-of-sale system
reduces the inventory from that purchase. Inventory will help clear out store clutter and help Wal-
Mart focus on specific brands and products that consumers want.

(Stephen McHenry, 2010) Adopting the theory of Stephen McHenry which is known as
the iterative implementation covers the breakdown of overall functionality of the system to a what
he called feature set and those feature sets represents different process involve in an enrollment
system. It helps locate what feature an enrollment system will have since that this kind of systems
does many activities and processes.

(Wourio, 2011) 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 give
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 of 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.
Also stated in the research, “Sales and Inventory System for Schema Mega center”
(Almeda, Dañez, Geronimo), the proposed system is not just only accurate, reliable, and fast in
processing transactions rather it is also provided more systematic way of transacting with the
members and through the billing system also helped the employees to save a lot of time on
transaction processing.
According to the article of “Paperless Receipt Solution (PRS) System”, by James Dyson
Foundation (August 9, 2015), Configure One’s Web-based E-Catalogue software called Concept
E-Catalogue, is easy to implement and easy to use. Designed for both B2B (business to business)
and B2C (business to consumer) operations, it fully integrates with Configure One’s configurator
and CPQ software. The combined solution of Concept E-Catalogue, Concept E-Commerce, and
Concept Enterprise product configurator provides you with a complete storefront solution that
drives incremental revenue for your company. Featuring extensive content management tools, the
E-Catalogue software may be administered and maintained without programming skills, freeing
up your IT team.

Local Studies

Based on the research entitled “Computerized Sales and Inventory system for Ronmon
Trading” (de Alday, Espino, Ragudo, 2010), the replacement of the manual system with the
proposed system provided more efficient and accurate processing of transaction. The said system
is much reliable, eliminated errors and inaccurate information, and provided integrity valuable
reports.

In the study from Averion, Gaela, and Libo (2009) entitled “Monitoring and Inventory for
discovery Mall.com”, it stated that: It will minimize the difficulty of the manager in processing
inventory because physical counting products, stocks and computing inventory summary will be
the system job. It will monitor the availability of products, items to prevent under stocking, over
stocking and running out of stock. The system will also simplify the transaction between dealer
and supplier relationship because of the updated supplier information and price list of items will
correspond to collaboration with other supplier.\

The study entitled “Osaka Sales and Inventory System” (Laranang, Maaño, and Nañola,
2009) states that business nowadays takes the advantage of using modern technology to improve
their status and ensuring an efficient and newer way to make their work easier. They state that the
main problem of the Osaka Iridology is what modern effective tool must be use in creating and
developing a sales and inventory system that will manage efficiently their transaction. So they
develop a system that inclusively for the transaction of Osaka Iridology, such as monitoring of
their medicine and their daily sales.

Also stated in the research, “Sales and Inventory System for Schema Mega center”
(Almeda, Dañez, Geronimo), the proposed system are not just only accurate, reliable, and fast in
processing transactions rather it is also provided more systematic way of transacting with the
members and through the billingsystem also helped the employees to save a lot of time on
transaction processing.

System in Borderless Hub Philippines, Inc. located in Rm. 306-307 Pink Walters Building
Quimpo Boulevard, Davao City. In order to know the problem, we conducted an interview with
the managing team for sales, billing, and inventory. This led us to problems like the manual time-
consuming record of documents, billing errors and difficulty in data retrieval. The basic advantages
of the proposed system are to make the process fast and well-organized which means that they can
process much more quickly than humans. Data retrieval has to be searched in lots of registers
slowly and it wastes a lot of time. The current system that the company uses is manual receipt
recording. It makes the data not reliable enough as it is handwritten and there is a high probability
of errors to occur. Data recording consumes a lot of space since it is stored in cabinets and folders.
It is also prone to data loss where it could be missing because of improper file management.

Inventory is a company’s merchandise, goods and materials that are contained in the storefactory
at any given time. The employees need to know how many units of their products are available for
reservation and sales and the items that are sold. All of these rely on the inventory system to present
solutions. The sales inventory system would provide service to the user, input information to the
database, summarize the inquiry of bills, and manage the product releases and storage. This would
generate a faster improvisation of work given less time and effort.

CHAPTER III

Methodology

3.1 Introduction

This chapter presents project design, context flow diagram, use case diagram, activity
diagram, entity relationship diagram, data flow diagram, data dictionary and system development
life cycle.

3.2 Type of Research Method

The proponent considers this study as a combination of developmental and descriptive

research. Developmental research was applied because the proponent develops designs, analyzes
and evaluates the whole system. Developmental research was particularly important in the field of
instructional technology. The most common types of developmental research involve situations in
which the product-development process was analyzed and described, and the final product was
evaluated. A second type of developmental research focuses more on the impact of the product on
the learner or the organization. A third type of study was oriented toward a general analysis of
design development or evaluation processes as a whole or as components.

3.3 Project Design

 In order to attain the particular objectives of the project, a design was anticipated and
constructed to show the steps on how the system works. With this, the concept and the roles of
both administrator and users will be visualized and managed.

3.4 Context Flow Diagram

Oikos Animal
Admin Transaction
Clinic Sales and
Inventory
Report Inventor
Management
System y

Figure 1. Context Diagram of the Proposed System

Figure 1 shows the context diagram depicting the system. This type of diagram usually pictures
the system at the center, with no details of its interior structure, surrounded by all its interacting
systems, environment and activities. The Diagram explains the main Input, Process and Output of
the System where the Admin from the Input area in the left side decide to process his/her desired
outcome. After it process in the System which illustrates at the center of this diagram, it barely
results with an output of transaction consist of adding items. When the transaction process finished,
the recorded files will be seen in the inventory that process again in the system that later develops
a report back to the Admin.

3.5 Activity Diagram

 3.5 Data Dictionary

Data Dictionary shows what attributes are included in developing the proposed system.
Each attributes had different types of data that will be used such as; integer, float, variable
character, text string, date, etc. It displays what entities are inside. It also gives a simple description
of the data that will be using.

Field name Data type Description

UserID Int(11) User ID
FirstName Varchar(255) First Name
LastName Varchar(255) Last name
UserName Varchar(255) User Name
Email Varchar(255) Email Address
Password Varchar(255) Password
UserType Varchar(255) User Type
Table 3.5 Data Dictionary - Users of Oikos Animal Clinic

Table shows the summary of the various data objects that make up the Inventory
management system. Included in each table are the attributes of each object, the data type for each
attribute, the number of characters allowed for each field, the default value, and any other
information that defines the fields.

Software Development Tool

Figure 3.8 System Development Life Cycle

As shown in fig. 3.8. The proposed systems are going to used SDLC in creating the system.
Planning
Defining the problems, the objectives and the resources such as personnel and costs.
Studying the ability of proposing alternative solutions after meeting with clients, suppliers,
consultants and employees. Studying how to make your product better than your competitors.

Analysis
The end-user’s requirements should be determined and documented, what their
expectations are for the system, and how it will perform. A feasibility study will be made for the
project as well, involving determining whether it’s organizationally, economically, socially,
technologically feasible.

Design
The design phase comes after a good understanding of customer’s requirements, this phase
defines the elements of a system, the components, the security level, modules, architecture and the
different interfaces and type of data that goes through the system.

Implementation
 This phase comes after a complete understanding of system requirements and
specifications; it’s the actual construction process after having a complete and illustrated design
for the requested system.

Testing and Integration

Testing can be performed by real users, or by a team of specialized personnel, it can also
be systematic and automated to ensure that the actual outcomes are compared and equal to the
predicted and desired outcomes.

Maintenance
This phase keeps the system running productively during the years following its initial
installation and upgrades or enhancements may be carried out to expand the system’s capabilities.