Thelmas grocery store Inventory & POS

THELMA’S GROCERY INVENTORY SYSTEM AND POINT OF SALE SERVICE
A Capstone Project Presented to the Faculty of the
College of Information and Computing Sciences
Saint Louis College of Bulanao
Tabuk City, Kalinga
In Partial Fulfillment as a
Course Requirement for the Degree
BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY
Submitted By:
Sheilla Mae D. Wagaya
Vanessa Bwacon
Ahley Bancilo
Loyd Atuban
March 2017

ACKNOWLEGEMENT
Almighty and precious God has been awesome and so
gracious to everyone through all the years of journey. To
him, who always make all things possible and as we pursue
doing this project study all together, we bring back all
praises, glory and huge thanksgiving to the lamb.
Special thanks for the following individuals:
Sir Steve Our very supportive and so inspiring
adviser, for all the effort and by giving his very best for
the fulfillment of our knowledge and the one who shared his
skills and time for us to achieve the success of this
project study.
To Ma'am jizza santos. Maam lawagan heads and faculty,
who becomes the foundation of our ideas, ready to give
advices and for being part of the completion of this study.
To our special someone’s, friends and close friends who
Supported us in all aspect to make this study reliable,
successful and possible just
Undying support to us for the whole development of this
project study and makes it amazing.
To our beloved parents, relatives and guardians for
their non-stop, unending love, brilliant encouragement,

sacrifice, guidance and the hundred percent of support
both financial and moral which inspired us and light up our
world throughout the processing level. Also we give a big
thanks to all personality whose names we are unable to
mention. Guys it’s been overwhelming to our part that
you’ve shared something that will also build the missing
parts of this system and we also want to share with of all
you the gladness and joy of knowing that we have not
worked in vain and there are always beside us.

DEDICATION
We dedicate this project to our group especially to
ourselves who give the best thing for us to fulfill our
huge mission and that is to complete the requirements
needed in our System Analysis and Design. Of course, we
also dedicate this great project to each individual
inspiration who inspires each member to pursue the
fulfillment of this project. For our families who are
always there giving their best support and longing for our
success in our project. Also to our beloved and caring
school Saint Luis College of Bulanao which builds the key
to our success and it is a great privilege to be one of the
students of Bachelor of Science in Information Technology.

APPROVAL SHEET
This Capstone Project entitled THELMA’S GROCERY
INVENTORY SYSTEM AND POINT OF SALE SERVICE has been
prepared and submitted by ROMY ODIEM, ROSARIO OFOD, and
MELANIE ORE, in partial fulfillment of the whole
requirements in System Analysis and Design (SAD) has been
examined and is recommended for oral presentation.
JIZZA MAE SANTOS, MIT
Adviser
RONALD U. WACAS, MIT
Chairman, Technical Panel
STEVEN KING T. HERNAEZ JOEF C. CAMPANO
Member, Technical Panel Member, Technical Panel

ABSTRACT:
Modern Technology had revolutionized man’s way of
life in many ways. The development of this technology has
a great part in mankind living. As technology had been
characterized to its very useful outcome, being reliable in
generating tasks and because it is considering on a
technology, having an easy and so efficient work can be
implemented by every individual. The evolution of computers
has progressed and it manifest to the crust with any limit.
The computer as the most invented form of technology which
gives a very popular role and a great influence to
everyone’s living in the modern cycle of society. One of
the main goals of this computer is to do computation having
the speed, reliability and other benefits wherein it will
help the individual. Computerization of the odd manual
system practices is just one of the main goals of the
invented computers and because of this Inventory System for
Pan-Aw Restaurant can be help. Its mission is to modernize
and to computerize the process of inventing. Taken from
www.google.com and www.tech-wonders.com:
“The modern World with Technology which gives a high level
of performance to help every institution to remove the gap
in performing the process by which to be implemented. All
this is preferred for the development of every
technological computerized system. It is a great problem
for a one business to handle its operation without is
standard, high level and being automated system.

TABLE OF CONTENTS
PAGE
TITLE PAGE ………………………………………………………………………………………………… 1
ACKNOWLEDGEMENT……………………………………………………………………………………… 2
DEDICATION…………………………………………………………………………………………………… 3
APPROVAL SHEET………………………………………………………………………………………… 4
ABSTRACT………………………………………………………………………………………………………… 5
TABLE OF CONTENT…………………………………………………………………………………… 6
LIST OF FIGURE………………………………………………………………………………………… 7
LIST OF TABLES………………………………………………………………………………………… 8
CHAPTER
1. INTRODUCTION
Background of the Study…………………………………
Company Profile………………………………………………………
Importance of the Study…………………………………
Objective of the Study……………………………………
Scope and Limitation…………………………………………
Definition of Terms…………………………………………
2. Review of Related Literature
3. Technical Background
4. Methodology’
Data Gathering Tools……………………………………
Software Development Methodology……
Design…………………………………………………………………………
Development and Testing……………………………
5. RECOMMENDATION
6. APPENDICES
Gantt chart………………………………………………………………
References…………………………………………………………………
Evaluation Tool………………………………………………………

Cost Benefit Analysis………………………………………
Curriculum VITAE……………………………………………………
List of Figures
o Ishikawa Diagram………………………………………………………………
o Use case diagram…………………………………………………………………
o Activity Diagram……………………………………………………………
o Class Diagram……………………………………………………………………
o Menu Diagram……………………………………………………………………
o Wireframe Diagram…………………………………………………………
List of Tables
Database structure of the proposed system………

CHAPTER I
Introduction
Project Context
Bro. Marvin (Jan2012) said, “Technology makes works
easier, it shortens the time of each tasks and because of
this no effort and time will be wasted in each
particulars”. Shane Filan (2004) stated that “As the earth
never stop on rotating, technology never stop in
upgrading”.
Technology results computerization which has
been a common part of our everyday needs in this world.
Rapid advances in technology have helped to meet these
Demands of the society. Computerization has been somehow
revolutionize the modern world which what we call the
“Information Age”, Where Knowledge has been accessible and
available to everyone .The proponent have witnessed its
evolution and even its benefits.
Technology has influence most student life today. It’s
amazing what technology has done to our society and make as
dependent on it. Using computer cut down our work time, we
don’t have to write everything out by hands or type on a
typewriters.
Each Technology gives a high level of performance to
help every institution to remove the gap in performing the
process by which to be implemented. All this is preferred
for the development of every technological computerized
system. There are many kinds of computer systems depending

on their uses. Yet One of this is the Inventory System and
Point of Sale Service. Inventory is the total amount of
goods and/or materials contained in a store or a factory at
any given time. Store owners need to know the precise
number of items on their shelves and storage areas in order
to place orders or control losses. Factory managers need to
know how many units of their Products are available for the
customer’s order. Restaurants need to order more food based
on their current supplies and menu needs. All these
business rely on inventory count to provide answers.
The word ‘inventory’ can refer to both the total
amount of goods and the act of counting them. Many
Companies take an inventory of their supplies on a regular
basis in order to avoid running out of popular items.
Others take an inventory to insure the number of items
ordered matches the actual number of items counted
physically. Shortages or overages after an inventory can
indicate a problem with theft (called ‘shrinkages’ in
retail circles) or inaccurate accounting practices.
(www.google.com)
Companies also take an inventory every quarter in
order to generate numbers for financial reports and tax
records. Ideally, most companies want to have just enough
inventories to meet current orders.
Having too many products languishing in a warehouse
can make a company look less appealing to investors and
potential customers. Quite often a company will offer
significant discounts if the inventory numbers are high and

sales are low. This is commonly seen in new car dealerships
as the manufactures released the next year’s models before
the current vehicles on the lot have been sold. Furniture
companies may also offer ‘inventory reduction sales’ in
order to clear out their showrooms for newer merchandise.
Inventory system is a quick and automated process
which Thelma’s Grocery finds it easier and better way to
implement and manage their inventory system. The automation
of this system can be implemented through the Presence of
major equipments just like computers and printers. Instead
of using the usual way or let’s talk about the manual
system of recording items of stocks or products of the
restaurant, they can now use a graphical user-interface or
the GUI wherein, you just press the mouse and then just
enter the data in that system.
In our place, there are some businesses that utilizes
this system called inventory system and point of sale
service to improve the quality of their services.
This inventory system aim to provide better and easier
recordings of received/ released products to the inventory
system by which it is manage by the in-charge personnel
with the permission of the owner.

Purpose and Description
Thelma’s Grocery Management aims to meet the demand
and even the need of the grocery in terms of inventorying.
This mission has driven the business to look for innovative
yet inexpensive approaches to deliver quality services.
Thus, the need for Inventory System and Point of Sale
Service has been felt more deeply. This study is not only
bringing the gap between the need of users and technology
but it would rather be beneficial to the following:
To Thelma’s Grocery. for the grocery store to remain
competitive. It will enhance the business performances so
as to reap big from the whole sale retail business world.
To the Thelma’s Grocery Administration– this study will
hence help the owner to make right decisions because
information will be rightly available and in correct
format. It also brings the potential for the administration
for improving sales and profits through better analysis of
inventory trends, including patterns of delivery and
demand.
To the Employees. Because of this, employee will be able to
avoid being intense in sense of questioning about the daily
sales in particular days. This is to enhance the due
transactions of the whole operations of the restaurant.
To the Costumers. This will be advantage for them to have
basis about each item that they bought in the grocery
store. It will serve as their baseline-data for their
transactions.

To the Researchers. As to the researchers, this is so
beneficial in their part because it will help them to
broaden their understanding, knowledge and skills towards
research, software development, analysis and design.
To the Future Researchers. This study will help them and
will be another source for their incoming new studies. It
will add to their references wherein they will be able to
gain information’s they needed when they also having study
about inventory system.
Statement of the Problem
The purpose of the study is to develop inventory
system and point of sale service of the Thelma’s Grocery
Store.
Particularly, it sought to answer the following
questions:
1. What are the processes used in the existing Thelma’s
Grocery Store in terms of sales and inventory?
2. What are the problems encountered in the current
processes used in the Thelma’s Grocery Store?
3. What are the processes that are need to be
systematized to achieve a faster and more reliable
inventory and point of sale service system?

Objective
The main goal of the study is to design and develop a
supply inventory system of the pan-aw restaurant with the
following:
1. To list down the processes used in the existing
Thelma’s Grocery Store in terms of sales and
inventory.
2. To determine the problems encountered in the current
processes used in the Thelma’s Grocery Store.
3. To enumerate and discuss the processes that are need
to be systematized to achieve a faster and more
reliable inventory and point of sale service system.
Scope and Limitation
The study will focus on the development of an
inventory system and Point of Sale Service for Thelma’s
Grocery Store. The study focuses in Inventory control
management, Point of Sale Service and providing a GUI or
graphical user interface that used to input data in the
following transaction such as purchasing of orders,
recording of items, and creating database for the items. It
provides a record to the user for maintenance and security
purposes.
The study would use the concept of wireframe as its
methodology in designing and developing the Thelma’s
Grocery Inventory and Point of Sale Service.
In addition, the researchers use MS access (to be used
as back-end), Microsoft Visual Basic.net (to be used as
front end).

Definitions of Terms
Inventory. Inventory deals on monitoring and managing the
products, materials, ingredients and equipment of pan-aw
restaurant on something we want to view. It is also talking
about managing the products for example on how it moves in
one company.
Inventory System .Inventory System is one of the most
important systems on process of any business as well as for
the pan-aw restaurant because it involves the management of
products, materials, and equipments which is vital on
production management.
Inventory Management. Inventory management is the direction
and control of activities with the purpose of getting the
right inventory in the right place at the right time in the
right quantity in the right form at the right cost.
System. A system is a set of detailed methods, procedures
and routines, established and formulated to carry out
specific activity, perform task or solve a problem.
Maintenance, Repair and Operating Inventory (MRO).
Inventory used to maintain equipment as well as
miscellaneous supplies such as restaurant cleaning
supplies.
Item Profile. These are data that describes the
characteristics of an item. May include physical
characteristics such as size and weight, transactional

characteristics such as times consumed and units consumed
or group characteristics such as commodity, hazardous
classification, etc.
Item profiles are used in warehouse design and slotting.
Order Profile. Order profiles are data describing the
characteristics if inbound, outbound, or internal orders.
Purchase History. Is a page lists documents that you have
purchased. It contains documents, confirmation ID or an
identifier for the document, and the date of purchase.
Purchase Order. Purchase Order is a document use to
approve, track and process purchased item. a purchase order
is used to communicate a purchase to a supplier. It is also
used as an authorization to purchase. a purchase order will
state quantities, cost and delivery dates.
Quantity on Order. Include quantity on open purchase orders
or manufacturing orders. May or may not include quantities
or transfer orders from other branches.
Physical Inventory. Refers to the process of counting all
inventories in a warehouse.
Item. Any tangible or intangible, visible or invisible
thing.
Find Inventory Item. This task will find inventory known to
the system given either a part number or partial match on a
short description.

Examine Goods for Disposition (external).The received
purchase supplies are examined by receiver for disposition.
Supplier. External entity that supplies relatively common,
off the shelf, or standard goods or services, as opposed to
a client who commonly adds specialized input to the
deliverables. Also called vendor.
Quantity. Is a kind of property which exists as magnitude
or multitude? It is among the basic classes of things along
with quality.
Handle Item Receive and not Found (external).This is an
external task that would handle receiving an item that was
not known to the Pan-aw Inventory System. There are many
possibilities as to how this could be handle and they are
business dependent.
View Expected Inventory Records. This task used to view
expected inventory records to see if the inventory item is
one that is expected. A purchase order ID or some other
Identifier present with the items that can be use to
Correlate the receive item to the expected inventory
record.
Products. Good or service that most closely meets the
requirements of a particular market or segment and yield
enough profit to justify its continued existence.
Stock in. This is to form part of an already existing
database.

Stock out. Situation where the demand or requirement of an
item cannot be fulfilled from the current (on hand)
inventory. A stock out or out of stock (oos) event is an
event which causes inventory to be exhausted. Recorder
Points are often specified in such a way as to reduce the
Likelihood of stock out during replenishment, due to the
vendors lead time, which cause interruptions to sale or
delivery.
Transaction. system and method of altering transaction
Terms which examine inventory levels and changes.
Transaction terms, such as price and rental period. The
system includes a plurality of electronic price labels
associated with a plurality of rental items for displaying
rental terms of the rental items including price
information and rental period information
CHAPTER II
REVIEW OF RELATED LITERATURE
In exploration, we find new techniques, new knowledge,
even develop new substances, gadgets, equipment, processes
or procedures, imagination and skill is employed by the
researcher. The commodities, new devices, services, in
technology are needs of man for a better fuller life which

is the concern of the research. These useful arts are the
products of the technological environment and the end-user
is society in general. The fast growing trend and
innovation in technologies today prompts researchers to
conduct studies about the efficiency of system program.
This Chapter presents a brief review of literature and
studies, both local and foreign that is related to these
studies.
1. Ronald Pachura() wrote in an article for IIE
Solutions. "Whether the problems incurred are caused
by carrying too little or too much inventory,
manufacturers need to become aware that inventory
control is not just a, materials management or
warehouse department issue. The purchasing, receiving,
engineering, manufacturing, and accounting departments
all contribute to the accuracy of the inventory
methods and records." It is little wonder that
business experts commonly cite inventory management as
a vital element that can spell the difference between
success and failure in today’s.
2. Foreign Literature Eugene F. Brigman, (2000).Companies
are increasingly employing Inventory System. A
computer start with an inventory counts in memory.
Withdrawals are recorded by the computer as they are
made, and the inventory balance is constantly revised.
When the recorded point is reached, the computer
automatically places an order, when this new order is

received, the recorded balance is increased. Retail
stores have carried this system quite far, each item
has magnetic codes, and as on item is checked out, it
passes over an electronic reader, which then adjusts
the computers inventory balance, at the same time the
price is fed to cash register tape. When the balance
drops to the recorder point, an order is place. Only
competitive business world.
The researchers conduct several interviews in
order to gather information about the present existing
conditions of the inventory system, knowing its
problems and enhancing it by developing an automated
inventory system. Questionnaires were also distributed
to all interviewees for additional information. Using
the descriptive method, the researchers also observe
the functionality of the present inventory system of
the phi health, which help them discover that
Electronic Data Processing is advantageous than other.
3. AcaDemon (2005) Inventory control in the store
business is important because these businesses depend
on the rapid turnover of inventory items with a
limited shelf life at relatively small margins. The
store must be able to satisfy the customers by being
able to supply the desired commodities when required.
The stores shouldn’t have a large amount of capital
tied up in the inventory items lying in the store.
Inventory is the value of firms current assets that
are shown on the balance sheet, generally at cost.
Periodic Inventory System is a physically count

inventory, usually made at the end of the accounting
period, which does not maintain a detailed record of
the actual inventory kept during the accounting
period. Persons in charge of managing the inventories
in a business must follow certain steps and perform an
accurate inventory control system in order to avoid
highly costs due to over stocking matters. Such is how
important is inventory is to an organization that it
must be really taken seriously.
6. According to Amoro (2004) Inventory control in the
convenience store business is important because these
businesses depend on the rapid turnover of inventory
items with a limited shelf life at relatively small
margins. This particular inventory information is what
Managers base on to make vital decisions of an
organization. The automation of the inventory
System will hence help managers make the right
decisions because information will be rightly
available and in a correct format. Computerizing your
inventory system brings you the potential for
improving sales and profits through better analysis of
inventory trends, including patterns of delivery and
demand.
7. Professor Blackwell, Miniard, and Engel (2001)
proposed the model of Consumer Decision Making Process
(CDP) in their book entitled, “Consumer Behavior (9th
ed.)”. The CDP model simply reflects how consumers
make a choice for both goods and services. Seven

stages are combined to be the CDP model. “Need
Recognition” is the first signal that implies
consumers’ need or want. After the need recognition,
consumers tend to gather as much information as they
can in order to evaluate their choices before making a
decision, as indicated in the second and third stages.
At the fourth stage, purchasing is made, depending on
the preference or choice made. However, this model
does not end at this stage because the next three
stages also affect the decision-making process of an
individual. When consumers use the products or
services they have purchased, the value of their
purchased commodity becomes dependent on their
experience in using them, which becomes essential at
the fifth stage. “Post-Consumption Evaluation” then
plays role in a cognitive process in the decision-
making process of consumers, in reminding them of the
Value of the commodity on their next purchase. The
last stage, Divestment, also participates in such a
cognitive process, and indicates how well of the
performance of the product or service is good of
disposing.
8. Laudon, (2001), Define Management Information
System the study of Information system in business and
management. It also designates a specific category of
information systems serving management level
functions. It does provide managers with reports or
with online access to the organization current
performance and historical records. Largely they serve
the functions of planning, controlling and decision
making at the management level. They summarize and

report on company basic operation. These are well-
documented advantages of a good information system.
The term inventory control refers to effective
management and control of inventory items, which have
already been purchased and are in the convenience
organization
9. According to Kibera (1996), Inventory in most
organizations is the largest single investment. Its
Therefore sensible that the management understands
what it is and also effectively controls it. And due
to this new era of system automation there is need to
computerize every system in the organization to reduce
on the problems associated with manual systems.
Effective inventory management is, therefore about
Implementing strategies to meet or exceed customer
related to products availability by maintaining a
sufficient stock of each of stock item, which will
also maximize the convenience organizations profits.
How can one maintain this aspect or come up with it?
Automation of inventory will effectively maintain a
sufficient buffer stock for the smooth running of the
organization.
10. Kakeeto (2003) stated the problems that exist with
manual inventory record system as being
inconsistencies incurred when entering products onto
stock cards, increasing volumes of stationery used,
making it hard for the workers to identify the stock
cards in time. Inventory management is one aspect of
business computing that enhances a company is business

performances so as to reap big from the business
venture being undertaken. Maintaining too high e level
of stock items with a limited shelf life can only
result in wastage and unsold stock.
CHAPTER III
TECHNICAL BACKGROUND
Non-Functional Requirement
In general, functional requirements define what a
system is supposed to do whereas non-functional
requirements define how a system is supposed to be.
Functional requirements are usually in the form of "system

shall do <requirement>", while non-functional requirements
are "system shall be <requirement>".
The non functional of the proposed system or the
qualities and constraint of the propose systems are as
follow:
Security. In terms of security, for Thelma’s Grocery, the
administrator and the user have their different privileges.
Usability. The proposed system is design in accordance with
the need of the Thelma’s Grocery Store.
Accessibility. The proposed system is design and developed
for the Thelma’s Grocery Store, to help the in-charge
person and the members to easily access the data.
Scalability. The system will be enhance and update to meet
the system requirements and the demand of its user.
Maintainability. In term of its maintainability, the system
is easy to maintain it in terms of its function and
database.
Non functional requirements
The non-functional requirements of the system are:
1. The system should be easy to maintain and adapt by the
users.
2. The system should enable backup and recovery be
performed at specific times (manually or Automatic).
3. The system should provide security to the database
through the use of passwords.

System Requirements
This particular section does specify the requirements
for the Automation of the Thelma’s Grocery Store Inventory
Management Process; thus these requirements serve as a
basis for the acceptance of the system.
Hardware Requirements
The proposed system will need a complete set of
computer with at least 512MB random access memory, 2.26GHz
processing, and 40 GB of hard drive.
Software Requirements
The database system together with the interfaces
should be run or powered by window-based operating system
such as Windows 2000, Windows XP and Windows 7.
Functional System Requirement
The system main function is to record the incoming and
outgoing items and has the ability to automate and increase
the speed and accuracy in terms of computing and recording
of data items. The system will use MS. Access as database
to avoid the complicated manipulation of data. Another
function is to minimize the processing time in order for
the user to enter data quickly so that the inventory

process will be faster than the manual way. User or the
facilitator of the system benefited for the reason that
they will not do the usual way they do during recording
stock products from the outside.
CHAPTER IV
Methodology
Requirements Specification
These chapter discuss the Methodology, Sources of
Data, and the Data Gathering Tool to be used in the study.
Sources of Data
Sources of data are raw data that serve as evidence to
support the researcher’s study where in the researcher
obtained data and ideas on how to develop and design the
study. Primarily the sources of data were gathered through
interview to those persons involved in the inventory
process. Second source is the World Wide Web and the
library which was used to searched and collects some
necessary data that is needed in designing and developing
the study.
Data Gathering Tools
The following data gathering tools were used toward
the materialization of this study:
1. Interview – the researchers use this tool to gather data
and ideas that are needed in the proposed study. The
researchers interviewed the personnel of Thelma’s Grocery
Store.

2. Internet – the researcher’s another research tool for
the researches that offers them information and data over
the world wide web. Internet is important to the researcher
because it serve as their secondary source of data. They
downloaded and gathered some ideas that is needed in the
proposed study.
3. Library Research – Library also used as a source of data
by the researcher. They review some of the graduate thesis
of SLCB to serve as their guide and basis to design and
develop the proposed system.
Software development methodology

Design and Implementation Consideration

This section will discuss the design and
implementation consideration of Thelma’s Grocery Store. The
Inventory System shall be designed primarily for the
Thelma’s Grocery Store.
On the login process, the user has to enter his or her
username and password for security purpose. This will
protect the access to the system from any uauthorized user.
Interface design of the system was also considered by
designing the system in accordance to the needs of the
Thelma’s Grocery Store.
Another menu is the transaction which contains the
stock in, stock out, and the purchase order. Stock in
requires to record the following information; stock in no.,
PO no., supplier code, date ordered, date receive, product
ID, name, price, order, and receive. The stock in process
records all the purchase items and the on hand items. It is
a need to perform this process for the user benefit during
inventory semi annually, the users can easily access all
the stock entered or delivered by just checking in the
stock in file.
Stock out also requires the following information,
product ID, name, supplier, category, price, stock, stock
out no., quantity, date release, product name and amount.
In the purchase order process, this refer when was the
purchase product ordered, requires for the PO no.,
supplier, date purchase, and date ordered. Purchase order
Process identifies the product/items needed by the Thelma’s
Grocery Store and the list of items to be purchased.In the
maintenance menu, it contains the products, supplier, user,

information about products, user, and supplier that have
been entered to the system. Upon clicking the product
button, it allow the user to view all the details and
information about the product that has been recorded to the
system like, the product id, product name, the supplier and
the prices of the product being asked.
In the maintenance menu, supplier is included; this
refers to the information about the supplier where the
products have been purchase. In the supplier process, it
give the details about the name of the supplier, address,
telephone no. and the supplier ID. The user need to input
all the information about the supplier to the supplier’s to
the database, if the supplier profile is in the database.
The user can retrieve the supplier’s profile to the
database if it is needed in some form like the stock out
and PO. to check the suppliers profile just go to the
maintenance button then click the supplier menu to view the
entire suppliers profile. In the user profile, only the
administrator can access the form. Upon clicking it, it
required the administrator password for verification. After
the administrator access the user profile he/she can now
add, update and delete some user profile. This form cannot
be access by the user. Users are responsible in inventory
products. They can access the all parts of the system
except the user profile.
Another menu is the tools which consist of the
calculator, notepad and the clock.
The Existing System

This Chapter describes the current operation/
processes and problems encountered in the existing
inventory system of the Pan-aw.
Problems Encountered in the Existing System
The following are the problems being encountered in
the current traditional Pan-aw Inventory System.
1. Difficulties in Having Reports- this is one of the
problem encountered in the existing system according to
Ma’am Jacquelyn Samosino,reports such as daily income,
total sales and the budget to be implement for another
transaction.Also the lost of some information that must
be listed beyond the data that must be presented.
2. Human Error- this occurs with wrong input of the orders
of each customer during listing of the information about
the products.
3. Unorganized filing due to improper storage of
data’s (e.g. List of marketing budget, orders of the
customer, date of each transaction and etc.)
Cause and Effect Diagram of the Existing Diagram
Ishikawa diagram is a graphical tool used to identify,
explore and depict problem and the causes and effect of the
problem.Typically,these bones labeled as four basic
categories:materials,machine,manpower,and methods( the four
Ms).Figure 4.1 will illustrate the cause and effect
diagrams of the existing inventory system of the Pan-aw
Restaurant.
Ishikawa Diagram

Figure 4.1
Method Manpower
Recording of Low process Lack of personnel products
Products not Report generation record Personnel
automatically inputs to the inventory
Time consuming
Lack of Printer
computer printer
lose of recordsSupplies
Lack of computer Lack of security Inventory form needs
to be arrange
Machine Material
Inefficient
automated
inventory process
management
Manpower
MaterialMachine

Research Design
The descriptive type research method will be used with
the questionnaire as the main tool in gathering the data
needed. It will gather descriptive information about the
implementation and factors affecting the implementation of
the administrative services and processes.
Locale
The study is conducted at Thelma’s Grocery Store,
Bulanao, Tabuk City, Province of Kalinga for the calendar
SY. 2017-2017.
The researchers selected Inventory System and Point of
Sale Service of Thelma’s Grocery Store as the site of the
study because of its location to the researchers, the area
and standards compared to other establishment in the said
place.
Process of the Study
The researchers set first an appointment to the
personnel in charge of the business to be studied. They
send a letter to the personnel in-charge.
The researchers were also updated that they are still
using manual inventory operations in their present status
of the system.

The Design Phase
The design phase used relational database model to be
able to accomplish the tasks involved in designing the new
database of the system due to the following reasons:
1. Minimize and eliminate data redundancy thereby
avoiding waste of storage space.
2. Avoidance of data inconsistency. A well normalize
database minimize data inconsistency thereby update on
one part of the database will affect the whole system.
3. Improved Security. Both back-end and front-end of the
inventory system needs username and password to access
the system. This will avoid unauthorized access on the
system.
THE PROPOSED SYSTEM
The narrative Description, the design, the
requirements and implementation of the proposed Thelma’s
Inventory and Point of Sale Service is discussed in this
chapter.
Narrative Description of the Proposed System
The proposed system sought to design and develop
an inventory system and point of sale service for Thelma’s
Grocery Store for easy an inventory of items it also
provide a GUI forms for Stock in product, stock out, PO and
other Profiles such as User profile and supplier profile
including data reports. The process starts when the user
will record all the products after the inspections,
sometimes when updating some items, and when creating

additional profile. There are only 2 kinds of users, the
users and the administrator.
First, the user can browse the system she/he can view all
the data reports and allow updating, adding and deleting of
some products and can add supplier profile, but he/she
cannot access the user’s profile. Second is the
administrator, where he/she has the full access to the
system. User and administrator will login for verification
providing a form for login. To log into the system the user
and administrator must fill up the username and password.
Upon clicking the login button the system will compare the
username and employee ID of the user/administrator.
Registration of the user will be successful if the user ID
has a file in the inventory database, otherwise, the system
will prompt the user that he or she has invalid employee ID
and the system will redirect the user to the main menu
form. After the user will login he/she can now add, update,
and delete products, it allow creating additional supplier
profile. The administrator only had the privileges in
adding, updating and deleting the user profile. The data
reports show all the list of product that entered to the
inventory.
To inventory products in the system, first thing the
user needs to input all the information about the item like
the product name, ID and etc. in the products form and in
the supplier form is for supplier information like name,
address and etc. the user can now do the process of stock
in, P.O and other process that the user need to
do. After the user input all the product information
he/she is now ready to stock in items in the stock in form.
Stock in as only done if the products is existing in the

database of the system. P.O is another process for
preparation of the purchase order to the supplier. The PO
is done if the item is exist at the database the user just
select the item that is need to be purchased. The user can
view all the items in the data report. Products in the
stock in, stock out, PO, and all the products can be
viewed.
Unified Modeling Language
Fowler defined unified modeling language(UML)as a
family of graphical notation, backed by single mete model,
that help in describing and designing software system built
using the objecting oriented style.
Use Case Diagram, the main purpose of the use case diagram
is to show what system function is performed for which
actors. Roles in the system can be depicted. The use
diagram in figures 4.2 will define the scope and boundaries
of the proposed system. Its purpose also is to present a
graphical overview of a functionality provided by the
system in terms of actors.
Class Diagram. A class diagram describes the types of
object in the system and the various kinds of static
relationship that exist among them.
Activity Diagram. An activity diagram is a technique to
describe procedural logic, business process, and work flow.

Figure 4.2
Use Case Diagram
Administrator
User
50
Figure 4.3
User Activity Diagram
Log in
Create,delete,edit,upd
ate products
Create PO
Add,delete,update,
add supplier
profile
View list of all
products
Inventorying
products
Log out
Update
system
Enhance
system
Maintain
system
Home

Figure 4.4
Admin Activity Diagram
Login
Unsuccessful Successful
Create,delete,
edit,update
products
Stock in,stock
out products
Create PO Add,delete,
update,view
supplierprofile
Viewlistof
all products
Inventorying
products
Logout
Home

Figure 4.5
Class Diagram
SuccessfulUnsuccessful
Update
system
Enhance
system
Create,delete,edit,
update products
Add,delete,
update,view
supplierprofile
Inventorying
products
Maintain
system
Registered
user
Stock in,stockout
products
View listof
all products
Create PO
Logout
Register
Employee name
Designation
Suppliername
Address
Contact#
Profile
Employee name
Designation
Suppliername
Address
Contact#
Productname
Login

Figure 4.6
Menu Diagram for Administrator
Change
password
New password
Confirm password
Login
Username
Password
Password
Generatedreport
Productname
Category
Unit
Quantity
Item
Product name
Supplier
Category
Unitprice
Unit onstock

Figure 4.7
Menu Diagrams for Registered User
1.0
Login
2.0
User profile
3.0
System
4.0
Exit
2.1
Add
2.2
Edit
2.3
Delete
3.7
Enhance
3.2
Update
3.3
Maintain
Pan-aw Supply
PAN-AW Supply

Cost Benefit Analysis
1. Development Cost
1.0
Home
2.0
Transaction
3.0
Maintenance
4.0
Report
5.0
Tool
1.1
Login
1.2
Exit
2.1
Stock in
2.2
Stock out
2.3
Purchase
order
3.1
Products
3.2
Supplier
3.3
User
4.1
Product
stock in
4.2
Product in
stock out
4.3
Product by
supplier
4.4
Product by
category
4.5
All products
5.1
Calculato
r
5.2
Note pad
5.3
Clock

New Computer 1 pc 19,500.00
Intel Pentium3 & Pentium4
Processor at 2.26GHz using a
533MHz system bus,a 31/2 inch
floppy drive, US system of
keyboard and a hard disk of
40GB with spindle speed of
7,200RPM with a colored
monitor screen. A printer,
mouse and pad will also be
needed.
LBP Canon 9200 15,000.00
Professional Fee
Programmers Fee 1 lot 20,000.00
System Analysts Fee 1 lot 30,000.00
Training Fee 1 lot 25,000.00
Total 87,000.00
2. Operating Cost
A. Existing Operation Cost (EOC)
a.Salarie

Particular U/M U/P Monthly cost Yearly Cost
Cooked personnel man 250/day 7,500.00 90,000.00
Head in charge man 150/day 4,500.00 54,000.00
Regular personnel man 116/day 3,480.00 41,760.00
Other personnel man 85/day 2,550.00 30,600.00
Total 18,030.00 216,360.00
b.Overtime Fee(Inventorying)
Particular U/M U/P Monthly Cost Yearly Cost
Head in Charge man 130/2hr 3,900.00 46,800.00
Regular Personnel man 105/2hr. 3,150.00 37,800.00
Total 6,600.00 84,600.00
c.Restaurant Supplies
Particular Quantity U/P Monthly Cost Yearly Cost
Ball Pen
(pilot)
4pcs 25.00 100.00 1,200.00
Logbook 1 pc 60.00 60.00(q) 240.00(q)
Tissue 3 rolls 90.00 270.00 3,340.00
Tooth Pick 3box 15.00 45.00 540.00
Official
Receipt
1booklet 16.00 16.00 192.00
Carbon Paper 1box 115.00 115.00 1,380.00
Plastic Bag(s) 2bind 80.00 160.00 1,920.00
Plastic Bag(L) 2 45.00 90.00 1,080.00
Foil 1 16.00 16.00 192.00
Total 872.00 10,084.00

d.Utilities
Particular Monthly Cost Yearly Cost
Electric Bill 10,000.00 120,000.00
Water Bill 7,200.00 86,400.00
Total 19,200.00 206,400.00
e.Maintenance
Particular Quarterly Yearly
Kitchen Utensils 2,500.00 10,000.00
Cleaning Materials 2,016.00 8,064.00
Table Cloth 120.00 480.00
Total 4,616.00 18,544.00
B.Proposed Operating Cost (POC)
a.Salarie
Particular U/M U/P Monthly Cost Yearly Cost
Cooked Personnel man 250/day 7,500.00 90,000.00
Head in Charge man 150/day 4,500.00 54,000.00
Regular Personnel man 116/day 3,480.00 41,760.00
Other personnel man 85/day 2,550.00 30,600.00
Total 18,030.00 216,360.00
b.Overtime Fee
Particular U/M U/P Monthly cost yearly cost

Head in charge man 0.00 0.00 0.00
Regular personnel man 0.00 0.00 0.00
Total 0.00 0.00
c.Restaurant Supplies
Particular Quantity U/P Monthly
cost
Yearly cost
ball pen(pilot)
1 pc 25.00 25.00 300.00
Logbook 1 pc 60.00 60.00(q) 720.00
Tissue 3 rolls 90.00 270.00 3,340.00
Tooth pick 3box 15.00 45.00 540.00
Official receipt 1booklet 16.00 16.00 192.00
Carbon paper 1 box 115.00 115.00 1380.00
Plastic bag(L) 2bind 45.00 90.00 1,080.00
Plastic(S) 2bind 30.00 60.00 720.00
Invoice 1booklet 15.00 15.00 180.00
Coupon bond 1 ream 140.00 140.00 1,680.00
Printer Ink 1 bottle 450.00 450.00 5,400.00
Total 1,286 15,532
d.Utilities
Particular Monthly Cost Yearly Cost

Electric bill 13,000 156,000.00
Water bill 7,200 86,400.00
Total 20,200 242,400.00
e.Maintenance
Particular Quarterly Yearly
Kitchen utensils 2,500.00 10,000.00
Cleaning materials 2,016.00 8,064.00
Table cloth 120.00 480.00
Computer 350.00 1,400.00
Printer ink 450.00 1,800.00
Total 5,486.00 21,744.00
Existing Operation Cost
Salaries 216,360.00

Overtime fee 84,600.00
Restaurant supplies 10,084.00
Utilities 206,400.00
Maintenance 18,544.00
Total 535,988.00
Proposed Operating Cost
Salaries 216,360.00
Overtime fee 0.00
Restaurant supplies 15,532.00
Utilities 242,400.00
Maintenance 21,744.00
Total 496,032.00
III. Savings (Sn)
Sn = Existing Operating Cost – Proposed Operating Cost
= 535,988.00 – 496,032.00
Sn = PHP 39,956.00/year
IV. Comparison Table

Year
(N)
Savings
(Sn)
Interest
Value
(1+i)n
Present
Value
(PV)
Cumulative
PV
(CPV)
Mark
1 39,956.00 1.20 33,296.66 33,296.66 X
2 39,956.00 1.44 27,747.22 61,043.88 X
3 39,956.00 1.73 23,095.95 84,139.83 x
4 39,956.00 1.97 20,282.23 104,422.06 √
V.Payback Period (PBP)
DC-CPV of the last “X” mark
PBP = + number of “X” Mark
PV of the “√” Mark
87,000.00-84,139.83
PBP = + 2
202,282.23
PBP = 2.14
PBP = 2 years,1 month and 4 days
VI. Net Present (NPV)
NPV = CPV of the 5th year – DC
NPV = 104,422.06- 87,000.00
NPV = PHP 17,422.06
VII. Return on Investment (ROI)
NPV
ROI = x 100%
DC
17,422.06

ROI = x 100%
87,000.00
ROI =20.02%
Wireframe Design of the Proposed Pan-aw Inventory System
These are use as visualization tools for presenting
the proposed function, structure and content of the Pan-aw
Inventory System.
Figure 4.8
Main Menu
Figure 4.9
Login Form

Figure4.11
ProductInformation
Product_Name
Product_ID
Supplier
Category
Unit_price
Unit_in_stock
Add
Edit
Delete
Clear
Save

Stock in Form
Figure 4.12
Stock inForm
Stock inNumber Date Order
PO Number Date Receive
Product ID Name Price Order Receive
New Close

Stock Out
Product ID: Stock Out no:
Name: Quantity:
Supplier: Date Released:
Category:
Price:
Stock:
Figure 4.13
ADD REMOVE
EE
New Stock Out Close

Purchase Order
Chapter 5
Purchase Order
PO number
Date Order
ProductList
Add Remove
Orderlist
ProductID ProductName QYT Supplier
Purchase Close

Summary, Conclusion and Recommendation
Summary of Findings
Rapid Application Developments and design methodology
were adopted to develop the project study.The analysis of
the existing system process was captured through a series
of interviews and observations to identify the problem area
and attain the study’s objectives. The analysis and the
flow of the existing system process was also the basis in
the designer of the proposed system.
This project study is entitled Inventory System of
Pan-aw Restaurant .Specifically; it sought to answer the
following questions:
1. What are the processes used in the existing Pan-aw
Restaurant Inventory System?
a. Receive inventory process which is the first and the
easiest process.
b. Inspection process, determines if there are non
functional items.
c. Recording process, it is the inputting details of
the item in the existing system and preparation for
pick up.
2. What are the problems encountered in the current
processes of the Pan-aw Inventory System?
a. Loss data that leads to loss of some items of
products.

b. Unorganized filing due to loss of some filled up
documents.
c. Human error.
3. What are the processes that are used to be
computerized to achieve a faster and reliable Pan-aw
Restaurant Inventory System?
Based from the observation and interviews conducted,
the study brought to a realization the computerization of
the following processes:
a. Recording process
b. Inventorying process
The design of the proposed system was presented
through the use of database design and menu diagrams
present the visual representations of the proposed system.
Moreover, the result of the cost benefit analysis of
the project shows a payback period of 2 years,1 month and
4 days.The cost of workstation equipments are gained within
the payback period.
Conclusion
Based on the finding of the study, the following
conclusions were derived:
1. The traditional Inventory System of Pan-aw Restaurant
starts when the items arrived to the Pan-aw Restaurant
and upon receiving all the items from the supplier to

be recorded. Inventorying is done after everyday’s
operation. This ends when the items were consumed and
become defective or no longer used.
2. The processed involved in the traditional inventory
system of Pan-aw Restaurant still consists of manual
tasks from starts until the finish. All this manual
work is a time consuming and causes a delay in
submitting reports. It also compromise data being
processed more prone to errors.
3. To improve the traditional inventory system, some task
needs to be computerized. Computerizations of some
tasks help the Pan-aw Restaurant to make other works
faster and easier. Security will play a very important
role in this study. Not only it will provide different
access levels but will also make the information being
processed more credible.
Recommendations
Based on the findings of the conducted interviews and
studies, the following recommendations are forwarded:
1. Future researches regarding this topic be made as to
enhancing the system by adding new features and
adding operations.
2. That the School continues its support for related
simple studies.
3. That on the implementation of the proposed system,
users be updated with how the system works. That the
Pan-aw Restaurant will train or conduct seminar on

4. How to use this proposed system. That the Pan-aw
Restaurant will continue to improve the
implementation of the system.

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