Chapter1 Inventory System of G-Erb Construction Supply

Chapter 1 1. Introduction In just half a century man’s way of life has drastically changed from black and white to vivid colors, for simplicity to complexity, and from laborious tasks to an easy click of the mouse. All these were brought about by the advent of modern technology, specifically with the invention and advancement of computers. High technology such as computers and other mediums is now in demand. Man is concerned on how to consume time wisely. They learned to explore and discover something new and tried to solve questions that pump up in their mind. Most of the establishments and institutions are using computer programs for business transactions. It helps employees to work efficiently in more comfortable way. New application is being developed to solve society’s problem. In this connection, computerized inventory is needed for G-ERB Construction Supply. Manual operation of inventory would cost a lot of effort and time; however, through a computerized inventory system everything would be better. This research is trying to establish a computerized inventory system. 1. Background of the Study Companies use information as a weapon in the battle to increase productivity, delivery quality products and services, maintain customer loyalty, and make sound decisions. In a global economy with intense competition, information technology can mean the difference between success and failure. Information technology has revolutionized the phase of business around the world. It helped business in advertising and in customer services. Accessibility of files also has become an easy task with series of password keys and shared folders. Cash transactions are asily made. Many companies are using inventory systems for their success and growth. Inventory systems have a variety of functions purposes in business such as promoting the sales functions of inventory. Promoting the sale function deals with availability of sufficient products for the customer whereas shrinkage control function deals with monitoring the occurrence of damage less or theft, etc of the products. The G-ERB Construction Sup ply was established by Engineer Gregorio Valdez and managed by his wife Michelle O. Valdez. His main branch is located at Cuartero Highway, Jaro Iloilo City. The business started in December 2000 with 10 employees at main branch and 15 at the other branch making his business more successful. As we all know, technology is obviously of help by saving money, time and effort. The purpose of this study is to create a computerized inventory system for G-ERB Construction Supply. The research will develop a software application which could be able to meet the needs of the company when it comes to their inventory management. 2. Statement of the Problem . 2. 1 General Problem After thorough gathering of data through investigation, the group was able to determine the inventory system for G-ERB Construction Supply which needs to developed a better inventory management and eliminate or reduce risks of errors and fraud. This study will seek to answer what enhancement and design the construction supply can adopt for a more effective and efficient inventory system. 1. 2. 2 Specific Problem According to the information gathered, it has obviously identified the specific problems: a. Inaccurate inventory report This affects the stock control and recording and the reliability of records and supply management system. Also, error in recording and computation was encountered by the manager. b. Unsecured stocks information Manual inventory slip has and often been lost because it was only written in a piece of paper. It might be an unauthorized person can intrude and freely changed any possible information anytime they want. c. Unorganized stocks information Due to unorganized stocks information, the manager cannot keep up to date records of the stocks that may lead to over buying of unneeded stocks. . Objectives of the Study The study aims to give a solution to the existing problem in the current inventory system of G-ERB Construction Supply. 1. 3. 1 General Objectives of the Study After identifying the problems of G-ERB Construction Supply, our group was able to establish the objectives. The main goal of the study is to evaluate the current manual inventory system of G-ERB Construction Supply a nd come up with computerized inventory system for a better inventory management. 1. 3. 2 Specific Objectives of the Study a. Accurate inventory report Specifically, the aim of the study is to acquire a systematic flow of item inventory that will lead to accurate recording and reliability of records and supply management. It also aims to provide an easy and reliable access and storage of data for the present and future purposes. b. Secured stock information To create and implement a program that could store and manage a wide variety and amount of products that can be easily retrieved. To provide better security for the records that only authorized personnel could have access to it by creating a secured password and also to eliminate data redundancy. . Organized stock information To develop a monitoring inventory which could process inventory items that are not time consuming, in order for the owner to retrieve data more efficiently compared to their manual inventory. 4. Significance of the Study The main focus of the study is to create system software that will develop, enhance and improve the current inventory system of G-ERB Const ruction Supply. Give an organized and systematic flow in order to lessen time, effort, expenses through the use of computerized inventory system. Establishment. Adoption of the system enables the G-ERB Construction Supply to be more competitive and earn advantages than other businesses with the help of high technologies today. It also keep an accurate count of stocks. Management. Inventory system is an application used in monitoring and tracking sales on the store shelves. It reduces the storage of the product, and most importantly the competitive edge of having an efficient management of supply that reduces time and correct report of inventory levels, hereby, cause reduction in error. Overall, it helps to minimized the storage, labour and handling cost. It is easy to manage and record all the incoming and outgoing supplies and can generate report retrieve data faster, so that they can avoid losing and misplacing data. Personnel. The system helps the personnel to do the job easier without pressure and hassle in doing it â€Å"on the spot†, and the system helps to do their job better without much time and effort, lessening their stres s. Students. The students may gain valuable knowledge rom the study since they may be future managers and programmers of different companies. This may enhance the students capabilities and potentials in applying different principles and theories they learned inside the classroom. Researchers. The researchers may gain knowledge for future studies. Through the proposed system, they would be able to improve the system for a better use. 1. 5 Scope and Limitation This study was conducted to determine and monitor records for the stock on hand and supply that are being sold and also, to keep the records updated and accurate. This study was conducted at G-ERB Construction Supply last November 26, 2011 together with the manager Ms. Michelle O. Valdez and the members of the research team. It focuses only on the stocks inventory and keeping the records updated and accurate in order for the owner to be well informed about the situation of her business. This study was only limited because it does not cover the whole operations of their accounting and billing department. It does not include ordering and saving customer’s records. It is more focus on updating the records of stocks or the inventory of stocks. This system will not function without electricity.