LAN-Based Inventory Management System

for JumpStart Auto Spa

A Case Study
Presented to the Faculty of
Information and Communications Technology Program
STI College Munoz-EDSA

In Partial Fulfillment
of the Requirements for the Degree of
Bachelor of Science in Information Technology

Enecita A. Barilea
Arvhie M. Bignayan
Erika Mata
Marycris L. Santiago

July 2018
INTRODUCTION
Computerization is vital to a business’ growth nowadays, makes life more convenient and people
can work easier and faster. This study was made for purpose of removing manual process that
people manipulate. LAN – Based Inventory Management System is a computer application that
helps the company keep track of orders, sales, deliveries, stocks of items and products
information. It helps a company become more effective at sales. Back then, business owners use
books for safekeeping when it comes to records and transfer it to excel but now that
technological advancements have made life easier, you can now update your inventory with
serial codes and keep your product information intact in an organized because the records system
without the risk of misplacing it. This computerized system proves more efficient because the
records will be more accurate. A LAN-Based Inventory Management System also helps the
owner keep in mind the items that are about, and which products are most likely to sell out
because of the prompts and regular reports made by the system.

The management of inventory in every department is the biggest operations in the company. It is
a room for organizing, manipulating and controlling all the stocks that can be used and found
inside the company, but one wrong move matters because it can lead to financial losses and
unnecessary
expenses. The percentage of precision in controlling the stocks and its accuracy is at low point
since it does not have a solid basis for recording and reporting generating. This system also gives
an assurance of security because the admin can now choose which employee can have access to
the inventory.

The proponents will develop a LAN-Based Inventory Management System that will help the
company to manage all the transactions including the sales per week, quarterly and inventory to
reduce the delay and problems. The system will contain inventory of all three business places for
easy monitoring. The system will also facilitate the transaction process in terms of doing
inventory and sales that will render their work more accurate, prevent monetary setbacks,
automatically update their inventory and keep track of their products.
Background of the problem
The researchers study the gathered information to proceed with the study. Based on the gathered
information, the proponents found out the following problems:

JumpStart Auto Spa is divided into three stores; Auto Supply, Auto Services, and Auto
accessories which is every store have two employees to accommodate their customer. The client
sees that their customer is having a hard time paying every time they purchase at each store and
just get the receipt before they go to the main cashier to process their payments. The client also
having difficulties in keeping their records since all of it are written down on paper before
transferring into Excel whenever they need to look for specific report, they would have to go
through the pile transaction records in the main office.

General Problem
How to develop a LAN-Based Inventory Management System that will help the company
to manage the transactions for JumpStart Auto Spa

The company is currently using the typical manual process of managing inventory. They
get the details of inventory every 2 days in their three stores and track one by one and
they tally it or check it on their previous inventory. It also includes the sales on how
much money they spend. Also, the transactions of ordering parts and accessories for the
cars costs a lot of time for both party because they process transaction by picking first of
auto parts or accessories, next is the payment process by going to their second of the
main branch to complete the payment transaction and then go back to BORT with the
receipt with the proof that it is already settle the amount. They find it difficult for both
company and clients because their processes are manuals. It costs a lot of time and delay
to finish one process, they can allocate that time to entertain other customers for them to
gain a lot of income. When inventorying, their three stores has their own inventory and
after finishing and verifying it, the secretary will give it to the management to check it in
their previous count.
Specific Problem
 How to develop a module that will manage the security for the system.

In current process of JumpStart, the secretary is the one who receives all the inventory
reports of products and sales from three stores. She compares it from previous inventory
by searching it one by one from Excel file. Some staffs can access the Excel file too to
help her to do it to facilitate the work load. Our client thought that the files can be
manipulated and it may be the cause of the company’s losses. With the proposed system,
the client can now access the entire system and monitor the user log in.

 How to develop a module that will manage the product stocks.

The company used their manual process of counting the stocks of their three stores. The
two employees of each store manually count each receipt of products that has been sold
and compare it from the stocks every week. Afterwards, they submit the records to the
secretary for verification. The owner finds it difficult to monitor the stocks because he
wasn’t promptly informed which item is few and has to check in with his secretary first.
With the proposed system, they will be spared the manual labor and will only have to
type the product code. Plus, the owner can now have immediate access of the inventory
and be prompted when to order a new batch of products.
 How to develop a module that will help to manage the product sales

The company manual inventorying causes delay of their product sales because they track
one by one and compare it on their previous inventory. This would take a week and a
month to finish their inventory of their product sales. In such case, the owner having a
hard time to see his profit for the month because it coated from previous product sales
report.

 How to develop a module that will generate reports.

After the weekly transactions, the employees of each store submit their sales report to the
secretary of the company whom will summarize all the details of the transactions. An
accurate data is needed to check all the generated income from previous month and
contests to the income generated for the new month. A sales report is also needed by the
company to see their growth with each year.
 Overview of the Current State of the Technology
JumpStart Auto Spa was established on February 2011 located in GSIS Ave. Project 8,
Quezon City, Metro Manila. It is owned by Mr. Clarence Tan. The business is in line of
cars equipment, accessories and services. The shops functionalities are all done manually.
In the manual process of the company is still using excel to store records of the stocks.
First the secretary is sorting the customer information and their product items manually
by searching for individual using excel. In terms of payment if the client wants to pay all
the services, the customer will get each receipt in every shops then verify and confirm it
to their main cashier. For them to pull out their car and get their purchased product.

Objectives of the study

The researchers’ goal is to develop a system that will virtually combine the manual
procedures to the extent possible and produce a process that will make the company’s
service more efficient and to reduce the company’s risk of unnecessary expense and loss.

General Objective

To develop a LAN-Based Inventory Management System that will help the company to
manage the transactions for JumpStart Auto Spa
The proponents purpose is to create a LAN-based inventory management system that will
allow the owner or the company to manage their business transactions to lessen the paper
works and lessen the time of monitoring and managing the inventory of business centers.
 It can also help the owner to view the details of transactions and summary of their sales
and reports of transactions.

Specific Objectives

 To develop a module that will allow authorize employees of JumpStart Auto Spa to access
the inventory.
This module of the system will allow authorized employees such as secretary and the
owner to access the inventory system. It will allow them to view the system also they
are the one who will manage the said system.
 To develop a module that will monitor the product stocks.
With this module of the system, the process of monitoring the stocks becomes effective
and efficient means to manage when inventorying. The said system does not only provide
advance functionality to the process, but it also makes the monitoring of inventory easy.
 To develop a module that will help to manage the product sales

With this module of the system, the process of managing the product sales and not to
delay the viewing of sales of the company, this module includes the weekly sales of the
company and quarterly sales.

 To develop a module that will generate reports.

The proposed system will have a storage for reports in the system. All the information in
the reports comes from the input of authorized person and the monitoring of inventory
accessories and auto parts.

Scope and limitations

Scopes

The proponents create a modules and features such as:

Inventory Management is included in the proposed system. Inventory Management’s

content will be responsible for handling and monitoring of stocks. Monitoring of
transaction is also included together with the inventory management.
File maintenance module this module of the system is responsible for updating of master
files/Inventory of the company. For example, adding/deleting product stocks and also
retrieving or showing items from the inventory.

Reports module is where all the reports that can be generated and printed including daily
report, quarterly reports are accessible in this module.

Limitations
Billing Transaction is not included in the features of the system because the transaction is
made by the cashier and accounting department which is not included in the coverage.