Chapter IV

METHODOLOGY
Environment
Locale
The project was conduct in the Municipality of Brookes Point,
Palawan located at Poblacion District II, Public Market. The
researchers opted to propose a computerized sales and inventory
system to the owner of Socrates Drugstore and Merchandise to help
them lessen the workloads during the sales and inventory
processed.
Population of the Study
Socrates Drugstore and Merchandise has four (4) personnel, two
owners, one cashier, and one sales lady.
Organizational Chart/Profile
Below is the illustration of the organizational chart of Socrates
Drugstore and Merchandise.
OWNER
SALES LADY
CASHIER

Figure 3.Organizational Chart

OWNER
In charge for the overall transactions done within the business
such as purchasing of products from the suppliers, updating the
products price, monitoring of products expiration date, also in
charge on depositing of their daily sales at the bank and also
performed as sales personnel.
CASHIER
In charge in computation of purchases done by the customers,
by owner authorization the cashier is sometimes the one who
purchased products from the suppliers.
SALES LADY
http://www.papercamp.com/essay/154616/Sales-And-Inventory

In charge in entertaining customer inquiries and needs.

Requirements Specifications
Operational Feasibility
* FISHBONE DIAGRAM
Figure 4.Fishbone Diagram

FUNCTIONAL DECOMPOSITION DIAGRAM

Activity Log Files
Deactivate User Account
Forgot Username
Critical Items
Receipt
Inventory Report
Sales Report
Sales on the Store
Point of Sale
Inventory
Expiration Date
Stocks on Hand
http://www.papercamp.com/essay/154616/Sales-And-Inventory

Add Damage
Add New Stocks
Edit Product
Add Product
Edit User Account
Add New User
Log History
Forgot Password
Log-in
GENERATE REPORT
MONITORING FUNCTION
COMPUTATION FUNCTION
SECURITY FUNCTION
Socrates Drugstore and Merchandise
Computerized Sales and Inventory System
Figure 5.Functional Decomposition Diagram

Technical Feasibility
* Compatibility Checking
Below are the list of compatible operating system, hardware and
software that are needed to support the operation and development
of the propose system Socrates Drugstore and Merchandise
Computerize Sales and Inventory System that will give solutions to
the problems that are presently encountered in their manual
system. Aside from the benefits or help that it can provide to the
user, the said system is also capable of running on both software
and hardware that are commonly being utilized within our region.
* Operating System
* Windows 7
* Windows 8
* Hardware
* Monitor/Output device
* Mouse, keyboard and Input devices
http://www.papercamp.com/essay/154616/Sales-And-Inventory

* Printer
* Software
* SQL Server
* MS Word 2007, MS Word 2010
* MS Excel 2007, MS Excel 2010
* Relevance of the Technology
The following technologies above are needed to support the
operation and development of the propose system Socrates
Drugstore and Merchandise Computerize Sales and Inventory
System that will give solutions to the problems that are presently
encountered in their manual system. It helps to ease the works of
researchers in designing windows form and in storing, editing,
deleting database and also in generation of printed receipts and
reports.
Schedule Feasibility
* Gantt Chart
Figure 6.Gantt Chart
Economic Feasibility
* Cost and Benefit Analysis
Estimated Cost
To fully complete system a company should have an employee, the
software and hardware requirements. To have all those requirements
the owner should be prepared for this estimated financial cost of the
said system:
ITEM DESCRIPTION | QTY | UNIT COST | COST |
1 COMPUTER UNIT | 1 | Php30,000.00 | Php30,000.00 |
UPS | 1 | Php4,000.00 | Php4,000.00 |
PRINTER | 1 | Php3,000.00 | Php3,000.00 |
TRAINING | 2 | Php1,000.00 | Php2,000.00 |
SDM-CSIS | ------------ | Php30,000.00 | Php30,000.00 |
OPERATING EXPENSES (i.e. Electricity, paper, inks, etc.) | ------------ |
Php6,500.00 | Php6,500.00 |
TOTAL | | Php74,500.00 | Php75,500.00 |
Table 4.Estimated Cost
http://www.papercamp.com/essay/154616/Sales-And-Inventory

Cost and Benefit Analysis

After the completion of the system, the Socrates Drugstore and
Merchandise could implement the new computerized sales and
inventory system that would help the company to lessen the human
effort and error as well as producing precise computation of
purchases and management of records. The system is capable of
recording sales transactions and products information, user account
settings and produce printable reports.
Manual Process
Purchase Process = 10mins /transaction
Purchase Computation = 5mins /transaction
Total = 15mins /transaction
Rate of Cashier = Php 16.00/hour rate
Total Amount Spent = Php 4.00/transaction
Minimum of Daily Transaction = 80 transactions/day
Total Amount of Transaction = Php 320.00/day
(Total Amount Spent /transaction x Minimum of Daily
Transaction/day)
Monthly Amount Spent = Php 8,320.00/month
(Total Amount of Transaction/day x 26 days for 1 month).
Automated System Process
Purchase Process = 3mins/transaction
Purchase Computation = 2mins/transaction
Total = 5mins/transaction
Rate of Cashier = Php 16.00/hour rate
Total Amount Spent = Php 1.50/transaction
Minimum of Daily Transaction = 80 transactions/day
Total Amount of Transaction = Php 120.00/day
(Total Amount Spent / Transaction x Minimum of Daily Transaction /
day)
Monthly Amount Spent
= PHP 3,120.00 / month
(Total Amount of Transaction/day x 26 days for 1 month).
Benefits or Gains
http://www.papercamp.com/essay/154616/Sales-And-Inventory

Monthly Amount Spent (Manual Process) =Php 8,320.00/month

Monthly Amount Spent (Automated Process)=Php 3,120.00/month
Operation Expenses =Php 2,000.00/month
Total Monthly Benefits or Gains =Php 3,200.00/month
(Monthly Amount Spent in Manual Process Monthly Amount Spent
in Automated System Process Monthly Operation Expenses).
Return on Investment
Estimated Costs and Expenses
= Php 75,500.00
Total Monthly Benefits or Gains
= Php 3,200.00/month
(Estimated Costs and Expenses Total Monthly Benefits or Gains)
Return on Investment
= 24 months or 2year
It has been proved that implementation of the computerized sales
and inventory system would be efficient, helpful and more beneficial
for the owner of Socrates Drugstore and Merchandise.
Requirements Analysis and Modeling
Analysis (content from the PIECES Framework Evaluation)
Information | Input: Human error. Data is not captured in time to be
useful |
| Output: Inaccurate information. Lack of any information. |
| Stored Data: Data redundancy. Too much captured data. Data is not
flexible. |
Performance | Throughput: Recording of sales transactions
Recording of items in the inventory. Recording of Customers daily
and monthly payments. Create, search, and update Customers
account. Report generation. |
| Response Time: Fast |
Control | The amount of data stored can be out of control. Input data
is not adequately edited. Decision-making errors are occurring. |

Table 5.Requirements Analysis and Modeling

Data and Process Modeling
http://www.papercamp.com/essay/154616/Sales-And-Inventory

* Context Diagram
Figure 7.Context Diagram
Object Modeling
* Use Case Diagram
Figure 8.Use Case Diagram
System Data Dictionary
Activity Log Files |
FIELD NAME | DATA TYPE | DESCRIPTION |
activitylogID (PK) | INTEGER | Unique identification number for
activity log files table. |
userID (FK) | INTEGER | Foreign key that connects the activity log
files table to user account table. |
activity_description | VARCHAR (100) | Identifies the activity done by
the user while using the system. |
date | DATETIME | Date and time when the activities occurred. |
Table 6.Activity Log
Log History |
FIELD NAME | DATA TYPE | DESCRIPTION |
logID (PK) | INTEGER | Unique identification number of log history
table. |
userID (FK) | INTEGER | Foreign key that connects the activity log
files table to user account table. |
login | DATETIME | Represent the information for log in.
(yyyy-mm-dd hh:mm:ss) |
logout | DATETIME | Represent the information for log out.
(yyyy-mm-dd hh:mm:ss) |
Table 7.Log History
User Account |
FIELD NAME | DATA TYPE | DESCRIPTION |
http://www.papercamp.com/essay/154616/Sales-And-Inventory

userID | VARCHAR(10) | Unique identification number of useraccount

table. |
username | VARCHAR(20) | The security name that will allow the
user to access the system. |
password | VARCHAR(20) | Security password that will match the
username to be able to access the system. |
fullname | VARCHAR(30) | Full name of user. |
usertype | VARCHAR(15) | Determine the level of access that the
user can do in the system. |
status | VARCHAR(10) | Identifies whether the account is active or
inactive. |
sec_question | VARCHAR(30) | Security question of user. |
sec_answer | VARCHAR(20) | Answer of user for his security
question. |
dateregister | DATE | Date when his user account was created. |
Table 8.User Account
Sales |
FIELD NAME | DATA TYPE | DESCRIPTION |
salesID | INTEGER | Unique identification number of sales table. |
productID | INTEGER | Foreign key that connects the sales table to
product table. |
quantity | INTEGER | Quantity of a product purchase by the
customer. |
price | DOUBLE | Store price of a product. |
total | DOUBLE | Total amount of purchase. |
transactdate | DATETIME | Date and time when sales transaction
happened. |
referencenumber | INTEGER | Reference number of purchases of the
customer. |
userID | VARCHAR(10) | Foreign key that connects the sales table to
useraccount table. |
Table 9.Sales
Products |
http://www.papercamp.com/essay/154616/Sales-And-Inventory

FIELD NAME | DATA TYPE | DESCRIPTION |

productID | INTEGER | Unique identification number of product table.
|
barcode | INTEGER | Barcode of the product. |
productname | VARCHAR(50) | Name of product. |
category | VARCHAR(20) | Category of product. |
costprice | DOUBLE | Supplier price of a product. |
saleprice | DOUBLE | Store price of a product. |
quantity | INTEGER | Quantity of a product purchase from supplier. |
unit | VARCHAR(10) | Unit of a product. |
badquantity | INTEGER | Quantity of certain product that has
damage or defect. |
goodquantity | INTEGER | Quantity of a product that is available to
sell. |
criticallevel | INTEGER | Indicates of a critical level for quantity of
products. |
expirationdate | DATE | Date when product will expire. |
returndate | DATE | Date when product will return to the supplier
because it already expired. |
datereceive | DATE | Date when product was received. |

Table 10.Product
System Architecture
This system uses the Database-centric architecture software model,
which uses a standard, general purpose relational database
management system, which developers nowadays prefer and rely
with the evolution of sophisticated Database Management Systems
(DBMS) which possess, standard database tools for fast pace system
development that are either free or included on several operating
systems. Moreover, this software architecture model includes
dynamic table-driven logic and system stored procedures which
allow programs to be simpler and more flexible with the contents of
the database.
A potential benefit of database-centric architecture in applications is
that it simplifies the design by utilizing DBMS-provided transaction
processing and indexing to achieve a high degree of reliability,
http://www.papercamp.com/essay/154616/Sales-And-Inventory

performance, and capacity.

The researchers decided to use this software architecture model for
it enables all data to be centralized in a database management
system which allow standard database tools to enhanced security,
fault-tolerance, and scalability and the capability of the system to
handle growing amounts of work.
Development
System Hardware Requirements
The following are the equipment needed to support the operation
and development of the system:
1. Computer Unit
320 GB Hard Disk Space or higher
Minimum of 2GB RAM DDR III
2.0 GHz Processor or higher
2.
3.
4.
5.

UPS (Uninterrupted Power Supply)

AVR (Voltage regulator 220v)
Printer
Barcode Scanner

System Software Requirements

Not just hardware are needed for the execution of the system, it also
needs the following software:
1. MySQL Server 5.0 with MySQL Administrator 1.2.10 and MySQL
Connector
2. System Installer
3. Microsoft Excel 2007, Microsoft Excel 2010
4. Microsoft Word 2007, Microsoft Word 2010
5. Windows 7 or higher

Programming Environment
Front End
* Microsoft Visual Studio 2010
http://www.papercamp.com/essay/154616/Sales-And-Inventory

Back End
* MySQL

Deployment Diagram

SUMMARY
The researchers studied the existing system used at Socrates
Drugstore and Merchandise to provide a solution for the current
problems encountered by the owner and the cashier of Socrates
Drugstore and Merchandise because of their manual system
currently used. Through developing a computer based Sales and
Inventory System, the researchers aim to solve and improve the
quality of manual system of Socrates Drugstore and Merchandise.
The Socrates Drugstore and Merchandise Sales and Inventory
System (SDM-SAIS) would replace the current manual system to
increase the precision and reliability of generating reports and
calculation of all significant figures and items in the system.
The proposed functions performed for the computerized sales and
inventory system provides more accurate, reliable information, more
organized records and fastens the procedures. These functions
demonstrate clearly that the effectiveness and applicability of the
computerized system achieved fast processing for the problems
stated.
CONCLUSIONS
At the end of their research, the group has arrived to the following:
1. Manual recording and transaction is time consuming while
computerized transaction ease the burden fast.
2. Business establishment nowadays need to provide themselves
with computers and facilities electronically based to cope with the
modern business world.
3. The proposed project is more effective, reliable, accurate and
easy to use rather than the manually operated procedure which the
http://www.papercamp.com/essay/154616/Sales-And-Inventory

company still doing until now. Through our proposed project the
company can now maintain and organize the records and
information well and most especially it is secured.
RECOMMENDATIONS
The researchers would like to recommend that:
1. A detailed and precise training of the future users be conducted
by the researchers to orient on the proper usage and
implementation of the system. This is to guarantee the systems
maximum usage and applicability.
2. The business group should pursue its purpose for the benefit of
the establishment and for customers benefit and satisfaction.

http://www.papercamp.com/essay/154616/Sales-And-Inventory