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Sales and Inventory Monitoring system Essay


The used of manual processes in business has decline since the rise of computerized and automated systems. And in fact, nowadays, the use of computer-based business system has become prevalent all throughout the developed and developing countries around the world due to the increased productivity and efficiency of data processing

A collection of components that work together to realize some objective forms a system.There are three major components in every system, namely, input, processing and output. The most commonly used system by several companies is the sales system and inventory system creating a window based system. Inventories are often the largest asset of company and a precise inventory management system is often needed to take into accent the sales, orders and the need for replenishments. It also ensures that goods are always stocked to an optimum level to meet customer demands. One of the most samples of overstock levels is Hardware’s, Marketing’s and the Furniture’s that are using manuals.

A sale is an activity involved in the selling of products or services in return for money or other compensation. It is an act of completion of a commercial activity while inventory A list of what you have. In company accounts, inventory usually refers to the value of stocks, as distinct from fixed assets. Advanced system on sales provide more reliable recording of sales of the company with comparison to its actual cost. In addition, the data needed by the company to decide matters in relation to inventory can be easily generated.

Moreover, the inventory system promotes effective inventory control which ensures stocking the in demand and correct items in the correct quantities. This system can help the company to avoid overstocking. It maintains a Database of the Suppliers and Customers to handle a hundreds to thousands of products for sale, allow several users to use the system with varying access level, easily track items that need to be re-ordered, track purchase history by supplier and by product the company will be trusted by the customer and will be updated.

To understand the need for this type of system ( which is really a combination of software programs) consider a customer’s needs. For example, if you go online and order a new digital camera and arrange to ship it to your home, your purchase triggers different events in the seller’s system. The system must decide where the camera will be shipped from, then notify the appropriate warehouse to pack it and ship it. Think about where that information comes from so the camera will reach your home on time.

Using this type of system, a company/business makes strategic business decisions regarding raw material purchases, production scheduling, pricing, logistics and other decisions in the supply chain. Sales and inventory data enables the company to increase or decrease production in the factory so the company won’t have too many finished goods stored in its warehouses.


The automated sales and inventory monitoring gives a company a competitive advantage by linking different automated processes within the supply chain. For example, automating the ordering process for customers and the production scheduling, then adjusting manufacturing based on up-to-date inventory levels, makes a company more flexible, capable of deciding how to best satisfy customer orders. When automated activities are linked — ensuring information flows rapidly from one part of the supply chain to another — a company can exploit these linkages. Management can make rapid decisions to increase revenues, such as ramping up production immediately in one location because of a sudden surge in demand in another part of the country/world.

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.

In the case of Omigo Superstore they are currently using the manual sales and inventory system wherein computing for these are done manually. But in dealing with these transactions, accuracy, reliability and speed of human skills in performing these transactions are limited because clerical errors are often inevitable. Because of these, we propose a system of sales and inventory monitoring. With the Omigo Superstore, the tracking of sales, controlling of inventory, recording of products, calculating of numerical data and searching, sorting and filtering of item will translated into an automated process which considers speed accuracy, orderliness and maintainability of the system.

The function of the system compares current inventory levels of a product and the number scheduled for production with the number needed, and determines if the level of production must be changed. If necessary, the system sends a message to the master production schedule to increase production. Also, the inventory monitoring system slows down production when a product’s retail sales levels don’t meet the sales forecast and the company overproduces the product.

Statement of the problem

1. How to develop sales and inventory monitoring system for Omigo Superstore?

2. How the proposed sales and inventory monitoring system reduces the manual computations of sales and inventory system?

3. How the proposed sales and inventory monitoring system provides the previous monitoring of sales and inventory?

4. How the proposed sales and inventory monitoring system’s accessibility made easier for the admin?

5. How the proposed sales and inventory monitoring system monitors the acquired and distributed products?

6. How the proposed sales and inventory monitoring system produces and computes reports for sales?

7. How the proposed sales and inventory monitoring system provides security of the documents?



To develop a system that will enhance the monitoring of the sales and inventory of Omigo Superstore .


To design and develop a system that can reduce their manual sales and inventory monitoring.

To create a system that can provide them on past monitoring of sales and inventory

To create a system that can easy to use and access by the user.

To effectively monitor products acquired and distributed

To accurately record, compute and produce report for sales

To provide security for files and records regarding business transactions

Significance of the Study

Sales and Inventory System is designed for a business that desires a control over stock levels and inventory tracking. This system can be used either as simple inventory control system or a complete manufacturing solution. In today’s generation. We are engaged in highly computerized technology aiming to enhance individual lifestyle and most especially in the world of business.

For the Omigo Superstore Company

The result of the study could provide the management a view of their current and previous sales and inventory by the means of Sales and Inventory Monitoring System. The employees and the management would benefit the new environment innovated by the proponents of the said system that would make the process flows much better than before. If the manager or the supervisor wants to check the status of their sales, they just need to log-in in the system than to check it manually in the accounting reports.

For the proponents

The proposed study was the great experience for the proponents. As they proposed this system, they also apply the things that they’ve learned from computer related subjects.

For the future researchers

The future researchers will benefit from the proposed study whose doing same study. They can also use this study as their guide.



This study focuses only on sales and inventory monitoring system of Omigo Superstore. Along the process, the sales incurred by the said establishment will be computed and updated automatically and dynamically during every transaction (this transaction refer to the process) and recording of products will be made accurate, fast and reliable due to the reduction of human errors accuracy of data provided by the system. The system will also provide automated and dynamic searching of products to respond to product inquiries; it will generate accurate records on the inventory, sales and transaction; and lastly, it will provide system security to protect the business data stored in the database obliging user to log in and open their specific account, which in turn, are granted by the system administrator, manager or owner.


This study doesn’t cover the following features: the uses of barcode technology for advance product-searching capability, payroll for employees and biometric scanner for system security. It doesn’t also support online transactions, accepts payments through checks, credit cards or debit cards and calculates cash flow, including the total expenditure, and the flow of cost and benefits.

Conceptual Model of the Study

On the basis of the forgoing concepts, theories, and findings of related literature, studies presented and insights taken from them, a conceptual model is developed as shown as:

-is the act of selling a product or service in return for money or other compensation . Signaling completion of the prospective stage, it is the beginning of an engagement between customer and vendor or the extension of that engagement.

-or stock refers to the goods and materials that a business holds for the ultimate purpose of resale

-generally means to be aware of the state of a system

-is an organized collection of data. The data are typically organized to model aspects of reality in a way that supports processes requiring this information. For example, modelling the availability of rooms in hotels in a way that supports finding a hotel with vacancies.

– in business and organizations is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization or initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Management is also an academic discipline, a social science whose object of study is the social organization.

-the performance or management of business operations


A sales and inventory monitoring system collects data to aid in production scheduling, accurate details, and reliable information. For example, some systems use recent sales data to forecast how many of a type of product will be needed to meet consumer demand in the near future. This includes monitoring the levels of a product at all locations. A good example is a global company with customers all over the world. The customer may live in Philippines, but the system must see if the warehouse in China has a product available to ship to Philippines.

Foreign Literature

In some reason there are company that can’t go on through their business journey and can’t compete due of obstacles that brings them down.But because of the technology that are ruin our life most of the company succeed and following the flow of the industry.

According to Shah Janat (2010), every participant in a supply chain, whether wholesaler, retailer or manufacturer or vendor, prefers to reduce inventories and yet maintain customer service so as not to lose customers because of the non-availability of goods. Huge inventories are a drain on resources, as it blocks money and increase cost of operations. So it is no surprise that all firms want to reduce inventory in the supply chain. The inventory may be divided into various categories. In general there are six main categories of inventories: First, the cycle stock, the inventory resulting from production or purchase in batches is called cycle stocks, since the lots are produced or purchased in cyclical lots.

Second is the safety stocks, as the name suggests, are maintained as a safeguard against uncertainties of demand and supply. Third is the decoupling stocks, which provide the flexibility needed by each decision-making unit to manage its operations independently and to optimize its performance. Fourth, anticipation inventory which consists of stocks accumulated in advance of expected peak in sales or that which takes care of some special event that does not occur on regular basis. This has two categories, the seasonal stocks and the speculation stocks. The fifth is the pipeline inventory which consists of materials actually being worked on or being moved from one location to another in the chain. Lastly, the dead stock which refers to that part of non-moving inventory that is unlikely to be any further use in supply chain operations or markets.

Another related literature is from Korean Red Ginseng Enterprise which is using Sales and Inventory System (J. De Leon, M. Ferrer, 2001).Under the Korean 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.

In connection with the proposed system, the proponents proposed a new and faster way of processing business transactions. The system also helped the user to know the availability of the products. It also helped the manager to monitor the stocks and to get immediate notice for acquisition of additional products.

The Proponents acquires knowledge about the file processing and report generations through this study. It also gives the proponents ideas to create the proposed system’s reports in online sales and inventory system. Automation is mandatory, thus automated report generation for precise reports is to be included in the proponent’s proposed system.

The other literature is an Online Sales and Inventory Management System (SIMS) (Aparanjitha, 2008).This project is aimed at developing an online Sales and Inventory Management System (SIMS) for a departmental store. This system can be used to store the details of the inventory, update the inventory based on the sale details, produce receipts for sales, generate sales and inventory reports periodically etc. This is one integrated system that contains both the user component (used by salesperson, sales manager, inventory managers etc.) and the admin component (used by the administrators for performing admin level functions such as adding new items to the inventory, changing the price of an item etc). This system runs on multiple terminals, offers a GUI to its users and connects to a common database(s).

The proponents acquires knowledge on real time inventory, generation of receipts and security features where in restricted information are only accessible by employees, managers, administrators, etc. The proposed system can be accessible by employees, administrators and customers, making online transaction possible.

Local Literature

From the local literature Jeonsoft Inventory System aims to provide easier and faster way to monitor the movement of the business’ stock of goods. It is interactively designed to possibly do the common tasks done in customary way. From item entry, releasing of items, inventory adjustment, transferring of goods from one warehouse to another and production, sure you can keep track of your inventory. JIS uses JibesXP Tools that has been especially configured with properties that would help you organize well the flow of your inventory. To ensure the security maintenance of JBS system, it has JADE (Jeonsoft Administrative Enforcer) programmed to protect the transactions in your system. Users will be asked to enter their login name and password to confirm if they are entitled to access the system. Using JADE, Administrators can also assign a specific module for employees to access since they are only entitled to access modules that are related to their work.

These only means that in some reason using computer technology and a system can lessen the works of an individual with an accurate result that are safe and reserved for the future of the company.

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