Purchasing and Inventory System


1.1 Background of the Study

Batang Convenience Store is a retail business selling dry goods, LPG’s, soft drinks and food that located in Silang, Cavite. It is founded by Yolanda and Eduardo Atienza who started its first operation on 1999. Since its venture to this kind of business, Batang Convenience Store never used any type of record books or computerized systems. The owner arranges the purchasing of supplies by evaluating documents like delivery receipts and purchasing orders, which is time-consuming, tiresome, and inconvenient.

The owner is not aware if product is no longer available or the item is becoming out of stock. If the owner wants to purchase items from the supplier, it must be done in form of writing. Sometimes the owner encounters loss of data due to carelessness. With the company’s manual means of evaluating the inventory and managing the purchasing operations, inaccurate entries are sometimes made.

The Purpose of the Computerized Inventory and Purchasing System is to help a company in managing, monitoring and maintaining their Inventory as well as generating necessary reports and keeping important data safe.

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The researchers of this study will develop a new purchasing and inventory system for the business using Visual Basic.Net and Microsoft SQL Server software. With this system, the evaluation of inventory and management of purchasing operations will become more organized, and thus easier. In this manner, wrong inputs will be avoided, and the checking and organizing of items will be more accurate.

1.2 Statement of Problem

1.2.1 General Problem

Batang Convenience Store encounters problems such as in and out of product from the stock room are not properly monitored by the purchasing clerk.

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Availability of their products is less supervised by the owner that consumes a lot of time by checking each item manually. Human errors in writing reports, miscount of products and tallying of inventory is time-consuming and tiresome due to the nonexistence of record books or computerized system.

Purchasing Reports and Documents are also unavailable, hence purchasing processes takes too long and it may affect the overall productivity of the business. Manual process of evaluating, inventory, and managing the purchasing operations by the owner leads to inaccurate entries of data. The lack of proper record keeping also causes the lost of relevant data.

1.2.2 Specific Problems

The proposed system intends to answer these following problems: In and out of product is less supervised,
Time-consume and tiresome tallying of inventory records,
Purchasing processes takes too long, by manually writing each item,
Inaccurate entries of data due to manual process of evaluating, inventory, and managing the purchasing operation and Loss of relevant data due to the nonexistence of record books or computerized system.

1.3 Objectives of the Study

1.3.1 General Objective

This study aims to develop a computerized Inventory and Purchasing System for Batang Convenience Store. The system will help the business in producing accurate reports, improve transactions and provide a more convenient process for the owner’s /manager and staff. They can also serve their customer in a fastest way and accurate w/out any problem occurs.

1.3.2 Specific Objectives

The following specific objectives must be attained to meet the General objective of the proposed system: To develop a system that will help the purchasing clerk to monitor the products in the stock room, To generate a system that will helpto lessen the burden of the store owner in tallying inventory items, To create a system that can help the owner to have faster way of ordering products, To create a computerized system that will help the owner to create evaluation inventory and manage purchasing operation. To develop a system that will automatically keep all the transaction record by updating and putting security measure such as password and backing up of files.

1.4Significance of the Study

The Purchasing and Inventory System is one of the key factors to have a successful and profitable business. If the system is not well organized and stable, the business may not be able to meet the target profit in a given period of time. This study will be beneficial to the following:

The company, interviewed by the researchers, will be able to monitor the status of materials needed to be purchase on a given period of time. Data inputs will produce an efficient output to be used as basis for making decisions. The owner can easily generate an automated approval report and can monitor the stock with ease and efficiency. Purchasing Clerk can do the processing of order, preparing the purchase order (PO) and monitoring of order status, the Stockman can do the inventory of items easily, and the Supplier will have a lesser travel time to get the Purchase Order (PO) from the company. Future Researchers can utilize the results of the study as basis or reference when conducting their own research about Inventory and Purchasing System.

1.5Scope and Limitations

The researchers of this study will use Visual Basic.Net together with Microsoft SQL Server to develop the system. The proposed system will have three (3) level accesses, one for the owner, one for the manager, and for the Stockman. The owner/manager will have the access to the following modules: The Purchasing Module: This is where the owner/manager approves the Purchase Order (PO), Purchase Request (PR) and in this module the owner/manager can cancel the transaction processing. The Inventory Module: The owner can view the status and movement of the stocks in this module. The owner can also add, edit or deactivate items using this module. The Reports Module: In this module the manager can see the Purchase Order (PO), Purchase Request (PR) and Inventory Reports.

The User Account Module: In this module you can add, edit, search and read data that is recorded The Administrative Module: This is for the user’s account creation and editing. The Supplier Module: This is for owner/manager can view the company’s current suppliers, add and deactivate suppliers and in this module the manager can also edit the details of the supplier. The Purchasing Clerk will have the access on the following modules: Purchasing Module: where the input of ordered items, purchase order, purchases Request is being made. Inventory module: where stocks can be viewed.

Report module: in this module the purchasing clerk can see the Purchase Order (PO) Reports, Purchase Request (PR) Report and inventory Reports. The Stockman can only access the following modules:

Inventory module: where the stockman can report the new products in the inventory and the status of the stocks. Report Module: In this module the stockman can only see the Inventory reports. There will be three (3) workstations in the proposed system – for the Purchasing Clerk, the Owner and the stock room. The workstations will be networked through UTP cables and a switch. We also added a Network Printer which is connected to the Manager’s Computer for printing Reports and Documents.


The proposed system will concentrate mainly in solving the problems that the company experiences concerning their Purchasing and Inventory System. Some limitations that the proposed system might encounter are the following: Power interruption due to power failure,

Exclusion of auditing and transaction of sales, and
The network is not connected to the Internet.
Our Proposed System will not run in other Operating system environment besides Windows.HIPO

Updated: Jul 06, 2022
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Purchasing and Inventory System. (2016, May 23). Retrieved from https://studymoose.com/purchasing-and-inventory-system-essay

Purchasing and Inventory System essay
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