Chapter 1

Chapter 1
PROJECT OVERVIEW
BACKGROUND OF THE STUDY
Information technology (IT) is an enormously vibrant field that emerged
at the end of the last century as our society experienced a fundamental change
from an industrial society to an information society. From its inception just
half a century ago, computing has become the defining technology of our age,
changing how we live and work.
These days, information technology (IT) is universally regarded as an
essential tool in enhancing the competitiveness of the economy of a country. It
is commonly accepted today that IT has significant effects on the productivity
of firms. These effects will only be fully realized if, and when, IT are widely
spread and used. It is crucial, therefore, to understand the determinants of IT
adoption and the theoretical models that have arisen addressing IT adoption.
(Chong et al. 2009)
Information technology (IT) benefits the business world by allowing
organizations to work more efficiently and to maximize productivity. Faster
communication, electronic storage and the protection of records are advantages
that IT can have on your enterprise. Information technology has to do with
computer applications, on which nearly every work environment is dependent.

Since computerized systems are so widely used, it is advantageous to
incorporate information technology into your organization. (Sheahan, 2008)
Information Technology (IT) is very powerful in todays world and
backbone of the countrys economy. Information Technology expels the many
different technologies inherent in the field of information technology and their
impact on information systems to the collection of tools that make it easier to
use, create, manage and exchange information. Information Technology
Services seeks to establish trust with customers through professionalism,
honest and open dialogue, high quality customer service, and a commitment to
partnership and collaboration. (Kumar, 2014)
The Inventory Management system provides information to efficiently
manage the flow of materials, effectively utilize people and equipment,
coordinate internal activities, and communicate with customers. Inventory
Management System do not make decisions or manage operations; they provide
the information to managers who make more accurate and timely decisions to
manage their operations. (Solanki, 2012)
The impact of Inventory Management System in todays businesses is
that it becomes easier for the business to meet the profit goals, shorter the
cash cycle, avoid inventory shortage, avoid excessive carrying costs for unused
inventory, and improve profitability by decreasing cash conversions. Boosting

financial performance is another benefit that comes from better inventory
management. (Bagby, 1996)
JMP Trading is own and manage by Mr. Moises P. Alamay located at

Sison,Pangasinan, the company offer many services such as selling cement
and heavy equipments parts, hauling, and engineering projects. Beyond this,
the company experiences in the problem of their inventory record since their
inventory record is manual and it is hard to search or find a certain record at a
time.
To be able to conquer the companys problem, proponents came up to the
idea of creating Inventory Management System. The proposed system will
improve their inventory records and make their transactions easier and
convenient. Manager and office staffs will have the access to the system and it
will help them to check their inventory, transaction records, and sales report.
The main objective of the proposed system is to help the company to
improve and gives them accurate data, and make the process fast and wellorganized which means that they can process much more quickly than human.
Company Profile
JMP Trading was founded in 1988, the company started with cement
trading as a business. As the company market supply increased, the company
acquired trucks for delivery in the local market. The companys financial status
improved and its area of operations widened, it acquired a fleet of tractor and
trailer trucks to meet the increasing demands of the adjacent regions. Then it
engaged into buying, repairing and reconditioning of trucks and heavy
equipments and selling those as well as personal use. And in the year 2012,
the company started to accept some horizontal and vertical construction
projects of the local government and some private entities.
To date, the company is capable of selling cements, heavy equipments,
hauling, hardware products, and engineering projects.
Vision
To provide quality product and services that exceeds the standard of
their customers.
Mission
To attain a smooth and long-term relationships with their customers and
providing quality services on business operation.
Objective
To offer the highest quality hardware at competitive prices to their

customers. They strive to offer excellent customer service, and work with their
customers to provide innovative design and function in all of their hardware.
Goal
To grant their customers satisfaction.
Organizational Chart
Conceptual Framework
Conceptual Framework is a group of concept that are broadly defined
and systematically organized to provide a focus, a rationale, and a tool for the
integration and interpretation of information. Usually expressed abstractly
through word models, a conceptual framework is the conceptual basis for many
theories,
such
as
communication
theory
and
general
system
theory.
(Elsivier,2009)
In addition to the development of conceptual frameworks, stress the need
to conduct case studies focusing on their practical applicability in firms in
order to overcome gaps between theory and practice. These case studies enable
researches to increase their practical knowledge given that aspects involving
understanding about environments complexity and the managerial efforts
made by firms become evident. (Rego, 2011)
Statement of the Objectives

The objective of this study is to design and develop Inventory
Management System of JMP Trading. Specifically, it sought to attain the
following:
1. Identify the existing procedures adopted by JMP Trading in the areas of:
a. Inventory;
b. Transaction;
c. Report Generation.
2. Identify the problems encountered in the existing procedures used by JMP
Trading in the areas of:
a. Inventory;
b. Transaction;
c. Report Generation.
3. Specify the functional and non-functional requirements of the proposed
system.
4. Identify the hardware and software requirements of the proposed system.
Importance of the Study
The Inventory Management System of JMP Trading will not only be

beneficial to the company but also to the clients and the suppliers. In
undertaking this proposed system, the proponents also take in consideration
the other beneficiaries as well.
To the JMP Trading - The study will help the company progress their
products, lessen multiple errors and exert less efforts concerning transaction
workflow.
To the Owner This study will help the owner save time and give greater
flexibility when conducting a physical inventory, marking down prices, and
selecting and summarizing data for reports.
To the Staffs This study will help the staffs in their task in terms of
business transactions, keeping and retrieving of files in an efficient and reliable
way. It will lessen their time in organizing clients records and errors will be
avoided.
To the Clients The study will help the clients through the system by
taking less time for them to wait for their receipt because the calculation of the
product is easy to compute by the proposed system.
To the Suppliers This study will help the suppliers to trace all invoices
and reports of the products.
To the Proponents Through this proposed system, the proponents will

be able to learn not just by theories but through application. The project study
allowed the proponents to determine the appropriate methodology, tools and
features in developing the system.
To the Future Proponents In undertaking this proposed system, the
proponents also take in consideration of future proponents who will undertake
the same proposed system or related studies and use for the future references.

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computer applications, on which nearly every work environment is dependent.

inventory, and improve profitability by decreasing cash conversions. Boosting

JMP Trading is own and manage by Mr. Moises P. Alamay located at

To offer the highest quality hardware at competitive prices to their

Statement of the Objectives

The Inventory Management System of JMP Trading will not only be

To the Proponents Through this proposed system, the proponents will

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