Chapter 2

Conceptual Framework

This chapter elaborates the study's conceptual framework and focuses on utilizing

relevant literature and studies to explain how the proposed study relates to the work of

other researchers.

INPUT OUTPUT
PROCESS
Data Requirements
 Product list Waterfall methodology which
 Sales Report consist of
 Inventory Reports  Planning
 Generate Receipt
 Analysis
Software Requirements  Design
An Online Point
 Implementation
 XAMPP
 Maintenance of Sales and
 Visual Studio
Inventory System
 PhpMyAdmin
(MySQL) for Tsaa Time
 Online interview for
 Windows
data gathering
Hardware Requirements
 Receipt printer
 Receipt paper
 Monitor
 System unit

FEEDBACK

Figure 1. Conceptual Framework (Input-Process-Output) Model of the Study

 The conceptual framework represents the analysis device flow and operation. The

study's data flow and materials are mostly engaged in the input. All tasks or procedures

for converting inputs to outputs are included in the mechanism. The data, software, and

hardware requirements are all contained in the input, whereas data requirements indicate

the data that is required, such as a product list, sales and inventory reports, and the ability

to create receipts. Software requirements specify which software, such as XAMPP,

PhpMyAdmin, and Windows, should be used in the study. The receipt printer and paper,

monitor, system unit, keyboard, and mouse will be used to help with the hardware

requirements for this project. The process signifies the methodology whereas the

researchers use the Waterfall method, which includes phases such as planning, analysis,

design, implementation, and maintenance. The output shows the results of the

researcher's suggested system, which focused on the sales and inventory system for Tsaa

time. Finally, the feedback shows how the chosen company will respond to the study that

is being conducted.
2.1 Review and Related Literature and Studies

2.1.1 Foreign Related Studies

Inventory Management System of IT Asset- A Study on Daffodil International

University

According to Niranzan Chandra et.al (August 2019), It is important to track the

performance of each products demand in order to control how much and when to order.

Economic order quantity and the reorder point are the guidelines to answer these

questions. To calculate the best deal for the invoices received for the goods, the yearly

cost of each product is collected. Up to now, the company's assets are manually managed.

This takes a lot of time and seems to have a lot of errors. INVENTORY

MANAGEMENT SYSTEM software is necessary to solve this problem. This project

used a web application to construct an inventory management system and track the

performance of each product. This would assist the management in initiating correct re-

orders as well as forecasting the demand for the goods at any given moment.

At DIU, this project preserves the privacy of managing information for an IT asset. It was

developed with the intent of improving information management. It ensures that

everyone has easy access. Retrieve from

https://dspace.daffodilvarsity.edu.bd:8080/handle/123456789/4541

In relation to the study the researchers has the same purpose as this research as the

researcher’s major goal is to keep track of inventory data for the items and resources that

the company utilizes. It also includes information storage in a database and the ability to

present all information that the company needs to monitor.

Point of Sales System in InHome Café Website using Agile Methodology

According to Yusup Miftahuddin et.al (January 2021) Systems and technology

are evolving at a fast rate nowadays, and technology serve an important part in society's

development all across field. People, particularly entrepreneurs, may benefit from a

variety of technological advancements in their daily lives. Using a point of sale

application has a number of potential benefits, including enhancing service quality. A

business may easily complete a transaction procedure that is precise, fast, and consistent.

This promotes the individual or company of corporate services while also increasing

market interest. Another advantage is that it makes monitoring and making decisions

easier. Generally, the managing process is easy to carry out since all reports are readily

available, allowing for both collective and individual decision-making. (Sani, Pradana &

Rusdianto, 2018)
 Data management, data processing, and sales transaction processing at InHome

Café Subang remained done manually with paper-based records, which exposed the

company to risks in data management and security. Another disadvantage would be that

the cash register used to malfunction, resulting in numerous human mistakes. Another

issue in the cafe management process was reporting for sales and purchases on a daily

and monthly basis, which was done by manual data transfer and so became a source of

inefficiency in time and report preparation. Retrieve from

https://journal.maranatha.edu/index.php/ice/article/view/3321

In relation to the study, the researchers have the same goal as this research, which is to
design a system that is less vulnerable to human error and is more secure. It also features
daily and monthly sales tracking.

Implementation of Point of Sale Software in Mobile Shop

According to Md. Abdur Rahim (2019) Farhan Traders is a well-known mobile

dealership in Bangladesh's capital, Dhaka. This dealership sells a variety of branded

mobile phones. It has established itself as one of Dhaka's most dependable mobile

showrooms in terms of product quality and range. They are manually doing all of their

operations in order to keep track of their records. This comes as no surprise that a manual

system has several disadvantages, such as irrelevant data entry, lack of security,

expensive and time consuming report preparation, data redundancy, and record missing,

to name a few. As a logical consequence, companies are having a lot of trouble gathering

all their stock records, different reports, sales, and customer support. POS software was

created to address these issues. It is an online-based program that can be used on any
device with an internet connection, such as a laptop, desktop, netbook, or mobile phone.

In the commercial world, the need for point-of-sale software is growing by the day. Our

suggested program eliminates all of the difficulties that come with a manual approach. It

does difficult calculations flawlessly in a matter of seconds. Retrieve from

https://www.academia.edu/34094145/

Sales_and_Inventory_System_Thesis_Docume_doc?auto=download

In relation to the study, the researchers have the same goal as this research, which is to
build a system that keeps the company's data secure while also being time efficient.

Smart Pharmacy Sales and Inventory System

According to Md.Adnan Morshed (September 2019) Smart Pharmacy Sales and

Inventory System is a desktop-based program that is designed for any pharmacy to

effortlessly generate medication sales and locate medicine products. To handle this

system, the admin user must be logged in. As a result, the system will be useful for both

sales and maintenance of medicinal items. This might be a lengthy procedure. Because

you'll have to manually go through each product package and look over the contents. A

manual inventory method is primarily reliant on people's actions, which increases the risk

of human mistake. The corporation may quickly do a computerized transaction using this

system without having to manually list the names of the sold items and arrange them. The

Smart Pharmacy sales and inventory project was created using. Net technologies and all
client information will be saved in the SQL database without any data loss. Retrieve from

https://dspace.daffodilvarsity.edu.bd:8080/handle/123456789/4032

Design and Implementation of an Online Inventory Monitoring System

Inventory monitoring is a highly significant part of Inventory Management,

according to Dairo Ibukin Olatayo's paper Design and Implementation of an Online

Inventory Monitoring System (February 2018). In recent years, a number of inventory

management systems have been created. These technologies enable the inventorying of

objects and merchandise in retailers. Inventory must be kept track of, which is where

inventory management systems come in. Inventory information management systems and

inventory monitoring systems are linked and deployed simultaneously at a single point at

retail locations in certain contemporary inventory management systems. Because a store

manager can only keep track of inventory while he is on-site, even if he supervises many

stores, this approach does not allow for effective inventory monitoring and sales records.

The research was carried out in order to create an online inventory management system

for retailers. In order to fulfil its goal, this system will make use of a variety of

subsystems. A web portal for taking stock records, vendor records, performing supply

and sales operations, and storing these records in a database, as well as an android

application for monitoring inventory levels, displaying sales forecast and sales analytics,

and viewing vendor records taken from the database, are among these subsystems. To

make data transmission between the subsystems and the database easier, a Restful API

would be created. This enables data to be readily shared across systems running on

diverse platforms. Retrieve from https://www.projecttopics.org/design-implementation-

online-inventory-system.html
 2.1.2 Local Related Studies

A Point of Sale System is a enterprise solution primarily based on software program

used to tune sales pastime and inventory
simultaneously.
A Point of Sale System is a enterprise solution primarily based on software program
used to tune sales pastime and inventory
simultaneously.
Point of Sale System with Inventory for Arm’s Food and Delicacies

According to Analyn R. Mendoza et.al (April 2019), A Point of Sale System is a

business solution based on software that is used to track sales activity and inventory at

the same time. Since ARM's Food Delicacies still uses the standard framework in their

business exchanges, they encountered plenty of issues, which would include time-

consuming investigations into racks for saleable items, physically inspecting lapse dates

and stock items, exchange records with no paper stockpiling, and difficulty in producing

stock reports. With the help of a Point of Sale System with Inventory, management will

make consistent, reliable, and convenient decisions easily. If records are required, it can

be accessed in a matter of seconds by simply searching for key data on the screen.

Rather than having reams of paper and separate records for every item that would require

filtering through to access in the manual method, all of the data may be stored in a single

document.

The main goal of this study is to develop a Point of Sale with Inventory for ARM's food

and Delicacies that is accurate, more effective, and provides faster transaction reports.

Retrieve from
https://www.researchgate.net/publication/337707746_POINT_OF_SALE_SYSTEM_WI

TH_INVENTORY_FOR_ARM'S_FOOD_AND_DELICACIES

This study's purpose is similar to the researchers in that one of our objectives is to design

a convenient and simple system that the company can utilize to run its operations. This

can deliver more accurate and faster results than manually writing the data required for

the company's inventory.

Pharmacia Josefa’s Drug Store Inventory System

According to Sheena Mae B. Acopiado et.al (2016) The sales and inventory

framework is a product-based complete business architecture that is used to manage

record sales and inventories at the same time. Producers and different partners can both

profit from a thorough arrangement in which a single trade area keeps crucial information

of the customer, the products purchased, the cost, and the date, as well as clear inventory

dimensions. Companies save time with automated offers and inventory systems since it

speeds up exchanges while increasing accuracy. This takes into account the employee’s

faith in management and responsibility, as it is difficult to prove how much money was

exchanged and at what time. Companies can build up the advantages the firm might have

by implementing this computerized transactions and stock frameworks.

The company is unable to view its legitimate record of payments made over a period of

time. It also lacks the necessary documentation for the products. In a few circumstances,

the proprietor does not record missing items.

A company can guarantee that all requests, reviews, and distinct records correlating with

stock are consistent in their introduction by implementing a computerized inventory

management system, notwithstanding as to who produced it. This will make navigating

lot easier. Retrieve from

https://www.academia.edu/34094145/

Sales_and_Inventory_System_Thesis_Docume_doc?auto=download

In relation to the study the researchers are developing a system with the same goal as this

study: to keep track of inventory data for the company's products and resources. It also

entails storing data in a database, displaying all of the data that the organization must

manage, and ensuring that the records are correct.

Point of Sales with Inventory System for Basic Dots Printing Services

According to Airolle John S. De Vera et.al (June 2021) the integration of a point

of sale and an inventory management system can assist in preventing overstocking. When

a company overstocks, the fund will not compromise on the quality since the stock cycle

is a barrier for unwanted goods, which took up time, space, and money that might have

been spent on more important assets. The use of a computer as a point of sale with an

inventory system is a convenient way of keeping track of sales.

Checking and listing the company's sales is faster and more dependable than doing it

manually. The technology can reduce human mistakes in editing and may be accessed by

the company at any time. The company's current sales and inventory system is more

efficient, productive, and easy for both the company and its customers. Retrieve from

https://www.coursehero.com/file/97653371/Manuscript-Point-of-Sales-with-Inventory-

System-for-Basic-Dots-Printing-Servicespdf/

Application of Trend Analysis Technology Forecasting for Developing a

E-commerce Site and Inventory System and Point of Sale System for Ronmar

Tailoring Shop

According to Ronnel Cataluna (2019) stated that the clothing industry, in

particular, has a lot of competition. Customers choose the simplest method of obtaining

their chosen high-quality goods without expending too much work. Another main threat

is globalization. The proponent intends to utilize Technology Forecasting to evaluate the

business's future position. "Technology forecasting is a method used to predict and

comprehend the probable direction, rate, and effects of technological development," says

the proponent. As technology advances, more options are being developed in order to

enhance a person's lifestyle. Traditionally time-consuming and unpleasant tasks may now

be completed with a single click. Order processing and inventory management are

presently handled manually by the company. The technology would be highly beneficial

since it allows everything to serve as many clients as possible at a fast rate and enables it

to filter all types of data more quickly and conveniently. The Inventory Point of Sale
System is a computerized system that is more trustworthy than a manual system. The

machine can reduce the number of mistakes that need to be fixed and can be easily

accessed. Make effectively make consistent, reliable, and timely decisions with the help

of records, a computerized record is far better than a manual approach, due to the fact

that when documents are required, they can be accessed in a second and saved in a single

collection, as opposed to reams of paper and different files for each item. Retrieve from

https://www.academia.edu/39994740/

APPLICATION_OF_TREND_ANALYSIS_TECHNOLOGY_FORECASTING_FOR_

DEVELOPING_A_E-

COMMERCE_SITE_AND_INVENTORY_SYSTEM_AND_POINT_OF_SALE_SYST

EM_FOR_RONMAR_TAILORING_SHOP

Analysis of Inventory Management Systems of Selected Small-Sized Restaurants in

Quezon Province: Basis for an Inventory System Manual

According to Lea Nerdelita L. Baylen (2021) in reality, Inventory management is

really not interesting, yet it can make or break a company's success. It is claimed that the

larger the inventory, the more important inventory management becomes. The goal of

inventory management and purchasing is the same: to have the right things in the right

amount at the right time. The purpose of effective management of inventory is to assure

continuous operations, which is critical because delays caused by a shortage of supplies

are expensive. Furthermore, by storing proper supplies in retail and wholesale

enterprises, sales may be improved. Protecting stocks, which are part of the company's

assets, against theft and shrinkage helps to improve operational efficiency.

Inventory policy management ensures that accurate inventory records are maintained.

Inventory management should be assigned to a designated employee who will conduct

inventory counts at least once a week. Expected usage must be checked, and substantial

deviations must be looked into. Retrieve from https://al-kindipublisher.com/

A computerized sales and inventory management system for Goodhope General

Enterprises

According to Ruth Evace Kyomuhendo (July 1019), inventory handling process

turns out to be hectic and tiresome due to many transactions and thus the need of

automation of work through implementation of a system there by reducing complexity

and improving efficiency in inventory management. In business accounts, inventory

usually refers to the value of stocks, as distinct from fixed assets. This would include

items which are held for sale in the ordinary course of business or which are to be used in

the production of goods or services which will be for sale.

Retrieve from https://www.dissertations.mak.ac.ug/handle/20.500.12281/6332?show=full

2.1.3 Local Related Literature

Analysis and Design of Sales and Inventory Management System for Yochang

General Merchandise

According to Dianne S. Acosta et al. (Jul 2020), Traditional spread sheets are

used by retailers to keep track of their sales and inventory, but they are no longer

practical when the size of the store grows larger. This is because more things will be

available in larger quantities, making it difficult and time consuming for the merchant to

track sales based on inventory levels in the store. Furthermore, the problem deteriorates

when the shop lacks a reliable way for determining the things purchased by their

customers. Retrieve from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3643181

Equipment Inventory Management System (EIMS)

According to Belen Tapado (2016), Inventory management is no longer relegated

to the manual method. Computerizing operations in today's companies is already a need

for all businesses. The utilization of information technology goods and applications is

highly desired in the Philippines.

In today's business world, even small enterprises have grown to rely on software

solutions in addition to hardware technology. Every modern company today promotes the

concept of automating all procedures. It needs individuals that could execute with the

least amount of resources spent; he can complete his tasks quickly, accurately, and

effectively. Managing and controlling inventory, according to business experts, is a key

component of doing business and may be the foundation for a company's superiority over

its competitors. Retrieve from https://ijhss.net/index.php/ijhss/article/view/176

Inventory System with Analytics for Managing Multiple Retail Kiosks

 According to Adriel S. Arevalo (May 2016), misplaced tally sheets, delayed

stock-related decisions, and inaccurate inventory reports are all difficulties caused by a

paper-based system of counting sales. One of the benefits provided by an inventory

system is automatic accumulation of daily sales. Large volumes of data can be readily

handled and processed to provide reports when the inventory management system is

computerized. Customers reported faster order processing, better stock monitoring and

management, accurate and automated ordering, a wider range of items, and faster product

introduction. Retrieve from https://www.semanticscholar.org/paper/Inventory-System-

With-Analytics-For-Managing-Retail-Arevalo/

2cb1612fed47a2dc1c1c83705edfbe39f55ebe5d

Development and Implementation of Point of Sale System (POS): Profitability

Measurement for Retail Business

According to Geraldine B. Mangmang (2018), today's retail businesses use point-of-sale

(POS) systems to manage their daily sales and inventory. It is essential to incorporate

technological advancements into company innovation support. With POS incorporated

into the operation, managers may do better business evaluations. A point-of-sale system

can effectively manage and monitor a company's sales and inventory. It is an information

technology system enchanting the usage of a supervision console, vital point, and

software organization on the point of sale system. Retrieve from

https://ijterm.org/index.php/jehrd/article/view/97
Inventory Management Tools for Local Micro Businesses

According to Jeremiah Cordial (2020), inventory management is an integral part

of a supply chain's operational management. It is mostly used to manage a company's

inventory in a systematic manner in order to lower the expense of storing one. While

inventory management is mostly used in large enterprises due to its flexibility in the flow

of items, it may also assist small businesses. Inventory management's key aims are to

ensure smooth order fulfilment, eliminate losses due to theft, wastage, and other factors,

determine whether to scale or downsize production of items, clear out slow-moving

goods, and study product sales patterns. Retrieve from

https://d1wqtxts1xzle7.cloudfront.net/69365345/Inventory_Management_Tools_for_Loc

al_Micro_Businesses_by_Jeremiah_Cordial_BSBAOM3-with-cover-page

2.1.4 Foreign Related Literature

A Study on Relationship between Inventory Management and Company

Performances: A Case Study of Textile Chain Store

According to yed Jamal Abdul Nasir bin Syed Mohamad et al. (July 2016), the

goal of inventory, however, remains the same: goods must always be ready to use and

inventory costs must be low.

Whether the inventory is raw materials, semi-finished materials, or finished

goods, inventory management refers to all of the processes involved in generating and
controlling inventory levels. Adequate supplies must always be available. And the form

must ensure that the expense of over or under stocking is kept to a minimum. Inventory

management's function is to maintain a desired stock level for each individual product or

item, and inventory planning and control systems must be based on the product,

customer, and process for each product in the inventory. Retrieve from

https://www.joams.com/index.php?m=content&c=index&a=show&catid=53&id=279

Inventory management efficiency analysis: A case study of an SME company

According to S S Islam et al (2019), Finished goods are one of the most important

things for trading companies to meet customer demand and thus to increase customer

satisfaction. They must be managed efficiently and effectively. Inventory management is

a crucial aspect of manufacturing and purchasing. Failure to properly manage inventory

will almost certainly result in production delays, dissatisfied customers, or a reduction in

working capital. As a result, excellent inventory management is required to keep material

prices low. In order to boost inventory cost efficiency, companies must apply stronger

internal control, such as defining policy, strengthening staff capacity, preparing planning,

and so on. Retrieve from https://iopscience.iop.org/article/10.1088/1742-

6596/1402/2/022040/pdf

A Review of Inventory Management System

According to Varalakshmi G S et al. (2021), all businesses that deal with

inventory need and value inventory management system software. It is in charge of stock
movement. In and out, keeps track of inventory levels for all goods and stock, gives

businesses access to sales data and analytics, and assists businesses in determining

particular safety stock requirements. Inventory management that is smart and successful

has a number of advantages. A company's inventory management strategy may have a

significant influence on its overall success. Retrieve from https://ijarcce.com/wp-

content/uploads/2021/07/IJARCCE.2021.10689.pdf

Inventory Management and Organisational Efficiency

According to Chan (2017), “factors influencing the effectiveness of inventory

management in manufacturing SMEs in order to identify the constraints confronting

manufacturing SMEs in inventory control as well as also to identify the factors that will

help stakeholders to enhance inventory management. The design was a survey with a

sample of 80 employees randomly selected from the manufacturing SMEs in Batu Pahat.

The results revealed that the major constraints to inventory management in

manufacturing organizations were underproduction, overproduction, stock-out situation,

delays in the delivery of raw materials and discrepancy of records. Furthermore, the

factors that were found to have significant influence on the effectiveness of inventory

control are knowledge of employees/staff skill, documentation/store records and

planning. Retrieve from https://eprints.lmu.edu.ng/2302/1/jssr5%283%29756-763.pdf

Inventory Management Methods: A Review

 According to Krishan lal Pruthi (Dec. 2017), inventory is classified as an asset

and is represented on a company's balance sheet as such. A physical inventory count to

identify the amounts on hand or a continuous inventory system that makes an accurate

record of each inventory-related activity is both required to develop an accurate balance

sheet value. An inventory management system can assist in ensuring that the correct

amount of product is in the right location at the right time. Inventory must be insured, and

if it isn't sold in a timely manner, it may be forced to be sold at clearance prices or just

destroyed. For these reasons, inventory management is essential for companies of all

sizes. Knowing when to refill inventory, what quantities to buy or produce, what price to

pay as well as when and at what price to sell—can be difficult decision-making process.

Retrieve from https://irtjournal.com/uploads/2017%20v3i10/32.v3i10.pdf

Definition of terms

The definition of terms is operationally and technically defined based on the context of

the study.

Conceptual framework - a written or visual representation of an expected relationship

between variables

Hardware - Component devices which are typically installed into or peripheral to a

computer case to create a personal computer upon which system software is installed

including a firmware interface such as a BIOS and an operating system which supports

application software that performs the operator's desired function

Inventory - A list compiled for some formal purpose, such as the details of an estate

going to probate or the contents of a house let furnished.

Software - A conceptual entity which is a set of computer programs, procedures, and

associated documentation concerned with the operation of a data processing system.

XAMPP - free and open-source cross-platform web server solution stack package
developed by Apache Friends, consisting mainly of the Apache HTTP Server, MariaDB
database, and interpreters for scripts written in the PHP and Perl programming languages.

Visual Studio - used to develop computer programs, as well as websites, web apps, web
services and mobile apps.

PhpMyAdmin(MySQL) - an open-source relational database management system. Its

name is a combination of “My”, the name of co-founders Michael Widenius's daughter,
and "SQL", the abbreviation for Structured Query Language.
Windows - a group of several proprietary graphical operating system families, all of

which are developed and marketed by Microsoft. Each family caters to a certain sector of

the computing industry.

Point of Sale – is the time and place where a retail transaction is completed. At the point

of sale, the merchant calculates the amount owed by the customer, indicates that amount,

may prepare an invoice for the customer, and indicates the options for the customer to

make payment.