CHAPTER I

THE PROBLEM AND ITS BACKGROUND

This chapter discusses the history of the business and the problems they

encountered in their existing system. This served as a guide of the proponents to build

their idea on how to create the new system.

Introduction

Nowadays technology becomes more progressive so fast because modernization

strikes so wild. Improvement of machines, tools and software become their way to make

the process easier and faster. In this manner, it allows to help human task become

lighter. Various people are now using high-tech machineries like computer as it gives

pleasure. Today, computer gives us educational information to learn the things we want

to know instantly with a click. It can also be used to fulfill both human’s need and desire.

All businesses count on inventory systems to be able to run their business. Thus,

sales and inventory system make the difference of today by creating and implementing

new innovations with decision support system. Eliminating error and avoiding hassle will

be counted as part. People get to be aware about changes and it became advantage for

them to grow and be productive in many ways. In this routine, people gain knowledge

and learn things that is totally benefits them.

Background of the Study

Mercado’s Marketing started its operation on October 10, 1999. The owner of

Mercado’s Marketing is Gloria T. Mercado. They first establish the store at Cabiao,

Nueva Ecija. They begin with small amount of capital and they only have limited
products. Meanwhile, the business catches the attention of several customers and they

build a good relationship with their customers. Eventually, they become well known

business in Cabiao and it became profitable and they decided to expand their business

and put up a new store at Bucana, Gapan City. The new branch at Gapan became

familiar with customers and because many customers patronize their products, they

made their store bigger. In the long run of the business they come to a decision to

transfer the main branch at Gapan. Now, the extension branch is at Cabiao. At the time

the business expands they also hired additonal employees to satisfy the services to

customers.

Mercado’s Marketing use manual process in recording data. They record

available stocks and sold products in different log book. They also use index cards to

list incoming and out coming products and they do it manually. Using the manual

process, the stocks are hard to monitor. The data is also unsecured and tracking of

records is slow and difficult.

Every day, they count and manage the purchased and update the number of

remaining products. At the end of the month they check and tally the purchased

products and stocks and this will be their monthly inventory. This routine is time wasting

as it demands to consume time in useless and unproductive way that give an inaccurate

output. This make the owner and employees work hard to check and make sure that

they will come up with accurate results. Thus, realizing that the business process is

inconvenient because they cannot do other works.

 However, with the proposed system for Mercado’s Marketing, collecting and

keeping the inventory will always be updated and can also generate report easily. This

system will help the owner to make the business operations become faster and efficient.

It will also help the owner in terms of decision making based on their sales.

Objectives of the Study

This study aims to develop decision support system for Mercado’s Marketing.

This will help the company to manage their inventory process and sales transactions.

This will also help sales and inventory process be organized.

Specifically, this study aims to:

1. Develop a system that will help the owner to know the current standing of the

business and also to know the status of their sales.

2. Design a user-friendly system.

3. Increased the performance and services for daily transactions of the business.

The system will make this faster, efficient, accurate and reliable.

4. Generate reports of their daily and monthly transactions that can be used for

decision making.

5. Implement the security of confidential information.

6. Monitor and manage the incoming and out coming products.

Scope and Delimitation

 This study is focused on the development of “Mercado’s Marketing Decision

Support System”. This system is exclusively made to be used by the owner; cashier

and inventory clerk of Mercado’s Marketing for easy transactions and reliable results of

business process. The daily operations of the business will be recorded like sales and

inventory. It will manage the flow of business to make it organized.

Sales and Inventory will record the products and stocks that will be use for their

business. It will also record the customers’ and suppliers’ profile. The system will also

record the sold products. The system has the ability to record all the orders of

customers and suppliers and it can also cancel the orders if the customer wants to. It

can also record all the incoming products from suppliers and delivery to customers.

And has the capability to generate reports like list of products, customers, suppliers and

daily and monthly sales of the business. It also has different access for different level of

users for of records because only authorized persons are allowed to use the system. It

also has alert for critical stocks and deliveries.

Before a customer can buy a product the user must first record the customer’s

information on customer’s form so that it will appear on the list where the user can

select the customer’s name. If the user fails to do it first he cannot select the name of

that customer.

The user cannot order a product to suppliers if he does not record the product

first in the product file. The user is required to add the product first so that it will appear

on the product’s list where he can select that specific product. Same with the ordering

and purchasing of customers, the user must first do the same process for the products
to appear on the list. The customer cannot order and purchase that product if it is not

shown in the list.

The system can only generate daily and monthly reports; it cannot generate

yearly sales report of the business.

Significance of the Study

The significance of the study enumerates the influence or good effect of the

proposed system on each beneficiary.

The Company. The proposed system will help the company in achieving an effective,

efficient and organized way of managing their inventory. It will help them to save time

and effort in retrieving and modifying their data. The system will also help them in faster

and accurate computations of their stocks.

The Owner. The proposed system will make business owners realized that

computerized system will make their business operations easier, faster and more

accurate. It will also make them realized that investing in a computerized system is

worth it because it will make their transactions efficient and effective which will give

them a good results that will a be a great help in their business.

The Inventory Clerk. The proposed system will help the inventory clerk to record

incoming and out coming stocks in faster way. It will also help in accurate computations

of sales and stocks.

The Cashier. The proposed system will help the cashier to make the transactions

faster for the convenience of customers avoiding the customers to wait for a long time.
This will make the customers satisfied with the business process and service of the

cashier.

Students. The study will help the Students to apply and expand their knowledge

because they use their own potential and ability in creating their own system. This study

will also help the students to have an idea on how to start or initialize their study. This

can serve as their reference.

Instructors. The proposed system will help the instructor to use this as a pattern in

teaching and explaining to their students on how to conduct their study. It will also help

them evaluate the performances of their students.