Chapter 1

Introduction
1.1 Introduction

Now a days information and communication technologies play a great role in different
fields or areas among health care system belong to this. In order to exploit the ICT in
health care system Online Medical Inventory System is being build. This project is used
mainly for medical stores to maintain the details of medical store such as online delivery
of medicines and stock management. This system is designed to improve accuracy and
to enhance safety and efficiency in the pharmaceutical store as well as removing time
wasting, saving resources, easy data access of medicines, security on data input and
data access by removing almost manual based system. This will enhance the efficiency
of pharmacy work. This online medical inventory system is so designed as to ease the
work load of medical shop professionals. The main feature includes medicine delivery,
inventory and stock management, customer management. This system helps you to track
all the products of medical shop moreover flexible and adaptive system suited to medical
shops or stores or pharmacies of any size. The main goal of the system is to maintain the
records of purchase, sales and stock details with cash transaction maintenance.

User and employee must be login or register itself to use this web application. User can
only see the products price and available products. Customer sign up and upload original
prescription or according to the medicine name, brand with the sport of the web base
application. The employee readies your medicines and delivered order. User can review
order and reorder. The system also perform quick search for their products. The system
can print bills and receipts etc. It can also maintain the record of supplies sent in by the
supplier. This application is very needy for medical store. This application help them to
maintain day to day transaction in computer.

1.2 Project Background/Overview

Everyone in this world, somewhere in the world and in time one has to face some kind of
disease or injuries. The disease to cure we need some doctor to concern. As we go to
the doctor he analyzes the problem with us and tell us the reason of problem and
prescribe us some sort of medicines.
These medicines are available in medical stores. One needs a prescription to the store
which the staff takes care and use that to see which medicines they need according to
the name given to the medicine.
Firstly user visit medical store for buying medicines. Sometime the desired medicines are
not available in medical store. So this procedure is time consuming and the way of access
to medical store in existing manual system is not well. Especially for those peoples who
do not know which place where they stand. This system provide the facility to order and
deliver medicines according to the prescription that uploaded by the customer.
An inventory system is a process whereby a business keeps track of the goods and
material it has available. In its simplest sense it can be done manually by a count at the
end of each day. In this way it is possible to keep a record of the goods coming in to the
business and goods being sold.
Since manual inventory consumes a lot of time and is prone to errors, it would be helpful
to build a system that will computerize the transactions from acquisition of the product
description to updating the inventory database. The computerized inventory system will
improve employees’ work efficiency by computerizing routinely and time consuming tasks
such as the time spent in taking down product information. As a result, the time can be
used in more productive activities.
Online medical store, as described above, can lead to error free, secure, reliable and fast
management system. It can assist the user to concentrate on their other activities rather
to concentrate on the record keeping. Thus it will help the pharmacy in better utilization
of resources. The pharmacy can maintain computerized records without redundant
entries.
Now, this becomes a bit tedious to locate the particular medicine. Now here come up with
such a system which capable of recording that from where the medicines need to take
out according to the name, brand, price in the racks, which are marked with the no. of
them. Here the system helps the staff to manage the medicines in the racks and also
useful in reinstalling the stock in the racks and easy to find.

The existing manual system difficult to store the information, work is laborious and more
man power is needed for every sort work.
1.3 Problem Description

Those problems faced by the to-be medical inventory system are:

Firstly selecting the suitable medicines for the type of illness is usually take time and
makes the customer waiting. Therefore, the tie is waste for the customer to be waiting.
Secondly, for the medicines stock management the pharmacist must check it manually
and no warning message for the medicine that decrease to finish. So medical inventory
system management provide the advantage to setup the process in selecting and alert
program to warn about the medicine stock.

Pharmacy management has kept paper record in filing cabinets. Managing a very large
pharmacy with records on papers will be tedious and difficult to keep track of inventories
with regards to the medicine in the store and quantity of the medicines available based
on the categories and their functions.

To identify the product that is reaching to recorder level, pharmacy employee needs to
check stocks. Since there are many products in the stock, it may cost a lot time for the
user to look through one by one.

Inaccurate inventory report due to human error such as mistake in checking stock,
mistake in changing product and so on. So they are unable to obtain accurate figure and
the repetitive work will occur.

Sales transaction is using manual ways has cause time consuming.

1.4 Project Objectives

The objectives to develop medical inventory system are:

 The main objective of the project on Online Medical inventory system is to manage
the details of customer, Medicine, Medicines Stock and order. It manages all the
information about customer, payment, order and medical stock.
  To computerized the manual task in term of pharmacy stock inventory.

 To develop

 To provide the searching facilities based on various factors. Such as customer,

medicines, medicines stocks and order

 Online Medical Inventory System also manage the payment details online for
medicine stock details, order details and customer

 To increase the efficiency to managing the customer and stock

 To help manage the re-order activities

 To provide a better security for medical inventory system by develop a system with
different level of authorization

1.5 Project Scope

Chapter 2
Literature Review
2.1 Article Review

Literature review is a systematic method of identifying, evaluating and interpreting the

work (similar to yours) produced by others. This chapter includes the ideas, finished
thesis, generalization or conclusions, methodologies and others. Those that were
included in thus chapter helps in familiarizing information that are relevant and similar to
the present study. The main topic that use to review the literature is Online Medical
Inventory System based Web Application.

2.1.1 Sales & Inventory Monitoring Systems

(By Audra Bianca, Demand Media)

Data Collection for Decision-Making

Using this type of system, a company 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.
Function
A sales and inventory monitoring system collects data to aid in production scheduling.
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 Japan, but the system must
see if the warehouse in Canada has a product available to ship to Japan.
How it Works
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.
Competitive Advantage
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 world.

2.1.2 SALES MONITORING SYSTEM

(By Celkon Mobiles)
Celkon is one of leading manufacturing companies in India. We have pioneered mobile
phone solutions and wireless technologies in India. Celkon caters to the increasing smart
needs of mobile users across the world.
Our forte lies in providing innovative mobile technology to every customer. At Celkon, we
believe every user needs an experience more personalized than ever. We are dedicated
towards manufacturing customized user friendly phones. Our value added features
ensure the personality of the phone matches the taste of the user.
The wide range of products available at Celkon ensures that there is a phone for every
pocket. Every Celkon product undergoes stringent quality tests at every stage of
production.
Our main focus is to excel and provide the user with best designs paired with unmatched
technology.

2.1.3 Monitoring Sales for Accountability

(By Sales Creator)
Measuring Sales Performance
Most companies have the problem of measuring the performance of their sales staff
because each salesperson is different and they work in varied methods. Because a sale
involves customers, there are other factors impacting sales, as well. Customers and their
needs are different, business conditions vary, individual customer bases differ and the
product mix offered to each customer can vary. What are the important components to
track to determine sales success? The factors can be tangible and intangible. When
examining the tangible side of the sales ledger you need to consider methods for
targeting, frequency of contact, message and presentation, and communications. Some
intangible factors that can be difficult to quantify are the salesperson's ability to build
relationships and "connect" with customers, and whether or not there is a clear purpose
of the call or meeting. The reason for contact can be to help the customer, or sometimes
it is to help the salesperson's quota.
Effective results from measuring the performance of each salesperson should have a
purpose: to help them be more profitable to your company. When this occurs they have
more worth through additional pay and incentives, and they receive a value, and that is a
good feeling about doing a great job. There are three steps in bringing about the
improvement of an employee when a problem is identified: measuring, correcting with
training, and planning to make the change permanent.
Measuring the Performance
The ability to measure performance depends on the use of success-based criteria as a
model to compare daily, weekly and monthly numbers. Here are some of the criteria that
Sales Creators uses when designing a monitoring system for their customers:

1. Time spent selling, time spent in administration, time prospecting

2. Number of calls made on existing accounts
3. Number of calls made to new customers, and number of new customers
4. Promptness in submitting reports and sales orders and accuracy of reports
5. Volume of sales, number, size, product mix and repeat account
6. Accuracy in quoting prices and delivery information with approved margins to customer
7. Method of call backs set up with the customer
8. Cost of customer to company
9. Marketing and promotional time, specific areas
10. Improvement areas where time is being invested on the part of the salesperson and
management; this includes topics such as behavior modification, appearance, schooling
and other personal issues

Measuring must start with standards that are compiled from the averages of all employees
who are doing the same task. Then review the progress for the last 12 months and
determine how it compares to the budget compliance standards. If the performance levels
do not meet the basic standards set by the company, or if their performance falls more
than 10 percent from last year's numbers then it is time to move into a corrective step of
action.
Training and Process for Correction
This is a positive step for improvement and it starts with management reevaluating the
sales and marketing systems. Is there a need to increase promotional campaigns, change
or add prospecting methods, establish tighter controls with price variances, or get input
to problems from the sales staff? Management's first duty means time spent working on
fixing the systems; then it is time to provide help for the salesperson. They should have
daily direction and support, be provided with proper coaching by role-playing on specific
areas of weakness found in the 'measuring performance' section. Make mentoring time
available with best salesperson and the salesperson that needs help and have them
observe and listen to their instructor. Daily progress must be recognized and
acknowledged until the problem is resolved by noticeable improvement in a given area.
Planning for a Positive Change
Once a problem has been found, management must help get it corrected. Once it has
been corrected it is time to outline an agreement to reach the stated goals. Planning in its
final form should be in writing with the steps needed to reach the final destination. Then
the time must be allotted to put management's system changes into effect by introducing
them to the employees at a meeting.
2.1.4 Inventory Ordering System
(By Globe Business Philippines)
With just a few keystrokes, track your supplies using Globe’s Inventory Ordering System.
The cost-effective and highly innovative inventory management system gives you instant
access to stock levels, allowing for timely orders and zero wastage.

Get real-time reports

What the inventory system does is allow you to order supplies based on the most current
data. This minimizes overstocking and at the same time, frees up resources for more
urgent needs.

Cut through red tape

The Inventory Ordering System gives you better control over your supply chain, affording
you the convenience of being able to place orders online or via SMS. And because the
system automatically generates inventory and sales reports, your employees will have
less paperwork to file and more time to focus on operations.

Perfect for businesses with franchise operations, this user-friendly inventory management
system can be customized for any multi-site company, commissary, or warehouse
backend ordering operation.

Features & Benefits

 Registration Module
 Order Management
 Inventory Management
 Sales Management
 Reports Module
 Text Broadcast

2.1.5 Online Sales Monitoring and Inventory System

(Jan 2011)

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.

KONEK.COM management once said, “Manual method is very hassle and time
consuming process of inventory. It has many drawbacks as there are many mistakes
while recording large data and it disturb some important transaction sometimes”.
Upon hearing this, the researchers developed a system which will help the management
keep record of inventories in systematic way and help them produce report about the
inventory or stock currently available in their store in automatic way. Through this the
hassle and committing mistakes while recording large data could be avoided. Also the
work of the management and the time consume during inventory will be minimize.

KONEK.COM is a hardware store located at Mabini St., Molave Zamboanga del sur. It
was owned and managed by Mr. & Mrs. Roy Megapatan. They started at a very small
scale business selling cell phone accessories. But because of the company’s dedication
for hard work and determination to rise among others, the very small hardware store
becomes one of those who are trusted when it comes to supplying electronic devices
such as computers, computer accessories, cell phones, cell phone accessories, flash
drives and etc. in its community.

Today KONEK.COM, having three branches with in the municipality, boasts its tag as one
of its community’s leading hardware store.

2.1.6 Sales and Inventory System

(By eahm05, Jan 2013)

Computerize sales and inventory system

Computers began from a wild imaginative idea to the world’s highly prioritized tool.
Computers today are now used as a substitute to manual processes and other past
inventions like the radio, television, etc. It is now used by people for much simpler, easier
and faster way to do things. Some used it as a hobby, and some use it as a job.
Technology has never stopped from advancing through the years. Its new innovations
helps answer the people’s further complex questions. Why not use these advantages to
benefit ourselves?
Many people use computers in their daily lives. Some use it for transactions, some use it
for educational purposes and others use it for data storage. Though it might sound
unnecessary but in some cases when storing a file for such a big company, can you
manage it properly? Organizing, finding a file, etc. With computers, it can help you simplify
the process of storing and managing the files you need for future use and make finding
files easier than the manual process.

A Proposed Sales and Inventory System

In business like merchandising, Sales and Inventory system plays an important role. It is
used to track all the transactions made by the business and responsible for monitoring
the items supplies. All the business transactions must be properly recorded and must be
fully secured by password. A Computerized system is the best solution and most
innovative answer for their needs.
The researchers had been motivated to do a study on this topic according to the above
observation. The result may help others to understand more about computer-generated
data processing, especially on how to deal with computers in terms of speed, accuracy
and data security. Monitoring the transactions and other significant information regarding
the customer is the main concern of this study.

2.1.7 Thailand Implementations Inventory System

ARTICLE EXCERP
This survey-based research identifies the different inventory models in use by
multinationals operating in Thailand. Unlike many of the newly industrialized countries,
Thailand has received relatively less attention in the international operations management
literature. This article highlights key factors affecting the type of inventory systems
implemented in Thailand, which can be of value to developing countries making the
transition into newly industrialized ones. This study shows that inventory systems in
Thailand are affected by the type of production, location of the multinationals'
headquarters, demands, supply base, and the extent to which materials were either
exported or imported.

INTRODUCTION
Like any other country, Thailand is characterized by a unique set of infrastructural,
regulatory, legal, and economic conditions. Cheap labor coupled with a relatively stable
economic and political climate has attracted Multinational Corporations (MNCs) to
Thailand. As multinationals invest billions of dollars into Thai operations, it is essential
that they design and manage systems that are congruent with the local needs. One key
operational area of interest is the management of inventories.

Inventory systems can be affected by a host of international, product, and supply factors.
In this research we attempt to empirically ascertain how inventory systems are influenced
by industry type and look for interactions with cultural, infrastructural and economic
issues. This research is expected to be of value to MNC managers in designing inventory
systems that work more effectively in Thailand. In addition, it could also provide direction
to nations making the transition to Newly Industrial Countries (NIC) status from that of
developing one.
A significant amount of literature is available on inventory systems. A majority of the
findings are derived from experiences in the US, Japan and Western Europe. Some
inventory systems however, can be affected by variations in local conditions such as
infrastructure, customs, duties, and regulations. Hence, it is essential to view such
systems in an international context. To frame this research, we will examine the literature
on operations in NIC countries followed by an analysis of local conditions in Thailand.
A number of articles are available that examine the inventory setups in Singapore, Hong
Kong, and Korea (Amsden, 1989). For example, Cheng (1988) and Hum and Ng (1995)
examine the workings of Just In Time (JIT) systems in Hong Kong and Singapore,
respectively. Other studies related to inventory management include facility location
decisions (Sisodia, 1992; Nambiar, fielders, and Van Wassenhove, L. N, 1989; Mathews,
1997) and distributed systems. These studies indicate that Thailand is not as
industrialized as the other NIC countries such as Singapore, and infrastructure
shortcomings play an important role. Next, we will examine the literature on the quality of
infrastructure in Thailand.

Infrastructure affects both the productivity and effectiveness of manufacturing companies.

It has a direct impact on the distribution of raw materials, parts, and finished goods to
customers. The few studies focused on Thailand have primarily addressed infrastructural
problems in Thailand (Chalamwong, Chalongphob and Wattanalee, 1994; Chalamwong,
1993). In identifying the infrastructure-related problems, Yukio (1990) calls for the Thai
government to pay closer attention to transportation systems in their effort to attract more
Japanese and foreign investment. Sibunruang (1986) also points to infrastructural
constraints having a bearing on the development of the Thai economy.

The present government, however, does realizes the importance of infrastructure for the
country's overall economy. In its efforts to improve infrastructure, the Thai government
has privatized telecommunication service and has started seeking help from private local
and foreign companies to cope with the road shortage.

2.1.8 Sales and Inventory System

(By jamjam123456, Mar 2011)

According to the U.S. Small Business Administration, “Inventory refers to stocks of

anything necessary to do business” (U.S. Small Business Administration, 2010). The
U.S. Small Business Administration publication describes what constitutes successful
inventory management (balancing cost versus benefits of inventory), including;

1) Maintaining a wide assortment without spreading the rapidly moving items too thin,
2) Increasing inventory turnover without sacrificing service,
3) Keeping stock low without sacrificing performance,
4) Obtaining lower prices by making volume purchases,
5) Maintaining an adequate inventory without an excess of obsolete items.

Anyone in business must understand the business of inventory. Below is a look at six
different inventory systems as well as a comparison of the advantages and
disadvantages.
Wal-Mart Inventory System
Wal-Mart runs its stores on a perpetual inventory system. This system records the
quantity of items sold as items are purchased. The computer system at Wal-Mart
constantly keeps up with additions or deductions from inventory and tells management
what items are on hand. The organization also conducts counts of employee manual
counts of inventory periodically. When an item arrives at the Wal-Mart distribution centre
it is scanned into the inventory system. When the items are purchased by the consumer,
the point-of-sale system reduces the inventory from that purchase. According to Wal-
Mart’s Gail Lavielle, a leaner inventory will help clear out store clutter and help Wal-Mart
focus on specific brands and products that consumers want (The Associated Press,
2006).

Advantages and Disadvantages of the Wal-Mart Inventory System

The advantages of a perpetual inventory system are that inventory is quickly updated in
real-time, which gives a constant picture of the inventory status.

2.1.9 LC Pc Net Sales and Inventory System

(AMA COMPUTER COLLEGE, LUCENA CAMPUS
October 2010)

Technology has taken a big leap forward in 21st century, with computer programs,
electronics upgrading by the month & even by the day. Technology has influenced&
greatly simplified almost in every aspect of a student’s life today. It is amazing what
technology has done to our society and how dependent we have become on it. Having
computers in the workplace has enable the business to our more efficiently and
has contributed in having on all around better businesses, using computers cut down
our work time, we don’t have to write everything out by hands or type out on typewriters.
This increase in usage of computer proves that computers have affected every aspect
of our lives and have become one of the necessities. Many developers have contributed
to such an advancement and widespread of computer technology.

Nowadays there are so many companies using technical system to improve the quality
of service of their company, but there are some companies still using manual
computing for their product inventory like LC Pc Net Sales & Services.

LC Pc Net Sales & Services is owned by Mr. Leo Boongaling. It is established on April
2010. It is the first company that he built in order to apply his knowledge and skills in his
past schooling, together with his friends as employee. And it is located at 2nd floor
L. Boongaling Commercial Complex # 2 Rizal Street Poblacion Candelaria, Quezon.
Their products are such peripherals. And in the ground floor they have Louis and Nathalie
Computer Shop.

2.1.10 Computerized Sales and Inventory System for Anthony's General

Merchandise and Construction Supply
(By kentwatak, Jan 2013)

Many people use computers in their daily lives. Some use it for transactions, some use it
for educational purposes and others use it for data storage. Though it might sound
unnecessary but in some cases when storing a file for such a big company, can you
manage it properly? Organizing, finding a file, etc. With computers, it can help you
simplify the process of storing and managing the files you need for future use and
make finding files easier than the manual process. Computerized Sales and Inventory
System is a product of human knowledge with a use of technology so why not use
technology as an advantage and benefit ourselves. This proposed system aims to
lighten works and solve the problems involving strict and complex recording and
calculations.

Anthony’s General Merchandise & Construction Supply is still under the manual method
since the business started back in April 2000. The business is located first at Riverside
then they transferred to Road BHS near Quezon City Polytechnic University. It is a
family owned business by Mrs. Herminia Baguino. They have 1 cashier, 3 sales persons,
2 drivers, 4 delivery men, 1 staff that is in charge of the warehouse. The cashier is the
person who keeps the money in their money box, the sales person are those who
talks to the customers and responsible in providing the customers’ needs. The driver
and delivery men are those workers who are responsible for the delivery of the items to
the customers.

2.1.11 Sales and Inventory System for BC Home Furnishing and App liance
Center
(By FLORDAYUHA, Mar 2013)

Sales and inventory system is very important in business transactions and to that
businessperson who don’t want to be bankrupt and loss profits. That’s why several
studies were conducted to develop more reliable system and to help businessperson
in doing their b business transaction and process easier and faster providing the
business more convenience and satisfaction.

According to Balbiran, Geronimo, Porters, and Ruiz (2001) who develop an

automated sales and inventory system for San Miguel Corporation Tubigon office that
designing a system for involve careful planning and the system analyst must consider
some factors in order to have an application program that is compact, efficient and
could handle day-to-day transaction .The study was conducted in San Miguel
Corporation Tubigun Sales Office located at Pooc Oriental, Tubigon Bohol. The
researchers choose the warehouse, cashier and the sales territory sales super visor
as their respondents. An interview to the owner and other personnel and observation
of the flow of the present sales and inventory system were conducted to gather
information and system requirements. Based on the data gathered, the researchers
find out that San Miguel Corporation Tubigun Sales Office will be benefited if their
sales and inventory system will be automated. According to them the system
enables to lessen workloads in retreivency the records and also there will be no need
to have another process to undergo. They concluded that using the manual method
in sales and inventory caused the delay of distribution of reports and error in calculating
customer’s credit.

An Automated Sales and inventory system for factory Depot incorporation was
developed by Sumsylo, Dolotina and Saligumba (2001).according to them the
emphasis of the system design is to develop a new system that overcomes the
short coming and limitations of the existing system. The study was conducted at
Rednavela Trading Factory Depot. Incorporation Tagbilaran Branch.

2.1.12 Automating the purchasing and inventory control functions.

(US PubMed.gov)

Factors involved in computerizing the purchasing and inventory control functions in

hospital pharmacies are described. When initiating an automated purchasing and
inventory control system, a feasibility study should first be conducted to determine the
extent of automation needed to develop a cost-effective system. The design of the system
will depend on the extent to which the department of materials management is involved
with other hospital departments. The advantages and disadvantages of decentralized
versus centralized systems are discussed, and criteria for selecting hardware and
software vendors are presented. A return-on-investment analysis should be performed to
validate the benefits or savings expected from implementing the new automated system.
Factors to consider during implementation of the new system and future developments
affecting purchasing and inventory control systems, such as bar coding, are discussed.
With the current concern about rapidly rising health-care costs and the need to enhance
productivity, the development and implementation of automated purchasing and inventory
control systems are important strategies for institutions to pursue now.

2.1.13 Purchase Order Management

(By CISS (Computer Inventory System Specialists Ltd.))
Inventory Pro's Purchasing System allows you to order, track, and receive both inventory
items and assets. It also provides the ability to browse purchase orders, list currently
outstanding purchase orders, and generate reports based on purchase orders. Like most
parts of Inventory Pro, the Purchasing System can be customized with logos, messages,
fields, and terms to adapt it to your specific business.
 Purchase Assets or Inventory Items
 Purchase Order Approvals
 Delivery Schedule (Blanket PO's)
 Inbound Appointment Scheduling
 Supplier's Catalogue
 Supplier History
 Term Agreement (Supplier Contracts)
 Automatic Generation of Purchase Orders
 Accounting Software Integration
 Cost History of Purchased Items
 Receiving (Partials and Complete Orders)
 Reporting