Ordering System Chapter 1

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Chapter I
BACKGROUND OF THE STUDY
I. Introduction
In the 21st century, technology has become ever more advanced and systematized with computers and electronics continuously evolving day by day and adapting in today’s constantly changing digital world. Technology together with Information Systems has simplified almost every aspect of a person’s life today and each and every one of us has become dependent on it. Information Systems has been made open to meet the demands of the modern society. Now, almost everything can be bought over the Internet and access to information is just a mouse click away. The comforts and convenience that Information Systems have brought to our daily lives is just irreplaceable and it is no wonder that even in the commercial and business world, Information Systems has made a positive impact in business operations and has been widely used and recognized used in many industries. Compared to manual paper-based systems, Information Systems provide the benefits of accurate and consistent records, ease of use and better security in terms of keeping confidential records. With these in mind, the proponents of the Ordering and Inventory System with Delivery Records Monitoring System had come up with a decision to automate the current manual, paper-based system done in RAI Office Furniture and Marketing Corporation. II. Background of the Study

RAI Office Furniture and Marketing Corporation is owned and managed by Noli Armando, a subsidiary of L. Designs Industries Incorporated. Originating from a small business enterprise in 1975, its early years were much fueled by pure determination and commitment. Its proprietors envisioned RAI Office Furniture and Marketing Corporation to be one of the top manufacturers of office systems furniture. After many years in the industry, the fast growth of the business was abundant and steadfast with its clientele expanding to prominent businesses in the Philippines. Still, the business was not free of problems that are encountered in its day-to-day operation. Lost records and documents are of the main difficulties to the business along with tampered and unauthorized altering of records which renders several company records pertaining to business transactions and product deliveries inaccurate and unreliable. In turn, these problems cause record keeping and tracking exceedingly tedious and time-consuming as one has to manually search over stacks of paper documents or file drawers to locate the much needed information. Presently, the business process of the client is centered in a manual, paper-based system wherein all documents concerning business transactions are filed and categorized in numerous paper documents. The process begins when a customer applies for a product Quotation stating the quantity and nature of the products he intends to purchase from the business. The customer’s Quotation is processed in the Accounting department where it issues a Purchase Order and Sales Invoice after the down payment of Fifty percent (Twenty-five percent for regular customers) of the total cost of the Quotation is received. The Accounting department keeps a copy of the documents for cross-reference and the Purchase Order which contains the description of materials in each individual product and the product’s quantity is sent to the Architect for design and production. After the production process, the Purchase Order is forwarded to the office of Mr. Armando for delivery approval. The approved Purchase Order is finally sent to the Accounting department where it issues a Delivery Receipt and the Delivery Staff is then authorized to deliver the finished products to the customer. The customer authenticates the Delivery Receipt after receiving the products and he is afterwards issued a second Sales Invoice which states the necessary payment of the outstanding balance. Lastly, the receipts are reproduced in triplicates and the Supervisor, the Accounting department, and Mr....
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