BINUS UNIVERSITY INTERNATIONAL BINUS UNIVERSITY

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1 BINUS UNIVERSITY INTERNATIONAL BINUS UNIVERSITY Major Information Systems Sarjana Komputer Thesis Semester EVEN year 2008 INVENTORY MANAGEMENT AND ORDERING SYSTEM FOR MIDDLE-UP RESTAURANT INVENTORY CONTROL SYSTEM Christian Rosario Abstract Inventory, either it is a supporting inventory or the main inventory, is one of the most important factors in running a business. Without adequate inventories, the business cannot be run effectively. Moreover, for manufacturing corporations, which main business is producing products by assembling parts; inventories have the biggest role in producing the product. Without adequate inventory, a product cannot be made because the parts are not enough. Restaurant is known as a mini-scale of manufacturing corporations. If something affect to the inventories (e.g. ingredients), the product sales will also be affected. Therefore, restaurant must control the inventory input and output transaction tightly. For a middle-up and higher level restaurants, controlling the inventory manually will be quite a troublesome. It is because there are more varies of menu which also need more varies inventories. All of the inventories should then be controlled to ensure that they can support the menu when needed. The thesis then will study major problems experienced by a middle-up restaurant. H.E.M.A. is chosen to the deep research subject. In the end, the thesis will propose a computerised system which is predicted to be able to increase the effectiveness and efficiency in controlling the inventory. A trial testing of the proposed system will also be conducted to test the available features. Keywords Inventory, Control, Forecasting, Restaurant v

2 Acknowledgment The author wants to give the highest credits, To the dearest Lord, for never leaving the author s side and for His blessing by sending competent people to help the author, To Mr. Minaldi Loeis, for giving the opportunity to finish the thesis, To Mr. Andreas Kuswara, for his willingness to be a very motivating supervisor; for his commitment in helping the author by suggesting many bright ideas and guides the author to create a prospective thesis, To Mr. Romy, the manager of H.E.M.A., for his cooperative supports and comments during the data gathering, To Mr. Huibert Andi Wenas, for helping all the academic issues during the thesis writing process, To the author s family, the most precious treasure, for their endless support for the author, To Hendry Chayady, a very collaborative partner; for all of his supports and cooperation in thesis writing, To Ariandini Rudini, for her relieving help in finding the research subject; for helping the author in thesis editing and also for her ideas in determining the thesis theories, vi

3 To Mrs. Luki Wihandoyo and Mrs. Tara, for their encouraging support in statistic and forecasting topics, To Novianni Widjaja, for helping the author to understand the Entity Relationship Diagram theory, To Mr. Gitz, Mr. Wood, and Mr. Arif Khairiansyah for kindly and patiently helping the author in understanding Microsoft Visual C# 2005 and Microsoft SQL Server 2005 Express Edition, To all supporting lectures in BiNus International University, for sharing their knowledge and experiences which give a broader vision for the author, To all supporting friends, for their motivations during the thesis writing. vii

4 Table of Contents Acknowledgment... vi Table of Contents... viii List of Figures... xi List of Tables... xiii CHAPTER 1 INTRODUCTION Background Perceive problem Customer s Point of View Restaurateur s Point of View Scope and Proposed Approach Aim and Benefit Structure... 5 CHAPTER 2 THEORETICAL FOUNDATION Theoretical Foundation Inventory Definition Independent and dependent Demand Forecasting Theoretical Framework Database Definition Database Management System System Development Life Cycle Entity Relationship Diagram viii

5 2.2.4 Data Flow Diagram Three Layer Client Server Architecture Use Case Diagram Use Case Diagram Detailed Fully Developed Descriptions Net Framework Microsoft Visual C# Microsoft SQL Server Microsoft SQL Server Express Edition Algorithm Interview CHAPTER 3 BUSINESS PROCESS ANALYSIS Company s History Organisational Chart Business Process in Inventory Management Preparation Working Hour Activity Process Evaluation Existing Problems Proposed Solution CHAPTER 4 PROPOSED SYSTEM DESIGN Description of Proposed System Proposed Policy and Procedure Proposed Data Flow Diagram Proposed Context Diagram Data Flow Diagram Level ix

6 4.2.3 Data Flow Diagram Level 1: Access Inventory List Data Flow Diagram Level 2: Check Inventory Availability Data Flow Diagram Level 1: Access Menu List Data Flow Diagram Level 2: Check Menu s Recipe Data Flow Diagram Level 1: Add Inventory s Quantity Data Flow Diagram Level 1: Reduce Inventory s Quantity Data Flow Diagram Level 1: Forecast Data Flow Diagram Level 1: Look up Menu Availability (Menu Filtering Concept) Database Entity Relationship Diagram Table Description Use Case Diagram Use Case Detailed Description Forecasting Formula Menu Filtering Algorithm Flowchart Algorithm CHAPTER 5 IMPLEMENTATION Trial Process Observation of the Proposed System Trial Result CHAPTER 6 CONCLUSION AND RECOMMENDATION Conclusion Recommendation REFERENCES CURRICULUM VITAE APPENDIX INVENTORY CONTROL SYSTEM INTERFACES x

7 List of Figures Figure 2 1 Information System Development phase (Satzinger, Jackson & Burd 2004, p. 37) Figure 2 2 Data Flow Diagram Symbols (Satzinger, Jackson & Burd 2004, p. 202) Figure 2 3 Flowchart as a graphical representation of algorithm (Wikipedia 2007) Figure 3 1 H.E.M.A. Organisational Chart Figure 3 2 Inventory Management Business Process Figure 4 1 Inventory Control System Context Diagram Figure 4 2 Data Flow Diagram Level Figure 4 3 Data Flow Diagram Level 1: Access Inventory List Figure 4 4 Data Flow Diagram Level 2: Check Inventory Availability Figure 4 5 Data Flow Diagram Level 1: Access Menu List Figure 4 6 Data Flow Diagram Level 2: Check Menu s Recipe Figure 4 7 Data Flow Diagram Level 1: Add Inventory s Quantity Figure 4 8 Data Flow Diagram Level 1: Reduce Inventory s Quantity Figure 4 9 Data Flow Diagram Level 1: Forecast Figure 4 10 Data Flow Diagram Level 1: Look up Menu Availability (Menu Filtering Concept).. 60 Figure 4 11 Entity Relationship Diagram Figure 4 12 Simple Moving Average Formula (Chase, Jacobs, and Aquilano 2007, p. 518) Figure 4 13 Menu Filtering Flowchart Algorithm xi

8 Figure Appendix 1 Login Form Figure Appendix 2 Stock List Tab Figure Appendix 3 New Inventory Form Figure Appendix 4 Edit Inventory Form Figure Appendix 5 Menu List Tab Figure Appendix 6 New Menu Form Figure Appendix 7 Edit Menu Form Figure Appendix 8 Manual Transaction Tab Figure Appendix 9 Usage Log Tab Figure Appendix 10 Restock Log Tab Figure Appendix 11 Forecast Tab xii

9 List of Tables Table 2 1 Entity Relationship Diagram Notations Table 2 2 Use Case Diagram (Satzinger, Jackson & Burd 2004, p. 245) Table 4 1 Table_Measurement Table 4 2 Table_Inventory Table 4 3 Table_InventoryExpiry Table 4 4 Table_Menu Table 4 5 Table_Recipe Table 4 6 Table_RestockLog Table 4 7 Table_UsageLog Table 4 8 Access Stock List Use Case Diagram Table 4 9 Access Menu List Use Case Diagram Table 4 10 Manual Transaction Use Case Diagram Table 4 11 Check Logs Use Case Diagram Table 4 12 Forecast Use Case Diagram Table 4 13 General Transaction Use Case Diagram Table 4 14 Login into Inventory Control System Table 4 15 Load Inventory List, Menu List, Restock Log, and Usage Log Data Table 4 16 Check Inventory Availability Table 4 17 Add New Inventory Table 4 18 Edit Inventory Table 4 19 Delete Inventory Table 4 20 Check Menu s Recipe xiii

10 Table 4 21 Add New Menu Table 4 22 Edit Menu Table 4 23 Delete Menu Table 4 24 Manual Transaction: Add inventory s quantity Table 4 25 Manual Transaction: Reduce inventory s quantity Table 4 26 Check Restock Log Table 4 27 Check Usage Log Table 4 28 Forecast Table 4 29 Refresh data Table 4 30 Log Off Table 4 31 Chicken Cordon Bleu s Sales Table 4 32 Nasi Goreng Hollanda s Sales Table 4 33 Dutch Cola s Sales Table 5 1 Login Test Case Table 5 2 Initial Inventory Control System Window Load Test Case Table 5 3 Search Specific Inventory Test Case Table 5 4 Add New Inventory Test Case Table 5 5 Edit Existing Inventory Test Case Table 5 6 Delete Inventory Test Case Table 5 7 Look Up Menu s Recipe Test Case Table 5 8 Add New Menu Test Case Table 5 9 Edit Existing Menu Test Case Table 5 10 Delete Menu Test Case Table 5 11 Add Stock Manually Test Case xiv

11 Table 5 12 Reduce Stock Manually Test Case Table 5 13 Check Usage Log Test Case Table 5 14 Check Restock Log Test Case Table 5 15 Forecast Test Case Table 5 16 Refresh Data Test Case Table 5 17 Log Off Test Case xv