SYNOPSIS

For

"INVENTORY MANAGEMENT"

Submitted by:
Ritik chaudhary
2010459
BCA 6th

Submitted to:
MS. Sonali
Assistant Professor

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 ABSTRACT
This project is aimed at developing a desktop based application named
InventoryManagement System for managing the inventory system of any
organization. TheInventory Management System (IMS) refers to the system
and processes to managethe stock of organization with the involvement of
Technology system. This systemcan be used to store the details of the
inventory, stock maintenance, update theinventory based on the sales details,
generate sales and inventory report daily orweekly based. This project is
categorize individual aspects for the sales and inventorymanagement system.
In this system we are solving different problem affecting todirect sales
management and purchase management. Inventory Management Systemis
important to ensure quality control in businesses that handle transactions
resolvingaround consumer goods. Without proper inventory control, a large
retail store may runout of stock on an important item. A good inventory
management system will alert thewholesaler when it is time to record.
Inventory Management System is also onimportant means of automatically
tracking large shipment. An automated InventoryManagement System helps to
minimize the errors while recording the stock.

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 PROBLEM DEFINITION
When your inventory becomes hard to find, you have inventory visibility
problems. Lack of visibility is one of the most common inventory
management problems. Locating the correct item in the right place as quickly
as possible is essential to inventory. If the hard to find inventory is part of the
supply chain for manufacturing, it can impact the operations of the entire
manufacturing process. If the inventory stock is being accessed for shipping
and cannot be located, it leads to incomplete or wrong shipments and severely
impacts customer satisfaction. Either way inventory visibility problems have a
severe impact on the performance of the business and is one of the symptoms
of poor inventory management.

Decentralized Design
1. An inventory system that stands on its own significantly increases the
chances it will be inaccurate. While a decentralized design might initially be
a less costly option for a small business on a tight budget, it can prove to be
more costly over the long run. For example, designing an inventory system
that integrates with point-of-sale software provides options for perpetual,
real-time inventory management that increases not only ordering accuracy
but also the timing of inventory purchasing. In contrast, a decentralized
system -- whether it’s a manual or computerized system -- not only relies on
timely and accurate data entry to determine inventory levels but is also more
likely to cause bottlenecks in purchasing that may delay critical purchases.

Lack of System Optimization

1. Lack of optimization is a common design problem that makes it more
difficult to accurately plan and forecast future inventory needs. A well-
designed inventory system must capture the right data at the right time to
avoid ordering mistakes that result in inaccurate inventory levels.
Optimization is especially important as a cost-control measure in a
manufacturing business, because it functions both to reduce waste and
improve serviceability. For example, an optimized inventory system not only
provides information on quantities of raw materials used in production but
can also identify and account for raw materials that become scrap or waste
during production. This data not only can assist in maintaining accurate
inventory levels but also signal when it might be time to look for another
supplier due to inferior raw material quality.
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 REASON BEHIND CHOOSING THIS PROJECT

Accurate inventory management is key to running a successful product

business. Tracking stock regularly can help avoid stock errors and other
problems. The following are the benefits of strong inventory management:

 Better Inventory Accuracy: With solid inventory management, you know

what’s in stock and order only the amount of inventory you need to meet
demand.
 Reduced Risk of Overselling: Inventory management helps track what’s in
stock and what’s on backorder, so you don’t oversell products.
 Cost Savings: Stock costs money until it sells. Carrying costs include storage
handling and transportation fees, insurance and employee salaries. Inventory is
also at risk of theft, loss from natural disasters or obsolescence.
 Avoiding Stockouts and Excess Stock: Better planning and management
helps a business minimize the number of days, if any, that an item is out of
stock and avoid carrying too much inventory. Learn more about solving for
stockouts in our “Essential Guide to Inventory Control.”
 Greater Insights: With inventory tracking and stock control, you can also
easily spot sales trends or track recalled products or expiry dates.
 Better Terms With Vendors and Suppliers: Inventory management also
provides insights about which products sell and in what volume. Use that
knowledge as leverage to negotiate better prices and terms with suppliers.
 More Productivity: Good inventory management solutions save time that
could be spent on other activities.
 Increased Profits: A better understanding of both availability and demand
leads to higher inventory turnover, which leads to greater profits.
 A More Organized Warehouse: An efficient warehouse with items
organized based on demand, which items are often sold together and other
factors reduces labor costs and speeds order fulfillment.
 Better Customer Experience: Customers that receive what they order on
time are more loyal.

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 OBJECTIVES
The investment put in inventory is very high, especially for those businesses
that deal in manufacturing, wholesale, and retail trade.
The amount of investment might be sometimes more than the amount spent on
other assets of the company.
Almost 90% of the working capital of a business is invested in inventories.
The management should do proper planning on how to purchase, handle, store,
and account with inventory management software.
The main aim of an inventory management system is to keep the stock in such
a way that it is neither overstock nor understock.
The overstock condition will reduce the other production processes and
understock will lead to stoppage of work.
The objectives of inventory management are operational and financial. In
operational, materials and stock should be available in sufficient amount
whereas, in functional, the minimum working capital should be locked in.

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 FEATURES

 Inventory Control: Inventory control handles products that are already in

stock at the warehouse and plays a key role in supply chain management.
Inventory control tools can categorize products by type, location and SKU (or
serial number), audit data, generate reports in real-time and search, filter and
view products. For more on inventory control methods, including expert
advice, see our “Essential Guide to Inventory Control.”
 Inventory Management: Inventory management features govern the data
from other parts of the system, like inventory control. That’s not all; inventory
management also handles business processes that occur before the stock
arrives at a warehouse and how the inventory reaches other destinations. These
features include tools for multi-location warehouse management and
integrations with other software or enterprise resource planning
(ERP) platforms (for example, generating paperless invoices and purchase
orders). Learn more about inventory management and how it differs from
inventory control.
 Inventory Tracking: To implement inventory controls, you need to track the
status of products and materials in the supply chain. Perpetual inventory
tracking features help automate manual tasks. For example, the system
automatically generates a tracking number when it creates a receipt or invoice.
Tracking integrations with third-party logistics (3PL) providers combined with
an email solution lets businesses better manage customer relationships by
sharing what’s in stock or shipping times.
 Inventory Barcoding: Barcoding software helps eliminate data entry errors
and automate business functions that require communication with other parts
of the system. Collecting, storing and organizing digital inventory data makes
inventory operations faster and more accurate. Barcoding software can
integrate with digital documentation and reporting features (for example,
touchscreen signatures and paperless invoicing). Mobile barcode scanning
devices improve inventory accuracy, speed up back-office processes and stock
replenishment and enable paperless documentation.
 Inventory Optimization: Take inventory planning to a higher level with
inventory optimization. Add sophistication to a basic inventory plan. Instead
of standard ordering formulas and a basic ordering process, you can use tools
that provide automated reports, inventory trends and a view of changes across
the entire supply chain. This information enables a closer match in supply and
demand so you can optimize the inventory on-hand. See the inventory
forecasting guide to learn mor

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 SOFTWARE REQUIREMENT

 Operating System : Windows XP/2003 or Linux

 User Interface : HTML, Eclipse,RAD,Python
 Client-side Scripting : Javascript
 Programming Language : Python
 Web Applications : JDBC, Servlets, JSP
 Database : SQlite 3
 Server Deployment : Websphere

HARDWARE REQUIREMENT

 Processor : Pentium IV

 Hard Disk : 40GB
 RAM : 512MB or more
 Disk Space: minimum 2-4 GB

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 FEASIBILITY STUDY

A. Technical Feasibility

The Inventory Management System of the company Transmission Specialist

INC is feasible technically; however, there are some associated risk.
1. System risk with regards to the familiarity of technology is moderately
low because of the following reason(s):
 They still want to use the Excel Software

B. Economic feasibility

It shows that the system has a good chance of significantly enhancing the
company’s bottom line. It was found out that the total tangible benefit alone
excluding the intangible benefit outweigh the cost. This simply implies that
the system is economically feasible. Below are some of the highlights of the
economic study.

ROI over 5 years: 200.00%

Break even occurs after .35 years

Intangible Cost and Benefits

 Easy to Use
 Simple and easy to understand User-Interface
 Low cost Maintenance
 Less Usage of Papers
 Save Allowance for losing and buying Tools and Equipment

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C. Organizational feasibility
From an organizational perspective, the system can be considered as low risk
project. The management of Transmission Specialist INC. has a big interest in
the researcher’s project.
The Users and the management of the Inventory Management System of
Transmission Specialist INC. are expected to appreciate and find the new
system offered easy to use.

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 CONCLUSION
Managing inventory is an important part of business
administration. If you have excess inventory, money is being
wasted (which is referred to as underutilization.) If you don’t
have enough, it delays deliveries. Neither one is a good
scenario.
An inventory management system tracks inventory availability
at all points of your supply chain — from purchasing, to
production, and finally sales to consumers. An inventory
management system is important for companies with large
amounts of inventory in order to keep it at optimal levels.

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