INVOLOGIX

AN DYNAMIC INVENTORY SYSTEM

THE INVENTORY
MANAGEMENT SYSTEM
TEAM
MEMBERS
Aarav Chikhal
Shrav Shah,
Aryan Patel,
Janay Issrani,
Hridhaan Patel,
Harman Singh Rathor

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TABLE OF
CONTENTS 2) Abstract 5) Design

1) Introduction 4) Literature
Review

3) Background 7)Conclusion

8) Reference 6) Code

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INTRODUCTION
Welcome to the world of super-smart business tools – the cool Inventory
Management System! Imagine a magical system that helps stores and
companies keep track of all their stuff in the store. It's like having a
superpower to know when to order more toys or gadgets and when to
stop, so they never run out or waste money on too much. This awesome
system uses technology to make sure everything is just right, making
stores work better, making customers happier, and making lots of
money for the big bosses. Get ready to learn about Inventory
Management Systems – they're like business superheroes!

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ABSTRACT
Clearly, businesses and companies use a process known as "inventory management" to keep a close watch
on their goods. This process is crucial and should be done with accuracy. The following explanation delves
into the core of inventory management.
Think of it as a complex puzzle that helps stores arrange and manage the various items they plan to sell.
This puzzle has different parts that help stores understand what they have, predict when they might run out
of products, and ensure they always have enough without overspending.
These parts include keeping track of how much they have, predicting their future needs, timing their orders
well, and using data to make smart choices.
This approach benefits businesses in several ways. It prevents them from having too much unsellable stock
and from running out of popular products. This keeps customers satisfied as they can always find what
they're looking for. It also saves money by buying at the right time and not wasting money on products that
might not sell.
What's interesting is that technology has improved this process. Stores use advanced computer tools like
predictions and even communication between devices to manage inventory better. This makes them more
knowledgeable about what they have and need.

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 ABSTRACT CONCLUSION

Abstract Conclusion
In brief, effectively monitoring a store's inventory is crucial. By using
the right methods and advanced technology, businesses can succeed in
this aspect and satisfy both themselves and their customers.

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 BACKGROUND:
An inventory system is essential for businesses dealing with stock to avoid overstocking or understocking. It helps determine
the right quantities of components or ingredients needed for products. There are different types of inventory management
systems:

1. Spreadsheets: They are low-cost and suitable for simple inventory needs but prone to human errors and become unwieldy as a
business grows.

2. Basic Inventory Management Software: Cloud-based apps with basic inventory features are a step up from spreadsheets but may
not fully match specific requirements.

3. Dedicated Inventory Management Software: These solutions are tailored for stock tracking, offer flexibility, and can integrate
with other systems. They require proper setup.

4. Enterprise Resource Planning (ERP) Systems: ERPs provide a comprehensive solution for various business aspects, including
inventory. They are powerful but expensive, time-consuming to implement, and may not excel in each task compared to dedicated
software.

Selecting the right inventory system depends on a business's complexity and specific needs.

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LITERATURE
REVIEW
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CONTENTS FOR LITERATURE REVIEW
1. Evolution of Inventory Management Systems
2. Components of Inventory Management Systems
3. Challenges in Inventory Management
4. Trends and Innovations
5. Industry-Specific Applications

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1) EVALUATION OF INVENTORY
MANAGEMENT SYSTEM
The evolution of inventory management systems can be traced from traditional manual
methods to modern digital solutions. Early approaches relied on rudimentary techniques such
as the Economic Order Quantity (EOQ) model and safety stock calculations. With
advancements in technology, the emergence of computer-based inventory management
software revolutionised the way businesses handled their inventory. This transition paved the
way for sophisticated techniques like Just-In-Time (JIT) and Material Requirements Planning
(MRP) systems.

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2) COMPONENTS OF INVENTORY
MANAGEMENT SYSTEMS
A comprehensive IMS encompasses several key components:

a. Demand Forecasting: Accurate demand forecasting is essential for determining the appropriate inventory levels.
Various forecasting methods, including quantitative and qualitative approaches, are employed based on the industry
and business context.
b. Reorder Point (ROP) and Safety Stock: ROP indicates the inventory level at which a reorder should be placed,
considering lead time and demand variability. Safety stock acts as a buffer against unexpected demand fluctuations and
supply chain disruptions.
c. Inventory Classification: Techniques like ABC analysis categorize inventory items based on their value and usage,
aiding in prioritizing management efforts.
d. Inventory Tracking: Technologies such as barcode scanning, RFID, and IoT enable real-time tracking of inventory
movements, enhancing visibility and reducing the risk of stockouts or overstocking.
e. Supplier Relationship Management: Effective collaboration with suppliers ensures timely replenishment, reduced
lead times, and improved overall supply chain performance.

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3) CHALLENGES IN INVENTORY
MANAGEMENT
Despite advancements, several challenges persist in inventory management:
a. Demand Variability: Fluctuating demand patterns make accurate forecasting and
maintaining optimal inventory levels challenging.
b. Data Accuracy: Inaccurate data, due to errors in recording or tracking, can lead to
incorrect inventory decisions.
c. Bullwhip Effect: Small fluctuations in demand at the consumer level can amplify as they
move up the supply chain, causing inefficiencies and overstocking.
d. Supply Chain Disruptions: External factors like natural disasters or geopolitical events can
disrupt supply chains, underscoring the need for resilient inventory strategies.

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4) TREND AND INNOVATION
Modern trends in inventory management systems include:
a. Data Analytics: Advanced analytics and machine learning techniques enable more
accurate demand forecasting and decision-making.
b. Cloud-Based Solutions: Cloud technology offers scalability, accessibility, and data
centralisation for geographically dispersed businesses.
c. Automation: Robotics and autonomous systems streamline warehouse operations,
reducing manual errors and enhancing efficiency.
d. Omnichannel Integration: To meet customer expectations, businesses are integrating
inventory across online and offline sales channels.

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5) INDUSTRY SPECIFIC
APPLICATIONS
Inventory management systems find applications in
diverse industries such as retail, manufacturing,
healthcare, and logistics. Each industry's unique
characteristics influence the design and implementation of
IMS.

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DESIGN
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CONSIDERATION OF
MODEL PHOTO (for reference only)

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BLOCK DESIGN (FOR REFERENCE ONLY)

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