TRIBHUVAN UNIVERSITY

INSTITUTE OF HUMANITIES AND SOCIAL SCIENCE

MADAN BHANDARI MEMORIAL COLLEGE (MBMC),
ANAMNAGAR, KATHMANDU

A Project Proposal On
INVENTORY MANAGEMENT SYSTEM FOR GROCERY STORE

Submitted To:
DEPARTMENT OF HUMANITIES AND SOCIAL SCIENCE
TRIBHUVAN UNIVRESITY (T.U),
KRITIPUR, KATHMANDU, BAGMATI, NEPAL

In partial fulfilment of the requirements for the degree of Bachelor’s in COMPUTER

APPLICATION (BCA)

Submitted By:
DEVAKAR NEPAL (43202131)
NISCHAL SHRESTHA (43202141)

Under the supervision of

Mr. Naw Raj Joshi
 Table of Contents
Table of Content……………………………….……………………………….…...……i

ABBERIVATION.............................................................................................................iii

List of Figure.....................................................................................................................iv

List of Table………………………………………………………………………………v

Chapter 1: Introduction....................................................................................................1

1.1 Introduction...................................................................................................1

1.2Problem Statement.........................................................................................2

1.3Objectives........................................................................................................3

1.4 Scopes and Limitation..................................................................................4

Chapter 2: Background Study and Literature Review..................................................5

2.1BackgroundStudy……………………………………………………………………..5

2.2 Literature
Review…………………………………………………………………….6

Chapter 3: System Analysis and Design...........................................................................7

3.1 System Analysis.............................................................................................7

3.1.1 Requirement Analysis.........................................................................7

i Functional Requirements........................................................................9

ii Non Functional Requirements............................................................11

iii Technical Requirement..……………………………………………….

3.1.2 Feasibility Analysis...............................................................................11

i
 i Technical Feasibility…………………………………………………..

ii Operational Feasibility…………………………………………………..

iii Economic Feasibility………………………………………………..

iv Schedule…………………………………………………………………

3.1.3 Data Modelling (ER-Diagram)………………………………………..

3.1.4 Process Modeling(DFD)……………………………………………...

3.2 System Design……………………………………………………………….

3.2.1 Architectural Design………………………………………………………

3.2.2 Database Schema Design……………………………………………….

3.2.3 Interface Design…………………………………………………………..

Chapter 4: Implemantation and Testing…………………………………………………

4.1 Implemantation……………………………………………………………….

4.1.1 Tools Used………………………………………………………………

4.2 Testing……………………………………………………………………..

4.2.1 Test Case for Unit

Testing…………………………………………………

4.2.2 Test Case for System Testing……………………………………………

Chapter 5: Conclusion and Future Recommendation…………………………………..

5.1 Outcomes………………………………………………………………………

5.2 Conclusion……………………………………………………………….

5.3 Future Recommendation……………………………………………………..

Appendices……………………………………………………………………………

References………………………………………………………………………………

ii
 ABBERIVATION

IMS: Inventory Management System

EOQ: Economic Order Quantity
JIT: Just in Time
ERP: Enterprise Resource Planning
SMEs: Small and Medium Sized Businesses
HLD: High Level Design
UI: User Interface
RFID: Radio Frequency Identification
PSRM: Process Safety & Risk Management
IoT: Internet of Things

iii
 List of Figures
Figure 1 Agile Methodology..............................................................................................7
Figure 2 Use-Case Diagram…………………………………….…………….…………8
Figure 3 Gantt Chart………………………………………………….………………..11
Figure 4 ER-Diagram…………………………………..…….…………………………12
Figure 5: Process Modeling (DFD)……………………….…….……………………...12

iv
 List of Tables
Table Number Table Name Page
1 Login Page Test Case 17
2 Create Page Test Case 18

3 System Testing 19

v
 Chapter 1: Introduction
1.1 Introduction
An Inventory Management System is essential for businesses to maintain control over
their stock, ensuring they have the right products available at the right time. Effective
inventory management prevents the costly issues of overstocking or stock outs, directly
impacting customer satisfaction and profitability. The system automates and streamlines
the process of tracking inventory levels, managing orders, and generating reports,
providing real-time visibility into stock movements. It is a comprehensive software
solution that integrates with other business operations, helping to optimize inventory
control, reduce manual errors, and improve overall efficiency in managing inventory.
The success of any company, no matter its size or industry, depends on its ability to
effectively manage its inventory. Having enough stock on hand to fulfill client orders
while keeping inventory expenditures to a minimum is the goal of good inventory
management. However, inventory management may be a difficult and time-consuming
endeavor, especially for small and medium-sized businesses (SMEs) with fewer personnel
and fewer resources [1].

1
1.2 Problem Statement
 Inaccurate stock levels leading to overstocking or stock outs, increasing costs.
 Manual errors due to outdated or inefficient tracking methods.
 Lack of real-time visibility into inventory data, hindering decision-making.
 Absence of integration between inventory management and other business systems
(e.g., accounting, sales).

2
1.3 Objectives
 To provide a user-friendly interface that allows users to easily input, update, and
manage inventory data.
 To track order processing and reporting to reduce manual errors and save time.
 To enable real time tracking of the expired items, low stock items and the availability
of the items.

3
1.4 Scopes and Limitation
The scope of these project are as follows:
1. Real-Time Inventory Tracking: Provides accurate, up-to-date tracking of inventory
levels for each item in the store. Enables staff to know when items need restocking,
preventing stockouts or overstocking.
2. Shelf Life and Expiration Date Tracking: Allows management of perishable
goods by tracking expiration dates and prompting removal or discounting of soon-to-
expire products. Helps reduce waste by alerting staff when products approach
expiration.
3. Sales Analysis: Analyzes sales data to identify trends, popular products, and
seasonal items, helping the store make data-driven stocking decisions.

And some limitations are:

1. High Initial Setup: The initial investment in hardware, software, and setup can be
significant, which might be a hurdle for small stores

2. Scalability Limitations: Some inventory systems may not be easily scalable as the
store grows or expands, requiring costly upgrades or complete overhauls to accommodate
larger inventories or additional store locations.

4
Chapter 2: Background Study and Literature Review
2.1 Background Study
Effective inventory management is an integral part of running a business and can have a
substantial impact on a company's bottom line. Particularly for small and medium-sized
businesses (SMEs) with limited resources, the manual processes often used for inventory
management can be time-consuming, error-prone, and inefficient [1]. This study explores
the evolution of inventory management systems, analyzing various approaches and
technologies, and identifying limitations that modern systems aim to address.

In the past, manual procedures and paper-based systems, which were prone to mistakes
and inefficiencies, were largely relied upon for inventory management. Businesses started
implementing computerized inventory management systems in the 20th century to
decrease human error and increase accuracy. In order to help firms understand their stock
levels, sales trends, and reorder needs, early systems were mainly focused on basic stock
tracking and report generation.
Economic Order Quantity (EOQ), which determines the ideal order size that minimizes
both holding costs and ordering expenses, is one of the most well-known inventory
management strategies to have arisen during this period [2]. Later, Just-in-Time (JIT)
inventory systems became popular in the manufacturing sector with the goal of lowering
the cost of keeping inventory on hand by acquiring products only when they are required
for production [3].

5
2.2 Literature Review
An inventory management system (IMS) for a grocery store is a software solution
designed to monitor, control, and optimize the store's stock levels, specifically focusing on
managing both perishable and non-perishable goods. The most well-known and widely
dispersed AIDC technology is the bar code (dating back to the 1970s), which at that time
was driven by the need for accurate and timely data that was gathered from the
manufacturing, inspection, transportation, and inventory cycles within a business
operation [4].The AIDC technology radio frequency identification (RFID) dates to the
1940s and over time it was used as a propriety system for asset tracking in the 1970s and
then in the early 1990s, RFID applications began to extend to open systems for supply
chain management processes.
We have conducted a S.W.O.T analysis for this system:
1. Strength: Agile technology enables quick adjustments in inventory processes. It
improves communication between inventory, purchasing, sales, and other
departments, leading to better alignment of inventory levels with demand.
2. Weakness: Agile processes require continuous testing, and iteration, which can
consume time and resources. The system can suffer from inconsistent practices and
lower-quality results. Using Agile can extend project timelines and increase costs.
3. Opportunities: Agile IMS can integrate smoothly with emerging technologies like
AI, machine learning, and IoT, improving inventory forecasting, real-time
tracking, and automated restocking capabilities. By enabling more accurate stock
levels and faster responses to market changes, Agile-driven IMS can enhance
customer satisfaction with fewer stockouts and better product availability.
4. Threats: Employees and managers accustomed to traditional inventory
management processes may resist Agile practices, impacting overall effectiveness
and slowing adoption. With increased use of real-time data and connected systems,
Agile IMS faces heightened risks of cyberattacks and data breaches, especially if
integrated with external vendors.
In conclusion, the use of Agile technology in inventory management systems presents a
dynamic and adaptable approach to meeting the complex demands of modern inventory
control. Its strengths lie in its flexibility, collaborative nature, and capacity for continuous

6
improvement, making it well-suited to environments that require rapid responses to
shifting market conditions.

Chapter 3: System Analysis and Design

3.1 System Analysis
We are going to use the agile methodology while building the website. It facilitates risk
management, continuous improvement, and user-centric design. This project have
specific documentation, various changes, frequent outputs, and well-understood
technology. So, to build this system, agile methodology can be used.

Figure 1: Agile Methodology

3.1.1Requirement Analysis
Inventory management plays a critical role in balancing supply availability with customer
requirements and significantly contributes to the performance of the whole supply chain. It
involves many different features, such as controlling and managing purchases from
suppliers to consumers, keeping safety stock and examining the amount of product for sale
[8].
Requirement analysis is a critical phase in the development of an Inventory Management
System (IMS), as it ensures the system is designed to meet the specific needs of the
business. This phase involves gathering, analyzing, and specifying the functional and non-
functional requirements, which helps outline what the system should do and the quality
standards it must adhere to.

i Functional Requirements

7
Functional requirements outline the specific tasks that the system must perform to
manage inventory effectively.
 Inventory Tracking and Management: The system should track real-time
stock levels for each item in the inventory. It must support adding,
updating, and deleting inventory items. The system should allow tracking
of inflows (purchases) and outflows (sales or usage) of inventory items.
 Product Categorization and Classification: The system must categorize
items into groups such as product name.
 Sales Management: The system should integrate with sales channels to
update inventory levels after each sale. It should handle and automatically
update stock quantities after every transaction.
 Reporting and Analytics: The system should generate detailed reports on
stock levels, product movements, and sales performance. Custom reports
should be available for inventory valuation, stock turnover, and profit/loss
tracking.
 User Management and Access Control: The system should offer role-based
access control to restrict access to sensitive features based on user roles
(e.g., admin, staff).

Figure 2: Use-Case Diagram

ii Non-functional Requirements

8
These are the performance and quality attributes that the system must meet to
ensure usability, reliability, and scalability.
 Performance: The system should respond quickly to user actions, with
inventory searches and updates processed within seconds. It must handle a
large volume of transactions and data without degradation in performance.
 Scalability: The system must be scalable to accommodate growing
inventory volumes and increased user activity as the business expands.
 Usability: The user interface should be simple, intuitive, and require
minimal training for users to navigate and use the system efficiently.
 Security: The system must enforce strong authentication protocols (e.g.,
username, password) and Data must be securely stored, and access should
be controlled based on user roles and permissions.
 Maintainability: The system should be easy to maintain, allowing for
regular updates, bug fixes, and feature enhancements without disrupting
operations.
 Compliance: The system must comply with industry standards and
regulations, such as tax, inventory reporting, and safety standards (if
applicable).

iii Technical Requirements

Technical requirements specify the hardware, software, and system environment
needed for the system to function.
 Hardware Requirements: The system should run on standard server
hardware or cloud infrastructure, with provisions for scalable storage and
processing power.
 Software Requirements: The system should be developed using a backend
(e.g., Python, Java, PHP) and a user-friendly frontend (e.g., React). It must
use a reliable database system such as MySQL, PostgreSQL, or MongoDB
to store and manage inventory data.
 Platform Compatibility: The system should be accessible via modern web
browsers (e.g., Chrome, Firefox, and Safari).
 Backup and Recovery: The system must provide automatic daily backups
with secure storage and easy recovery options in case of data corruption or
loss.

9
3.1.2 Feasibility Analysis
For our project we have done following feasibility study:

i Technical Feasibility
The technical feasibility of an inventory management system (IMS) examines whether the
required technology and infrastructure are available and compatible with the grocery
store’s current setup. This includes assessing the system’s compatibility with existing
hardware, such as point-of-sale (POS) devices, barcode scanners, or mobile tablets, and
determining if additional hardware or software upgrades are necessary. Additionally, the
chosen IMS should be scalable to support future growth, such as adding new locations or
handling more product lines. Data security is another key consideration, ensuring sensitive
information on sales and stock levels remains protected. Overall, a technically feasible
IMS should integrate smoothly, enhance current operations, and remain secure and
scalable

ii Operational Feasibility
Operational feasibility focuses on the practicality of implementing the IMS within the
daily routines and workflows of the grocery store. This includes analyzing how the system
will streamline processes like inventory tracking, ordering, and stock replenishment,
potentially replacing manual stock counting and reducing errors. The system should be
user-friendly to ensure easy adoption by employees, with clear interfaces and minimal
disruption to existing workflows. Employee training needs are also considered; the IMS
should not require extensive training to operate effectively, though support for ongoing
training may be beneficial as new features are introduced. Reliability and uptime are
essential, as system downtimes could disrupt sales and operations. An operationally
feasible IMS will simplify tasks, improve efficiency, and fit seamlessly into the store’s
routine processes.

iii Economic Feasibility

Economic feasibility evaluates the costs and financial benefits of implementing the IMS,
including initial investment, ongoing costs, and potential cost savings. Initial costs

10
typically cover software licenses, hardware upgrades, and installation, while ongoing
expenses might include maintenance, subscriptions, and support services. The economic
analysis should also consider the return on investment (ROI), with expected savings from
reduced stock wastage, more accurate ordering, and lower labor costs due to automation.
Cost savings from minimized spoilage, optimized stock levels, and reduced inventory
holding costs further contribute to the financial appeal. A break-even analysis can provide
insights into how quickly the IMS will recoup its costs through operational efficiencies.
Ultimately, an economically feasible IMS should deliver substantial long-term savings
and positive ROI, making it a worthwhile investment for the grocery store.

iv Schedule

Figure 3: Gantt Chart

11
3.1.3 Data Modelling (ER- Diagram)

Figure 4: ER-Diagram

3.1.4 Process Modeling (DFD)

Figure 5: Process Modeling (DFD)

12
3.2 System Design
3.2.1 Architectural Design

Dashboard
Frontend Application

Server

Figure 6: Architectural Design of Project Gehen

3.2.2 Database Schema Design

Figure 7: Database Schema Design of Inventory Management System

13
3.2.2 Interface Design

Inventory
Management System

Login Page Create Items Page Items Page

Redirect to Admin/User Add new Items View Items

Dashboard Upload Quantity/Category/Expiry Date View Quantity/Category/Expiry
Date

Figure 8: Interface Design of Inventory Management System

14
Chapter 4: Implementation and Testing
4.1 Implementation
During the implementation phase of Project Inventory Management System, a
combination of programming language, frameworks and development tools were utilized
to create a comprehensive and user-friendly system.

4.1.1 Tools Used

1. Programming Language:
a. JavaScript: JavaScript was chosen as the frontend programming language due
to its versatility and extensive libraries for web development.
2. Framework:
a. React (JavaScript Web Framework): React was used to build the frontend
web application, providing tools and libraries for handling requests, routing,
and creating APIs.
3. Database Management System:
a. MySQL: MySQL was used to store and manage structured data efficiently,
facilitating easy retrieval and storage of items and related information.

4. Version Control:

a. Git: Git facilitated version tracking, collaboration among team members, and
code management.

5. Frontend Development:

a. HTML, CSS, JavaScript: These core web technologies were used for creating
the frontend user interface, ensuring responsiveness and interactivity.
b. Bootstrap: Bootstrap provides a consistent and responsive design framework,
expediting the creation of visually appealing web pages.

6. User Interface Design:

a. Figma: Figma was utilized for designing the user interface, enabling efficient
wireframing and prototyping.

15
 7. Text Editor/IDE:

a. Visual Studio Code: Visual Studio Code offered a feature-rich development

environment with extension for react and web development.

8. Diagram:

a. dbDiagram.io (for creating database relationship diagrams): dbDiagram.io

allowed for easy creation of clear and visual representations of database

relationships.

b. GanttPro: GanttPro was used to generate Gantt charts within documentation.

16
4.2 Testing
Testing is the process of determining whether the system works effectively and
efficiently. Testing does not only include debugging. It also checks for quality assurance,
validation and verification, reliability and availability estimation. Testing can be done
indifferent levels.

4.2.1 Test cases for Unit Testing

The unit testing part of testing methodology is the testing of individual software modules
or components that make up a web application or system.

Expected Actual Test

SN Action Input Outcome Outcomes Result

1 On Submit Null Enter Your Enter Your Fail

Credential Credential

2 Enter Email [email protected] Enter Enter fail

Password Password
Enter Email [email protected] Redirect to Redirect to

3 and Password pw:123 dashboard dashboard Pass

Table 1: Login Page Test Case

17
SN Action Input Expected Actual Test
Outcomes Outcomes status

Null Submit NULL Exception All fields are PASS

1 raise required

Submit without Incomplete Username

Username No Username Submission Required FAIL
2
Submit Without Incomplet Email
e
Email No Email Required FAIL
3
Submission

Submit without Password

Incomplete
4 Password NO Password Required FAIL

Submission
Submit with all Username, Email Successful
5 Requirements And Password Submission Successful PASS
Submitted

Table 2: create Profile test case

18
4.2.2 Test Case for System Testing
The overall testing of the system after integrating all the project’s functions is known as
system testing. When all the functions of PSRM are integrated then system testing is
done.

SN Action Input Expected Actual Status

Outcome Outcome

1 Stock Report Name Stock Name Stock Report PASS

2 Add Stock No Name Error Enter Name FAIL

Table 3: System Testing

19
Chapter 5: Conclusion and Future Recommendations
5.1 Outcomes
Through the development of the project “Futsal Booking
Website”, valuable lessons are learned that shaped towards the
project and my success. Defining a clear project scope,
embracing Agile Methodologies for adaptability, and ensuring
effective communication were pivotal. Through testing plans
and a focus on collaboration led to the identification and
resolution of issues early in the process. The outcomes include a
functional system for Futsal Booking Website, a user-friendly
interface, and a contribution to local shops. Additionally, the
project provided a valuable learning experience, showcasing the
benefits of Agile implementation, improved collaboration, and
real-world application. Overall, the project delivered a
functional solution while imparting essential skills and insights
to the team.

5.2 Conclusion

20
In conclusion, completing the project “Futsal Booking Website”
represents a significant milestone in local level stores. The
successful development of inventory system makes a positive
impact on stock management. Through the collaborative efforts
of the team, the project achieved its objectives, delivering a
functional and user-friendly interface that enables users to
update, delete and manage the inventory. The project’s
adherence to Agile methodologies demonstrated the value of
iterative development and continuous improvement, resulting
in a robust and adaptable solution. This endeavor not only
depends on our technical skill in web development and project
management but also reinforced the importance of effective
communication, teamwork, and problem solving. As project
“Futsal Booking Website” contributes to local level business
and enhances our understanding of complex technologies, it
stands as testament to local level innovation, collaboration, and
the potential to positively impact lives through technology-
driven advancement in stock management.

5.3 Future Recommendations

1. Digitization and Automation
 Cloud-Based Solutions: Encourage businesses to adopt cloud-based inventory
systems for real-time tracking, scalability, and remote access.

21
  Automation Technologies: Use barcodes, RFID (Radio Frequency
Identification), and IoT (Internet of Things) devices to automate inventory
tracking and reduce manual errors.

2. Predictive Analytics and AI

 Demand Forecasting: Implement AI-driven predictive analytics to forecast

inventory needs based on historical sales data and seasonal trends.

 Smart Reordering: Use machine learning algorithms to trigger automatic

reordering when stock levels fall below defined thresholds.

3. Mobile-Friendly Solutions

 Mobile Apps: Develop mobile applications for inventory management to cater to

businesses in remote areas where desktop access may be limited.

 Offline Mode: Include offline functionality for areas with inconsistent internet
connectivity.

4. Support Local Startups

 Support for Startups: Collaborate with startups to create innovative inventory

management tools tailored to Nepal’s unique challenges.

22
Appendices

23
24
 References

[1] H. S. Salih, M. Ghazi and M. Aljanabi, "Implementing an Automated Inventory

Management System for Small and Medium-sized Enterprises.," Iraqi Journal For
Computer Science and Mathematics., vol. 4, pp. 238--244, 2023.

[2] K. Teplická and K. Čulková., "Using of optimizing methods in inventory management

of the company," Acta logistica}, vol. 7, no. 4S go, sro, pp. 9--16, 2020.

[3] K. Wada, The Evolution of the Toyota Production System, Berlin, Heidelberg,
Germany: Springer, 2020.

[4] P. M. Reyes, J. K. Visich, P. Jaska and C. Roethlein, "Inventory replenishment policies

for a grocery supply chain using RFID to improve the performance frontier," Journal
of Supply Chain and Operations Management, vol. 1, no. CSU-POM, Inc., p. 52, 2021.

[5] C. N. Wang, T. T. Dang and N. A. T. Nguyen, "A computational model for determining
levels of factors in inventory management using response surface methodology.,"
Mathematics, vol. 8, no. MDPI, p. 1210, 2020.

25