Volume 10, Issue 4, April – 2025 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25apr681

AI for Inventory Management

G Punith Sai1; G Nagavallika2; A V S Sai Babu3; A Satish4; Y Vinay Kumar5;
P Sunny Jaswanth6; Ch Venkatesh7
2
Asst. Professor
1,3,4,5,6,7
B.Tech Student
1,2,3,4,5,6,7
Sri Vasavi Engineering College(A), Pedatadepalli, Tadepalligudem

Publication Date: 2025/04/23

Abstract: This project involves the development of an AI-driven inventory management system designed to simplify stock
tracking and restocking for small businesses. It combines traditional inventory methods for products with stable demand
and a machine learning model to predict restocking needs for items with fluctuating demand. The machine learning model
is pre-trained on standard datasets, ensuring accurate forecasts without requiring training from user data.

Developed using Django, MySQL, and Bootstrap, the system is web-based and accessible from any device. Key features
include vendor management, automated restocking alerts via email, and a billing module for managing in-store sales. Users
can categorize products, track stock levels in real time, and view a dashboard that highlights low-stock items. With a user-
friendly interface and intelligent automation, this system supports small business owners in making efficient, data-driven
decisions.

How to Cite: G Punith Sai; G Nagavallika; A V S Sai Babu; A Satish; Y Vinay Kumar; P Sunny Jaswanth; Ch Venkatesh (2025),
AI for Inventory Management. International Journal of Innovative Science and Research Technology, 10(4), 1027-1033.
https://doi.org/10.38124/ijisrt/25apr681

I. INTRODUCTION II. LITERATURE SURVEY

Managing inventory efficiently is vital for business  Shamita Deshmukh (2022) – Inventory Management
success, especially for small businesses that must maintain System
the right balance between stock availability and cost control. This work presents a basic yet functional inventory
Traditional inventory systems often rely on manual methods management system designed to simplify stock control for
or basic tools that lack intelligent forecasting, which can lead businesses. Developed using web technologies such as PHP,
to stock shortages or overstock situations. MySQL, and JavaScript, the system includes features like
product entry, editing, and deletion, alongside inventory
This project proposes a smart inventory management classification using ABC analysis and JIT principles. Its
system powered by artificial intelligence. It combines objective is to minimize manual errors and provide an
machine learning techniques to anticipate restocking needs adaptable platform that can be enhanced with additional
for products with unpredictable demand and uses standard features depending on business needs.
tracking for items with steady demand. Key functionalities
include live inventory tracking, supplier management, billing  J.B. Munyaka & V.S.S. Yadavalli (2022) – Inventory
integration, and automated restock alerts via email. The Management Concepts and Implementations: A
system is developed using Django, MySQL, and Bootstrap, Systematic Review
offering a responsive and accessible platform for small The authors conducted a detailed review of traditional
business users.By utilizing predictive analytics, the system and advanced inventory strategies. They examined models
helps reduce inventory waste, supports better decision- such as EOQ, MRP, JIT, ERP, and DRP, highlighting how
making, and boosts overall operational productivity, leading these techniques can improve supply chain operations. The
to improved cost efficiency and enhanced customer study advocates for blending classic inventory practices with
satisfaction. modern tools to improve responsiveness, reduce inventory
costs, and support better service delivery. Future
improvements, the authors suggest, lie in adopting AI and
real-time systems.

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Volume 10, Issue 4, April – 2025 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25apr681
 Osman Çaylı & Zeki Oralhan (2024) – Artificial processing), and MySQL database. The design includes
Intelligence-Driven Inventory Management modules for real-time tracking, vendor details, billing
This study investigates the use of artificial intelligence records, and prediction outputs.
to optimize inventory operations. It incorporates various
machine learning methods—LSTM for forecasting demand  Machine Learning Integration:
patterns, GBM for improving inventory planning, SVM for A Gradient Boosting algorithm is implemented to
stock grouping, and RL for dynamic decision-making. The forecast inventory requirements. This model is trained on
findings reveal that AI integration can significantly benefit historical product movement data to predict future demand,
small and medium enterprises by improving accuracy, especially for items with irregular sales patterns.
reducing losses, and adapting to real-time business
environments.  Testing and Validation:
The system undergoes thorough testing at various
III. METHODOLOGY levels, including component testing, integration checks, and
complete system evaluation to confirm that all features
 Requirement Analysis: operate correctly and reliably.
The initial phase involves collecting and analyzing the
needs of end-users and defining the scope of the system to  System Deployment:
ensure it aligns with small business inventory workflows. Once tested, the application is deployed to a web-
based environment, making it accessible from different
 System Architecture Design: devices. Security measures and performance optimization
A structured layout is planned, detailing the interaction are also implemented for a smooth user experience.
between the frontend (user interface), backend (logic and

Fig 1 System Architecture

 Data Acquisition and Preparation  Model Accuracy Assessment

In the initial stage, inventory-related data such as item To confirm the effectiveness of the predictions, the
names, stock quantities, sales history, and vendor details are system uses performance evaluation metrics like RMSE
gathered. The dataset is then cleaned by eliminating missing, (Root Mean Squared Error) and MAE (Mean Absolute Error).
redundant, or incorrect entries. Important attributes are These metrics help ensure the model's reliability before
selected, and normalization is applied to ensure consistent deploying it for real-time decision-making.
scaling across all values, which improves model accuracy.
 Machine Learning Model – Gradient Boosting (For
 Splitting Data for Training and Testing Inventory Prediction)
To evaluate model performance effectively, the refined Gradient Boosting is used in the project to forecast
dataset is divided into two parts: one for training the machine future stock requirements based on historical inventory and
learning model and the other for testing it. Generally, 75% of sales trends. It is a sequential ensemble learning technique
the data is used for training, while the remaining 25% is used where each new model attempts to minimize the errors made
to validate the model’s predictions. by the previous one. This layered improvement process
makes it highly effective in learning complex patterns in
 Forecasting Using Gradient Boosting Algorithm fluctuating demand.
A Gradient Boosting algorithm is employed due to its
strong predictive capabilities. It analyzes historical stock How Gradient Boosting Works in This System:
patterns to predict when a particular product is likely to run
low. This allows the system to generate timely restocking  Initial Estimate: The model begins with a basic prediction,
alerts, especially for items with inconsistent demand. typically the mean stock level or average sales from past
records.
 Generating Inventory Predictions  Error Identification: It then calculates the difference
Once trained, the machine learning model evaluates between the actual values and the model’s current
current inventory data to forecast future stock requirements. prediction, known as the residuals.
This helps ensure optimal stock levels are maintained,  New Tree Training: A new decision tree is trained to
minimizing both shortages and surplus inventory, which in predict these residuals. This tree focuses on where the
turn supports better operational planning. previous prediction was inaccurate.
 Model Update: The new tree’s output is combined with

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Volume 10, Issue 4, April – 2025 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25apr681
the earlier prediction to make a more accurate estimate. items with variable demand, removing the need for users to
 Final Output: After repeating this process several times, train the model manually.
the combined output of all models results in a strong,
accurate prediction of when and how much stock needs Developed as a web-based platform using Django,
replenishing. MySQL, and Bootstrap, the system provides seamless access
across devices. It offers essential features including supplier
IV. EXISTING SYSTEM management, live stock level updates, and an inbuilt billing
system for managing retail transactions. Additionally, it sends
 Lack of Demand Forecasting: automated email alerts when stock levels drop below a
Most traditional inventory systems are reactive rather predefined threshold and presents a user-friendly dashboard
than predictive. They only track current stock levels and past highlighting inventory status.By automating key inventory
sales, but cannot anticipate future demand, especially for tasks and offering data-driven insights, the system supports
products with seasonal or fluctuating sales. This often results small business owners in maintaining optimal stock levels,
in either excess inventory, which increases holding costs, or reducing manual workload, and improving decision-making.
stockouts, which lead to missed sales and dissatisfied
customers. VI. IMPLEMENTATION

 Manual Data Entry and Human Errors:  Step 1: Setting Up Your Development Environment
A large number of small businesses continue to depend Install required packages using requirements.txt
on manual methods or legacy software for tracking inventory. (Django, MySQL, scikit-learn, joblib). Configure the
These methods are highly susceptible to errors such as MySQL database, and create Django apps for inventory,
inaccurate stock quantities, repeated entries, or untimely vendors, billing, and ML.
updates. Such mistakes can negatively impact decision-
making, cause financial setbacks, and lower confidence in the  Step 2: Designing the Web Interface
system’s reliability. Create a user-friendly, responsive web interface using
Django templates and Bootstrap. Design forms for adding
 Absence of Real-Time Inventory Tracking: products, vendors, sales, and navigation between modules.
In many existing systems, stock levels are updated only Develop a dashboard to display real-time stock updates and
after certain transactions or at the end of the day. Without predictions.
real-time tracking, it becomes difficult for business owners to
monitor stock status instantly, which is critical for fast-  Step 3: Integrating Machine Learning for Restocking
moving products. Delayed updates can disrupt order Train a predefined ML model using historical product
fulfillment and customer satisfaction. data to predict restocking needs. Integrate the trained model
into the system to run predictions when inventory is updated.
 No Automated Notifications or Alerts: Show restocking suggestions on the dashboard to assist in
Older systems often lack the ability to send automatic planning.
alerts for low-stock, out-of-stock, or expiring products. This
means store owners must constantly check inventory levels  Step 4: Managing Vendors and Billing
manually, increasing the chance of missing important Allow users to manage vendor information and link
restocking opportunities. This inefficiency can result in lost them to specific products. Enable in-store billing with stock
sales or excess unused stock. adjustment after every sale. Store and display billing history
for tracking sales trends.
 Limited Integration with Other Business Operations:
Inventory systems that do not integrate with billing,  Step 5: Sending Automated Email Alerts
supplier management, or analytics tools force businesses to Set up automatic email notifications for low-stock
switch between multiple platforms. This disconnect causes items. Trigger alerts when product quantity falls below the
workflow interruptions, data inconsistencies, and added reorder level. Include product and vendor details in the email
workload. An integrated system is essential for streamlining for quick restocking.
operations and maintaining accurate records across all
departments.  Step 6: Deployment
Run the project locally for final testing.
V. PROPOSED SYSTEM

The proposed system introduces an AI-integrated

solution for inventory management, specifically tailored to
the needs of small businesses. It blends conventional stock
tracking methods with intelligent demand forecasting,
ensuring efficient handling of products with both predictable
and unpredictable sales patterns. A pre-trained machine
learning model is embedded to forecast restocking needs for

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Volume 10, Issue 4, April – 2025 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25apr681
VII. RESULT AND ANALYSIS

Fig 2 Home Page

Fig 3 Inventory Dashboard Page

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Volume 10, Issue 4, April – 2025 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25apr681

Fig 4 Add Inventory Item Page

Fig 5 Inventory Analysis Page

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Volume 10, Issue 4, April – 2025 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25apr681

Fig 6 Vendor Dashboard Page

Fig 7 Email Notification

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Volume 10, Issue 4, April – 2025 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/25apr681
 Result Analysis: FUTURE SCOPE
The AI-based Inventory Management System has
delivered effective performance across critical areas, In the future, the AI for Inventory Management system
supporting small business inventory processes with can be enhanced by incorporating more advanced machine
improved accuracy and reduced manual effort. learning models and deep learning techniques to further
improve demand forecasting accuracy. Integration with IoT
 Speed: devices and smart sensors can enable real-time tracking of
The system performs operations like stock updates, inventory levels across warehouses, ensuring more precise
vendor management, and billing with minimal delay. Email stock control. Voice-enabled and NLP-based interfaces can
alerts for low-stock items are triggered instantly, ensuring be developed to allow users to interact with the system more
timely restocking. naturally and efficiently. Additionally, the system can be
extended to support mobile platforms for remote access and
 User Experience: real-time notifications. Strengthening data privacy through
With a simple and responsive interface designed using advanced security protocols and aligning with data protection
Bootstrap, users can easily navigate between modules. regulations will also be a key focus to ensure the safe
Features like product categorization and stock monitoring handling of sensitive business information. Expanding the
are organized for smooth access and usability. system to handle multi-location inventory and vendor
analytics will increase its utility for growing businesses.
 Automation:
A major highlight of the system is the automated email REFERENCES
notification feature. When stock for any item falls below a
predefined threshold, the system automatically sends an [1] Shamita Deshmukh, Asst. Prof. Sana Tak (2022).
alert to the registered email. This helps business owners take Inventory Management System. Journal of Scientific
quick action without constantly monitoring stock levels. Research & Engineering Trends.
[2] Caylı, O., & Oralhan, Z. (2024). Artificial
 Personalization: Intelligence-Driven Inventory Management:
The integrated machine learning model analyzes Optimizing Stock Levels and Reducing Costs Through
product demand trends and predicts restocking needs based Advanced Machine Learning Techniques.
on item behavior, offering smarter inventory control without [3] J.B. Munyaka & V.S.S. Yadavalli (2022). Inventory
needing manual intervention. Management Concepts and Implementations. South
African Journal of Industrial Engineering.
 Security and Reliability:
Built using Django’s secure framework and a well-
structured MySQL database, the system maintains data
integrity and ensures safe access for authorized users only.

 Data Handling:
The platform supports exporting stock data, helping
users keep external records or reports for business analysis
or offline access.

VIII. CONCLUSION

The AI-Driven Inventory Management System

significantly improves stock monitoring and restocking
processes through intelligent automation. By implementing
the Gradient Boosting algorithm, the system accurately
forecasts future inventory requirements based on historical
usage patterns, helping businesses maintain optimal stock
levels. Developed using Django and MySQL, the platform
offers an intuitive user experience for managing inventory
data, vendor details, and restocking operations. Features like
real-time stock tracking, automated email alerts, and
predictive analytics reduce manual workload and support
timely decision-making. This approach not only increases
efficiency but also enhances accuracy, making inventory
management more reliable, proactive, and cost-effective for
small businesses.

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