INVENTORY MANAGEMENT
SYSTEM
Introduction
• Inventory is a physical resource that a firm holds in stock with the intent of
selling it or transforming it into a more valuable state.
• Inventory System is a set of policies and controls that monitors levels of
inventory and determines what levels should be maintained, when stock
should be replenished, and how large orders should be.
• There are many items in a departmental store, which are sold to customers
and purchased from suppliers. An order is placed by the customer-required
details , which are listed below:
Item name
Quantity
Delivery time
• The order processing executes, look up the stock of each item available or
not then order is fulfilled by the management of departmental store
• The system periodically checks the store stock of each item if it is found
below the reorder level then purchase order is placed to the supplier for that
item, if the supplier is not able to supply whole order then rest of quantity is
supplied by another supplier.
• After fulfilled the formalities, a bill is generated by the system and send to
the customer.
• Item details are maintained by the management and this whole process is
done manually. Our work area is to automate the above process and to
generate more efficient system
TYPES OF INVENTORY
• Raw materials – In this type of inventory raw material is bought
from the producer ,followed by processing to get finished products
for sale in the market .
• Purchased parts and supplies – In this type of inventory
finished products are bought from the manufacturer and sold to
the customers.
• Work-in-process (partially completed) products (WIP) – In this
type of inventory partially processed products are further modified
and sold .
• Items being transported – In this type of system products are
transferred from one location to another .
For eg.
Any Courier firm
• Tools and equipment
INVENTORY CONTROL SYSTEMS
Inventory Control is broadly classified into 2
main systems
• Continuous system (fixed-order-quantity)
» Constant amount ordered when inventory declines
to predetermined level
• Periodic system (fixed-time-period)
» Order is placed for variable amount after fixed
passage of time
TYPES OF DEMAND
Inventory system encounters the following 2 types
of demand
• Dependent Demand
– Demand for items used to produce final products
– Tires stored at a Goodyear plant are an example of a
dependent demand item
• Independent Demand
– Demand for items used by external customers
– Cars, appliances, computers, and houses are
examples of independent demand inventory
Existing system
• The manual processing is quite tedious, time consuming, less
accurate in comparison to computerized processing.
• The present system is not is exception consultant encountering all
the above problems.
1. Time consuming.
2. It is very tedious.
3. All information is not placed separately.
4. Lot of paper work.
5. Slow data processing.
6. Not user-friendly environment.
7. Difficult to find records due to poor file management.
Proposed system
ADVANTAGES OF NEW SYSTEM
In new computerized system we tried to give these facilities
1. Ensures an adequate supply of materials
2. Minimizes inventory costs
3. Facilitates purchasing economies
4. Eliminates duplication in ordering
5. Better utilization of available stocks
6. Provides a check against the loss of materials
7. Facilitates cost accounting activities
8. Enables management in cost comparison
9. Locates & disposes inactive & obsolete store items
10. Consistent & reliable basis for financial statements
Objectives
• Improve customer service – As the system is automated
customers shall have less of problems and more of help when the
shop.
• Economies of purchasing- As the purchase system of the store is
planned it becomes economical ,planned and systematic ;with
minimum possibilities of wastage.
• Economies of production – Here any product being processed is
done more systematically.
• Transportation savings – As the purchase order is well planned,
transportation cost is minimal or optimized
• Maximize the level of customer service by avoiding under stocking
• Unplanned shocks (labor strikes, natural disasters, surges in
demand, etc.)- The stock maintained shall always be helpful in any
case encountered above.
• To balance the stock out cost/opportunity cost due to loss of sales
against the costs of inventory
SOFTWARE / HARDWARE SPECIFICATION
REQUIREMENTS
Hardware Requirement:
• The following are the minimum requirements:-
• Processor: - Intel Pentium III 833MHz
• RAM: - 128 SD-RAM.
• Hard Disk: -20 GB or above.
• Monitor: - 14” VGA.
• Mouse.
• Printer: - For print report or Bill.
• Floppy Disk Drive: - 1.44MB.
Software Requirement:
•
• Operating system: - Windows 98 or Higher
• Coding Language: - C.
Modules
• The “Inventory Management system of General
store” software is being developed as an
accurate and efficient software for the users.
• In this system the record of the each request
details are preserved along with their status and
transaction related to them.
• The system is also made secured as all the
updating of the item and transaction can be
done by the authorized person i.e. the
administrator only.
Presentation Diagram
Data Flow diagram
Data flow Diagram
Testing
• The aim of testing process is to identify all defects in a
software product.
• Testing is any activity aimed at evaluating the software
for quality results it produces and the quality of results it
can handle.
• Testing is an operation to detect the differences between
the expected (required) result and the actual result.
• Testing a program consists of subjecting the program to
a test inputs or test cases and observing if the program
behaves as expected.
• If the program fails to behave as expected, then the
condition under which failures occurs are noted for later
debugging and correction.
• There are many stages of testing depending on the
complexity of the software.
Levels of Testing
The basic levels of testing are:-
• Unit Testing.
• System Testing
• The levels of resting attempt to detect different types of
faults. The relation of faults introduces in different
phases and the different levels of testing are shown.
Employee Acceptance Testing
Requirements System Testing
Design Integration Testing
Code Unit Testing
Unit Testing
• Unit testing has been under taken when a module has
been coded and successfully reviewed. Unit testing is
the testing of different units or modules of system in
isolation.
• It is programmer’s responsibility to think of the
advantage of doing unit testing before integration testing
is that it makes debugging easier.
• If an error is detected when a module is being tested
along with several modules, it would be difficult to
determine which module exactly has an error.
• In the current system “Inventory Management System”,
unit testing has been exclusively done after finishing
every module.
System Testing
• System testing is actually a series of different test whose primary
purpose is to exercise the computer based system, all work to verify
that system elements have been properly integrated and performed
allocated function.
• Its focus is to prove that the completed system does what it should.
• This test is conducted in a formal manner. The testers use scenario-
based system test scripts that have predicted outputs
• The test results are recorded in structured test logs. The structured
test logs and scripts drive the system testing process.
• This is true because requirements represents the eventual system
user’s of the system (an external view).
• User do not understand nor do they care about how the system
works as long as it is usable. System testing should be approached
from this perspective
• As far as the proposed “Inventory Management System” is
concerned it meets this requirement
Conclusion
• The “Inventory Management System” on General Store will help the
store owner to keep a record of all the sale-purchase related
activities in the shop .
• This shall also be beneficial to the customers as it shall provide
them with the best service possible .
• The store employees will be benefited by its accuracy and stock
details.
• The Authority of the General Stores will be also benefited by the
proposed system, as it will automate the whole issuing procedure,
which wil reduce the workload for the Authority.
• Since every system has some limitations, so the proposed system is
also not untouchable in this regard. Although it includes many
features but still it would not be sufficient as the user requirements
are not always same.
• The change in the requirements will need some changes in the
system to full fill the requirements
