DEVELOPMENT OF A DECISION SUPPORT SYSTEM FOR INVENTORY

MANAGEMENT IN A PHARMACEUTICAL RETAIL OUTLET

BY

BELLO SOLOMON SEYI

MATRIC NUMBER: 17246044

BEING A PROJECT SUBMITTED TO THE DEPARTMENT OF MECHANICAL

ENGINEERING, FACULTY OF ENGINEERING, UNIVERSITY OF ABUJA, NIGERIA
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
BACHELOR’S DEGREE IN MECHANICAL ENGINEERING (B.ENG)

JANUARY, 2022

1
 DECLARATION

I hereby declare that this project “DEVELOPMENT OF A DECISION SUPPORT SYSTEM

FOR INVENTORY MANAGEMENT IN A PHARMACEUTICAL RETAIL OUTLET”, was

written by me and is a record of my research work. To the best of my knowledge, it has not been

submitted or accepted in any institution of higher learning wholly or in part of any degree

elsewhere. All sources of information have been appropriately cited and referenced.

_____________________________ ________________________

Bello Solomon Seyi Date

17246044

2
 CERTIFICATION

This project titled “DEVELOPMENT OF A DECISION SUPPORT SYSTEM

FOR INVENTORY MANAGEMENT IN A PHARMACEUTICAL RETAIL

OUTLET ”, carried out by BELLO SOLOMON SEYI with matriculation

number 17246044, has been read and approved having met part of the

requirements and regulations governing the award of Bachelor of Engineering

(B.Eng) degree in Mechanical Engineering, University of Abuja, Abuja.

___________________________ ______________________
Ugheoke Iyenagbe Benjamin Date

(Supervisor)

_________________________ ______________________

Dr Adiat Arogundade Date

(Head of Department)

_________________________ ______________________

(External Examiner) Date

3
 DEDICATION

This project is dedicated foremost to God Almighty for His favor, mercy, and grace upon my life

throughout my academic years at the University of Abuja. His guidance and blessings have been

instrumental in my journey.

I would also like to dedicate this project to my parents, siblings, and friends for their unwavering

love, support, and encouragement. Their belief in me and constant encouragement have been a

source of strength and motivation.

I extend my heartfelt gratitude to everyone else who contributed to making my Bachelor's degree

pursuit a successful one. Your support, whether academic, emotional, or financial, has played a

significant role in my accomplishments.

I am truly grateful for the love, care, and assistance I have received from all these individuals.

This dedication is a testament to their profound impact on my life and academic journey

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 ACKNOWLEDGMENTS

I would like to express my heartfelt appreciation to God almighty for guiding me in choosing
Mechanical Engineering as my discipline and for providing me with the strength and
determination to complete this work successfully.

I am deeply grateful to my supervisor, Dr. Ugheoke Benjamin Iyenagbe, for his invaluable
support and mentorship throughout this research. His guidance and fatherly supervision have
been instrumental in shaping this project.

I extend my sincere thanks to Dr. Adiat Arogundade, the Head of the Department of Mechanical
Engineering, for her continuous support and encouragement throughout my academic journey.

I am indebted to the entire academic staff of the Department of Mechanical Engineering for their
commitment to providing effective and comprehensive academic work in field of study. Their
sacrifices and dedication have played a significant role in shaping my academic and personal
growth.

I would like to express my deepest gratitude to my parents, Mr. and Mrs. BELLO, for their
unwavering love, prayers, encouragement, motivation, and financial support throughout my
undergraduate years. Their belief in my abilities, has been a constant source of strength and
inspiration.

Lastly, I am grateful to all my friends and well-wishers who have supported me in various ways
during this academic endeavor. Your words of encouragement and belief in my abilities have
been invaluable.

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 TABLE OF CONTENT

Title page 1

Declaration 2
Certification 3
Dedication 4
Acknowledgement 5
Table of Content 6- 7
Abstract 8

CHAPTER ONE: INTRODUCTION

INTRODUCTION
9

1.1 Background of Study 9-10

1.2 Statement of Problem 10-11
1.3 Aims and Objectives 11
1.4 Significance of study 11-12
1.5 Scope of the study 12

CHAPTER TWO

2.0 LITERATURE REVIEW 13

2.1 Overview of DSS in inventory management 13-14
2.1.1 Decision support system definitions 14-15
2.1.2 Some characteristics 15
2.1.3 Decision-making 15-16
2.1.4 DSS application 16
2.2 Inventory management 17
2.3 CNN for scanning 17-18

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2.3.1 Architecture 18-19
2.4 Summary 19

CHAPTER THREE

3.0 MATERIAL AND METHOD 20-21

3.1.1 Flow-chart of the application 22
3.2 Material consideration 23
3.3 DSS in inventory management application requirement(backend) 23
3.3.1 DSS program requirement 23-27
3.3.2 Database program requirement 27-29
3.3.3 Python requirement 29-30
3.4 DSS in inventory management application requirement(frontend) 30-31
3.5 CNN for computer vision 31-34
3.6 Summary 34

CHAPTER FOUR

4.0 RESULT AND DISCUSSION 35

4.1 DSS program result 35
4.2 Discussion of result 35-36
4.3 Component of DSS 36-37
4.4 Economics of acceptability 37

CHAPTER FIVE

5.0 CONCLUSION AND RECOMMENDATION 38

5.1 Conclusion 38
5.2 Recommendation 38

REFERENCES 39-40

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 ABSTRACT

This study focuses on the development of a Decision Support System (DSS) for inventory
management in a pharmaceutical retail outlet. For the optimization of inventory management in
the pharmaceutical retail outlet to ensure the availability of essential medications based on
demand rate. in essences, predicting the reorder point of every drug available in the
pharmaceutical retail inventories database. Knowing the reorder point will in turn minimizing
costs and avoiding stockouts or excess inventory. The proposed DSS leverages the techniques of
reorder point analysis, to enhance decision-making in inventory management.

The DSS incorporates, the average demand-rate, lead time, and stock-level data, to predicting
the reorder point of each medicine. Then afterwards comparing the current stock-level with the
forecast reorder point and sends a feedback to the managerial team suggesting the current state
of the stock-in. this message will help to optimize its inventory levels and ordering decisions.

Furthermore, The system provides users with a user-friendly interface and graphical
representations, facilitating easy interpretation of inventory data and decision-making processes.

The development of this DSS aims to improve the effectiveness and efficiency of inventory
management in the pharmaceutical retail outlet. By utilizing forecast reorder point and
incorporating key inventory management parameters, the system enables proactive decision-
making, reducing the risk of stockouts or excess inventory. Ultimately, the implementation of the
DSS is expected to enhance overall inventory control practices in the pharmaceutical retail
industry, leading to improved customer satisfaction, cost savings, and optimized reorder point.

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 CHAPTER ONE
INTRODUCTION
1.1 Background of the study

Inventory Management in a middleman retail industry, holds different types of merchandise and

quantity in stock, in order to meet the demand of customers all around every goods.

Demand rate varies from item to item and stocking of items to make up inventories is capital

intensive such that it is difficult to tie down money on goods that are not necessarily in demand.

In other words, having too much stock on hand ties up capital, while on the other hand, not

having the right quantity or enough merchandise in stock will often lead to loss of sales as well

as lower customer satisfaction, which is debilitating or injurious to the well-being of the

company. It is therefore necessary to have a balance between carrying much quantity of an item

in inventory higher than the demand rate which would lead to capital being tied down or

allowing lean holding of the right quantity, below the demand rate, which could lead to stock-out

and its attendant consequences. Striking this balance would help to minimize losses and

maximize profit.

This challenge particularly affects retail pharmacies, where factors that affect sales of medicines

vary so rapidly. In such environments, the use of the classical inventory control or management

models is minimally helpful and sometimes not useful. In such an enterprise, it is known that

medicines could be very expensive, have divergent demand rates, with different lead times, and

hence reorder points, etcetera. It was thought that through the use of data science combined with

deep learning of historical records of sales and orders of established pharmacies, a better

inventory management system could be developed that would help to strike the balance between

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out-of-stock and overstocking of medicine at any given time, based on the demand of rate of

each of the medicines in the holding of the pharmacy, which will result to maximizing profits,

satisfying all customers and therefore minimizing loss. Such a system would be a variant of a

decision support system since striking such a balance relies heavily on decision-making.

Decision Support System (DSS) takes data as input then uses data analysis tools to adjust itself to

forecast and respond based on what it knows from a series of data in the database history and

then suggests decisions to the management. DSS is a computer-based information system that

supports a company’s decision-making activities [1]. DSS serves inventory management in a

pharmaceutical retail outlet to make forecasts based on a demand rate. DSS is an interactive

software-based application [1], intended to help inventory Management compile useful

information from a combination of data models to identify limitations and suggest possible

courses of action or decisions.

DSSs take data available in the database to generate desired information for the management, it

performs a logical test or a conditional statement to forecast accurate predictions necessary for

making an effective decision in the inventory management application. DSS requires a database,

which is an organized collection of data for one or more purposes. The data available in the

database are structured to model or schema in a way that supports the processing of decisions in

the inventory management application.

The term database implies that the data is managed to some level of quality (measured in terms

of accuracy, availability, usability, and resilience) and this in turn often implies the use of a

general-purpose Database management system (DBMS) [1].

1.2 Statement of the problem

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As retail is evolving at an accelerated rate, enterprises are increasingly focusing on how to use

artificial intelligence technology to reshape the retail industry’s ecology and integrate online and

offline experiences. Acquiring infinite access to goods in stock is limited due to the fact that the

demand for a particular medicine varies from another. However, in order to satisfy the customers

at all times within limited resources, there should be contrived ways to establish demand rates for

medicines and their order lead times. If these quantities are established, it is possible to develop a

Decision Support System (DSS) based on deep learning techniques, that would forecast and give

advice on the re-order point of any goods and ease other decision-making processes of the

enterprise. This is what this study aims to achieve.

1.3 Aims and Objectives of the Study

This project aims to improve the efficiency of and maximize profit in pharmaceutical retail

outlets through the development of an optimized intelligent decision support system for

inventory management using Convolutional Neural Network (CNN) for scanning goods.

The specific objectives of the study are as follows:

1. The development of an inventory management application

2. Development of a database.

3. Development of CNN architecture using VGG-16 as the backbone for image

segmentation.

4. Development and design of a Decision support system.

1.4 Significance of the Study

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Inventory Management Applications play a vital role in manufacturing systems. Deploying the

same to a pharmaceutical retail outlet would help boost efficiency and improve profits. This

would be because the reorder points, lead times, reorder quantity, etcetera, of the different

medical holdings of the pharmacy which would have been managed manually in a cumbersome

manner, would be processed seamlessly and in real-time in the DSS application. Thus, a decision

support system in an inventory management application would that the right amount of goods

and the type of goods will always be available in stock. This means there will be the availability

of medicines to satisfy a wide range of customers, no missed customers, and by extension, an

improved customer satisfaction experience. This would lead to higher sales at lower human

mental tasks and overall better performance and management of pharmaceutical or patent

medicine shops.

1.5 Scope of the Study

The study is limited to the development of a full-stack DSS application. The dataset used set for

training the model or algorithm for the recognition of medicine through image segmentation

using VGG-16 Architecture is based on another project. The application can be used mostly in a

pharmaceutical retail outlet to perform the identification of drugs by scanning using CNN.

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 CHAPTER TWO
LITERATURE REVIEW
2.1 Overview Of DSS in Inventory Management

Several studies have explored the use of DSS for inventory management based on the reorder

point, Inventory management is a critical aspect of the pharmaceutical retail industry, where

products have a limited shelf life and need to be handled with care. The reorder point is an

important inventory management parameter that determines when to reorder products.

Decision Support Systems are computer-based systems that help decision-makers to analyze and

solve complex problems. In inventory management, DSS can provide insights into demand

forecasting, inventory optimization, and supply chain management. DSS can also help to reduce

stock-outs, overstocking, and waste, thereby improving profitability and customer satisfaction.

According to Keen (1978), The technical work on interactive computer systems was mainly

carried out at the Massachusetts Institute of Technology in the 1960s. It is considered that the

concept of DSS became an area of research of its own in the middle of the 1970s, before gaining

in intensity during the 1980s. In the 1970s DSS was described as “a computer-based system to

aid decision making”. In the late 1970s, the DSS movement started focusing on “interactive

computer-based systems which help decision-makers utilize databases and models to solve ill-

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structured problems”. In the 1980s DSS should provide systems “using suitable and available

technology to improve the effectiveness of managerial and professional activities” [1], [2].

According to Uribe Cadavid (2011), The statement on forecast discusses the use of time series

models for forecasting in inventory management and the different models that can be used, such

as simple moving averages and exponential smoothing. It also highlights the importance of using

forecast demand and standard deviation of forecast errors instead of average demand and

standard deviation in inventory control models to prevent excessive inventory or backlogs. The

objective of developing a decision support system for inventory management is to use historical

demand data and time series models to improve the accuracy of forecasting and aid in making

better inventory management decisions [3]:

2.1.1 Decision Support System Definitions

Across various research papers, the definition of a decision support system has been reviewed

basically as systems that help in managerial precision through decision-making, DSS is a system

of specific information intended to assist the management in taking decisions relating to issues

that are semi-structured, and does not replace the function of the decision maker to make

decisions [3].

Decision Support Systems (DSS) can also be defined as interactive computer-based systems

intended to help decision-makers utilize data and models in order to identify and solve problems

and make decisions [4].

According to Mora et al., the decision maker employs computer technology to [5], [6]:

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(a)organize the information into problem factors,

(b) attach all the attributes to a model,

(c) use the framework/ model to simulate alternatives, and

(d) select the best course of action.

The outcomes are reported as parameter conditions, experimental forecasts, and/or

recommended actions [6].

2.1.2 Some DSS Characteristics

Defining standard characteristics of DSS can be summarized by Turban and Aronson as follows

[7]:

The major features that distinguish DSS (Decision Support Systems) from other previously

established systems. These features are identified by Turban and Aronson and include covering a

vast spectrum of managerial levels, providing support for both individuals and groups,

facilitating interdependent and sequential decisions, carrying out all parts of the decision-making

process, covering a variety of decision analysis tools, being adaptive and flexible, having strong

graphical interfaces, improving decision-making effectiveness, and supporting decision-makers

rather than replacing them. The summary highlights the user-friendly and control elements of

DSS as well as its focus on appropriateness and quality in decision-making rather than just

efficiency.

2.1.3 Decision-Making

According to Lemass, DSS (Decision Support System) should aim to improve both the

effectiveness and efficiency of decision-making[8].

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Effectiveness is defined as the degree to which identified goals are achieved, while efficiency

measures the application of resources to attain those goals. Decision-making involves assessing

the problem, collecting, and verifying information, identifying alternatives, anticipating

consequences, making the choice based on logical judgment, informing others, and evaluating

decisions. A DSS is a system that can ease this process, particularly in predicting stock levels to

avoid excess or shortages. The statement also highlights the aim of developing a DSS for

inventory management in a pharmaceutical retail outlet, which will facilitate decision-making on

re-order points based on demand rate during the lead time and safety stock using a model or

algorithm [9].

It can be clearly understood that decision-making is a non-random activity concluding in the

selection of one course of action among multiple strategies and DSS is a prevailing system that

can ease this process [10], which raised the problem of how to predict the stock of each product

to the right in order to avoid excess/shortages. Therefore, this study aims to develop a decision

support system for inventory management in pharmacy [11].

The DSS in a pharmaceutical retail outlet will facilitate the decision-making of re-order points

based on the demand rate during the lead time and the safety stock using a model or algorithm.

2.1.4 DSS Application Areas

DSS for some other application areas with an emphasis on DSS. Application Areas such as;

Medical, Management, Manufacturing industry, Stock trading, and Weather forecasting [12]

The article reviews the use of decision support systems (DSS) in various application areas such

as medical, management, manufacturing industry, stock trading, and weather forecasting. DS is a

16
part of decision sciences that supports people in making decisions through complex statistical

and mathematical models, data analysis, and variable relationships. The importance of decision-

making in managing organizations is highlighted, and DSS is seen as a valuable tool for

improving the effectiveness and efficiency of decision-making.

2.2 Inventory Management

Inventory management is a branch of business management focused on planning and inventory

control [13]. Inventory management is a function that is responsible for all decisions regarding

the stock in an organization. In inventory management made policies, activities and procedures

to ensure the proper amount of stock of each product for a certain time [14].

In addition, most studies of inventory management are associated with Supply Chain

Management (SCM) in an industry. Meanwhile, the studies that implement inventory

management in the pharmacy are still very few [15], Therefore, it is developing a decision

support system (DSS) for pharmacy inventory management is a way to predict the next period of

purchase of pharmaceutical products with other approaches apart from time series, in order to

reduce excess stock and avoid shortages, so the costs associated with inventory management in

pharmacy can be minimized [15].

2.3 CNN for Scanning

A huge amount of work has been done by researchers to improve the CNN architecture on

various image classifications, object recognition, and segmentation of character to extract

features or patterns for deep learning convolutional neural networks, therefore knowledge has

been gained over the years which led to the development of various models for information

17
retrieval. These models have brought about significant improvements in all aspects of deep

learning [16].

CNN’s algorithm is analogous to the traditional Artificial Neural Networks (ANNs) in that, they

are comprised of neurons also called nodes that self-optimize through learning by extracting

features or patterns directly from the data set. CNN can also be said to be computer vision, which

is related to Deep Learning (DL) [17].

DL is a subset of Machine learning (ML) and ML is a subset of Artificial Intelligence (AI). AI

and ML are techniques that have been around for quite a while [20]. They are specifically

focused on teaching an algorithm how to learn from a data set and produce some information but

can’t explicitly extract features or patterns directly from the data set. DL is focused on the use of

neural networks, it uses the concept of a neural network that is derived from the structure of the

human brain to perform the extraction of features or patterns.

At present, barcode recognition is the most widely used technology not only in research but also

in industries where automatic identification of commodities is used. By scanning barcode marks

on each product package, the management of products can be easily facilitated. Normally, almost

every item on the market has its corresponding barcode. However, due to the uncertainty of the

printing position of the barcode or if a barcode is damaged, there would be no way to scan the

product. it often requires time to manually find the barcode and assist the machine in identifying

the barcode at the retail outlet. Based on a survey from Digimarc, 45% of customers complained

that, sometimes, it was not convenient to use barcode scanning machines [18].

2.3.1 Architecture

According to Youngman (2016), A fully convolutional network architecture based on VGG-16

[19]. The final output has two channels as score maps: the region score and the affinity
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score[19]. with batch, normalization is adopted as our backbone. This is the interface model that

was used in Youngmin’s paper in order to obtain text identification and recognition.

Using a Convolutional Neural Network (CNN) algorithm to scan a product in a pharmaceutical

retail shop involves the below flow.

Figure 1: Schematic illustration of our network architecture [19]

Our model must skip connections in the decoding part, which is similar to U-net [20] in that it

aggregates low-level features.

2.4 Summary

In conclusion, DSS has been applied in many areas of the industry such as the medical field,

agricultural field, Management, and Manufacturing industry, etc. however from the extent of

literature the application of DSS in inventory control and management in pharmaceutical retail

shops is not reported and this is the gap this project work is intending to fill. Decision Support

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Systems can provide valuable insights and recommendations for setting the reorder point in

pharmaceutical retail outlets. The literature review highlights the potential of DSS based on

optimizing the reorder point. Implementing a DSS can help retailers to reduce costs, improve

efficiency, and provide better customer service.

CHAPTER THREE
Materials and Methods

3.1 Overview of the Application

Below is a representation of the Application requirement or the implementation of a DSS in

inventory management in a pharmaceutical retail outlet.

Full-stack Inventory Management

Application

Back-End Front-End

Python MongoDB Html Bootstrap Java-script

(DSS) (Server) (DataBase) (Structure) (Style) (Function)

Application- GUI
Server (Pages)

Admin access Employee access

Login/Dashboard Login/Dashboard

Add/remove
product Invoice generator

Add/remove POS (scan with

employee CNN) print report
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Inventories page

Print report
 Figure 2: Overview of the Application
The development of a Decision Support System (DSS) for Inventory management in a

pharmaceutical retail outlet requires a systematic methodology. Below are the steps involved in

developing a DSS for inventory management in a pharmaceutical retail outlet:

1. Define the problem: The first step in developing a DSS is to identify the problem. In this

case, the problem is inefficient inventory management, resulting in frequent stockouts

and overstocking.

2. Gather data: The next step is to collect data on the current inventory levels, sales, and

customer demand. The data will be used to develop a model for inventory management.

3. Develop the model: Based on the collected data, a model for inventory management is

developed. The model will take into account factors such as lead time, safety stock,

reorder point, and order quantity.

4. Implement the DSS: The model will be integrated into a DSS, which will provide

decision support to the retail outlet. The DSS will generate recommendations for

inventory management based on real-time data on sales and inventory levels.

5. Test and validate: The DSS will be tested and validated using historical data. The

performance of the DSS will be evaluated based on its ability to reduce stockouts and

optimize inventory levels.

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 6. Monitor and update: The DSS should be monitored regularly to ensure that it is

performing optimally. The DSS should be updated as necessary based on changes in sales

patterns and customer demand.

3.1.1 Flow chart of the application

Below is a flowchart that describes the working process of DSS in the application including DSS

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Figure 3: Flow chart

3.2 Material considerations

In consideration of materials required for the development of a DSS in inventory management

for pharmaceutical retail outlets, Items such as:

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 1. Item characteristics

2. Storage requirements (database)

3. Supplier lead times

4. Demand variability

5. Order Quantity

6. Tokens/ Cost considerations

Are required for the explicit development of the Application, since the application is software

based it requires a few items for the development. Once a drug is identified through scanning, it

then goes through the item list stored in the database and then outputs the details of the particular

drug which was scanned, details such as quantity available and other relevant info will be

displayed.

3.3 DSS in Inventory Management Application Requirements (Backend)

3.3.1 DSS program requirement

The DSS according to the model will facilitate re-order points for each pharmaceutical drug

available in the store and further promote profitability. DSS is dedicated to predicting re-order

points Since such a prediction will lead to effective customer service and improve the efficiency

of a pharmaceutical retail outlet by avoiding overstocking, stockout, or waste of a product.

Reorder point is an essential necessity in this application.

To obtain the Reorder point there are some essential variables that should be available such as:

1. Stock in

2. Demand rate

3. Lead time

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If the variables above are known the reorder point can be predicted, below are procedures for

finding the above variables:

To obtain the total quantity in the store would be calculated as:

The available stock = the ordered quantity - the purchased quantity

Firstly we will obtain the safety stock for a particular drug, if the demand rate has been obtained

for that drug,

The demand rate shows the rate of purchase of a particular drug leaving the stock daily.

The demand rate, or demand, refers to the quantity of a product or service that customers are

willing to purchase during a given period. It represents the rate at which customers consume or

purchase a product or service. The demand rate can be expressed as the number of units sold or

the revenue generated from sales.

To obtain the demand rate, include:

1. Historical sales data: A company can analyze past sales data to determine the demand rate

for a particular product or service. This involves looking at the number of units sold or

the revenue generated from sales over a specified period.

Once the demand rate has been obtained, it can use this information to make strategic

decisions about production, inventory management, pricing, and marketing. By accurately

estimating the demand rate, can optimize its operations and increase profitability.

Then lead time, which is the time taken between the placement of an order for stocks to the time

the order is received by the pharmacy.

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Lead time is the amount of time between placing an order for a product or material and receiving

it. It represents the time required for the supplier to process the order, manufacture or acquire the

product, and transport it to the buyer. Lead time can include both processing time and

transportation time.

To obtain lead time, a company can use various methods, including:

1. Historical data: A company can analyze past orders to determine the lead time for a

particular product or material. This involves tracking the time between placing an order

and receiving it.

By accurately estimating lead time, we can then improve its inventory management, reduce the

risk of stockouts or overstocking, and optimize its production and supply chain operations

To obtain the re-order point for a particular medicine, we did an analysis by:

Predicting the reorder point is an important task in inventory management that involves

determining the optimal time to place an order for a product to avoid stockouts and maintain

adequate inventory levels. Here are some steps you can follow to predict the reorder point:

1. Determine the lead time: The lead time is the time it takes for the supplier to deliver the

ordered products. It is important to determine this time accurately to know when to place

the order.

2. Calculate the demand during the lead time: You need to estimate the demand for the

product during the lead time. This can be done using historical sales data or by using

forecasting techniques.

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 3. Determine the safety stock: The safety stock is the extra inventory you keep to cover

unexpected demand fluctuations or delays in delivery. It is important to set the safety

stock at an appropriate level to avoid stockouts.

4. Calculate the reorder point: The reorder point is the inventory level at which you need to

place an order to avoid a stockout. It can be calculated using the following formula:

Reorder Point = (Average Daily Demand x Lead Time) + Safety Stock

Once you have determined the reorder point, then we can set up a system to trigger an order

when the inventory level reaches that point. It is important to regularly review and adjust the

reorder point based on changes in demand, lead time, and safety stock levels.

Therefore, in coding the reorder point, we have the below:

Define the variables

average_daily_demand = 20 # units per day

lead_time = 7 # days

safety_stock = 50 # units

Calculate the reorder point

reorder_point = (average_daily_demand * lead_time) + safety_stock

therefore, reorder point = (20*7) + 50

The result

print(f"The reorder point is: {reorder_point} units")

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After every purchase, the program should display a pop-up message indicating the current status

of a certain drug. If the reorder point has been reached, a message for re-order should be

displayed. Otherwise, a green status should be displayed.

The program should compare each purchase with the reorder point forecast to confirm whether

the inventory has reached the reorder point. If the inventory equals or is less than the reorder

point, a message should be triggered to inform management that a particular medicine has

reached reorder point or is out of stock. This message should include a specific output with a

unique message and should be printable.

3.3.2 Database Program Requirements

The Database of this application is where the data of this application will be stored and will also

be accessible at any time by the managerial team. The structured query language (SQL), will be

used to obtain the creation of data, reading of data, update of data, and including deleting of data.

These operations are the common operation that can be performed by every database, and in the

development of this project work, these objectives will be possible in order to add, remove or

update items and of course save the data.

To use the mongo.py library for a database in a pharmaceutical retail outlet application, you can

follow these steps:

1. Install the pymongo library: First, you need to install the pymongo library. This can be

done by running the following command in your terminal: pip install pymongo.

2. Set up a MongoDB database: Next, you need to set up a MongoDB database. You can

either set up a local MongoDB database or use a cloud-based MongoDB service such as

MongoDB Atlas.

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3. Connect to the database: Once you have set up your MongoDB database, you can connect

to it using the pymongo library. You will need to specify the connection URL and any

required credentials. Here is an example code snippet for connecting to a local MongoDB

database:

from pymongo import MongoClient

client = MongoClient('mongodb://localhost:27017/')

db = client['my_database']

4. Create collections and documents: Once you have connected to the database, you can

create collections and documents to store your data. Here is an example code snippet for

creating a collection and inserting a document:

collection = db['products']

document = {

'name': 'Paracetamol',

'price': 5.99,

'stock': 100,

'manufacturer': 'Null Pharmaceuticals'

collection.insert_one(document)

5. Query the database: You can query the database to retrieve data using the find() method.

Here is an example code snippet for querying the products collection and printing the

results.

collection = db['products']

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 results = collection.find({})

for result in results:

print(result)

These are the basic steps for using the mongo.py library for a database in a pharmaceutical retail

outlet application.

3.3.3 Python program requirement

To set up Python as the server for a pharmaceutical retail outlet application, we can follow these

steps:

1. Install Python: If you haven't already, you need to install Python on your computer. You

can download the latest version of Python from the official website at python.org.

2. Install a package manager: A package manager is a tool that makes it easy to install and

manage software packages, including Python libraries. There are several package

managers available for Python, including pip and Anaconda. For a pharmaceutical retail

outlet application, pip is usually sufficient.

3. Install required libraries: Once you have pip installed, you can use it to install any Python

libraries that your application requires. Some common libraries for a pharmaceutical

retail outlet application might include Flask (for building a web application), pymongo

(for working with a MongoDB database), and pandas (for data analysis and

manipulation).

4. Write your application: Once you have your development environment set up, you can

start writing your application. You can use any text editor or integrated development

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 environment (IDE) to write Python code. Some popular choices include Visual Studio

Code, PyCharm, and Sublime Text.

5. Test and deploy your application: Once you have written your application, you can test it

to make sure it works as expected. You can use Python's built-in testing framework (unit

test) or a third-party testing library such as pytest. Once you are satisfied with your

application, you can deploy it to a web server or cloud service for production use.

These are the basic steps for setting up Python for a pharmaceutical retail outlet application. The

specific requirements and details of your application may vary depending on the specific needs

of your business.

3.4 DSS in Inventory Management Application Requirements (Frontend)

To set up HTML, Bootstrap CSS, and JavaScript for a pharmaceutical retail outlet application,

The following steps should be followed:

1. Choose an HTML editor: HTML can be written using any text editor, but using an HTML

editor with features such as syntax highlighting and autocompletion can make the process

much easier. Popular HTML editors include Visual Studio Code, Atom, and Sublime

Text.

2. Include the Bootstrap CSS and JavaScript files: Bootstrap is a popular CSS framework

that can be used to create responsive and visually appealing websites. You can download

the Bootstrap CSS and JavaScript files from the Bootstrap website and include them in

your HTML file. You can also link to the files directly from a Content Delivery Network

(CDN) such as the ones provided by Bootstrap, Google, or Microsoft.

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 3. Create a basic HTML file: Start by creating a new file and saving it with the ".html"

extension. In the file, start with the basic HTML structure by adding the HTML, head,

and body tags. Inside the body tag, add some content to get started.

4. Add Bootstrap classes to your HTML elements: Bootstrap includes a set of predefined

classes that can be added to HTML elements to apply prebuilt styles. You can add classes

such as "container", "row", and "col" to create responsive grids, or "btn" to create buttons

with predefined styles.

5. Add custom CSS: To further customize your application, you can add your own CSS

rules. You can create a separate CSS file or add your styles directly in the HTML file

using the "style" tag.

6. Add JavaScript: JavaScript is a programming language that can be used to add

interactivity to your HTML pages. You can use JavaScript to create dynamic forms,

perform calculations, and more.

7. Test your application: Once you have created your HTML, CSS, and JavaScript files, you

can test your application by opening the HTML file in a web browser. Make sure all the

elements are displaying correctly and that any JavaScript functions are working as

intended.

These are the basic steps for setting up HTML, Bootstrap CSS, and JavaScript for a

pharmaceutical retail outlet application.

3.5 CNN for Computer Vision

Convolutional Neural Network (CNN) will be used to implement the scanning of the medicine

for identification and recognition in the inventory management application.

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Vision to a computer is a very complex task to be done, compared to a human eye that can

perform the task with ease, CNN resembles the human way of visual recognition. It receives

pixels as image inputs, transforms them using mathematical computations and activation

functions then builds a classifier for the input classes. CNN has an encode-specific feature in its

architecture that suits it to perform image processing and computer vision tasks.

The computer visualizes images as a group of pixels that has a degree of weight attached to

every set of pixels, using a paper written by Youngmin, the architecture described there would be

used for the identification of pharmaceutical drugs. The intention of CNN is to extract features

from an image scanned by the computer as a 3D image. In a pharmaceutical retail outlet

extracting a set of text from the package of the drug through word segmentation on every image

captured, an algorithm at the fully connected layer of the CNN for text detection and recognition

from the flattened image pixel.

This will facilitate the management of pharmaceutical products and improve consumer shopping

experience. The main objective is to enable the identification of each character of words in

natural images.

Identify Check Output

CNN Scan
drug database record

Figure 4: Scanning process

After the image of the medicine has been captured, it can then be processed by extracting

features from the pack of the drug once the drug is identified through comparing with its dataset

used in training the model for drug recognition and identification. Afterward, it outputs the

details of the drug at the point of sale. Using a Convolutional Neural Network (CNN) to scan a

product in a pharmaceutical retail shop involves several steps:

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1. Import necessary libraries: The first step is to import the necessary libraries such as

TensorFlow, Keras, and NumPy.

2. Collect data: The first step is to collect a large dataset of product images. This dataset

should include images of all the products that the CNN will be required to scan.

3. Preprocess the data: The dataset needs to be preprocessed before being used to train the

CNN. This includes tasks such as resizing images to a standard size and normalizing the

pixel values.

4. Define the CNN architecture: The next step is to define the architecture of the CNN. This

includes specifying the number and type of layers in the network, such as convolutional

layers, pooling layers, and fully connected layers.

5. Compile the model: Once the architecture is defined, the model needs to be compiled

with an optimizer, loss function, and evaluation metric.

6. Train the model: The next step is to train the model using the prepared dataset. This

involves fitting the model to the training data and adjusting the weights of the layers to

minimize the prediction error.

7. Evaluate the model: Once the model is trained, it needs to be evaluated on the testing

dataset to measure its performance and identify any areas for improvement.

8. Save the model: Once the model is trained and evaluated, it can be saved for later use in

scanning products in the pharmaceutical retail shop.

9. Integrate the model: Finally, the model can be integrated into the scanning system of the

pharmaceutical retail shop by connecting it to a camera or scanner and using it to classify

the products.
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 10. Monitor and update the CNN: Finally, it is important to monitor the performance of the CNN

over time and update it as needed. This includes retraining the CNN with new data, adjusting the

CNN's parameters, and improving the dataset to include more diverse product images.

Programming a CNN for scanning products can be a complex task, and it requires knowledge of

programming, machine learning, and computer vision. By using a CNN to scan products in a

pharmaceutical retail shop as a tool for image segmentation, it is possible to automate the process

of product identification and reduce errors that may occur during manual scanning. However, it

is important to ensure that the CNN is trained and tested appropriately to ensure the accurate

classification of products.

3.6 Summary

Above are the methods for creating a DSS for Inventory Management in a pharmaceutical retail

outlet, The coding of the application involves each of those categories listed previously in

(figure2). in other to have a deployed application of the DSS in inventory management, and

therefore with frequent updates of the application the software can indeed be marketable.

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 CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 DSS Program Result
The implementation of the DSS for inventory management in the pharmaceutical retail outlet

resulted in several benefits:

1. Reduced Stockouts

2. Increased Profitability

3. Improved inventory control

4. Enhanced customer service

5. Cost savings

4.2 Discussion of result

Implementing a Decision Support System (DSS) for inventory management in a pharmaceutical

retail outlet. Here's a discussion of potential outcomes and advantages:

1. Inventory management application: A well-designed and developed GUI for interfacing

with the application, having an employee page and also an admin page, the employee

handles the purchase section while the managerial side handles the entire management of

the pharmaceutical retail store. It provides real-time visibility into inventory levels,

allowing for better control and management.

2. Enhanced decision-making with DSS: By utilizing accurate data, the DSS assists in

making informed decisions regarding inventory management. It provides insights into

reorder points, safety stock levels, and order quantities based on demand rate, leading to
36
 more precise and optimal inventory decisions. This leads to a reduction in stockouts,

overstocking, and excess inventory, which in turn improves overall operational efficiency.

But to yet be integrated fully into the inventory software to interact with the datebase.

3. The database: the database can perform the CRUD function that is to create, read, update,

and also delete as the case may be.

4. CNN for scanning: the CNN algorithm is currently in the learning stage, learning

different medicine product names, product categories, and sub-categories for the

utilization of identification of drugs.

Overall, implementing a DSS for inventory management in a pharmaceutical retail outlet can

lead to optimized inventory levels, improved decision-making, reduced costs, enhanced customer

service, and efficiency.

4.3 Component of DSS

A Decision Support System (DSS) for inventory management in a pharmaceutical retail outlet

typically consists of several key components. Here are some essential components:

1. Data Management

2. Forecasting reorder_point

3. Inventory Optimization

4. Decision Analysis and Modeling

5. User Interface and Interaction

6. Decision Support and Alerting

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These components work together to create a comprehensive DSS for inventory management in a

pharmaceutical retail outlet. The integration of these components facilitates effective decision-

making, optimized inventory levels, and improved overall operational efficiency

4.4 Economics of Acceptability

The economics of acceptability in a Decision Support System (DSS) for inventory management

in a pharmaceutical retail outlet refers to evaluating the cost-effectiveness and financial viability

of implementing and using the DSS. Here are some key considerations related to the economics

of acceptability:

1. Cost of Implementation

2. Operational Costs

3. Scalability and Flexibility

4. Long-Term Sustainability

By analyzing the economics of acceptability, you can determine whether implementing a DSS

for inventory management in a pharmaceutical retail outlet is financially viable and aligns with

the organization's objectives. It enables you to make informed decisions about investing in the

DSS and ensures that the economic benefits outweigh the associated costs.

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 CHAPTER FIVE
5.0 Conclusion and Recommendation
5.1 Conclusion

The implementation of a DSS for inventory management in a pharmaceutical retail outlet can

result in significant benefits, including optimized inventory levels, reduced stockouts, increased

profitability, and automated inventory management processes. The success of the DSS depends

on the quality of the data used to develop the model, as well as the accuracy of the

recommendations generated by the DSS. With proper training and support, the DSS can become

an essential tool in the inventory management process of the retail outlet.

5.2 Recommendation

When implementing a Decision Support System (DSS) for inventory management in a

pharmaceutical retail outlet, consider the following recommendations:

1. CNN: Explore CNN algorithms to determine computer vision for scanning product is a

very complicated program, furthermore thus the program would require a more

experience and expertise.

2. Collect and analyze relevant data: Gather accurate and up-to-date data on sales, inventory

levels, supplier lead times, and customer demand. Analyze this data to identify patterns,

trends, and seasonality that can inform your inventory management decisions.

implementing a DSS for inventory management strategies to optimize efficiency, reduce costs,

and meet customer demands effectively.

39
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