THE UNIVERSITY OF DODOMA,

COLLEGE OF INFORMATICS AND VIRTUAL EDUCATION,

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING.

PROJECT REPORT
PROJECT TITLE: AI BASED SYSTEM FOR MONITORING SHOP INVENTORY
COURSE NAME: SYSTEM ANALYSIS AND DESIGN
COURSE CODE: CP 212

NAME REGISTRATION NUMBER PROGRAMME

AHIRAF H. MBUYU T22-03-04604 BSc. CE2
ALVIN E. MACHOTA T22-03-15001 BSc. CE2
ALPHONCE G. NANGU T22-03-03739 BSc. CE2
ALPHA M. MWINJUMA T22-03-13562 BSc. CE2
ADELA N. SANGIDA T22-03-01282 BSc. CE2

SUBMITTED ON: 5th February 2024 SUPERVISED BY: MADAM

C. MURO
Table of Contents
Table of figures.............................................................................................................................................3
DEFINITIONS AND ACRONYMS.............................................................................................................4
ACKNOWLEDGEMENT...........................................................................................................................5
CHAPTER 01................................................................................................................................................6
1.1 INTRODUCTION......................................................................................................................6
1.1.1 PROBLEM STATEMENT........................................................................................................6
1.1.2 OBJECTIVES OF THE PROJECT..........................................................................................6
1.1.3 INTENDED USE.........................................................................................................................7
1.2 OVERALL DESCRIPTION OF THE PROJECT.........................................................................8
1.2.1 SOFTWARE DEVELOPMENT METHODOLOGY.............................................................8
1.2.2 ASSUMPTIONS AND DEPENDANCIES...............................................................................9
1.3 SYSTEM FEATURES AND REQUIREMENTS.........................................................................10
1.3.1 FUNCTIONAL REQUIREMENTS........................................................................................10
1.3.2 NON-FUNCTIONAL REQUIREMENTS..............................................................................10
1.3.3 SYSTEM FEATURES..............................................................................................................10
1.3.4 MODE OF ACCESS OF DATA..............................................................................................11
1.4 PLANNING......................................................................................................................................12
2.1 DATA FLOW DIAGRAM. (DFD).................................................................................................15
2.3 ENTITY RELATIONSHIP DIAGRAM. (ERD)..........................................................................17
2.4 LOGICAL DIAGRAMS..........................................................................................................18
a) FLOW CHART........................................................................................................................18
c) DECISION TABLE..................................................................................................................19
d) PSEUDOCODE........................................................................................................................19
CHAPTER 03.............................................................................................................................................20
3.1 USE-CASE DIAGRAM...................................................................................................................20
3.2 CLASS DIAGRAM..........................................................................................................................21
3.3 SEQUENCE DIAGRAM.................................................................................................................22
CHAPTER 04.....................................................................................................................................23
4.1 DESIGN AND IMPLEMENTATION STRATEGY....................................................................23
4.1.2 DESIGN OF THE SYSTEM........................................................................................................23
Table of figures.
Figure 1. AGILE DEVELOPMENT METHODOLOGY.............................................................................9
Figure 2. The context Diagram for AI based shop monitoring system........................................................15
Figure 3. The level 0 diagram for the AI based system...............................................................................16
Figure 4. The AI system ERD diagram.......................................................................................................17
Figure 5. The flow chart...............................................................................................................................18
Figure 6. class diagram................................................................................................................................21
Figure 7. a sequence diagram representing communication........................................................................22
DEFINITIONS AND ACRONYMS.
AI – artificial intelligence.
DFD – data flow diagram.
ERD – entity relation diagram.
NPV – net profit value.
BEP – break-even point.
ROI – rate of interest.
 ACKNOWLEDGEMENT.
At first, our sincere gratitude to the almighty God for having guide us and being on our side since the
beginning of our project to its completion. As our creator, he has enlightened our intellect into holding the
project and at last preparing the report handed to our supervisors.
Secondly, our greatest thanks to the main supervisors of the SYSTEM ANALYSIS AND DESIGN
COURSE throughout the term, Madam Christina Muro and Dr. Mustafa for their support in conveying the
important knowledge on how to analyze and designing systems which have resulted into organizing a
better system for the project.
Lastly, to the group members who have been part of the project team. Thanks to the cooperation and
efforts made in accomplishing the tasks.

CHAPTER 01.
(AI BASED SYSTEM FOR MONITORING SHOP INVENTORY)
 1.1 INTRODUCTION.
Our group is assigned to prepare an AI based system concerning “SHOPS INVENTORY
MANAGEMENT”. The system allows the user to communicate with AI to access the shop’s details and
manage all products, orders and basic functions of the inventory depending on the status of the user.

1.1.1 PROBLEM STATEMENT.

From investigations made, most of the systems present in the inventories basically for shops inventory
requires the manager or any authorized user of the stock to perform their operations manually.
This system at first point of view is very slow hence time wastage in accomplishing the tasks on time and
also prone to errors being it lose of inventory’s detailed data, wrong calculations on stocks and error in
documenting data on paper sheets.

1.1.2 OBJECTIVES OF THE PROJECT.

(a) General objective.
The project is well AI based designed to solve the effects resulting from the manual operations within the
shop inventory management.
(b) Specific objective.
 To ensure the AI system is available to the core user at anytime and anywhere for the proper
performance and efficiency in the inventory.
 To ease the documenting of the stocks available in the shop inventory with low level of errors
made.
 To enhance long term data storage, whereby for the system designed, data is stored in ‘cloud’
hence not easy to lose them.
 To preserve daily updates of goods in and out of stock to make it easy to run other businesses.
 To give alert to any temporal or permanent amendments made within the system.
 To eliminate stock shortage or rather, overstocking.
 To provide quick processing of requests and return of response.

1.1.3 SCOPE OF THE PROJECT.

The system is intended only for the monitoring of the shop’s inventory activities and goods. Therefore, it
allows users to first verify themselves into the system for authentication. Any user known by the system
can make request concerning the advertised capability of the system and the system returns the intended
results.
By this point of view, the system is not capable of predicting any market preference or demand as per our
design of the system. Also, system is incapable of predicting user satisfaction depending on the daily
activities. As the only issue assigned with the AI system is just to manage and monitor the management of
the inventory.

1.1.3 INTENDED USE.

The system focuses on performing the following main tasks:
i. User authentication.
-The system will allow users to log in to the system to verify their true identity.

ii. Checking order and data stored.

-The system checks for the requested information or order before assigning the intended service
or product from the system.

iii. Product ordering.

-The system allows customers to make order on the available goods that are advertised on the
systems platform.

iv. Forward report to management.

-As how the manager has requested the system, the system will verify and provide the intended
information to the manager.

v. Update details of stock.

-the system can update the stock once the customer has accessed and bought the goods or the
manager/stakeholders have added into the stock for the goods small in number.

1.1.4 INTENDED AUDIENCE.

The major audience of the system is the manager of the inventory as he/she is more concerned with the
monitoring issues of the inventory. Also, he/she is the one to allow and check on the updates within the
stock. This helps to reduce the complexity of the system.
Also, the customer acts as the minor user of the system in terms of monitoring. As the customer is only
concerned with accessing what’s within the stock rather than monitoring the stock although due to
ordering of products within the stock serves as one of the aspects that would initiate the monitoring
process.
 1.2 OVERALL DESCRIPTION OF THE PROJECT.
The system aims at monitoring the shop inventory whereas for our project the stock is what is maintained
in terms of goods in and goods out through which the manager is the only user who can access the details
processed by the AI.
Goals of this system is for the AI to display the products within the stock to the external entity(s) , check
for the existence of the requested good, display and offer the good to the customer, update the remaining
stock present and at last provide the information of the whole flow only to the manager once has verified
his/her identity to the AI system.
Therefore, what the system does is to perform the functionality in a repeated manner depending on the
requested data and number of users present within the system at a time.

1.2.1 SOFTWARE DEVELOPMENT METHODOLOGY.

Due to the system having repeated process, thus the best methodology through which our project has
implemented is the “AGILE METHOD” as this maintains the flexibility of the system in accessing and
checking each order/request from user.
AGILE METHOD: this method involves differentiating the system into phases, whereby each team
worlds upon a particular phase within a duration of time and provide feedback of the progress at hand.
This method results into a high-quality system since it involves iterative process on how to implement the
system. Therefore, requires day to day modification as needs keep rising daily.
The method has the following steps to work upon:
a) Ideation, whereas the owner of the agile method communicates with the rest of the team workers,
stakeholders and users of the system to plan on the system.
b) Development: now each member of the team works on building the system
c) Testing; as the team members come together and implement the codes prepared.
d) Deployment: hand out the system to allow to function to external world.
e) Operations.

As shown below on how to implement the approach:

Figure 1. AGILE DEVELOPMENT METHODOLOGY

1.2.2 ASSUMPTIONS AND DEPENDANCIES.

 The system is under control of an AI.
 There is only one system administrator/system manger.
 The manager controls all the activities of the system.
 The system cannot be accessed unless biometrically identified.
 The system is always available and can be accessed at any place.
 The system must have a well-designed and satisfactory interface.
 The system cannot be accessed without an internet connection.
 The speed of the system will depend upon the speed of the network.
 The system automatically updates the stock data.

1.3 SYSTEM FEATURES AND REQUIREMENTS.

1.3.1 FUNCTIONAL REQUIREMENTS.
They refer to what the system must do. They include:
  The AI system must allow the customer to create account by providing the details for
authentication.
 The AI system must allow their users including ‘manager’ and ‘customers’ log in to the system to
access it.
 The AI system must be capable of updating the available stock automatic to enhance efficiency of
the stock readings.
 The AI system must verify the user before accessing and processing any request.
 The AI system must verify the item ordered and supply it to the customer as the same time update
the stock available.

1.3.2 NON-FUNCTIONAL REQUIREMENTS.

They are termed as characteristics or behavior or attributes of the system. They include.
 The AI system must be available throughout since its AI based, hence must not be restricted in
terms of location or time. It must be active always to attain stocks information.
 The AI system must ensure very high security, whereby user must not be able to view any
information or access the system if not identified.
 They AI system must store stocks particulars and all the information concerning the shop
inventory as this assist in monitoring the ongoing activities.

1.3.3 SYSTEM FEATURES.

Describes the specified characteristics of the system. Including.
 The system must be capable of updating the data within 2 hours of its performance time.
 The system must hand out restrictions when Loging into the system to differentiate between the
main user who is the manager/stakeholder of the system who can view almost each and activity
handled by the AI system and the regular user of the system.
 The system storage capacity must be valid within the first 6 months of its lifetime.
 The system must ensure data processing at an instant to give out the required results on time.

1.3.4 MODE OF ACCESS OF DATA.

The data for our AI based system to be processed is firstly obtained from the following sources.
1. From sensors: - our AI authentication method is via the biometrics. As follows.
- Customer signs up normally by noting down personal details and the last part owing him/her
to attach his/her fingerprint.
- Now, any user once known by the system, when trying to log in the only requirement needed
is the fingerprint.
Therefore, user’s data within the system to be stored depends on the use of the sensors.
 2. From database: - example once the major stakeholder needs a certain information from the stock
it must be retrieved from the system’s database.
3. From imported files: - whereas the user especially within the stakeholder part once the manager is
not in charge on that day within the system, therefor all performed on that day is noted down and
preserved as a separate file within the system which must be verified at a time the manager is
present so as to be part of the system monitoring database.
4. From streamline: - whereby the recent logs in and outs are temporarily stored into the AI system
memory together with recent activities performed.

1.4 PLANNING.
1.4.1 COST BENEFIT ANALYSIS.

Assumptions:
1. Initial Investment (I): $100,000
2. Annual Cash Inflow (CI): $30,000
3. Discount Rate (r): 5%
4. Project Duration (n): 5 years
5. Annual Operating Cost (OC): $10,000
 (a) NPV
Net Present Value (NPV):
NPV=∑t=0n(1+r)tCI−OC−I

NPV=30000−10000(1+0.05)1+30000−10000(1+0.05)2+30000−10000(1+0.05)3+30000−100
00(1+0.05)4+30000−10000(1+0.05)5−100000NPV=(1+0.05)130000−10000
+(1+0.05)230000−10000+(1+0.05)330000−10000+(1+0.05)430000−10000
+(1+0.05)530000−10000−100000

NPV=-1328.69

(b) ROI
Return on Investment (ROI):
ROI=(NPV)×100

=(INPV /100000)×100
=(-1328.69 /100000)×100
=-1,33

ROI= -1.33%

( c) BEP
Break-even Point (BEP):
I
BEP=
CI−OCI
100000
BEP=
30000−10000

BEP= 5years

1.4.2 WORK BREAKDOWN OF THE PROJECT.

From the given activities undertaken in our project by the team, as follows:

SN TASK/ACTIVITY DURATION PRECEDENCE

1 Identify the needs and goals of the system. 1 --
2 Planning system. 5 1
3 Identify the system requirements. 6 1
4 Design the system. 10 2,3
5 Development of the system using system computer 20 4
softwares.
6 Testing the system 3 5
7 Preparing a document describing the system. 2 6

a) Ghantt chart.

b) Pert chart.

c) Critical path.
the critical path of the system is as follows:
path: (1,3,4,5,6,7)

CHAPTER 02.
(STRUCTURED SYSTEM ANALYSIS AND DESIGN)
2.1 DATA FLOW DIAGRAM. (DFD)
a) Context diagram.
Figure 2. The context Diagram for AI based shop monitoring system.

b) Level 0 diagram.
Figure 3. The level 0 diagram for the AI based system.
2.3 ENTITY RELATIONSHIP DIAGRAM. (ERD)

Figure 4. The AI system ERD diagram.

2.4 LOGICAL DIAGRAMS.
a) FLOW CHART

Figure 5. The flow chart.

 c) DECISION TABLE.
In the AI system project worked on, involves the following statement:
“The system must allow the user to identify him/herself to access the system. After being identified by the
system he/she can make order once the system is available.
If the user is identified in the system, has made order when the system is available then the AI can process
the order. If the shop information has been displayed, then there is when the user can authenticate
him/herself since aware of that system. If system is unavailable for some time due to making few changes
noticed from the system, then the system can log in but not capable of making order and as well the
system will be unavailable. Lastly, user can re-order but not necessary to be identified again in the
system. By re-ordering the system can either be available or unavailable.”

CONDITIONS 1 2 3 4 5 6 7 8
System must authenticate the user. T T T T F F F F
Product ordering by user. T T F F T T F F
AI system availability T F T F T F T F

ACTIONS:
1. Display shop information. X
2. Processing product order. X
3. Show system unavailability. X
4. Re-order X X

d) PSEUDOCODE
1.Start
2.Login
3. IF
Your registered and authenticated as a valid member of a system.
4.THEN
You can view orders and make orders in a system.
5. ELSE
6. You’re not a member and your required to create an account and be validated.
7. if the orders are present in a system ordered by customers check the availability of stock in the
inventory
8. IF
The stock is available with the ordered stock then confirm the order ordered by the customer
and update the inventory stock.
9. ELSE
Update the customer and the stock inventory and make order for the stock to refill the
inventory for unavailable goods.
10. Receive the stock and update the inventory stock and review other orders.
11. end.
 CHAPTER 03.
(OBJECT ORIENTED SYSTEM ANALYSIS AND DESIGN)
3.1 USE-CASE DIAGRAM.
3.2 CLASS DIAGRAM.

Figure 6. class diagram.

3.3 SEQUENCE DIAGRAM.

Figure 7. a sequence diagram representing communication.

 CHAPTER 04.
4.1 DESIGN AND IMPLEMENTATION STRATEGY.

4.1.1 SYSTEM ARCHITECTURE.

Consider a client-server architecture where the AI-based system serves as the server, handling
requests from client devices.
Use a scalable and modular architecture to accommodate future updates and expansions.
Components:

Identify core components like the AI engine, database for inventory storage, authentication module,
and user interface.
Ensure a robust communication mechanism between components for seamless data flow.
AI Integration:

Integrate a machine learning or AI module for inventory prediction and optimization.

Implement Natural Language Processing (NLP) for user communication with the AI system.

4.1.2 DESIGN OF THE SYSTEM.

Database Design:

Design a database schema to store shop inventory details, user information, and transaction history.
Utilize cloud storage for long-term data retention and easy accessibility.
Security Measures:

Implement secure authentication mechanisms to ensure only authorized users can access and modify
inventory data.
Use encryption for data transmission and storage to protect sensitive information.
User Interface:

Design an intuitive and user-friendly interface for easy interaction with the AI system.
Incorporate features like authentication, order management, and product tracking.
 CONCLUSION.
Here as a team, have reached to the end of our project. As a team, the experience gained during the short
period of time is having generated more skills in analyzing and designing. Despite that, more of ideas,
knowledge and efficiency in implying all the concepts of the SDLC and implementing them in time.
According to the project, it was a pleasure visiting various sites that invoked the AI based system for
monitoring the shop inventories one being ‘ALIBABA website.’
This shows that, the need of AI technology is broadly needed in today’s world.