Professional Documents
Culture Documents
Inventory Management
Inventory Management
SESSION: 2010
SUBMITTED BY
1)Pankaj Dadral 2)Rachit Gupta 3)Raghav Goel 4)Ranjan Singh Roll no. 100803064 Roll no. 100803073 Roll no. 100803074 Roll no. 100803077
1. 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:
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.
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
Better utilization of available stocks Provides a check against the loss of materials Facilitates cost accounting activities Enables management in cost comparison Locates & disposes inactive & obsolete store items Consistent & reliable basis for financial statements
1.5
AUTOMATIC Replenishment o In this system a mimimum stock is always maintained (called the Safety Stock) and as the stock goes below a certain level ( called the Reorder Point ) the system places the order. o As depicted by the graph below
Fig. 1
MANUAL Replenishment In this system the store manager places the order as per the observed demand and seasonal availability. For eg. Vegetables,fruits,etc o This method is based on anticipation and idea ,hence it may lead to big profits or in some cases huge loss.
2. 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 wasteage. 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. Hedge against future Stock is always maintained to deal against future problems in supply if any. Unplanned shocks (labor strikes, natural disasters, surges in demand, etc.)- The stock maintained shall always be helpful in any case encountered above. To maintain independence of supply chain System which is automated is a well planned and a flourishing system in itself. Maximize the level of customer service by avoiding understocking. Promote efficiency in production and purchasing by minimizing the cost of providing an adequate level of customer service. To meet unforeseen future demand due to variation in forecast figures and actual figures. To average out demand fluctuations due to seasonal or cyclic variations. To meet the customer requirement timely, effectively, efficiently, smoothly and satisfactorily. To smoothen the production process.
To facilitate intermittent production of several products on the same facility. To gain economy of production or purchase in lots. To reduce loss due to changes in prices of inventory items. To meet the time lag for transportation of goods. To balance costs of inventory such as order cost or set up cost and inventory carrying cost. To balance the stock out cost/opportunity cost due to loss of sales against the costs of inventory. To minimize losses due to deterioration, obsolescence, damage, pilferage etc
3. SYSTEM ANALYSIS
System analyses is carried out in the following phases.
The cost of hardware and software for the class of application. The benefits in the form of reduced cost or fewer costly errors. The cost if nothing changes (i.e. The proposed system is not developed). The proposed Invenory control system of General store of Easy Day is economically feasible because The system requires very less time factors. The system will provide fast and efficient automated environment instead of slow and error prone manual system, thus reducing both time and man running the system. The system will have GUI interface and very less usertraining is required information for proper to learn it. managerial decision making. The system will provide service to view various power spent in
computer system (H/W and S/W) whether it can support the addition of proposed system, if not, to what extent it can support and the organizations capacity to acquire additional components. Our proposed system is technically feasible because The H/W and S/W required are easy to install and handle o The necessary H/W configuration and software platform is already there .
The system supports interactivity with the user . feasibility and centers software) around the it to existing can computer the (hardware the whether support
addition of proposed system, if not to what extend it can organizations capacity acquire required additional components.
Proposed system is technically feasible because of the following reasons: The System of the General store of Easy Day, doesnt require extra investment to run the proposed application. Expandability will be maintained in the new system. New modules can be added later on the application , if required in the future. The application all will have User-friendly So the Forms new and
Screens, security.
validation
checks.
system
organization are nor disturbed and changes are readily accepted by the users.
The proposed system is behaviorally feasible because of the following: I. The employees of General store will accept it because they are already acquainted with computers. This system is also meant for the general user i.e. employees of the store. Nowadays the Internet is almost familiar to everyone. So, it is not difficult for the user to use the system, in fact they feel comfortable in using this system. Most of the employees are familiar with the web browser and the process of booking the auditorium will be simplified for the employees. The organization is definitely ready to welcome the computerized system.
3.3.4 Legal feasibility: Use licensed software (tools) with appropriate permission. Use self developed softwares.
3.3.5 Technical Feasibility :The technical issues usually raised during the feasibility stage of investigation are: Does the necessary technology is exists to what is suggested ? Does the purposed equipment have the technical capacity to hold the data required to use the new system ? Will the purposed system will provide adequate responses, regardless the number of user ? Can the system be expended if developed ?
:-
The given inventory system must be developed in a certain pre-decided time slab so as to successfully complete the automation. Any system development project must be completed under a suitable time frame. Schedule feasibility is undertaking the project development including development of various modules and subsystems and completing them in a definate period. Time value of money states that a dollar today is more valuable than dollar tomorrow. Various techniques are used to evaluate whether the progress of various subsystems is on schedule or not.
3.4 REQUIREMENT ANALYSIS :A store like easyday is basically an inventory control system which maintain the count of different products available in the store, the count of products in the godowns/reserve, the season and most importantly the RDS(rate of sale). Whenever a product is sold , the database is automatically updated with number of goods sold and number of good available in the store. The goods are replenished by two method:1. Manual replenishment: the replenishment by the decision of store management(as updated by the database) Fresh products like vegetables and fruits are always replenished manually . In a particular day /festival period if sale of particular product increases and chances are that this hike in sale is just for few days then they are manually replenished . In such cases it depend on decision or judgement of a manager . 2. Automatic replenishment: All other product are automatically replenished with the help of automated system which tells what to replenish and in what magnitude.
For e.g. sale of cold drinks during summer the database automatic updates replenishment counter automatically . For products approaching expiry date they put on sale with a discount of 15-30% so as to speed up their sale in last week of expiry period.
3.5 TABLES
There are three tables in this project.
Order code :-It determines the code of the order that has been ordered by the customer. Supplier address: - This field helps to know the address of the supplier. Order date: - This field shows the date of the order. Item code: - It determines the code of the item. Item name: - It contains the name of the item. Quantity: - It specifies the quantity of the order. Delivery time: - It shows the time of the deliver.
4.1 WATERFALL OR SDLC Model:We shall be adopting SDLC or Waterfall technique in our project The waterfall model is a sequential software development process, in which progress is seen as flowing steadily downwards (like a waterfall) through the phases of Conception, Initiation, Analysis, Design (validation), Construction, Testing and Maintenance. The waterfall development model has its origins in the manufacturing and construction industries; highly structured physical environments in which after-the-fact changes are prohibitively costly, if not impossible. Since no formal software development methodologies existed at the time, this hardware-oriented model was simply adapted for software development.
Fig 2.
The S.D.L.C model has the following activities. 1. 2. 3. 4. 5. 6. Preliminary Investigation Software Requirements Analysis Systems Analysis and Design Code Generation Testing Maintenance
FIG 3
The requirements analysis and information gathering process is intensified and focused specially on software. To understand what type of the programs to be built, the system analyst must study the information domain for the software as well as understand required function, behavior, performance and interfacing. The main purpose of requirement analysis phase is to find the need and to define the problem that needs to be solved.
4.1.5 Testing
After code generation phase the software program testing begins. Different testing methods are available to detect the bugs that were committed during the previous phases. A number of testing tools and methods are already available for testing purpose.
4.1.6 Maintenance
Software will definitely go through change once when it is delivered to the customer. There are large numbers of reasons for the change. Change could happen due to some unpredicted input values into the system. In addition to this the changes in the system directly have an effect on the software operations. The software should be implemented to accommodate changes that could be happen during the post development period.
6. Design
FIG 4
The DFD is an excellent communication tool for analysts to model processes and functional requirements. Used effectively, it is a useful and easy to understand modeling tool. It has broad application and usability across most software development projects. It is easily integrated with data modeling, workflow modeling tools, and textual specs. Together with these, it provides analysts and developers with solid models and specs. Alone, however, it has limited usability. It is simple and easy to understand by users and can be easily extended and refined with further specification into a physical version for the design and development teams.
Data Flows DFDs show the flow of data from external entities into the system, showed how the data moved from one process to another, as well as its logical storage. There are only four symbols: 1. Squares representing external entities, which are sources or destinations of data. 2. Rounded rectangles representing processes, which take data as input, do something to it, and output it. 3. Arrows representing the data flows, which can either, be electronic data or physical items. 4. Open-ended rectangles representing data stores
Level 0
This is a level 0 data flow diagram also referred to as the Context Diagram .
FIG. 5
Level 1
ER DIAGRAM
7.
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.
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
isolation. It is programmers 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 Control System, unit testing has been exclusively done after finising every module.
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.
System testing activities are intended to prove that the system meets its objectives. Testing proves that the system meets its requirements. This is not entirely true unless one considers acceptance testing as a type of a system testing because the purpose of acceptance testing is to demonstrate that the system is meets the user requirement. Acceptance testing validation process.
System testing in the strictest sense is a verification process. Regardless of whether it represents verification or validation. System testing represents an external view of the system.
This is true because requirements represents the eventual system users 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
Control
System
is
8. SYSTEM IMPLEMENTATION:
Once
the
system
was
tested,
the
implementation
phase
started. The term implementation has different meanings, ranging from the conversion of a basic application to a complete replacement of a computer system. Implementation is the process of converting a new or a revised system design into an operational one.
Implementation includes the activities that take place to convert the older system to the newer one. The new system may be totally new or replacing an existing system. In either provide case, a proper implementation system to is essential to reliable meet organizational
requirements.
System
implementation
describes
how
the
different parts of the system are interacting with each other to give us a feasible software solution.
The proposed system Inventory Control System is not fully implemented as development of some other modules. modules are not completed. It will be implemented after the completion of
8.1 Implementation Conclusion The Authority of the General Stores will be also benefited by the proposed system, as it will automate the whole issuing procedure, which will 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 fulfill the requirements. The security of the system will be one of the prime concerns once it will be made online.
10. Conclusion
The Inventory Control 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 benefitted 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.