Inventory Management System: Technical Report
Inventory Management System: Technical Report
Inventory Management System: Technical Report
By
Zeshan Riaz
Reg# 2017-ag-4316
Advised by
MASTER OF SCIENCE
IN
COMPUTER SCIENCE
I
TITLE: INVENTORY MANAGEMENT SYSTEM
SIGNATURES
Student:
(Zeshan Riaz)
2017-ag-4316
EVALUATION COMMITTEE
1. Advisor/Member:
2. Member:
3. Member:
(Sidra Habib)
II
ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my teacher
Mr. Rana Muhammad Saleem for his exemplary guidance, monitoring and constant
encouragement throughout the course of this project. His contribution in stimulating
suggestions and encouragement helped me to coordinate me project especially in writing
this project.
I would also like to thank the experts who were involved in the validation survey for this
project, Mr. Hafiz Muhammad Haroon, Sidra Habib without their passionate
participations and input. Finally, I must express my very profound gratitude to my parents
and to my friends, Class Fellow’s for providing me with unfailing support and continuous
encouragement throughout my two years of study. This accomplishment could not have
been possible without them. Thank You
Zeshan Riaz
2017-ag-4316
III
ABSTRACT
Inventory management system plays a major role in deciding the success of the production
selling and purchasing of goods of the companies.
Companies often use inventory management software to reduce their carrying costs. The
software issued to track products and parts as they are transported from a vendor to a
warehouse, between warehouses, and finally to a retail location or directly to a customer.
It is user friendly and just asks the user to follow step by step operations by giving easy to
follow options. It is fast and can perform many operations for a company.
The goal of this project is to design and develop an inventory management system to fill
existing gaps in the electronic management of inventory.
IV
TABLE OF CONTENTS
1 CHAPTER 1 ...............................................................................................................1
INTRODUCTION..............................................................................................................1
1.10.3 Authorization......................................................................................................... 7
V
1.11.2 Software requirements........................................................................................... 8
The EMS software personal database model will support MySQL environment as
DBMS........................................................................................................................ 8
2 CHAPTER 2 ...............................................................................................................9
METHEDOLOGY .............................................................................................................9
VI
2.12 STORYBOARD ...................................................................................................... 21
3 CHAPTER 3 .............................................................................................................23
CONCLUSION ............................................................................................................... 30
REFERENCE ...................................................................................................................31
VII
LIST OF FIGURES
Figure 2.1 Waterfall Model............................................................................................... 11
Figure 2.2 Incremental Model........................................................................................... 11
Figure 2.3 Use Case Diagram Stock Management ........................................................... 13
Figure 2.4 Admin Use case ............................................................................................... 14
Figure 2.5 Class Diagram ................................................................................................. 15
Figure 2.6 Activity Diagram ............................................................................................. 17
Figure 2.7 Activity Diagram ............................................................................................. 18
Figure 2.8 Authorization & Authentication DFD ............................................................ 19
Figure 2.9 Entity Relationship Diagram ........................................................................... 20
Figure 2.10 Entity Relationship Diagram ......................................................................... 20
Figure 2.11 Add new user sequence diagram ................................................................... 21
Figure 2.12 Create Projects Sequence Diagram ............................................................... 22
Figure 3.1 Log in Form ..................................................................................................... 24
Figure 3.2 Main Page Form .............................................................................................. 25
Figure 3.3 Main Page ........................................................................................................ 25
Figure 3.4 Customer Registration ..................................................................................... 26
Figure 3.5 Add Stock ........................................................................................................ 27
Figure 3.6 Transaction Form............................................................................................. 28
VIII
1 CHAPTER 1
INTRODUCTION
1.1 Statement of Problem
The current system in the company under inventory management system which doesn’t
specify the safety stock which leads to scare for stocks at emergency.
• The data are not properly updated at the end of each day’s work. Records are not
maintained properly.
• Lack of space in the warehouse
• Too much of the wrong stocks
• Too little of the profitable stocks
• Lack of budget to purchase the stocks that are really needed
• many companies still base their forecasts on just adding 10% or some arbitrary number
to last year’s performance.
• Warehouse chores are often relegated to the back burner. You must cycle-count your
stocks regularly to reduce variance.
• Determine which of your products actually make money for you – Sales people often
focus on selling the products that are easy to sell. Often these are the low margin high
volume items.
• Prevent Going out of stock – Avoid products and suppliers with very long and
unpredictable supply chains.
• Train your staff – the skills to implement the solutions above are learnable and
trainable. These are professional skills that are learned best on the job and in through
the training programs that we offer.
1
INTRODUCTION
The basic financial aim of an enterprise is maximization of its value. At the same time, a
large both theoretical and practical meaning has the research for determinants increasing
the firm value. Most financial literature contains information about numerous factors
influencing the value. Among those factors is the net working capital and elements creating
it, such as the level of cash tied in accounts receivable, inventories and operational cash
balances. A large majority of classic financial models’ proposals, relating to the optimum
current asset’s management, were constructed with net profit maximization in view. In
order to make these models more suitable for firms, which want to maximize their value,
some of them must be reconstructed. In the sphere of inventory management, the estimation
of the influence of changes in a firm’s decisions is a compromise between limiting risk by
having greater inventory and limiting the costs of inventory. It is the essential problem of
the corporate financial management.
The basic financial inventory management aim is holding the inventory to a minimally
acceptable level in relation to its costs. Holding inventory means using capital to finance
inventory and links with inventory storage, insurance, transport, obsolescence, wasting and
spoilage costs. However, maintaining a low inventory level can, in turn, lead to other
problems with regard to meeting supply demands. The inventory management policy
decisions, create the new inventory level in a firm. It has the influence on the firm value.
It is the result of opportunity costs of money tied in with inventory and generally of costs
of inventory managing. Both the first and the second involve modification of future free
cash flows, and in consequence the firm value changes.
Inventory changes (resulting from changes in inventory management policy of the firm)
affect the net working capital level and the level of operating costs of inventory
management in a firm as well. These operating costs are result of storage, insurance,
transport, obsolescence, wasting and spoilage of inventory.
Maximization of the owners’ wealth is the basic financial goal in enterprise management.
Inventory management techniques must contribute to this goal. The modifications to both
the value-based EOQ model and value-based POQ model may be seen in this article.
Inventory management decisions are complex. Excess cash tied up in inventory burdens
the enterprise with high costs of inventory service and opportunity costs. By contrast,
2
INTRODUCTION
higher inventory stock helps increase income from sales because customers have greater
flexibility in making purchasing decisions and the firm decrease risk of unplanned break
of production. Although problems connected with optimal economic order quantity and
production order quantity remain, we conclude that value-based modifications implied by
these two models will help managers make better value-creating decisions in inventory
management.
3
INTRODUCTION
The levels of four kinds of inventories for a firm depend on the nature of its business. A
manufacturing firm will have substantially high levels of all three kinds of inventories,
while a retail or wholesale firm will have a very high and no raw material and work in
progress inventories. Within manufacturing firms, there will be differences. Large heavy
engineering companies produce long production cycle products, therefore they carry large
inventories. On the other hand, inventories of a consumer product company will not be
large, because of short production cycle and fast turn over.
4
INTRODUCTION
manufacturing, they are typically kept at the factory. Any goods needed to keep things
running beyond the next few hours are considered inventory.
"Inventory" to many small business owners is one of the more visible and tangible aspects
of doing business. Raw materials, goods in process and finished goods all represent various
forms of inventory. Each type represents money tied up until the inventory leaves the
company as purchased products. Likewise, merchandise stocks in a retail store contribute
to profits only when their sale puts money into the cash register.
Inventory management simply means the methods you use to organize, store and replace
inventory, to keep an adequate supply of goods while minimizing costs. Each location
where goods are kept will require different methods of inventory management. Keeping an
inventory, or stock of goods, is a necessity in retail. Customers often prefer to physically
touch what they are considering purchasing, so you must have items on hand. In addition,
most customers prefer to have it now, rather than wait for something to be ordered from a
distributor. Every minute that is spent down because the supply of raw materials was
interrupted costs the company unplanned expenses
• Raw Materials (RM) which are processed to manufacture the final product.
• Work In Progress (WIP) which refers to the intermediate product which is obtained by
processing the raw material but is not fully converted into final product.
5
INTRODUCTION
• Finish Goods (FG) that are the fully processed final products that are being
manufactured and are ready to be dispatched.
1.8 Objectives
The basic managerial objectives of inventory control are two-fold; first, the avoidance
over-investment or under-investment in inventories; and second, to provide the right
quantity of standard raw material to the production department at the right time.
If the right type of raw material is available to the manufacturing departments at the right
time, their manufacturing efficiency is also increased. Their motivation level rises and
morale is improved. Information about availability of materials should be made
continuously available to the management so that they can do planning for procurement of
raw material.
A proper inventory control brings certain advantages and economies in purchasing also.
Every attempt has to make to effect economy in purchasing through quantity and taking
advantage to favorable markets.
1.9 Scope
Inventory management or inventory control is a very useful technique for managing the
stocks and sales records of a Super-market which is our selected domain of
implementation for the software.
The super-market stores and sales various products which includes packed foodstuffs and
drinks, milk products, glossary, decorative items, cosmetics and many other products of
day to day use.
6
INTRODUCTION
Also there are some household goods like washing powders, cleaning equipment’s, etc.
Managing all these products, sufficient stocks, sales records, also analyzing sales and
reordering from time to time is a difficult job.
Our software helps to manage the daily sales records and assist in billing process as well.
It also includes reordering level and reordering quantity.
our software will prove to be extremely useful to adjust the purchase and sales strategies
leading to an increase in profit.
1.10.3 Authorization
• User role check- After logging in, the user role will be checked from the database and
the user interface will be displayed according to their role.
• Automated inventory tracking: Any inventory management software should be able
to automate your inventory tracking at the least. You should be able to know the
quantity available, committed, ordered and out of stock items at just a glance. Also,
check out the method of stock tracking used in the software.
• Order management: You should also be able to create and manage sales order,
purchase orders, invoices, and bills.
• Warehouse management: If you have warehouses in multiple locations, then
inventory management software you’re signing up for should also give you a
centralized control and access to information over all your warehouses.
• Order fulfillment: Many inventory management software also provides integration
with various shipping carriers.
7
INTRODUCTION
8
2 CHAPTER 2
METHEDOLOGY
2.1 Introduction
This chapter gives a detailed outline of the software development methodology used in this
project following up the various existing software development methodology discussed in
chapter two. The strength and weaknesses of the chosen methodology have been outlined.
Further, the functional and non-functional requirements of the system are explained in
detail and the use cases which are a list of steps, typically defining interactions between a
role and a system, to achieve a goal. Class diagrams have been given to show detailed data
modeling of the system which will be translated into code.
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METHODOLOGY
It suggests a systematic, sequential approach to develop a system and it consists of five
stages (phases).
Real projects rarely follow the sequential flow that the model proposes. In general, these
phases overlap and feed information to each other. Hence there should be an element of
“iteration” and “feedback”. A mistake caught any stage should be referred back to the
source and all the subsequent stages need to be revisited and corresponding documents
should be updated accordingly. This feedback path is shown in the following diagram.
10
METHODOLOGY
11
METHODOLOGY
2.5 MS SQL (Microsoft SQL Server)
Microsoft SQL Server is Microsoft’s relational web hosting database used to store website
information like user information, it’s mostly used on windows servers and it is not free. It
has advanced features such as buffer management, logging and transaction, concurrency
and locking, replication services, integration services, stored procedures and triggers. MS
SQL databases work well with C# and also integrate well with other Microsoft products.
MS SQL has been used to support large enterprise applications worldwide, its most
common use is to store data for Customer Relationship Management (CRM) systems in
large organization that need to keep track of their customers data for example mobile phone
service providers, this database though is not platform independent and is also expensive
to implement. A lot of web-based help desk systems around the world created using
ASP.NET or C# are all supported by MS SQL database.
In order to create relevant use cases for the system, the following actors for the system
have been identified
12
METHODOLOGY
2.6.3 Use case diagrams:
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METHODOLOGY
14
METHODOLOGY
15
METHODOLOGY
2.7 Development Tools
This part of the chapter is an account of the technologies that could be used in the
development of the system.
16
METHODOLOGY
2.10 Activity diagram
17
METHODOLOGY
2.10.1 Activity Diagram
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METHODOLOGY
2.11 System Structure Chart DFD And ERD
2.11.1 Data Flow Diagram (DFD)
2.12
19
METHODOLOGY
2.12.1 ENTITY RELATIONSHIP DIAGRAM (ERD)
20
METHODOLOGY
2.13 STORYBOARD
2.13.1 Sequence Diagrams
Sequence diagrams help in the identification of a detailed level of the operations required
to implement the functionality depicted by a use case model.
• If username and password are not found on the database access into the system is
denied.
• If the credentials are identical to the ones found on the database, access is granted.
21
METHODOLOGY
• If username and password are not found on the database access into the system is
denied
• If the credentials are identical to the ones found on the database, access is granted.
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3 CHAPTER 3
This is the first page of inventory management system. This is a admin log in page in this
module Enter username and password if both are correct then display main page otherwise
display error. We can also reset the password. Login Form as shown in Figure 3.1 Log in
Form
This figure is about Inventory Management System. This is the front page of Employee
management system. There are different modules is this picture. Each Module has its own
functionality. There are six modules in this figure are as follows. Main Form as shown in
Figure 3.3 Main Page
This model is about registration of customer. In this model we registered the customer.
Each customer has its own Id we can also search update delete record of customer using
customer ID. Customer Registration form as shown in Figure 3.4 Customer Registration
This module is about add stock. In this module we enter the stock that we have purchased
from the company. There are different fields in this form we fill the field according to
stock. And also check the stock is available or not.Add Stock form as shown in Figure 3.5
Add Stock
This Module is about Transaction. In this module we enter the transaction record that we
have sale and purchase. All the transaction saves in this form. We can also delete search
update transaction. Transaction form as shown in Figure 3.6 Transaction Form
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RESULT & DISCUSSION
3.2 Login
24
RESULT & DISCUSSION
25
RESULT & DISCUSSION
26
RESULT & DISCUSSION
3.5 Add Stock
27
RESULT & DISCUSSION
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RESULT & DISCUSSION
3.7 Results
The software product produced was fairly good, it achieved most of the user requirements,
the user interface is good and is very easy to navigate, and even novice users can find their
way around the web application easily. The client-side validation is excellent. The lack of
integration with a payroll system is the major drawback and the system was also unable to
generate structured reports i.e. reports based on specific information the Human Resource
is interested in.
3.8 Limitations
3.8.1 Custom report generation
In the designed system, the Admin can generate a report containing all the information
from supplier, sale and purchase credit. Sometimes, the admin may be looking for specific
data information e.g. stock credit, marketing and location in cases where a transfer is to be
made, this poses a challenge because the admin will always have to generate a report of all
the information about an inventory, some of which may be not be needed.
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RESULT & DISCUSSION
3.9 CONCLUSION
“Inventory control is exercise when you order an item. If you do a poor job then everything
after is inventory correction”
Inventory is the physical asset of a company that can create problem if there is shortage,
while in production and also if it’s in excess even after production. Inventory is constantly
changing as quantities are sold and replenished.
Hence it can be understood that efficient inventory management can take the company to
new heights and inefficient inventory management can ruin the company.
The study on Inventory management in SFP Sons (India) Pvt. Ltd about A BC analysis for
items is predicting future inventory requirements etc.
From the study it is predicted that future sales have to be achieved and inventory level have
to be maintained.
ABC Analysis was carried out to identify the fast moving and important items.
The company has to periodically review the inventory to avoid production loss.
The results of the study can be further extended for future research.
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RESULT & DISCUSSION
REFERENCE
• Orange Open Source, Retrieved: November 4, 2013. From:
http://www.orangehrm.com/open-source-product-features-pim.shtml
• TECH HRM (Human Resource Management System), Retrieved: November 4,
2013. From:
http://www.techjetsolutions.com/brochure/TECHHRM.pdf
• Centralized Inventory Information, Retrieved: July 8th, 2014. From:
https://www.zoho.com/people/employee-management-system.html
• HR and Inventory Management Software, Retrieved: July 8th, 2014. From:
http://www.getapp.com/hr-employee-management-software
• What is Enterprise Resource Planning (ERP)? Webopedia. Retrieved: January 17,
2014, from: http://www.webopedia.com
• Zhiming, L, July 2002, Object-Oriented Software Development with UML
Retrieved: July16th2010.From:
http://www.iist.unu.edu/www/docs/techreports/reports/report259.pdf
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