Chapter One

CHAPTER ONE
1.0: INTRODUCTION
A company's inventory is one of its most valuable assets. In retail, manufacturing, food
services, and other inventory-intensive sectors, a company's inputs and finished products are the
core of its business. A shortage of inventory when and where it's needed can be extremely
detrimental. At the same time, inventory can be thought of as a liability (if not in an accounting
sense). A large inventory carries the risk of spoilage, theft, damage, or shifts in demand.
Inventory must be insured, and if it is not sold in time it may have to be disposed of at clearance
prices or simply destroyed. For these reasons, inventory management is important for
businesses of any size. Knowing when to restock inventory, what amounts to purchase or
produce, what price to pay as well as when to sell and at what price can easily become complex
decisions. Small businesses will often keep track of stock manually and determine the reorder
points and quantities using spreadsheet (Excel) formulas. Larger businesses will use
specialized enterprise resource planning (ERP) software. The largest corporations use highly
customized software as a service (SaaS) applications.
1.1: BACKGROUND OF STUDIES

Inventory control is the exercise overseeing and controlling of the ordering, storage and use of
additives that a corporation uses inside the manufacturing of the items it sells. Inventory
management has been used as a decision-making in countless corporations and has been
drastically studied in the educational and company spheres. The purposes of stock gadget are to
recognize the details of the gadgets including code, name, situation, place of gadgets and the yr.
of buy. It is also to make clean for control the item. Usually, developing inventory list may be
performed two ways either manually or automatic. Manually inventorying are normally written
facts with handwriting at the data books. It has many dangers. One of them is whilst the admin
body of workers enter the statistics, it's miles vulnerable to be typographical errors. A wide
variety of institutes and corporations are transferring from manually accumulating and
processing statistics to a computerize machine. Computerize device has many options. Word
processing or spreadsheet application (e.g., Microsoft Office) can be utilized to do the task
however it has dangers. Manually getting into statistics into the spreadsheet can take a
completely long term specially if customers have quite a few information to go into. It is also
possible to view or edit the crucial statistics which should no longer be proven. This is very
damaging for the institutes or groups. This mission pursuits to broaden an internet based totally
application and cellular application to gather and system inventory facts. Quick Response (QR)
code could be used to encode the stock ID and other related information with the intention to
give fashionable information of the unique item where the cellular software can display both on-
line or offline. Inventory control could be done on internet based totally software in which a
licensed body of workers can manage the inventory lists alongside QR Code.
1.2: PROBLEM STATEMENT
After analyzing many current IMSES we've got now the plain imaginative and prescient of the
assignment to be evolved. Before we started to build the software team had many challenges. We
defined our hassle declaration as:
-To make laptop primarily based application of IMS for small employer.
-To make the device without difficulty controlled and can be secured.
-To cover all the regions of IMS like purchase details, sales information and stock management
1.3: PROPOSED SYSTEM

The system is designed to assist in managing records unlike the expensive way of writing down
records which is expensive and hard to retrieve information. The system minimizes calculations
and increases security to the data records.
1.4: OBJECTIVES OF THE STUDY
1.4.1: General objectives
The over and under the stock of inventory usually create the requirements of different types of
inventories, a period of the stock, and cost associated with it. The General objectives of
inventory management are:
- To supply the required materials continuously: The main objective of inventory management is
to maintain the required inventory to run the production and sales process smoothly.
- To minimize the risk of under and overstocking of material: Inventory management manages to
minimize the risk caused due to under and overstocking of the inventory.
- To reduce losses damages and misappropriation of materials: Inventory management aims to

reduce or remove the losses of materials and stock, done by maintaining the proper stock of
materials with utmost care.
1.4.2: Specific objectives
1. Material Availability
The primary goal of inventory management is to ensure that all kinds of materials are accessible
whenever the production department needs them, ensuring that production is not stopped or
slowed down due to a lack of resources.
2. Better Level of Customer Service

It is impossible to fulfil a received order if you do not have an accurate count of the items in your
possession. In order to meet requests, you must have accessible the appropriate goods at the right
time. Otherwise, you may end yourself in a state of confusion.
3. Keeping Wastage and Losses to a Minimum

Inventory management is very successful in mitigating losses. When there is no monitoring
system in place, it is very normal for an item to be squandered or misplaced.
4. Maintaining Sufficient Stock

Supplies should be easily available for all stages of production, from raw materials to completed
goods. You need to make sure you have enough of the necessary material on hand to meet client
demand without having to cut corners.
5. Cost-Effective Storage
It eliminates the possibility of keeping extra stock, since the needs are predetermined, thus
eliminating needless storage expenses.
6. Cost Value of Inventories Can Be Reduced
When purchasing products or stock on a regular basis, an organization may negotiate discounts
and other incentives to lower the overall cost.
7. Optimizing Product Sales

Additionally, inventory management may be used to determine the volume of product sales.
Sales is one of the most essential and crucial phases of the whole process. Understanding the
present condition as well as making future assumptions from the analysis are two key elements
in making a successful prediction. You can identify things that move at a slower rate, and
remove them.
1.5: SIGNIFICANCE OF JUSTIFICATION OF STUDY

Reduce cost-
Reducing operational cost-our project aim is to come up with a software product that will reduce
the operational cost.
Reducing errors-our software will provide proper validation technique that will collectively
reduce errors done when recording data.
Increase revenue-it will improve customer relations. My software final aim is to improve the
company’s experience by enabling an easy environment to operate in and hence the patient’s
satisfaction is achieved leading to more patients and higher revenue.
Increased efficiency and effectiveness-enabling ease of access to information concerning each

patient and their records thus guaranteeing efficiency and effectiveness.
1.6: SCOPE OF STUDY
Inventory Management System (IMS) is targeted to the small or medium organization which
doesn’t have many godsons or warehouses i.e., only to those organization that has single power
of authority. Some of the scopes are
:  Only one person is responsible in assigning the details or records
 It is security driven.  Go down can be added as per the requirement.

1.7: LIMITATIONS AND CONSTRAINTS OF THE STUDY
Tracking Obsolete Stocks-This difficulty happens of with maximum groups in exceptional

sectors. You would possibly have an extensive variety of merchandise, with a few promoting
faster than others. On the alternative hand, a few products might have lower call for and emerge
as out of date gadgets on your stock. However, there can be a situation in which you may need
that product again. Instead of checking their inventory for those out-of-date materials, many
agencies reorder them and go for new ones. It increases the business enterprise’s expenditure and
leads to the objects of their stock going to waste. System crashes are with the aid of some
distance the largest downside bearing on automatic stock control. A corrupt hard pressure,
strength outage, or technical problem can all cause a loss of wished records and will doubtlessly
close the complete operation down. When everything is automated, it is easy to forego time-
consuming physical inventory audits. They may no longer seem necessary when the computers
are doing their work. However, it is important to continue to do regular audits to identify loss
such as spoilage or breakage. Audits also help business owners identify potential internal theft
and manipulation of the computerized inventory system.
1.8: DEFINITIONS, ACRONYMS AND ABBREVIATIONS
1. BOM = Bill of materials
2. CERP = Enterprise resource planning

3. customer relationship management (CRM) solutions aim to improve your interactions
with your customers
4. FIFO = First in, first out

5. Non-stock inventory items are items that are not tracked by your inventory management
system.
6. Material requirements planning (MRP) involves taking stock of the materials needed to
manufacture a product, comparing those needs to the number of materials currently on
hand, and ordering new materials
7. Godown-a storehouse for goods and merchandise.

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CHAPTER ONE

1.1: BACKGROUND OF STUDIES

1.2: PROBLEM STATEMENT

1.3: PROPOSED SYSTEM

1.4: OBJECTIVES OF THE STUDY

1.4.1: General objectives

- To reduce losses damages and misappropriation of materials: Inventory management aims to

1.4.2: Specific objectives

2. Better Level of Customer Service

3. Keeping Wastage and Losses to a Minimum

4. Maintaining Sufficient Stock

7. Optimizing Product Sales

1.5: SIGNIFICANCE OF JUSTIFICATION OF STUDY

Increased efficiency and effectiveness-enabling ease of access to information concerning each

1.6: SCOPE OF STUDY

:  Only one person is responsible in assigning the details or records

 It is security driven.  Go down can be added as per the requirement.

Tracking Obsolete Stocks-This difficulty happens of with maximum groups in exceptional

1.8: DEFINITIONS, ACRONYMS AND ABBREVIATIONS

1. BOM = Bill of materials

2. CERP = Enterprise resource planning

4. FIFO = First in, first out

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