A PROJECT REPORT On

INVENTORY MANAGEMENT SYSTEM (General Store)
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF B.TECH (Comp. Sc.) OF THAPAR UNIVERSITY

SESSION: 2010

UNDER THE GUIDANCE OF
Mr. Vinay Arora, Lecturer, Computer Science Department Thapar University , Patiala, Punjab

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

B Tech(C.S.E.) 2 nd yr, Group 4,

Acknowledgement

I take this opportunity to express my profound sense of gratitude and respect to all those who helped me throughout the duration of this project. I express my sincere gratitude

and thankfulness towards Mr. Vinay Arora, Computer Science Depatment, of TU, Patiala, Punjab for his valuable time and guidance throughout the B .Tech .

I am grateful for the co -operation & valuable suggestions rendered by all the staff members of Easy Day Chain.

I am grateful to all our friends for providing critical feedback & support whenever required.

I regret any inadvertent omissions.

-

PANKAJ RACHIT RAGHAV RANJAN

DADRAL GUPTA GOEL SINGH

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:

y y y

Item name Quantity Delivery time

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.

1.1 TYPES OF INVENTORY
Following are the 5 possible ways of inventory control 

Raw materials ± In this type of inventory raw material is bought from the producer ,followed by processing to get finished products for sale in the market . For eg. Pencil manufacturing industry requires wood and graphite as raw materials  Purchased parts and supplies ± In this type of inventory finished products are bought from the manufacturer and sold to the customers. For eg. Any General Store sells the products it buys from its manufacturers .  Work-in-process (partially completed) products (WIP ) ± In this type of inventory partially processed products are further modified and sold . For eg. Steel industry buys the cast iron to further process it and improve.  Items being transported ± In this type of system products are transferred from one location to another . For eg. Any Courier firm  Tools and equipment ± In this type of system

1.2 INVENTORY CONTROL SYSTEMS
Inventory Control is broadly classified into 2 main systems ± 

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

1.3 TYPES OF DEMAND
Inventory system encounters the following 2 types of demand ± 

Dependent Demand  Demand for items used to produce final products  Tires stored at a Goodyear plant are an example of a dependent demand item  Independent Demand  Demand for items used by external customers  Cars, appliances, computers, and houses are examples of independent demand inventory

1.4 DISADVANTAGES OF OLD SYSTEM
As we know the manual processing is quite tedious, time consuming, less accurate in comparison to computerized processing. The present system is not is exception consultant encountering all the above problems. 

Time consuming.  It is very tedious.  All information is not placed separately.  Lot of paper work.  Slow data processing.  Not user-friendly environment.  Difficult to find records due to poor file management.

1.4 ADVANTAGES OF NEW SYSTEM
In new computerized system we tried to give these facilities 

Ensures an adequate supply of materials  Minimizes inventory costs  Facilitates purchasing economies  Eliminates duplication
in ordering 

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

Balance in Inventory Levels

Replenish Point is level of inventory at which order is placed
The company replenishes its stock using mainly 2 methods 

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
y 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.

y

y

y

y

y

y

y

y

y

y

y

y y

y y

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

y y

y

y

3. SYSTEM ANALYSIS
System analyses is carried out in the following phases.

3.1 IDENTIFICATION OF NEED
Without automation the inventory control system suffered from the following shortcomings 1. Time consuming. 2. It is very tedious. 3. All information is not placed separately. 4. Lot of paper work. 5. Slow data processing. 6. Not user-friendly environment. 7. Difficulty in finding records due bad file management. The features desired by the owner were as follows ± 1. Manually system changes into computerized system. 2. Friendly user interface. 3. Time saving. 4. Save paper work. 5. Connecting to database so we use different type of queries,data report. 6. Give facility of different type of inquiry. 7. Formatted data. 8. Data is easily approachable.

3.2. SCOPE DEFINATION
The ³Ineventory control system of General store´ software is being developed as an accurate and efficient software

for the users. In this system the record of the each request details are preserved along with their status and transaction related to them. The system is also made secured as all the updation of the item and transaction can be done by the authorized person administrator only. i.e. the

3.3 FEASIBILITY STUDY
The feasibility report of the project holds the advantages and flexibility of the sections: project. This is divided into three 

Economical Feasibility  Technical Feasibility  Operational Feasibility  Schedule Feasibility  Political Feasibility  Behavioural Feasibility

3.3.1 ECONOMIC FEASIBILITY
A systems financial benefit must exceed the cost of developing that system. i.e. a new system being developed should be a good investment for the organization. Economic feasibility considers the following 

The cost to conduct a full system investigation.  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 ³Invenory 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. power spent in 

The system will have GUI interface and very less user training is required to learn it. 

The system will provide service to view various
information for proper managerial decision making.

3.3.2 TECHNICAL FEASIBILITY
Technical feasibility centers around the existing

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 organization¶s capacity to acquire additional components. Our proposed system is technically feasible because ± y 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 .

y

The system supports interactivity with the user .

Technical system

feasibility and

centers software)

around

the it

existing can

computer the

(hardware

whether

support

addition of proposed system, if not support the organization¶s capacity

to what extend it can to acquire required

additional components.

Proposed system is technically feasible because of the following reasons:- 

The System
require application.

of

the

General

store to

of

Easy

Day,

doesn¶t proposed

extra

investment

run

the 

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,

validation

checks.

system

guarantees accuracy, reliability, ease of access and data security.

3.3.3 BEHAVIOURAL FEASIBILITY
Behavioral feasibility determines how much effort will go in the proposed information system, and in educating and training the employees on the new system, along with the new ways of conducting the business. Behavioral study strives on ensuring that the equilibrium of the organization and status quo in the 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 t o 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:y y 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: y y 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 ?

y y

3.3.6 Schedule feasibility

:-

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 complet ed 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 m ore 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 approachi ng 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.

3.5.1 ITEM DETAIL TABLE
It contains information about item like item name, minimum quantity in stock, maximum quantity, and reorder status etc. A. Item code: - It represents the code to identify an item. It helps to search the item in the stock according to requirement. B. Item name: - This field shows the name of item. C. Minimum quantity in stock: - This field helps to know the min-qty in stock. D. Max quantity: - This field shows max quantity in stock. E. Reorder status: - This field shows reorder status when quantity goes below to minimum quantity in stock.

3.5.2 Purchase Order Table
This table contains the information about the purchase order like vender code, order code,supplier name, supplier address, order date, item code, item name, quantity, deliver time etc. Vender code: - This field determine the code of vender. 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.

3.5.3 Selling bill table
This table contains information about order that are given by the customer, customer name, customer¶s address, unit price, amount and total amount etc. Customer name: - This field determines the name of the customer. Customer address: - It determines the address of the customer. Unit price: - It shows the price per item. Amount: - it determines the amount per item. Total Amount: - This field shows the total amount of the item that has been purchase by the customer.

4. Software Engineering paradigm
The basic popular models are as follows:

A) B) C) D)

System Development Life Cycle (SDLC) Model Prototyping Model Rapid Application Development Model Component Assembly Model

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

4.1.1. Preliminary Investigation
As software development is large process so work begins by establishing requirements for all system elements and then allocating some subset of these requirements to software. The view of this system is necessary when software must interface with other elements such as hardware, peo ple and other resources. System is the very essential requirement for the existence of software in any entity. In some cases for maximum output, the system should be re -engineered and spruced up. Once the ideal system is designed according to requirement, the development team studies the software requirement for the system.

4.1.2 Software Requirement Analysis
Software Requirement Analysis is also known as feasibility study. In this requirement analysis phase, the development team visits the customer and st udies their system requirement. They examine the need for possible software automation in the given software system. After feasibility study, the development team provides a document that holds the different specific recommendations for the candidate syste m. It also consists of personnel assignments, costs of the system, project schedule and target dates.

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 tha t needs to be solved.

4.1.3 System Analysis and Design
In System Analysis and Design phase, the whole software development process, the overall software structure and its outlay are defined. In case of the client/server processing technology, the number of tiers required for the package architecture, the database design, the data structure design etc are all defined in this phase. After designing part a software development model is created. Analysis and Design are very important in the whole development cycle process. Any fault in the design phase could be very expensive to solve in the software development process. In this phase, the logical system of the product is developed.

4.1.4 Code Generation
In Code Generation phase, the design must be decoded i nto a machine-readable form. If the design of software product is done in a detailed manner, code generation can be achieved without much complication. For generation of code, Programming tools like Compilers, Interpreters, and Debuggers are used. For coding purpose different high level programming languages like C, C++, Pascal and Java are used. The right programming language is chosen according to the type of application.

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.

5. SOFTWARE / HARDWARE SPECIFICATION REQUIREMENTS
5.1 Hardware Requirement:
The following are the minimum requirements:y Processor: - Intel Pentium III 833MHz y RAM: - 128 SD-RAM. y Hard Disk: -20 GB or above. y Monitor: - 14´ VGA. y Mouse. y Printer: - For print report or Bill. y Floppy Disk Drive: - 1.44MB.

5.2 Software Requirement:
y y y Operating system: - Windows 98/2002/NT.,or higher. Front End: - Visual Basic 6.0.(Professional Edition.) Back end: - MS. Access.

6. Design

6.1 Presentation Diagram:-

FIG 4

6.2 Data Flow Diagram (D.F.D.)
The Data Flow Diagram shows the flow of data or information. It can be partitioned into single processes or functions. Data Flow Diagrams can be grouped together or decomposed into multiple processes.

The DFD is an excellent communication tool f or 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 difference s 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 co ndition under which failures occurs are noted for later debugging and correction. There are many stages of testing depending on the complexity of the software.

7.1 Levels of Testing:
The basic levels of testing are: 1. Unit Testing. 2. System Testing

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

7.1.1 UNIT TESTING:
Unit testing has been under taken when a module has been coded and successfully reviewed. Unit testing is the testing of different units or modules of system in

isolation. It is programmer¶s responsibility to think of the advantage of doing unit testing b efore 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 ³Inventory Control System´, unit testing has been exclusively done after finising every module.

7.1.2 SYSTEM TESTING:
System testing is actually a series of different test whose primary purpose is to exercise the computer based system, all work to verify that system elemen ts have been properly integrated and performed allocated function.

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

proces s.

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 user¶s of not understand the system (an external view). User do do they care about how the system

nor

works as long as it is usable. System testing should be approached from this perspective.

As

far

as

the

proposed

³Inventory

Control

System´

is

concerned it meets this requirement.

7.2 Testing Conclusion
Testing is an essential stage of the software development life cycle. If is performed properly by following an organization¶s standards the end result will be more robust programs going to the system integration testing and finally a system with low maintenance. Proper coding and unit testing are basic steps to ensure that the system being built will work once it is put together.

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 implemen tation 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

³Inventory

Control

System´

is

not

fully implemented as development of some

modules are not

completed. It will be implemented after the completion of other modules.

8.1 Implementation Conclusion The Authority of the General Stores wi ll 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 pr ime concerns once it will be made online.

10. Conclusion
The ³Inventory 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 .

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