COMPUTER SCIENCE

PROJECT
SYNOPSIS

TOPIC: INVENTORY MANAGEMENT

SYSTEM

COMPANY NAME:

DONE BY: SHRUTHI.R

SHREYA.S
WHAT IS INVENTORY MANAGEMENT SYSTEM?
An inventory management system is the combination of technology
(hardware and software) and processes and procedures that oversee the
monitoring and maintenance of stocked products, whether those products
are company assets, raw materials and supplies, or finished products ready to
be sent to vendors or end consumers.
OBJECTIVES OF THE COMPANY:
A complete inventory management system consists of:
 A system for identifying every inventory item and its associated
information, such as barcode labels or asset tags.
 Hardware tools for reading barcode labels, such as handheld barcode
scanners or smartphones with barcode scanning apps.
 Inventory management software, which provides a central database and
point of reference for all inventory, coupled with the ability to analyze
data, generate reports, forecast future demand, and more.
 Processes and policies for labelling, documentation, and reporting. This
should include an inventory management technique such as Just in Time,
ABC Analysis, First-In First-Out (FIFO), Stock Review, etc.
 Without an inventory management system, the goods and products that
flow through an organization will inevitably be in disarray.
 An inventory management system enables a company to maintain a
centralized record of every asset and item in the control of the
organization, providing a single source of truth for the location of every
item, vendor and supplier information, specifications, and the total
number of a particular item currently in stock.

Overall, a comprehensive inventory management system offers countless

benefits to companies including:

 Improved cash flow

 Better reporting and forecasting capabilities
 Reduction in storage costs (overhead)
 Reduced labor costs
 Reduction in dead stock
 Better organization
 Enhanced transparency
 Improved supplier, vendor, and partner relationships
OBJECTIVES OF THE PROGRAM:
1. To ensure continuous supply of materials spares and finished goods so that
production should not suffer at any time and the customer’s demand should
also be met.

2. To avoid both overstocking and under-stocking of inventory.

3. To maintain investment in inventories at the optimum level as required by

the operational and sales activities.

4. To keep materials cost under control so that they contribute in reducing

cost of production and overall cost.

5. To eliminate duplication in ordering or replenishing stocks. This is

possible with the help of centralising purchases.

6. To minimise losses through deterioration, pilferage, wastages and damages.

7. To design proper organisation for inventory management. Clear cut

accountability should be fixed at various levels of the organisation.

8. To ensure perpetual inventory control so that materials shown in stock

ledgers should be actually lying in the stores.

9. To ensure right quality goods at reasonable prices. Suitable quality

standards will ensure proper quality stocks. The price analysis, the cost
analysis and value analysis will ensure payment of proper prices.

10. To facilitate furnishing of data for short term and long term planning and
control of Inventory.