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Introduction Inventory management basically deals with the effectively and efficiently controlling the inventories or the stock by any organization. Now a days, many concepts and techniques are available for controlling inventories. There are very remarkable examples for controlling inventories like some models to determine order quantities, techniques for forecasting demands, etc. Basically the concept and techniques that are mainly used in controlling and effectively managing the inventory is based on mathematical assumptions and modeling inventory situations. Although this approach to inventory control has proved to be very valuable in determining inventory parameters and planning resources but its value can be questioned in dealing with practical inventory control problems. This case study is divided into various parts. First of all the purpose of the inventory management, why do we need to study it, what all areas are taken under consideration of the inventory control (i.e. its scope), then the technology used by the Harish Bakers (Shop in Gurgaon) to efficiently manage their inventory. Then we will deal with the system on which they are currently working with, what were their requirements, who all are going to use that system, what are its constraints, what were the problems faced by them when they were not having the system and what requirements were put by them to the people who made their project. 2.1 Purpose or Identification of the need Within the area of inventory we found traditionally few topics that played an important role in the inventory control management. First of all inventory management basically deals with the order quantities, order intervals and finally the complete inventory control systems. The first topic is concerned with regards to order quantities or how much we order. In order to determine economic order quantities, several costs associated with inventories play a part, such as ordering costs and inventory carrying costs. The second topic regards the order interval or when to order. In this respect demand and lead time processes are important. Finally, the topic regards the inventory control system. Common subjects concerning systems for controlling inventories are information systems. These three aspects represent the traditional characteristics of an inventory situation. In addition to that they are considered to be starting points for improving the inventory system. Below are some of the advantages and disadvantages of manual processing as compared to using automated system for managing inventory. 2.1.1 Disadvantages: 1. Time consuming. 2. It is very tedious.
Inventory control problems can easily arise when for instance nobody is in the organization is responsible for the inventory or the responsible person has insufficient authorities to carry out the task. 4. data report. 2. Time saving. high inventory values indicating a lack of control may just be the result of inaccurate inventory records or of a reporting system that doesn’t function well. Data’s are easily approachable. Formatted data. Give facility of different type of inquiry. It is difficult to found records due file management system. 7. 4. .2 Advantages: 1.2 Scope of inventory management A significant example concerning inventory management is allocation of responsibilities and authorities. Not user-friendly environment. 6. Lot of paper work.3. Manually system changes into computerized system. Likewise. 5. Friendly user interface.1. 2. 6. 2. 7. 8. Connecting to database so we use different type of queries. All information is not placed separately. Save paper work. Slow data processing. 5. 3.
Fig 2.2 Feasibility study 2. Financial and technical product information must be available through the inventory system. The inventory management discipline encompasses all system and data elements from the mainframe to the server level throughout the enterprise.1: Scope of Inventory Management All functional areas listed above utilizes the information contained with the inventory management control system and asset repository of information.3 Request approval 2.3.3. 2.3 Preliminary investigation This part has further three categories: 2.3. Any changes to these environments must be reflected in the inventory system.1 Request clarification 2. as needed to support the functional responsibilities of personnel within the finance and contracts management department.1 Request Clarification: . All mainframe and data network based hardware and software assets must be identified and entered into the inventory system.3.
5.3. daily.We all know that many requests originate from the side of users. 4. To provide inventory system access to all necessary personnel (data entry. In our case of inventory management of a bakery shop in Gurgaon after going through their documents we found the below mentioned framework that arouse for solving the inventory control and management problems. Based upon these objectives of the system to be developed the inventory management system was studied under the three aspects of the feasibility analysis: . 2.2. operational feasibility. Inventory control management deals with the controlling stock.3. orders. 2. To indentify and trace all data processing assets in an inventory system repository. etc. All this is studied under the category of the request clarification. To provide full range of reports that will satisfy informational requirements. To provide training to the personnel responsible for supporting the inventory management system. To document the inventory management system with standards and procedures manual. delete data). Another table mentioned below gives us an overview of how the inventory control system should be prepared and what all dimensions should be taken under consideration so as to develop an efficient system that is able to control and efficiently manage the inventories. let us have an overview of the goals of proposed system or see what all objectives people had when they approached some company to develop the system to manage their inventory shop. Therefore before any system is developed to fulfill such requests we mus t understand what the originator of the requests wants from the system. So in order to study all this. economic feasibility. weekly and monthly orders of how much company purchases the stocks and utilizes the stock. 6. 7. 2. So using all this data there is analysis carried out on how the inventory system should be modified or redesigned to meet its requirement. Ensure efficient and timely identification of vital corporate assets (commodities). 3. update data.2 Feasibility Study First of all in feasibility analysis we take into account whether the proposed system would be feasible by performing various feasibility analysis tests like technical feasibility. employees in the organization but these requests are not clearly indicated or stated.1 Goals or objectives of proposed system 1. Provide common repository for asset protection.
3.2. In our case the project of inventory management was approved by . Some organizations receive so many requests from the employees that only few of them can be implemented.2. In some cases development can start immediately.3. One more problem that arouse was when some customer returned a product stating that product has expired or is not up to the mark the employees didn’t know how to add the already sold product entry again in the database and return their money using that system of inventory management. Looking and analyzing the documents provided by the shop ot was found that in the initial or earlier phases their was lot of resistance from the users or the employees working in that shop like they were not able to handle that system to add or delete the inventory commodities when it was purchased or sold to the customers. All the objectives were put forward to the company making their project so that they can check whether it is technically feasible or not. Documents shown by the store manager indicates that at the time when the system to manage inventory was developed the technology that was available and which could be used for the development of the system was Windows Server 2003 32-bit.2. 2.3.2.e. When this happens management decide which project are most important and schedule them accordingly. whether the software they will be using or the tools required in making the project will benefit the shopkeeper cost wise or in other words whether the shop owner will be able to recover the cost or money spent in making the project and will have faster processing now at his shop unlike he had before the system. Min 512 Mb of Ram and the programming language that could be used was Visual Basic in addition to the database storage using Ms Access.2 Economic Feasibility This test of feasibility analysis was performed by the company as well as by the shop owner. After this the system was tested for the Economic Feasibility discussed below: 2.3 Request Approval As we all know that all requested projects are not desirable or feasible. It was found that with these tools or software’s the inventory management system could be formulated. 2.2 Technical feasibility This states that whether the project or the system can be developed with the existing technology available in the market or would it require some training or expertise to develop the system.3 Operational Feasibility This test judge whether the project or the system developed for that shop would be used by the users or their will be reluctance or resistance from the user to use that system to manage their inventory.3. Under this test they judged whether the project was economically feasible i.
It provides for recording and reporting stock movement. completion time of the project and other functional & non functional requirements. Why do you use this automated system? We use this automated system because of the below mentioned reason: · Provide fast order turn-around · Offer flexibility in automatic pricing and discounting · Making timely price changes · Reduce man hours cost in managing inventory . benefit they will get. Sales Analysis: Maintains sales history. Order Processing: It consists of the following functions: · Order Creation · Order Release · Reporting · Inquiries · Control Automatic Pricing B. C. 2. 2. Inventory Management: This part of the system maintains the minimum level of the inventory to ensure profitability while still satisfying management consideration for the customer’s service. report sales activity and providing decision making information are the major tasks of the sales analysis.the management of the shop considering the cost of project.4 Interview Questionnaire 1. A.e. What does the existing system include in it or what all functions it performs? The system we are using has 3 major tasks to be performed i.
· Improved cash flow · Improve customer service · Calculates tax by total items In addition to the invoice. What are the various reports generated by the system? · Order entry report · Order hard copy inquiry report · Open order status report · Back order status reports · Daily business summary · Item margin analysis 2. Why do you think that inventory management is important? · Assists in maintaining minimum levels of inventory without jeoparding customer deliveries · Provides central file inventory management capability · Provides an important tool for making timely purchase decisions · Highlights under-stocked items requiring immediate action · Automates prices. quality breaks to maintain an effective pricing strategy · Aids in planning cash requirements for payables . discounts. the system prints a detail or summary invoice register and item margin analysis report and removes invoiced or cancelled orders from the open order file. What is the benefit of daily business summary? · Make better management decisions\ · Improve profits · Provides better customer service 3. 1.
these requirements are analyzed for their validity and the possibility of incorporating the requirements in the system to be development is also studied. Unit testing mainly verifies if the modules/units meet their specifications.2 System & Software Design: Before a starting for actual coding.4 Integration & System Testing: As specified above. The requirements are gathered from the end-user by consultation. Finally. Requirements are set of functionalities and constraints that the end-user (who will be using the system) expects from the system. which are integrated in the next phase. it is highly important to understand what we are going to create and what it should look like? The requirement specifications from first phase are studied in this phase and system design is prepared. System Design helps in specifying hardware and system requirements and also helps in defining overall system architecture. this is referred to as Unit Testing. 3. a Requirement Specification document is created which serves the purpose of guideline for the next phase of the model. problems with the system developed (which are not found during the development life cycle) come up after its practical use starts. . These units are integrated into a complete system during Integration phase and tested to check if all modules/units coordinate between each other and the system as a whole behaves as per the specifications. Software Engineering Paradigm Under this sub topic we are going to discuss the waterfall model used in system analysis and development of the inventory management system The stages of "The Waterfall Model" are: 3. hence this process is referred as Maintenance.1 Requirement Analysis & Definition: All possible requirements of the system to be developed are captured in this phase. Not all the problems come in picture directly but they arise time to time and needs to be solved.3 Implementation & Unit Testing: On receiving system design documents.3. the work is divided in modules/units and actual coding is started. 3. it is delivered to the customer. After successfully testing the software. the system is first divided in units which are developed and tested for their functionalities.5 Operations & Maintenance: This phase of "The Waterfall Model" is virtually never ending phase (Very long). Generally. The system is first developed in small programs called units. The system design specifications serve as input for the next phase of the model. 3. Each unit is developed and tested for its functionality. so the issues related to the system are solved after deployment of the system. 3.
As the requirements of the customer goes on getting added to the list. not all requirements are received at once. 1. 3. 2. this results in development of almost unusable system. 4. this affects the system development process and its success in negative aspects. the requirements from customer goes on getting added to the list even after the end of "Requirement Gathering and Analysis" phase. this result in badly structured system as not all the problems (related to a phase) are solved during the same phase. .There are some disadvantages of the Waterfall Model. The project is not partitioned in phases in flexible way. As it is very important to gather all possible requirements during the Requirement Gathering and Analysis phase in order to properly design the system. These requirements are then met in newer version of the system. this increases the cost of system development. not all the requirements are fulfilled. The problems with one phase are never solved completely during that phase and in fact many problems regarding a particular phase arise after the phase is signed off.
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