DESIGN AND IMPLEMENTATION OF 

STOCK MANAGEMENT SYSTEM

ABSTRACT
A stock management system is a key part of the supply chain and primarily aims to control the movement
and storage of materials within a warehouse and process the associated transactions, including shipping,
receiving, put away and picking. The systems also direct and optimize warehouse put away based on real-
time information about the status of bin utilization.
In times of economic slowdown, cutting costs is the major strategy used by the companies. There is a need
to track the performance of each product in terms of demands to determine how much to order and when to
order. The parameters that are required to answer these questions are economic order quantity and the
reorder point. The annual cost of each product is obtained to determine the best deal for the invoices
received for the product. This project implements a warehouse management system and tracks the
performance of each product using a web application. This will help decision makers to initiate accurate
re-order and make forecast and demand of the product at any point in time.
Stock management system is an essential activity that must be undertaken in an organization to ensure
proper management of inventories. In other to ensure for the proper management of inventories, systems
and software has to be put in place. System has to be developed to keep proper track of all in-coming and
out-going inventories.
The stock management system is basically designed to capture and automate all shipping of products into
the warehouse of NUGAB Resources limited and to keep records of all products sold out, with the main
objective of the software being to bring efficiency into EffisonLimitedlimited.

 
TABLE OF CONTENT
CHAPTER 1 INTRODUCTION
1.1  INTRODUCTION-----------------------------------------------------------------------------------6
1.2  PROJECT OVERVIEW----------------------------------------------------------------------------7
1.3  PROBLEM STATEMENT-------------------------------------------------------------------------8
1.4  OBJECTIVES----------------------------------------------------------------------------------------8
1.5  SCOPE OF STUDY --------------------------------------------------------------------------------9
CHAPTER 2 LITERATURE REVIEW
2.1 REVIEW TOPIC------------------------------------------------------------------------------------10
CHAPTER 3 SOFTWARE ANALYSIS REQUIREMENT
3.1 EXISTING SYSTEM------------------------------------------------------------------------------16
3.2 PROPOSED SYSTEM-----------------------------------------------------------------------------16
3.3 SOFTWARE REQUIREMENT------------------------------------------------------------------17
3.4 HARDWARE REQUIREMENT-----------------------------------------------------------------19
CHAPTER 4 DATA DESIGN
4.1 NORMALIZATION-------------------------------------------------------------------------------20
4.2 DATAFLOW DIAGRAM------------------------------------------------------------------------22
4.3 CONTEXT ANALYSIS DIAGRAM-----------------------------------------------------------24
4.4 DECISION TREE/TABLE-----------------------------------------------------------------------24
4.5 ENTITY RELATIONSHIP DIAGRAM-------------------------------------------------------26
CHAPTER 5 TESTING AND EXPERIMENTAL RESULTS
5.1 TESTING METHOD-----------------------------------------------------------------------------29
5.2 SAMPLE DATA RESULT----------------------------------------------------------------------32
5.3 SECURITY----------------------------------------------------------------------------------------36
CHAPTER 6 CONCLUSION
6.1 INTRODUCTION--------------------------------------------------------------------------------38
6.2 SUMMARY OF WORK ------------------------------------------------------------------------39
6.3 ADVANTAGES OF THE SYSTEM-----------------------------------------------------------39
6.4 LIMITATIONS------------------------------------------------------------------------------------39
6.5 FUTURE ENHANCEMENT--------------------------------------------------------------------40
6.6 CONCLUSION------------------------------------------------------------------------------------40
GLOSSARY--------------------------------------------------------------------------------------------42
SAMPLE CODE---------------------------------------------------------------------------------------43
USER MANUAL--------------------------------------------------------------------------------------66
REFERENCE-------------------------------------------------------------------------------------------72

 
CHAPTER 1
1.1 Introduction
A stock management system is a key part of the supply chain and primarily aims to control the movement
and storage of materials within a warehouse and process the associated transactions, including shipping,
receiving, put away and picking. The systems also direct and optimize warehouse put away based on real-
time information about the status of bin utilization.
The objective of a stock management system is to provide a set of computerized procedures to handle the
receipt of warehouse and returns into a warehouse facility, model and manage the logical representation of
the physical storage facilities (e.g. racking etc), manage the warehouse within the facility and enable a
seamless link to order processing and logistics management in order to pick, pack and ship product out of
the facility.
In its simplest form, the stock management system can data track products during the production process
and act as an interpreter and message buffer between existing ERP (Enterprise resource planning) and
stock management systems. Stock Management is not just managing within the boundaries of a warehouse
today; it is much wider and goes beyond the physical boundaries. Inventory management, inventory
planning, cost management, IT applications & communication technology to be used are all related to
warehouse management. The container storage, loading and unloading are also covered by warehouse
management today. Even production management is to a great extent dependent on stock management.
Efficient stock management gives a cutting edge to a retail chain distribution company. Warehouse
management does not just start with receipt of material but it actually starts with actual initial planning
when container design is made for a product. Warehouse design and process design within the warehouse
(e.g. Wave Picking) is also part of warehouse management. Warehouse management is part of Logistics
and SCM.
Warehouse Management monitors the progress of products through the warehouse. It involves the physical
warehouse infrastructure, tracking systems, and communication between product stations.
Warehouse management deals with receipt, storage and movement of goods, normally finished goods, to
intermediate storage locations or to final customer. In the multi-echelon model for distribution, there are
levels of warehouses, starting with the Central Warehouse(s), regional warehouses services by the central
warehouses and retail warehouses at the third level services by the regional warehouses and so on. The
objective of warehousing management is to help in optimal cost of timely order fulfillment by managing
the resources economically.
1.2Project Overview
This project gives a company the convenience of controlling the activity in the warehouse and thereby
giving information to managers to assist in proper decision making the company. This project is pursued
with Effison Limited as the focus of impact.  The major modules of the project are:
User login module:
This module would be the first to appear when a user launches the proposed system. These would help to
ensure that un-authorized user don’t have access to the system. At start-up users would be required to login
with their username and password.
Reports module
This module would be used for managerial staff for proper decision making in the day- to – day activity of
the company.
Customer module
This module would be responsible in registering a customer into the company database. This information
used during the registration process would then be used during shipping to direct goods to the appropriate
customer
New item module
This would be responsible for the acknowledgment of goods into the warehouse.
Warehouse update module
This module would be used during the process of updating the quantity of a particular good in the
warehouse.
 
1.3 Problem Statement
The majority of the problems that occur in the warehouse occur because of a lack of control: a lack of
inventory control, operational control and or management control. To become a dynamic, consistent
organization, all the operation must be under control. In order to achieve this control, all the tools and
technology available has to be used to get control and manage the warehouse operation. A control system
is a means, mechanism or procedure by which we manage these operations
In Effison Limited the method used in tracking goods involves the traditional record keeping and
identifying products according to written labels. Inventory management and distribution typically relies on
a traditional process of taking a physical inventory of products and manually ordering refills, while also
eliminating product that is nearing or passed its expiry.
In the recording of a transaction only a single employee at a time is able to enter the record on a ledger
book and furthermore some goods are not entered in the book but sold directly. Reports are not generated
daily, weekly or monthly but only on a yearly basis and this cause mishandling of funds among the
employees. The warehouse does not have a backup and recovery for the products of transactions journals
made for the inventory items. Security is not there because the users and the administrators both perform
the same tasks.
1.4 Objectives
stock management within warehouses is a challenge given the characteristic value specific nature of the
products. Global visibility of finished and semi-finished products can greatly improve both inventory
turnover and maximize production efficiency. One of the major goals in Stock Management is to track,
store and move goods and materials efficiently; keeping inventory levels down while still always having
enough products on hand. Picking and packing, controlling logistics documents, and in and outbound
monitoring are all part of this process. The operations of this software include the following:
·         Lowering Working Capital
·         Increase inventory turns
·         Managing Fixed Assets & Resources
·         Improve physical inventory process,
·         Prevent selling expired products.
·         To keep track of all transaction to prevent any losses.
·         To conduct casual analysis to identify common trends in transaction by means of reports.
·         To prevent the company from running out of warehouses.
1.5 Scope of the study
The Stock management system is intended to cover all the operations of the company. The scope and tasks
of the research project include finding out the scale of implementation of stock management system and
perceived barriers for adoption, evaluating the strengths and weaknesses of warehouse management system
currently adopted by the industry as a whole