Enterprise Information

Systems
Péter Halász - peter.halasz@live.com
Project work
● Form teams of 2-3
● Find a topic
● Send the topic proposal and the list of team members to me
(deadline: 4th week, 2017.03.05)
Project work - Topic ideas
● Cloud based EISs
● Big data & analytics
● History of EIS
● RFID in retail and item identification
● Outsourcing
● ...
Project work
Essay: 10-15 pages

Presentation: 8-10 minutes

Recap
● Enterprise as a system
● Customers, suppliers, banks and administration (gov.)
● Business goals -> business processes -> backed by an EIS
● Requirements are stricter for an EIS
● Data != Information
● Customers
Customers
The customers (clients, buyers) are the ones who purchase our
goods.

To maintain a good relationship with our customers it’s essential

to store as much data as we can about them. (Targeted ads,
special offers according to their preferences)
 Customer transactions

Customer data model Customer ID

Year
Customer Sum of transactions Contact person
ID Customer ID

Name Name
Address
Solvency Phone number
Customer ID
Usual payment type Email address
ZIP Code Customer bank
Usual payment due date Post
Country Customer ID
Group code
City Bank Name

Address Account ID
CRM
Customer Relationship Management is an approach to managing
a company's interaction with current and potential future
customers that tries to analyze data about customer's history
with a company and to improve business relationships with
customers, specifically focusing on customer retention and
ultimately driving sales growth.

Can be integrated into an EIS or used separately

Suppliers
Suppliers are the external parties that supply the enterprise with
goods

The procurement team needs to have enough information about

suppliers for effective communication and to maintain the
optimal stock levels constantly
 Supplier transactions

Supplier data model Supplier ID

Year
Supplier Sum of transactions Contact person
ID Supplier ID

Name Name
Address
Usual payment type Phone number
Supplier ID
Usual payment due date Email address
ZIP Code Supplier bank
Group code Post
Country Supplier ID

City Bank Name

Address Account ID
Supplier processes
● Add
● Modify
● Query
● Search
● Delete

SCRUD (Search, Create, Read, Update, Delete)

SRM
Supplier Relationship Management is the discipline of
strategically planning for, and managing, all interactions with
third party organizations that supply goods and/or services to an
organization in order to maximize the value of those
interactions. In practice, SRM entails creating closer, more
collaborative relationships with key suppliers in order to uncover
and realize new value and reduce risk of failure.

SRM can be also integrated to the EIS or used separately

Items and Stock
Managing all data and processes related to the company’s items,
including their quantity, value and movements.

Item: every finished, semi-finished product, component and

material that is owned by the enterprise

Stock: the total amount of items or the amount of

a particular item available in a the company's warehouse(s)
Stock types
● By location
○ Private property, stored in own warehouse
○ Consignment stock
■ Private property, stored in foreign warehouse
■ Foreign property, stored in own warehouse
● By availability
○ Free
○ Reserved
Warehouses
All available stockable items must be in a warehouse or in
transfer

Warehouse types:

● “Classical” warehouses
● Store’s storage
● Logical warehouses: disposal, off-season, material-only, etc.
● Active / Inactive
Warehouses - Data model
● Warehouse ID
● Name
● Manager
● Description
● Main phone number
● Address
● Status
● Type
Items & Stock - Business processes
● Registering a new item
● Receiving
● Dispatching
● Selling
● Returns (customer or supplier)
● Inter-warehouse transfer
● Disposal
● Inventory surplus, deficit
Items - System processes
● Adding new items
● Modifying item data
● Removing items [?]
● Searching for items
● Maintaining supplier item IDs
Item groups - System processes
● Creating new item group
● Modifying item group
● Maintaining item group discounts
● Removing item group
Stock - Business processes
● Receiving items into own warehouse
● Cancellation of receiving
● Supplier returns
● Disposal
● Reservations
Items - Unit price models
Needed for calculating the total asset value for the enterprise

Accounting (individual) unit price model

Balanced average unit price model

Accounting unit price model
Every procured amount is stored separately with its purchase
price

+ More accurate asset value calculation

+ No need for any calculation during procurement
- Needs more space to store
Accounting unit price model
Item Stock
● Item ID ● Stock ID
● Description ● Item ID
● Amount unit ● Free stock
● Sale price ● Reserved stock
● Sale price timestamp ● Purchase price
● Item group ID ● Warehouse ID
● Minimum stock limit ● Timestamp of last procurement
● VAT rate ● Timestamp of last sale
● Consumption from this year
● Consumption from the year before
● ...
Accounting unit price model
P_0001
I_0001 P_0002
I_0001P_0003
Coffee Machine I_0001
10 I_0001
Piece 5
5 0
18000 0
W_000110
G_0001 W_0001
2017.02.19
W_0001
50 2017.02.20
120002017.02.21
... 16000
14000
Accounting unit price model
Item
ID Description Amount Sale price Sale price
unit timestamp

I_0001 Coffee Piece 20000 2017.02.10

maker

Stock
ID Item ID Free stock Reserved Warehouse Timestamp Purchase
stock ID price

P_0001 I_0001 10 5 W_0001 2017.02.19 12000

Accounting unit price model
Item
ID Description Amount Sale price Sale price
unit timestamp

I_0001 Coffee Piece 20000 2017.02.10

maker

Stock
ID Item ID Free stock Reserved Warehouse Timestamp Purchase
stock ID price

P_0001 I_0001 10 5 W_0001 2017.02.19 12000

P_0002 I_0001 5 0 W_0001 2017.02.20 16000

Accounting unit price model
Item
ID Description Amount Sale price Sale price
unit timestamp

I_0001 Coffee Piece 20000 2017.02.10

maker

Stock
ID Item ID Free stock Reserved Warehouse Timestamp Purchase
stock ID price

P_0001 I_0001 10 5 W_0001 2017.02.19 12000

P_0002 I_0001 5 0 W_0001 2017.02.20 16000

P_0003 I_0001 0 10 W_0001 2017.02.21 14000

Accounting unit price model
How to manage all these stock records during selling?

FIFO - First In First Out

We sell the oldest procured item first

LIFO - Last In First Out

We sell the recently procured item first
Balanced average unit price model
Unit price is stored with the item data

Stock qty * unit price + purchased qty* purchase unit price

Stock qty + purchased qty

+ Less space needed for storage

- Asset calculation is not as accurate due to rounding
- There is a calculation during each procurement
Balanced average unit price model
Item Stock
● Item ID ● Item ID
● Description ● Free stock
● Amount unit ● Reserved stock
● Unit price ● Warehouse ID
● Unit price timestamp ● Timestamp of last procurement
● Sale price ● Timestamp of last sale
● Sale price timestamp
● Item group ID
● Minimum stock limit
● VAT rate
● ...
Balanced average unit price model
P_0001
I_0001 P_0002
I_0001P_0003
Coffee Machine I_0001
10 I_0001
Piece 5
5 0
??? 0
W_000110
18000 W_0001
2017.02.19
W_0001
G_0001 2017.02.20
120002017.02.21
50 16000
14000
...
Balanced average unit price model
Item
ID Description Amount Unit price Unit price Sale price Sale price
unit timestamp timestamp

I_0001 Coffee Piece 18000 2017.02.18 20000 2017.02.10

maker

Item ID I_0001
Stock
Free stock 0
ID Item ID Free stock Reserved Warehouse
stock ID Reserved 10
stock
P_0001 I_0001 10 5 W_0001
Purchase 14000
price
(15 * 18 000) + (10 * 14 000)
Balanced average unit price model
(15 + 10)

Item
ID Description Amount Unit price Unit price Sale price Sale price
unit timestamp timestamp

I_0001 Coffee Piece 16400 2017.02.19 20000 2017.02.10

maker

Item
ItemIDID I_0001
I_0001
Stock
Free
Freestock
stock 05
ID Item ID Free stock Reserved Warehouse
stock ID Reserved
Reserved 100
stock
stock
P_0001 I_0001 10 15 W_0001
Purchase
Purchase 14000
16000
price
price
 (25 * 16 400) + (5 * 16 000)
Balanced average unit price model
(25 + 5)

Item
ID Description Amount Unit price Unit price Sale price Sale price
unit timestamp timestamp

I_0001 Coffee Piece 16333,33 2017.02.20 20000 2017.02.10

maker

Item ID I_0001
Stock
Free stock 5
ID Item ID Free stock Reserved Warehouse
stock ID Reserved 0
stock
P_0001 I_0001 15 15 W_0001
Purchase 16000
price
Alternative items
Connection table between two or more items that can be
interchangeable
● Original Item ID
● Alternative Item ID
● Compatibility %
● Comment
● Responsible Person ID
● Last modification date
Reserved stock
● Item ID
● Warehouse ID
● Quantity
● Timestamp
● End of Reservation time
● Reference Doc. ID
● Responsible Pers. ID
Disposed items
● Disposed Items
● Item ID
● Quantity
● Warehouse ID
● Timestamp
● Reason
● Responsible Person
Logging
A good practice to create log entries of every “important”
transaction

- Storage space requirement

+ Recovery is easier
Receive logs
● Item ID
● Amount
● Purchase price
● Warehouse ID
● Responsible ID
● Timestamp
Dispatch logs
● Item ID
● Amount
● Unit price
● Warehouse ID
● Responsible ID
● Timestamp
Inter-warehouse transfer logs
● Item ID
● Amount
● Unit price
● Source warehouse ID
● Target warehouse ID
● Responsible ID
● Timestamp
Modification logs
● Item ID
● Amount
● Unit price
● Warehouse ID
● Responsible ID
● Reason of modification
● Timestamp
Receiving - System process

Search Create Create

Exists?
Item new Item Stock data

Search
Stock data Items
Stock

Exists?

Modify Modify Log

Stock data unit price transaction Logs
Conclusion
● Customers, suppliers
● Item, stock, warehouses
● Unit price models
● Logs
● Process of a receive
Thank you for your attention
Example questions
● What is CRM, SRM?
● What is item, stock?
● How is stock related to items?
● What kind of stock types are there?
● What are item groups good for?
● What is the difference between the two unit price models?
● What are logs good for?