Inventory Management System

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O IMPLEMENTATION DETAILS : AN INTRANET APPLICATION O O O O O O MODEL-VIEW-CONTROLLER ARCHITECTURE ADVANTAGE OF SELECTED ARCHITECTURE IMPLEMENTATION OF BACKEND SNAPSHOTS OF THE SYSTEM: FRONTEND SNAPSHOTS OF THE SYSTEM: BACKEND FINAL DELIVERABLE: APPLICATION URL ? OBJECTIVE: o To automate the tracking of inventory movement by controlling its timing and amount in business processes with the perspective of a manufacturer. o To provide a solution that is feasible for Small And Medium Scale industries, increasing the effectiveness and efficiency of the flow of inventory ? WHAT IS INVENTORY MANAGEMENT?

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It is a computer-based system for tracking product levels, orders, sales and deliveries Purpose of Inventory Management: ? ? ? ? ? ? Maintaining a balance between too much and too little Tracking inventory between locations Receiving items into a warehouse or other location Picking, packing and shipping items from a warehouse Keeping track of product sales and inventory levels. Cutting down on product obsolescence and spoilage ? APPROACH: Business Problem: To restructure the Inventory Management of Small and Medium Scale Enterprise into a Computer Based System, to increase efficiency and reduce cost Systems Approach was adopted to build an nventory management model, applying the systems orientation to define problems and opportunities and then develop appropriate, feasible solution in response. System Development Life Cycle (SDLC) as an integrated approach to system development was taken. The Iterative Waterfall model was followed involving the following steps: Systems investigation: ? At present a paper based system is used by small and medium enterprises (SME’s) to maintain their inventory levels and supply chain management. This system involves a lot of human effort and costs. Here the objective of SME’s is to increase their profits by reducing their costs.

A computer-based system called Inventory Management System can be used for tracking product levels, orders, sales and deliveries. IT system developed is open source software, which will not cost much to the client. ? ? ? Cost Analysis IT system was developed using open source software, which will not cost much to the client. The only costs involved would be computers and initial purchase of software. But this system has potential to reduce costs by a substantial amount when implemented by an enterprise. Time and Cost Savings in the form of: ? ? ? Fast Access to details of the inventory: quantity available, location stored etc.

Quick and easy maintenance of any goods flowing in or out of the system An alarm raised when an inventory is above or below the specified level and may hamper the production cycle From the point of view of cost benefit analysis, it’s a highly feasible system. Systems Analysis: In this stage the functionalities of the present paper based system of inventory management was studied. Functional requirements of the organizations using it were comprehended. End users who would be using this IT-based system are small and medium manufacturing units. This resulted in the conclusion that the new Computer based Inventory Management System should ?

Allow the business unit to keep a track of the goods purchased with all the details of purchase. ? ? Allow the unit to locate the raw material and initiate the movement of the material for the located point when necessary. Raise an alarm when the raw material falls below a specified limit. This will help in systemizing the placement of orders for raw material. This system can be used by any manufacturing unit by simply customizing the system to their requirement and adding the materials that it wants to track. Systems Design: In this stage, focus is on how the system will accomplish its objectives and functional requirements.

It involves development of specification for user interface methods and products, database structures, and algorithms to implement the functional requirements. In this phase, it was decided to build the system following the Model-View-Controller architecture. High level diagram was designed to represent the system, as showed below: Inventory Management High Level Diagram? 1. Login Authentication Management 2. Enter Flow Service Representative Details 3. Check Inventory Details r Suppliers 4. Generate Alarm Retailers Systems Implementation: The system was implemented in open source using the following software: ? ? Glassfish Application Server to host the application Mysql Database server to host the backend Netbeans integrated development environment to prepare the application The front end was designed with the help of jsp(java server pages) and the backend was implemented using mysql. Systems Maintenance: Following the installation of the software, a support team shall be dedicated to look after the working of application for a period of 6months (or as specified in the Software Requirement Specification). Any bug arising in this period will be fixed by the support team, free of cost.

After the expiry of the maintenance period, any modification in the system will be charged as per the amount of person-days required to make the change ? FUNCTIONING OF THE SYSTEM: – End UsersService Representative: Operates the System and regulates flow of information Management: Oversees the flow of information and communicates with suppliers and retailers. Suppliers: Relies on the system to provide raw materials to the business Retailers: Relies on the system to access the business and ship finished goods – FunctionalitiesViewing of inventory details-This is done both by the management and the Service Representatives.

It gives a snapshot of the entire inventory at a particular point in time. This gives a clear picture about the state of the inventory goods, work in progress goods and finished goods. Editing/Updating inventory details-This is done by the Service Representatives. Whenever new materials come into or flow out of the system, it is registered in the system. This is added/subtracted to the previous stock of the material which was present in the system. ? ? ? ? ? ? ? These details are maintained in the database. This function can be performed only by an authenticated user, who has successfully logged into the system.

Raising of an alarm-This occurs when a particular inventory good falls below a specified level, and may cause the disruption of the business cycle. Conversely, if the finished goods exceed the storage capacity, a similar alarm is raised. This is in the form of a system generated mail, which is sent to the management. The mail can be customized into being sent to the suppliers and retailers directly BUSINESS APPLICATION OF THE INVENTORY MANAGEMENT The application is targeted towards small and medium scale industries in India, especially manufacturing firms that are still using the outdated paper pencil system.

The conversion of the outdated system to our newly built system will increase the productivity for the firm by reducing response time and cost. ? WHAT IS AN SME? Enterprises qualify as micro, small and medium-sized enterprises (SMEs) if they fulfill the criteria laid down in the Recommendation which are summarized in the table below. In addition to the staff headcount ceiling, an enterprise qualifies as an SME if it meets either the turnover ceiling or the balance sheet ceiling, but not necessarily both. Enterprise category medium-sized Small Micro Headcount < 250 < 50 < 10

Turnover ? € 50 million ? € 10 million ? € 2 million Balance sheet total ? € 43 million ? € 10 million ? € 2 million ? MARKET SCENARIO OF SME: ? ? ? ? Current SME spending on IT is $12 billion expected to grow to $24 billion 84 percent of the mid-market Indian enterprises to increase IT budgets in 2011 by as much as 10% IT penetration amongst emerging companies is low at only 17 % Current market players Infor and Dell highly optimistic about growth potential ? REQUIREMENT OF INVENTORY CONTROL IN AN SME: Effective inventory management is the key to running a profitable business.

Small business is a tough business. Research shows that the vast majority of new small businesses will end up failing. The dominating reason for this failure has been attributed to poor or faulty record keeping, resulting in out-of-stock merchandise, reckless invoicing, and lost opportunities. Small Business Inventory Control goes well beyond simply tracking stock levels. It is a full business solution that tracks your merchandise from its Purchase Order to the supplier all the way to Invoicing and Receiving Payment from your customers.

Small Business Inventory Control combines power and flexibility into easy-to-use inventory management software. You will save valuable time and money by realizing: ? ? ? ? What is moving, and what is not Inventory levels of each item in stock Which items are under-stocked Who is buying your merchandise Choice of an inventory control software is based on specific needs of the SMEThere are a few existing applications catering to the specific needs of small industries, eg:? ? ? ABC Inventory – powerful and able to generate managerial reports; built on the Microsoft access framework (similar to MSOffice) Chronos eStockCard – easy to use interface; built-in user support; rated highly among new products Inflow – choice for many SMB owners; most downloaded Microsoft Dynamics – most appropriate for businesses and managers who demand many reports; expensive and training intensive ? OUR TARGETED CUSTOMERS-Small Indian businesses ? ? ? Export/Import houses Wholesalers/ Distributors Manufacturers, eg. Garments, etc NECESSARY FEATURES IN INVENTORY CONTROL: The following are the feature that can be used in the Inventory Management System Inventory ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Sales ? ? ? ? ? ? ? ? ? ? ? ? ? Serial Number Tracking Minimum Stock Levels Reorder Quantities Non-Depleting Items Item Image Assemble Items Disassemble Items Bundles (Kits) Barcode Scanning Barcode Labels Pricing Labels Selling Price FIFO/LIFO Cost Tracking Location Weight Ordered Items Item Sales History Committed (Presold) Items Item-Specific Sales Tax Bill of Materials Manually Adjust Stock Levels

Sales Prices Quantities Customers Invoicing Packing Slips Customer Returns Shipping Cost Custom Sales Tax Rates Local Sales Tax Option Payment Method Sales Person Payment Tracking Sales by Sales Person Reports Purchasing ? ? ? ? ? ? ? ? Vendor/Supplier Information ? ? ? ? ? Purchase Order Management Receiving into Stock Custom Tax Rates Required Date Auto Order based on low quantities Auto Receive/Accept Order Receiving Reports Low Stock Reports Contacts Locations Addresses Phone Numbers Mailing Labels Customer Information ? ? ? ? ? ? ? ? ? Reports ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Contact Name Mailing Address Shipping Address Phone Website Notes Customer Sales Analysis Customer Balances Customer Payments Mailing Labels Report Layout Designer In Stock Items Low Stock Items Sales Quantities by Item Sales by Sales Person Customer Balances Item Details Item Sales Analysis Invoice Balances Inventory Summary Customer Sales Analysis Purchase Order Details Bill of Materials Outstanding Orders Detailed Sales List ? IMPLEMENTATION DETAILS : AN INTRANET APPLICATION

Client-server architecture is followed in the proposed system, where the Inventory Management System shall reside in an Application Server, in the intra-network. All the inventory houses shall host a terminal (clients) which will be connected to this application server. For every transaction taking place in the inventory, the client shall access the application hosted in the server. Once the client accesses the system, it can do various inventory management related operations, eg allowing inventory to come into the system, leave the system, view/update details of suppliers, whole sellers etc.

The entry into the server is given after proper authentication of the client that is requesting access to the system. This feature tracks the user who is logged into the system, the changes made by the user to the database etc. A client-server model is shown in the below diagram: Server hosting Inventory Management System Clients at Inventory Houses ? MODEL-VIEW-CONTROLLER ARCHITECTURE The application was built following the Three Tier Model-View-Controller Architecture. This separates the Inventory Management System into ? ? ?

Model: the back end database of the system View: the user interface, ie the front end of the system as seen by the application user Controller: the business logic of the application. Whenever the user sends a request for something then it always go through the controller. The controller is responsible for intercepting the requests from view and passes it to the model for the appropriate action. ADVANTAGES OF THE SELECTED ARCHITECTURE ? – ? ? ? ? ? Substitutable user interface: Different views and controllers can be substituted to provide alternate user interfaces for the same model.

Application Processing Division: division across multiple machines Non critical functions are processed in clients, critical functions are processed at server Multiple simultaneous views of the same model: Multiple different views can be active at the same time. Each view simultaneously and independently presents the same information from the model. Hence, many user can access the system simultaneously Synchronized views: The change propagation mechanism insures that all views simultaneously reflect the current state of the model.

Security: User is not allowed to access the model directly, but has to go through authentication. ? Scalability: Multiple Servers can be installed to allow support for increased clients ? IMPLEMENTATION OF BACKEND To implement the Backend, mysql server is used and tables are created using Structured Query Language (SQL). The database is centrally located and hence, the data accessed by all the clients are consistent and follows the following properties: ? ? ? Atomicity: All changes to data are performed as if they are a single operation. That is, all the changes are performed, or none of them are. Consistency: Data is in a consistent state when a transaction starts and when it ends. Isolation: The intermediate state of a transaction is invisible to other transactions. As a result, transactions that run concurrently appear to be serialized. Durability: After a transaction successfully completes, changes to data persist and are not undone, even in the event of a system failure.

Any change to the database can be made in 2 modes: ? Online Transaction Processing: Computer system where time-sensitive, transactionrelated data is processed immediately and is always kept current. Used mainly in online banking, inventory control, manufacturing scheduling, and ticket reservations, OLTP must possess ACID qualities to maintain data integrity and to ensure that transactions are correctly executed. Batch Processing: is execution of a series of programs (“jobs”) on a computer without manual intervention.

Batch jobs are set up so they can be run to completion without manual intervention, so all input data is preselected through scripts or command-line parameters. This is in contrast to “online” or interactive programs which prompt the user for such input. Inventory Management System has provisions for both the modes of altering the database. In Online Transaction Processing, the changes are immediately reflected in the system. In Batch Processing, the change is reflected after the Batch program is run (at the end of one working day).

While the Online Transaction Processing is instantaneous, it requires a lot of backup to prevent any system failure. Hence, it is costly. On the other hand, maintenance of batch processing systems is extremely easy and hence should be preferred by SMEs. ? ? SNAPSHOTS OF THE SYSTEM: THE FRONT END ENTRY PORTAL User Identification for Security Menu available to the Business User INSIDE THE INVENTORY MANAGEMENT APPLICATION Details of Daily inventory inflow/outflow FORM TO UPLOAD DATA INTO CENTRAL DATABASE ? SNAPSHOTS OF THE SYSTEM: THE BACKEND DATABASE: Inventory_management

Table: master_user_list Snapshot of the Database and a Table of the Database Snapshot of Integrated Development Environment (Netbeans 7. 0) Front-End Component Files Middle Layer: Controller Server Hosting Inventory Management The application was built in the above shown environment, which provided a server (glass fish) and allowed front end design, back end integration of the application. ? FINAL DELIVERABLE: APPLICATION URL http://172. 20. 6. 86:8080/Proto_IMS/loginPage. jsp The above is the Inventory Management Application running in IP 172. 20. 6. 86


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