Software Course Design Report

Title of the work: Inventory Management System

Major： SOFTWERE
ENGINEERING
Class： 2018
Name： MD RUBAYET AFSAN

Student 189076015
number：
Instructor： 陶陶

School of computer science and technology

December 12, 2020

Contents
1/ Abstract……………………………………………………………………….

2/Introduction…………………………………………………………

3/Theoretical Background………………………………..

4/Problem Definition………………………………

5/Purpose and scope……………………….

6/Technologies used……………….

7/Introduction to developments tools………………………………

8/Feasibility analysis…………………………………….

9/Methodology used for testing………………….

10/user interface………………………………

11/pictures of codes…………
12/ conclusion…………
 Abstract:

Inventory management is a challenging problem area in supply chain

management. Companies need to have inventories in warehouses in order to
fulfil customer demand, meanwhile these inventories have holding costs and
this is frozen fund that can be lost. Therefore, the task of inventory
management is to find the quantity of inventories that will fulfil the
demand, avoiding overstocks. This paper presents a case study for the
steel manufacturing industry (Small Scale Industry) on inventory
management. The relationship between the inventory management and
company performance was determined based on inventory days and return
on asset (ROA) analysis. The research found that company X had a few
inventory problems such as unorganized inventory arrangement, large
amount of inventory days / no cycle counting and no accurate records balance
due to unskilled workers. The study also proved that there was a
significant relationship between return on asset (ROA) and inventory days.
This paper also provides recommendation to the company and for further
research.

INTRODUCTION
Inventory is the supply of raw materials, partially finished goods called work-
in-progress and finished goods, an organization maintains to meet its
operational needs. It represents a sizeable investment and a potential source of
waste that needs to be carefully controlled. Inventory is defined as a stock of
goods that is maintained by a business in anticipation of some future demand.
The quantity to which inventory must fall in order to signal that an order
must be placed to replenish an item. Using an extension of a standard
inventory-dependent demand model provide a convenient characterization of
products that require early replenishment. The optimal cycle time is largely
governed by the conventional trade-off between ordering and holding costs,
whereas the reorder point relates to a promotions-oriented cost-benefit
perspective. The optimal policy yields significantly higher profits than cost-
based inventory policies, underscoring the importance of profit-driven
inventory management. To work towards perfect order metrics, there has
to be aggressive inventory management, restructuring supply chain
operations, and updating standards to the perfect standard. When updating
the metrics, this would include the cases shipped vs. the orders on-time
delivery, data synchronization, damages and unusable products, days in supply,
the ordering time cycle, and shelf level of service. Inventory problems of too
great or too small quantities on hand can cause business failures. If an
organization experiences stock-out of a critical inventory item, production halts
could result. Inventory management indicates the broad frame work of
managing inventory. The inventory management technique is more useful
in determine the optimum level of inventory and finding answers to problem
of safety stock and lead time. Inventory management has become highly
developed to meet the rising challenges in most Corporate entities and this is in
response to the fact that inventory is an asset of distinct feature.

Theoretical Background
Observation in different companies reveals that most managers don’t
make attention on inventories because they are like money placed in a drawer.
Assets tied up in investments are

Observation in different companies reveals that most managers don’t

make attention on
inventories because they are like money placed in a drawer. Assets tied up in
investments arnot produce return but they incurring a borrowing cost. They
incur costs for the care of storematerial and are subject to spoilage and
obsolescence.
Inventories are materials waiting for processing. Raw material inventories
provide a stable source of input required for production. A large inventory
requires less replenishment and may reduce ordering costs because of
economies of scale. In-process inventories reduce the impacts of the variability
of the production rates in a plant and protect against failures in the processes.
Final goods inventories provide for better customer service.
 Problems in existing system:

 High cost of inventory.

 Consistent stock outs.
 Low rate of inventory turnover.
 High amount of obsolete inventory.
 High amount of working capital.
 High cost of storage.
 Spread sheet data-entry errors.
 Lost customers.

Problem Definition
There are a number inventory management that occurs that are not due to
shrinkage. Most of these problems tar based on inaccuracies that are based
on poor management and record-keeping activities. Typically too much
inventory can erode working capital and profits. It is important that
management spends attention to supply projections, using past demand are a
basis to improve upon and adjusting for identifying and quantifying less
obvious patterns. Inaccurate inventory tracking can be addressed through
proper use of EDI, bar-code scanning, and RFID-based solutions to reduce
data entry errors. Priories of inventory needs to be established by
management using an ABC analysis and proper data analysis tools Back-up
and safety stock plans through contingency planning scenarios to remove
uncertainties in inventory are extremely helpful tools.
Solution to these problems:
 The development of the new system contains the following activities, which try to automate
the entire process keeping in view of the database integration approach.

 Supply chain complexity. ...

 Inadequately and improperly trained employees. ...
 Not enough of a game plan for the future. ...
 Not Counting Inventory Often. ...
 Not Using Automation.
 Not using good vendors.
 Not having performance measurement parameters in place.

Purpose
Inventory Management must be designed to meet the dictates of market place
and support the company’s Strategic Plan . The many changes in the market
demand , new opportunities due to worldwide marketing , global sourcing of
materials and new manufacturing technology means many companies need to
change their Inventory Management approach and change the process for
Inventory Control .
Inventory Management system provides information to efficiently manage the
flow of materials , effectively utilize people and equipment , coordinate internal
activities and communicate with customers . Inventory Management does not
make decisions or manage operations, they provide the information to managers
who make more accurate and timely decisions to manage their operations.

Scope
1. Determination of economic order quantity
2. Formulation of policy
3. Determination of lead time
4. Effectiveness towards running of store
5. Organisation structure
6. Determination of safety stock
7. Minimum material handling and storage cost.
 Technologies used

+ Microsoft Excel
+ DB Browser for SQLite
+Python 3.5.0

* Django

*Sublime Text

Software Requirements:

*Browser (such as chrome, Mozilla, opera, internet explorer)

Introduction to development tools

Microsoft Excel: Microsoft Excel is a spread sheet program that is used to

record and analyse numerical data. Think of a spread sheet as a collection of
columns and rows that form a table. Alphabetical letters are usually assigned to
columns and numbers are usually assigned to rows. The point where a column
and a row meet is called a cell. The address of a cell is given by the letter
representing the column and the number representing a row.
DB Browser for SQLite: A database is a organized collection of data. SQL,
being an acronym for Structured Query Language, denotes database language
used to access databases. We speak of SQL databases when we mean a database
which provides an SQL interface. Such databases are called relational databases
as the data is stored in a set of table between which relationships exist. A
database system is a computer program which allows to create, access, edit, and
manage databases. Popular ones are MySQL, MS-SQL, and Oracle DB.
Python 3.5.0: Python is a widely used general-purpose, high level
programming language. It was created by Guido van Rossum in 1991 and
further developed by the Python Software Foundation. It was designed with an
emphasis on code readability, and its syntax allows programmers to express
their concepts in fewer lines of code.
Django: Django is a high-level Python web framework that enables rapid
development of secure and maintainable websites. Built by experienced
developers, Django takes care of much of the hassle of web development, so
you can focus on writing your app without needing to reinvent the wheel.
Sublime Text : Sublime Text is a shareware cross-platform source code editor
with a Python application programming interface (API). It natively supports
many programming languages and mark up languages, and functions can be
added by users with plugins, typically community-built and maintained under
free-software license
Feasibility analysis
Technical feasibility:
Technical feasibility centres on the existing computer system i.e.
Hardware, Software etc. Bank requires SQL database management that are all
easily available with extensive development support through manuals and blogs.
Economical feasibility:
Economical Feasibility is the most frequently used method for evaluating
the effectiveness of a candidate system. More commonly known as Cost/
Benefit analysis, the procedure is to determine the benefits and savings that are
expected from the candidate system and compare them with costs. If the
benefits outweigh costs, then the decision is made to design and implement the
system.

10. Methodology used for testing

The completion of a system will be achieved only after it has been thoroughly
tested. Though this gives a feel the project is completed, there cannot be any
project without going through this stage. Hence in this stage it is decided
whether the project can undergo the real time environment execution without
any break downs, therefore a package can be rejected even at this stage.

10.1 Testing methods: Software testing methods are traditionally divided into
black box testing and white box testing. These two approaches are used to
describe the point of view that a test engineer takes when designing test cases.

1) Black box testing - Black box testing treats the software as a "black box,"
without any knowledge of internal implementation. Black box testing
methods include: equivalence partitioning, boundary value analysis, all-
pairs testing, fuzz testing, model-based testing, traceability matrix,
exploratory testing and specification-based testing.
2) White box testing - White box testing, by contrast to black box testing, is
when the tester has access to the internal data structures and algorithms
(and the code that implement these). White box testing methods can also
be used to evaluate the completeness of a test suite that was created with
black box testing methods. This allows the software team to examine
parts of a system that are rarely tested and ensures that the most important
function points have been tested.

User interface
Fig: homepage
 Fig: Next Page

Fig: TRANSFER & RETURN

Fig: TRANSFER SUCCESFUL

Fig: RETURN SUCCESSFUL

Fig: SEARCH SUCCESSFULLY

Fig: DATA TABLE

Codes
 Fig: some codes from the project

Conclusion

Inventory management System has to do with keeping accurate records of

goods that are ready for shipment. This often means having enough stock of
goods to the inventory totals as well as subtracting the most recent shipments
of finished goods to buyers. When the company has a return policy in place,
there is usually a sub-category contained in the finished goods inventory to
account for any returned goods that are reclassified or second grade quality.
Accurately maintaining figures on the finished goods inventory makes it
possible to quickly convey information to sales personnel as to what is
available and ready for shipment at any given time by buyer. Inventory
management is important for keeping costs down, while meeting regulation.
Supply and demand is a delicate balance, and inventory management hopes to
ensure that the balance is undisturbed. Highly trained Inventory management
and high-quality software will help make Inventory management a success. The
ROI of Inventory management will be seen in the forms of increased revenue
and profits, positive employee atmosphere, and on overall increase of
customer satisfaction.