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lovely Professional University: Synopsis

This document is a synopsis submitted by Yogendra Singh for an object oriented programming project on an inventory management system. It provides an overview of key inventory management concepts including the nature of inventories, independent and dependent demand systems, and balancing carrying costs against ordering costs. The synopsis covers opposing views of inventories, different inventory models like fixed order quantity and period systems, and what world-class companies do regarding inventory planning. The document serves as a theoretical review of inventory management topics that will form the basis for the C++ coded inventory management system project.

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Yogendra Singh
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223 views7 pages

lovely Professional University: Synopsis

This document is a synopsis submitted by Yogendra Singh for an object oriented programming project on an inventory management system. It provides an overview of key inventory management concepts including the nature of inventories, independent and dependent demand systems, and balancing carrying costs against ordering costs. The synopsis covers opposing views of inventories, different inventory models like fixed order quantity and period systems, and what world-class companies do regarding inventory planning. The document serves as a theoretical review of inventory management topics that will form the basis for the C++ coded inventory management system project.

Uploaded by

Yogendra Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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\LOVELY PROFESSIONAL

UNIVERSITY
SYNOPSIS
.

SUBJECT:
OBJECT ORIENTED PROGRAMMING WITH C++

TOPIC:
INVENTORY MANAGEMENT SYSTEM

SUBMITTED TO:
MS. SUPREET KAUR
CSE DEAPRTMENT
LPU

SUBMITTED BY:
YOGENDRA SINGH
ROLL_NO: C1912A26
REG_NO: 10905201
B.TECH (CSE)
INVENTORY MANAGEMENT SYSTEM:

INVENTORY:

Basically, inventory management is an attempt to balance


inventory needs and requirements with the need to minimize
costs resulting from obtaining and holding inventory. There are
several schools if thought that view inventory and its function
differently. These will be address later but first we present a
foundation to facilitate the reader’s understanding of inventory
and its function.

OVERVIEW:

 Opposing Views of Inventories

 Nature of Inventories

 Fixed Order Quantity Systems

 Fixed Order Period Systems

 Other Inventory Models

 Some Realities of Inventory Planning

 Wrap-Up: What World-Class Companies Do

WE WANT TO HOLD INVENTORIES FOR:

 Improve customer service

 Reduce certain costs such as


• ordering costs

• stock out costs

• acquisition costs

• start-up quality costs

 Contribute to the efficient and effective operation of the


production system

 Finished Goods

• Essential in produce-to-stock positioning strategies

• Necessary in level aggregate capacity plans

• Products can be displayed to customers

 Work-in-Process

• Necessary in process-focused production

• May reduce material-handling & production costs

 Raw Material

• Suppliers may produce/ship materials in batches

• Quantity discounts and freight/handling $$ savings

WE DO NOT WANT TO HOLD INVENTORIES:

 Certain costs increase such as

• carrying costs

• cost of customer responsiveness

• cost of coordinating production


• cost of diluted return on investment

• reduced-capacity costs

• large-lot quality cost

• cost of production problems

NATURE OF INVENTORY:

 Two Fundamental Inventory Decisions

 Terminology of Inventories

 Independent Demand Inventory Systems

 Dependent Demand Inventory Systems

 Inventory Costs

TWO FUNDAMENTAL INVENTORY DECISIONS:

 How much to order of each material when orders are placed


with either outside suppliers or production departments
within organizations

 When to place the orders

INDEPENDENT DEMAND INVENTORY SYSTEMS:

 Demand for an item carried in inventory is independent of


the demand for any other item in inventory

 Finished goods inventory is an example

 Demands are estimated from forecasts (Chapter 3) and/or


customer orders
DEPENDENT DEMAND INVENTORY SYSTEMS:

 Items whose demand depends on the demands for other


items

 For example, the demand for raw materials and components


can be calculated from the demand for finished goods

 The systems used to manage these inventories (Chapter 15)


are different from those used to manage independent
demand items

INVENTORY COST:

 Costs associated with ordering too much (represented by


carrying costs)

 Costs associated with ordering too little (represented by


ordering costs)

 These costs are opposing costs, i.e., as one increases the


other decreases

 The sum of the two costs is the total stocking cost

 When plotted against order quantity, the TSC decreases to a


minimum cost and then increases

 This cost behavior is the basis for answering the first


fundamental question: how much to order

 It is known as the economic order quantity

BALANCING CARRYING AGAINST ORDERING COSTS:


Note: this is the theoretical review of my topic “ inventory
menegement system”

But in term paper I will try to do mostly in c++ coding.

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