BRACT’s Vishwakarma Institute of Information

Technology
Department of Mechanical Engineering
Third Year B.Tech Mechanical – 2023 - 2024 (Semester - 6)
Name of the course – Management Information System
Skill and Competency Examination (SCE)
Presentation on

Topic : MIS for Inventory Control

Branch : Mechanical Engineering
Group Number : 19

Roll Number PRN Number Name of the Student

352030 22110014 Shreyash Patil
353001 22111032 Varad Atre
353005 22110270 Sahil Avhad
353045 22110692 Siddhesh Zende

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 Content

• Introduction to Inventory Control

• Objectives of Inventory Control
• Typical Inventory Control System
• Inventory Concepts
• Typical Inventory Control Software
• Case Studies

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 Introduction

• Inventory is the total amount of goods

and/or materials contained in a store or
factory at any given time.
• Store owners need to know the precise
number of items on their shelves and
storage areas in order to, place orders or
control losses.
• Factory managers need to know how many
units of their products are available for
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 Objectives of Inventory Control

• To provide for unforeseen demand in future

• Average out demand fluctuations in a
cyclical business
• To avail Economies of Scale
• To smoothen the production process
• Reduce loss due to changes in prices
• Meet time lag of transportation of goods

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 Inventory Management
What is Bullwhip effect??
- demand information is distorted as it moves
away from the end-use customer
- higher safety stock inventories to are stored
to compensate
• Seasonal or cyclical demand
• Inventory provides independence from vendors
• Take advantage of price discounts
• Inventory provides independence between
stages and avoids work stop-pages
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 ABC Classification
Class A :
• 5 – 15 % of units
• 70 – 80 % of value

Class B :
• 30 % of units
• 15 % of value

Class C :
• 50 – 60 % of units
• 5 – 10 % of value

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 Economic Order Quantity (EOQ) Models

“EOQ means optimal order quantity that

will minimize total inventory costs.”

2 types of EOQ Models are -

1. Basic EOQ Model
2. Production Quantity Model

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 EOQ Cost Model
Co - cost of placingorder D - annual demand
Cc - annual per-unit carrying Q - order quantity
cost
CoD
Annua l
orderi ng cost =
Q
CcQ
Annual carrying cost =
____
CoD 2
Total cost = CcQ
Q +2

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 Production Quantity Model
An inventory system in which an order is
received gradually, as inventory is
simultaneously being depleted AKA non-
instantaneous receipt model.

• Assumption :
Q - is received all at once is relaxed.
p - daily rate at which an order is received over
time, a.k.a. production rate.
d - daily rate at which inventory is demanded.
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 Management Information System (MIS)

“Management Information System (MIS) is

a system or process that provides
information needed to manage
organizations effectively.”

An 'MIS' is a planned system of the collecting,

processing, storing and disseminating data in
the form of information needed to carry out
functions of management.
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 Need for MIS
• For taking rational decisions,
timely and reliable
information is essential.
• In today’s world of ever-
increasing complexities of
carrying out business and in
order to survive and grow.
• For the organization to
achieve its goals and
objectives.
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 Manufacturing Industry Overview
• Have extensive inventories to track and
move a greater number of products to
generate, numerous suppliers to negotiate
with and quality standards to maintain in a
sustainable manner.
• Have complex supply chain internal
manufacturing and operations along with
meeting their distribution and customer
requirements.
• Every manufacturing company is different,
different processes different
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 MIS : Inventory Control

• Current MIS of the company is basically

an in house developed system,
comprising of few specialized readymade
software packages.
• It comprises of main modules covering all
the main functions of the inventory
management.
• Its main parts include inventory issue
purchase, bill passing, freight passing,
stock updatingVIITetc.
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 RFID & MIS
in Inventory Control

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 RFID Tags
• RFID Tags on • RFID Tags on Items :
Pallets & Cases : - Theft Protection.
- Product Transport. - Electronic Price Labelling.
- Warehouse Dispatch. - Self-Check-Out Systems.
- Goods Delivery to Store - Reduction of Out-of-
Stockroom. Stock.
- Warehouse - Information about
Management and perishable items.
Storage Processes.
- Transport of Goods into
the Sales Room.
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VIIT College, Pune - 48
Case Study : WALMART

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 Introduction to WALMART

WAL-MART is the Largest Retailer in the

World.

• Operating Companies -
• WAL-MART Operations
• WAL-MART Stores
• SAM’s Club
• WAL-MART International
• WAL-MART Business Model
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 SCM at WAL-MART

• Procurement and Distribution.

• Logistics Management.
• Inventory Management.
• Walmart and Procter & Gamble.

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 WAL-MART & RFID

• One of the first companies to adopt it.

• Made it mandatory for suppliers to use
it.
• Makes RFID data available to its
suppliers within 30 minutes through
retail link extranet website.
• It first started with the distribution
centers and then extended to retail
stores. VIIT College, Pune - 48
 RFID Implementation Results

• Independent experiments were

conducted with 12 stores with RFID
and 12 without.
• Using RFID has reduced the out-of-
stock merchandise by 16%.
• Restocking of RFID tagged item was
three times as fast as non-tagged
items.
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 Case Study
Western Star Trucks

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 Company Overview
• Freightliner - Western Star Trucks is the
leading heavy-duty truck manufacturer in
North America.
• They design, build and market the best-selling
brand of medium, heavy-duty diesel trucks.
• The company’s eight North American parts
distribution centers manage an inventory of
more than 150,000 unique part numbers.
• Freightliner controls their inventory “choke
points” with Motorola RFID.
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 The Challenge
• Automate inventory tracking to improve accuracy
and efficiency.
• Looking for a way to streamline the tracking of parts
movement from inventory to the factory floor in the
Portland plant.
• The team sought a solution that was automated,
accurate and efficient, integrated with existing asset
management databases and scalable.
• Compsee Incorporation, a leading Solutions
Integrator and its RFID Solutions partner, System
Concepts Incorporation, were called upon to
develop and deploy a complete parts tracking
solution for the Freightliner plant.
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 The Requirement
• The existing process:
• Parts needed on the production line to be
put into inventory totes, placed on mobile
tugs and then transferred onto the shop
floor.
• The empty totes were then returned to
the warehouse in groups of 10 to 12 per
tug for replenishment.
• Data collection processes were labor
intensive and susceptible to error.
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 The Solution
• Compsee and System Concepts
recommended an automated RFID
solution.
• Motorola advanced RFID hardware
solutions incorporating the XR400 series
of RFID readers and the AN Series of
industrial antennas at each portal.
• RFID tags were attached with the tugs
using GRAI format.
• RFID Dimension : 4” × 6” , attached on
side and front for better scanning.
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 The Working

• The system identifies each tote and tug with Radio

Frequency Identification (RFID) Tags.
• The Tote and Tug movement is tracked as they move
through portals equipped with Motorola RFID reader
and antenna.
• Then a transaction receipt is automatically generated
and sent to the SQL database.
• This receipt details contains the location, date and
time the transaction occurred, as well as the tote and
tug information.

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 The Benefit

• RFID solution has a direct return on

investment.
• Labor costs associated with
inventory control are down
significantly.
• Inventory pick errors and mis-
ships, and production lines receive
timely and correct parts.
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 Limitations

• The time horizon was very short.

• The project is dependent on the
older versions of accounting
software.
• The study has been done on only a
handful of data.

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 Recommendations
• Financial department of the company should
now work towards integrating the system on a
higher level and making the company Paper
Less Office.
• The company should also start Web Based
ordering and selling .
• Company needs to upgrade its network.
• Training the managers of the company about
effectively using the added functionalities and
use of them in a better way.
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 Conclusion
An MIS Report on Financial Information seek
answers to the following questions -
• How is the business doing?
• How is the business placed at present?
• What are the future prospects of the
business?

Also, an MIS Report for the Stock or Inventory is

one of the most important parts of the day to
day working It is highly integrated with the other
modules and Capable of functionalities like Auto-
VIIT College, Pune - 48
VIIT College, Pune - 48