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1、CHAPTER IINTRIDUCTION1.1 IntroductionInventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. This process usually involves controlling the transfer in of units in order to prevent the inventory from becoming too high, or dwindli
2、ng to levels that could put the operation of the company into jeopardy. Competent inventory management also seeks to control the costs associated with the inventory, both from the perspective of the total value of the goods included and the tax burden generated by the cumulative value of the invento
3、ry.Balancing the various tasks of inventory management means paying attention to three key aspects of any inventory. The first aspect has to do with time. In terms of materials acquired for inclusion in the total inventory, this means understanding how long it takes for a supplier to process an orde
4、r and execute a delivery. Inventory management also demands that a solid understanding of how long it will take for those materials to transfer out of the inventory be established. Knowing these two important lead times makes it possible to know when to place an order and how many units must be orde
5、red to keep production running smoothly. The aim of this project is to develop an inventory management system for a pharmaceutical company (which will be referred later in the report as “ the company”.1.2 Problem StatementCalculating what is known as buffer stock is also key to effective inventory m
6、anagement. Essentially, buffer stock is additional units above and beyond the minimum number required to maintain production levels. For example, the manager for the company may determine that it would be a good idea to keep one or two extra boxes or units of a medicine on hand, just in case an emer
7、gency situation arises or demand is more than what they have guessed. Creating this cushion or buffer helps to minimize the chance for missing sales or demand from customers due to a lack of essential medicine in the operation supply inventory. The main problem of the company is that the forecasting
8、 is not based on formal methods or computerized data mining. Currently, the decision to restock supplies is based on intuition and experience.Another problem with the existing (manual) system is the movement of stocks in the company. Inventory management system is not limited to documenting the deli
9、very of raw materials and the movement of those materials into the shelves. The movement of those materials as they go through the various stages of the operation is also important. Typically known as a goods in progress inventory, tracking materials as they are used to create finished medicines als
10、o helps to identify the need to adjust ordering amounts before the raw materials inventory gets dangerously low or is inflated to an unfavorable level.Finally, inventory management has to do with keeping accurate records of sales. This often means posting the sales to the inventory totals as well as
11、 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 as refurbished or second grade quality. Accurately main
12、taining 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.In addition to maintaining control of the volume and movement of various inventories, inventory management also makes it
13、 possible to prepare accurate records that are used for accessing any taxes due on each inventory type. Without precise data regarding unit volumes within each phase of the overall operation, the company cannot accurately calculate the tax amounts. This could lead to underpaying the taxes due and po
14、ssibly incurring stiff penalties in the event of an independent audit.1.3 Objectives of ProjectThe project objective is to develop an inventory management system that will facilitate the company to effectively calculate the economic order quantity, tracking goods in progress inventory and control of
15、 the inventory system.i.4 Scope of ProjectThis project is limited to the development of a prototype of an inventory management system based on the requirement obtained from the company. This project will concentrate on fulfilling the objective of the project which are:i. Calculate the economic order
16、 quantityii. Tracking goods in progress inventoryiii. Management control of the inventory system1.5 Development MethodologyThe adopted development methodology for this project is the traditional System Analysis and Design methdoology which is famously known as the waterfall model. These stages can b
17、e characterized and divided up into the following phase:Project planning and feasibility study: Establishes a high-level view of the intended project and determines its goals.Systems analysis, requirements definition: Defines project goals into defined functions and operation of the intended applica
18、tion. Analyzes end-user information needs. This step involves demand analysis where this stage need to determine three things, which are the user interface, the data dictionary and user manuals. The data dictionary is specifies logical relationship. Systems design: Describes desired features and ope
19、rations in detail, including screen layouts, business rules, process diagrams, pseudocode and other documentation.This is the phase that is an important levels. The detailed design the specification shall take specific module in the most clean way to provide the coder, make whole system modular achi
20、eve maximum.Implementation: This project uses the Appserv, because this software is easy to use. PHP is used to developed the system and Mysql is the database. The Notepad+ is used to program the system Testing: The final stage of initial development, where the system is tested by running actual bus
21、iness. This phase bings all the pieces together into a special testing environment, then checks for errors, bugs and interoperability.1.6 Structure of DissertationChapter 1 is introduction of the project. This chapter provides introduction to the project/research, objectives, scope, problem statemen
22、t, methodology, milestone and structure of dissertation.Chapter 2 is analysis of current system. This chapter reviews existing system, applications and methods which are related to the project. It also includes the techniques, methods, equipments, or technologies that will be applied on the project.
23、Chapter3 is system specification. This chapter writes user and system requirement specification, software specification and design system architecture.Chapter 4 is system design. This chapter explains the system designs, database designs, techniques and related algorithms to develop the project.Chap
24、ter 5 is system implementation and testing. This chapter explains about the implementation of the WXB inventory management system solution and explains about the testing of the system.Chapter 6 is conclusion. This chapter explains about the summary of the project including advantages of system, limi
25、tation and future work.CHAPTER IIANALYSIS AND DESIGN2.1 User requirementThe system is designed for logistics management of efficient management system, the system powerful, operating simultaneously and is simpler, and management personnel are influenced by a system of training, and able to operate a
26、 computer, so just spend a little time, can let them be familiar with the system.The overall system development task is to realize all kinds of information of the systematic, standardization and automation. The system function and the analysis is in system development on the basis of the overall mis
27、sion complete. The warehouse management system needs to complete main functions:The warehouse management of information input, including the goods, suppliers, customers, warehouse information input, etc.The warehouse management of information inquiry, statistics, modify and maintenance, including go
28、ods, documents inquires the, the goods in and out, staff operation statistics, all kinds of information of modification and maintenance etc.Log management operation.Administrator permissions to operatorSystem Requirements Specification(1) Functional RequirementsThis system includes two roles, wareho
29、use management and administration of competent, among them, the competent department with the highest authority of the whole system.Warehouse of the management staff:The loading and unloading in warehouse management of, can according to flow to achieve a single storage/operation. Specific permission
30、s are:i. Inventory information managementii. Library for information maintenanceiii. GRN information maintenanceiv. Outbound order information maintenancev. Report information managementvi. For the cipher modification, clear information system Settings such as tablevii. Our customers, suppliers, ven
31、dors, such as warehouse basic information query browsing, etcWarehouse department supervisor:Responsible for the entire inventory of the daily operation and management department work, mainly including:i. Department information maintainii. Personnel information managementiii. Examination and approva
32、liv. Report information managementv. For the cipher modification, backing up the database system Settings(2) Non-functional RequirementsResponesFor each request user send, the system should reply in no more than 2 second.UsabilityThe interface should be friendly and easy learn.PortabilityThe system
33、can be run under Windows or Linux environment, which can be purchased on the market easily. And widely used on web server environment.2.2 Control DiagramDiagram for Inventory Management System reveal relationships among the business processes within an organization to external systems, external orga
34、nizations, customers, other business processes and between the various components in a program. consists of four major components: External Entities/Terminators, processes, data stores and data flows.- External Entities / Terminators - These refer or points to the outside parts of the system being d
35、eveloped or modeled. Terminators, depending on whether data flows into or from the system, are often called sinks or sources. They represent the information as wherever it comes from or where it goes.- Processes The Processes component modifies the inputs and corresponding outputs.- Data Stores refe
36、rs to any place or area or storage where data will be placed whether temporarily or permanently.- Data Flows refers to the way data will be transferred from one terminator to another, or through processes and data stores.Data flow diagrams have replaced flowcharts and pseudo code as the tool of choi
37、ce for showing program design. A DFD illustrates those functions that must be performed in a program as well as the data that the function will need. In spite of its strength, the beauty of Data flow diagram lies on its dependence upon just four symbols to express program design. As a general rules,
38、 every page in a DFD should not contain more than 10 components. So, if there are more than 10 components in one processes, one or more components should have to be combined and then make another DFD to detail the combination in another page. Logical flow chart explains the inventory control process
39、 as carried out to manage the Stock-On-hand and Stock-On-Order. Various decision blocks are used to check the process at various stages such as Order Receiving, Quality Adjustments and so on. For each SKU, appropriate model is used for managing the stock levels. Method for finding correct model as p
40、er SKU characteristics is as described in Guidelines For Inventory Model Implementation 2.3 Data flow diagramInventory Model data flow diagram is shown above. The data flow diagram is based upon the Yourdon technique. This technique was proposed by Ed Yourdon and is a very simple but effective way t
41、o depict the information flow in systems. This basically helps us to precisely understand the flow of information in a system and point out the exact stage/personnel/department responsible for a particular process at any given time.Some common symbols used are: Circles represent processes Cylinders
42、represent information data stores Rectangles show a resource Rhombus is used to show a gate process Arrows show the direction of data flow. As shown in the above diagram, the process is initiated when the customer places an order. Here the data would consist of details like number of items, delivery
43、 dates, shipment details etc. Then the inventory is checked where again data is fed from a data store. This data store (1) keeps a record of the historical data. The data store (2) also has input from data store (3) which keeps the warehouse records like inventory levels, location etc. The inventory
44、 is checked for availability, which is a gate process. If there is availability, then the item is retrieved and the shipment is scheduled. The customer receives the item and provides feedback, which again goes into data store (4). If enough inventory is not available then Reorder placement is done.
45、A lot of factors are to be considered for the reorder placement. Looking at the bottom of the diagram, it can be seen how the model is determined. Input from data store (5) goes into the SKU classification process. The key factors that are considered are volume flow rate, size etc. This SKU classifi
46、cation influences the type of model that is to be used for that SKU. The demand patterns are also considered and are fed into data store (6), which also determines the model to be selected. After the model is determined, the EOQ and reorder points are set. Various factors like lead-time and back ord
47、er costs are considered and then the reorder placement is done. This DFD shows the exact information flow in the system, which can help recognize the individual processes and the data transfer associated with it.CHAPTER IIIPHYSICS DESIGN3.1 Entity Relationship DiagramData Dictionary1.Cases described
48、 Cases nameCases login Subject fieldCases definitionUsers to log on to the system, get the corresponding interface and access.Role Inventor controller or manager.Business trigger eventsUsers ready to use the system for business processing or system management.Pre-conditionsSystem for the users to establish system has user, and assigned c
