Title: Inventory Management

Title: Inventory Management

Inventory is a physical resource that a firm holds in stock with the intent of s
elling it or transforming it into a more valuable state.
Inventory System is a set of policies and controls that monitors levels of inven
tory and determines what levels should be maintained, when stock should be reple
nished, and how large orders should be.
There are many items in a departmental store, which are sold to customers and pu
rchased from suppliers. An order is placed by the customer-required details , wh
ich are listed below:
Item name
Quantity
Delivery time
The order processing executes, look up the stock of each item available or not t
hen order is fulfilled by the management of departmental store. The system perio
dically checks the store stock of each item if it is found below the reorder lev
el then purchase order is placed to the supplier for that item, if the supplier
is not able to supply whole order then rest of quantity is supplied by another s
upplier.
After fulfilled the formalities, a bill is generated by the system and send to t
he customer. Item details are maintained by the management and this whole proces
s is done manually. Our work area is to automate the above process and to genera
te more efficient system.
1.1 TYPES OF INVENTORY
Following are the 5 possible ways of inventory control
. Raw materials In this type of inventory raw material is bought from the produc
er ,followed by processing to get finished products for sale in the market . For
eg. Pencil manufacturing industry requires wood and graphite as raw materials
. Purchased parts and supplies In this type of inventory finished products are b
ought from the manufacturer and sold to the customers. For eg. Any General Store
sells the products it buys from its manufacturers .
. Work-in-process (partially completed) products (WIP) In this type of inventory
partially processed products are further modified and sold . For eg. Steel indu
stry buys the cast iron to further process it and improve.
. Items being transported In this type of system products are transferred from o
ne location to another . For eg. Any Courier firm . Tools and equipment In this
type of system
INVENTORY CONTROL SYSTEMS
Inventory Control is broadly classified into 2 main systems
. Continuous system (fixed-order-quantity)
. Constant amount ordered when inventory declines to predetermined level
. Periodic system (fixed-time-period)
. Order is placed for variable amount after fixed passage of time
TYPES OF DEMAND
Inventory system encounters the following 2 types of demand
. Dependent Demand
. Demand for items used to produce final products
. Tires stored at a Goodyear plant are an example of a dependent demand item
. Independent Demand
. Demand for items used by external customers
. Cars, appliances, computers, and houses are examples of independent demand inv
entory
DISADVANTAGES OF OLD SYSTEM
As we know the manual processing is quite tedious, time consuming, less accurate
in comparison to computerized processing.
The present system is not is exception consultant encountering all the above pro
blems.
. Time consuming.
. It is very tedious.
. All information is not placed separately.
. Lot of paper work.
. Slow data processing.
. Not user-friendly environment.
. Difficult to find records due to poor file management.
ADVANTAGES OF NEW SYSTEM
In new computerized system we tried to give these facilities
. Ensures an adequate supply of materials
. Minimizes inventory costs
. Facilitates purchasing economies
. Eliminates duplication in ordering
. Better utilization of available stocks
. Provides a check against the loss of materials
. Facilitates cost accounting activities
. Enables management in cost comparison
. Locates & disposes inactive & obsolete store items
. Consistent & reliable basis for financial statements
. Balance in Inventory Levels
. Replenish Point is level of inventory at which order is placed The company rep
lenishes its stock using mainly 2 methods
. AUTOMATIC Replenishment
. In this system a mimimum stock is always maintained (called the Safety Stock)
and as the stock goes below a certain level ( called the Reorder Point ) the sys
tem places the order.
. As depicted by the graph below
. MANUAL Replenishment In this system the store manager places the order as per t
he observed demand and seasonal availability. For eg. Vegetables,fruits,etc
. This method is based on anticipation and idea ,hence it may lead to big profit
s or in some cases huge loss.
2. OBJECTIVES
Improve customer service As the system is automated customers shall have less of
problems and more of help when the shop.
Economies of purchasing- As the purchase system of the store is planned it becom
es economical ,planned and systematic ;with minimum possibilities of wasteage.
Economies of production Here any product being processed is done more systematic
ally.
Transportation savings As the purchase order is well planned, transportation cos
t is minimal or optimized.
Hedge against future Stock is always maintained to deal against future problems
in supply if any.
Unplanned shocks (labor strikes, natural disasters, surges in demand, etc.)- The
stock maintained shall always be helpful in any case encountered above.
To maintain independence of supply chain System which is automated is a well pla
nned and a flourishing system in itself.
Maximize the level of customer service by avoiding understocking.
Promote efficiency in production and purchasing by minimizing the cost of provid
ing an adequate level of customer service.
To meet unforeseen future demand due to variation in forecast figures and actual
figures.
To average out demand fluctuations due to seasonal or cyclic variations.
To meet the customer requirement timely, effectively, efficiently, smoothly and
satisfactorily.
To smoothen the production process.
To facilitate intermittent production of several products on the same facility.
To gain economy of production or purchase in lots.
To reduce loss due to changes in prices of inventory items.
To meet the time lag for transportation of goods.
To balance costs of inventory such as order cost or set up cost and inventory ca
rrying cost.
To balance the stock out cost/opportunity cost due to loss of sales against the
costs of inventory.
To minimize losses due to deterioration, obsolescence, damage, pilferage etc
Now days the computer has become one of most important needs in every field like
scientific research, business activities, entertainments, educative fields etc.
From this importance the computer soft ware became one the most important techn
ology which provides interface and solution for the modern people.
One of the most important applications of the computer is to assist researcher,
manager or any individual in solving problems by analyzing the data provided by
the individuals and store records or data and provide up to date information and
data to the individuals for the efficient management of their organization.
It is thus very important for all learners of computer science to know how to de
sign computer-based information systems to aid management. Besides that birth of
object oriented and platform independent programming language has changed a gre
at deal in programming styles and logic. So the Dot NET has become more importan
t and popular language among the co-IT workers and also the professionals.
Due to the advancement of information Technology in present era it really import
ant for computer students to choose a appropriate topic for the project as the p
artial fulfillment of the requirement for their degree.
Objectives
Few objectives of the project are:
The general objective of this project is to minimize the manual work.
The overall objective of this database is to store information of vehicle purcha
sed from supplier and keep records of all the transaction made in the organizati
on.
Viewing and updating of stock details, purchase details and sales details.
To keep the record of customers.
To keep the details of the supplier.
To generate reports for purchase, invoice and sales and can print out the report
s and can also save it.
To generate invoice to the customers.
PHP, or PHP: Hypertext Preprocessor, is a widely used, general-purpose scripting
language that was originally designed for web development, to produce dynamic w
eb pages. PHP is the widely-used, free, and efficient alternative to competitors
such as Microsoft's ASP. All types of open source PHP code and applications are
available on Open Source Scripts.
PHP: Hypertext Preprocessor is a widely used, general-purpose scripting language
that was originally designed for web development to produce dynamic web pages.
For this purpose, PHP code is embedded into the HTML source document and interpr
eted by a web server with a PHP processor module, which generates the web page d
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operations and producing program output on its standard output channel. It may
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d computing platforms.
The PHP Documentation Framework
The PHP documentation is written in XML using the DocBook DTD. If you would like
to contribute to the PHP documentation project, you need to at least know the v
ery basics of XML and DocBook.
The XML files are stored on a central server, and can be reached with a SVN clie
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ows.
Databases are useful when storing data into server. A company may have a databas
e with the following tables: "Employees", "Products", "Customers" and "Orders".
Basic object-oriented programming functionality was added in PHP 3 and improved
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