Inventory or order management

1. Problem Statement

This project will involve creating Software for the purpose of Inventory Management of a

Supermarket, selling Day-to-Day goods such as: Grocery, Food Items, Household goods,

Merchandise, Kitchen Essentials etc.

2. Features of System

Features of the Fully Operational System

The Software has to be designed such that , the Inventory Manager/Staff is able to keep

track of not only the Inventory Items , but also of the defected Items , rejected goods ,

Logistics as well as scheduling a time-to-time Inventory refilling process. Furthermore, an

Inventory management Software can keep track of available space for upcoming stock of

goods. Systems should be designed to allow possible future expansion. For an example,

more product lines in case, release of a “Version 1.0” with added software requirements,

are needed.

Entry of new goods:

When new goods are supplied to the Inventory, they need to be allotted a physical space

in the Inventory .This needs to be recorded systematically. The software will provide a Data

Entry section with modules that take up essential information related to the products that

just got stocked into the Inventory. This will contain a Unique Id for the product and a count

of the quantity and also, more information mapped to the product, all saved in a Database.

Defect and Security check:

Every commodity that is stocked in the Inventory, needs to go through a thorough Security

as well as Defect checking mechanism. This may include checking the quantity and quality

of the products. In case a product is found “Defected” at the time of Delivery, then it needs

to be registered in a separate module which lines them up for a “Return to Service

Provider” section.

Refilling of Inventory :

The Inventory needs to be refilled time-to-time so that new goods can be filled up. The

Software will have a module that monitors remaining space for a particular Item. As soon as

the goods move out for sale, a Scheduled Task will get triggered. This will notify the End

User (Inventory manager, in this case) , to monitor and refill Inventory.

Logistics:

The manager needs to maintain a checklist of Logistic partners. For example,

Vegetables such as tomatoes may need to be refilled every alternate day hence

making it a duty for the manager to make sure the Logistic partner makes the delivery

on expected time. If this does not happen, there is loss in Business. This can become a

hectic task when the number of items multiplies. This Module of our Software, though

less functional, can have a record of Logistic partners, and the frequency of their visit

to the Inventory for Supplying goods.

Scheduled Dispatch:

Goods in the Inventory need to be dispatched to the Outlet for sale. The Manager has to

make sure the required quantity is delivered to the Respective Outlets on time. This will

make space for more Items in the inventory, and therefore ensuring a smooth flow of items

in and out of the Inventory. The software can have a module for Outgoing Item scheduling.

This can change as per customer requirement. For example, Sales are more likely on a

weekend as compared to a weekday.

3. Requirements

Functional requirements

LoginAuthenticated user registration, validation and verification of username and password, availability of changing password, emailing username and password to an authenticated email.

PO Order NoteUnique PO Order Note ID which would be key parameter to be passed inter-department.

Good Acceptance ReportThis would require identification of valid goods through inspection department and create a graph that would demonstrate exact quality: quantity ratio.

Inventory Updating

On the basis on Good Acceptance Report, inventory must be updated to free flow accurate information to the accounts department for payment

Payment DisbursalCreating GRN and updating Inventory information to allow payment disbursal against valid items supaplied by authenticated vendor

Non-functional requirements

1 The software code should be portable between different operating systems such as Linux and Windows.

2 The software should be easy to use and should require minimum manual operation.

3 The software should have a user-familiar interface so that the system would not pose an additional workload to the users.

4 The software should provide security of operations and data retrieving

5 The software should be able to interface and link all components of system

4. Stakeholders of the System

Sr.

No

.

Stakeholder Type Description of Work

1. Retail Manager Internal Sending requisition form to

Inventory manager

Acceptance of Material

Transfer Note

2. Inventory

Manager

Internal Receiving of requisition form

from Retail Manager

Generation of Purchase Order

Acceptance of Goods Delivery

Note

Issue of Material Transfer Note

to Retail Manager on

delivering goods

Acceptance of Goods

Acceptance/Rejection Report

Generation of Purchase Order

for reordering rejected goods

3. Inspection

Department

Internal Acceptance of Purchase Order

Verification of goods

Generation of Goods

Acceptance /Rejection reports

Acceptance of Delivery Note

4. Supplier Externa

l

Acceptance of Purchase Order

Generation of Delivery Note

Supply of goods

1. Business Rule

Entry of new goods

1. Goods must be updated on a Regular basis and in accord with the requirement by the Retail outlet. Every Product has a “Refilling Time” category mapped to it.

2. Every Goods provider must possess an Entry License. This License Id is updated every time a new Entry of Goods is done.

3. Every Item must undergo Quality check .

4. An Item can be added in the Inventory only after Quality Clearance receipt signed by respective Quality Assurance Officer is shown.

5. Items must be stored at the allotted shelves.

a. Each Shelf has a capacity.

b. Physical Inventory Space is Divided according to Shelf Type.

Two types of Shelves are there :

Perishable(Dairy Products , Bakery Items , Fruits and Vegetables) Non Perishable(Pulses , Soaps , Stationary, Packaged Products)

Defect and Security Check

1. Inventory manager holds privileges to reject an Item falling under any of the following :

• Item is found damaged

• Item is less than expected quantity

• Item is expired

• Items that are not registered under trademark companies.

• Items lacking good quality

• Items falling out of demanded checklist

• Items with tampered tags

2. Items that clear security check, will be tagged as “Passed” and every Passed slot will have a Signed Clearance Document with them.

3. Items must match the Item Demand list.

4. Items that do not clear security check , will be tagged separately as “Defected” and will have to be returned to the provider

5. Returned items need to have details mapped to them. This is done in a “Return Document”. This Document will have following details :

• Name of product

• Reason for rejection

• Number of items returned

• Return date

• Name of QA officer

• Name of Goods Provider

6. Refund of Defected Items will be handled by Accounts Department as per the Defected Item List

Scheduled Dispatch

7. Dispatching is scheduled on a FIFO basis- Goods that come in First are Dispatched Out First

Refilling Inven tory

8. Goods are categorised as follows:

A : Maximum Capacity – Maximum Capacity of a Product , the Inventory can hold

B: Reorder Capacity Level – Once goods count reaches this Level , they are scheduled for Reorder

C: Minimum Capacity Level – Minimum Level Count that must be maintained .

D: Danger Capacity Level – Once goods reach this Level , then there is a product deficiency(Eg When order Delivery is delayed / Orders for those Products is not placed)

9. Each product has a shelf Life. If a Product exceeds Shelf Life then it is returned to the Supplier with a Product Return report , according to the predecided rates.

10. Unsold Products will be returned to Supplier according to respective Contracts , as per the Rules of every Supplier.

11. Incase of excess Demand of Products , Inventory must always be maintained above Reorder level. Eg: If A=20 , B=12 , C= 6 , D = 3

Incase of excess Demand (Emergency Mode), Products must be maintained upto B+2 at all times to ensure full Inventory.

Logistics

1. Incase of failure of Delivery by one Transport medium , alternate Transport arrangement , is the responsibility of the Supplier

2. Incase of Delayed Deliveries , a maximum of 3 Days extension is granted.

3. Every Ordered Item must have a Tracking Id , provided by the Logistics manager , at the time of dispatch(from his end).The items can be tracked with this Tracking Id

2. Overall System

The system on which we are going to work is a part of this System. This system resolves

the day to day problem of the retail management systems.

Figure 1 Showing overall System

3. Internal System

Inventory system works as an interconnected system which have many functions like:

Figure 2 Showing Internal Architecture of Inventory system

4. Data Flow Diagrams

LEVEL 0 - CONTEXT LEVEL DIAGRAM

LEVEL 1 - DFD

User Authentication User AuthenticationUSER INVENTORY

STAFFInventory

1.0

Delivery Note

Delivery Acknowledgement Note

Product Return Report

Material Transfer NoteRETAIL

MANAGER SUPPLIER

INSPECTION

MANAGER

INVENTORY

MANAGEMENT

SYSTEM

0.0

Delivery NoteAcceptance/Rejection

Report

Purchase Order List

Purchase

Order List

Product List

Admin Login

Inventory

User Login

Delivery Note

Product Return Report

Acknowledgement ReportINVENTORY

MANAGER

LOGISTICS

MANAGER

Inspection

1.1

Schedule Refill

INVENTORY

MANAGER

INVENTORY

STAFF

REFILL

1.3

User Details

DefectInfoProductMasterFile

Defect_id,Defect_info,Pr_id,Supplier_IdPr_Id,Pr_info

User_id,User_name,Passwd,User_info

Refill Updation Report

REFILL

Product List

ProductMasterFileInventoryFile

DefectInfo

Pr_id,Pr_qty,Inventory_onhand,Inv_unavailable

Pr_id,Pr_qty,Pr_details

Pr_id,Defect_Id,Defect_category,Pr_price

5.ERDiagram