ABSTRACT

Inventory management system which is helpful for the business operators,

where shopkeeper keep the records of purchase and sales. Mismanaged
inventory means disappointed customers ,too much cash tied up in slower sale
and warehouses .This inventory is eliminate paper work, human faults , manual
delay and speed up process .This inventory management system will have the
ability to track sales and available inventory, tells a shopkeeper when it’s time
to reorder and how much to purchase. Inventory management system is
windows application developed for windows operating systems which focused
in the area of inventory control and generate .The software is made up of two
parts: The frontend is developed using Microsoft Visual basic 2010 and the
Backend from SQL server Database 2008. Keywords: Database, Inventory,
public, software.

INVENTORY MANAGEMENT SYSTEM

 1. INTRODUCTION

A company's inventory is one of its most valuable assets. In retail, manufacturing,

food services, and other inventory-intensive sectors, a company's inputs and
finished products are the core of its business. A shortage of inventory when and
where it's needed can be extremely detrimental.

At the same time, inventory can be thought of as a liability (if not in an

accounting sense). A large inventory carries the risk of spoilage, theft, damage,
or shifts in demand. Inventory must be insured, and if it is not sold in time it
may have to be disposed of at clearance prices—or simply destroyed.

INVENTORY MANAGEMENT SYSTEM

 1.1 MOTIVATION

Purpose, objectives or motives of holding adequate level of inventory can be

described as follows:

1. Transaction Motive

Transaction motive is the main objective of holding sufficient inventory that

helps smooth operation of production and proper supply of goods to meet
market demand. Inventory is hold according to the production capacity,
demand, average lead time, ordering cost and carrying cost.

2. Precautionary Motive

According to this motive, a business firm should hold optimum level of

inventory to ensure safety against unforeseen and unpredictable future
situation such as strike, shutdown, shortage, delay on supply etc. So,
sufficient volume of inventory provides safety against unpredictable events.

3. Speculative Motive

Business forms wants to take benefit of price fluctuations. If there is a

possibility of rise in price of raw materials or finished goods in the near
future, they wish to hold large quantity of inventory and vice versa.

4. Other Motives

There are some other objectives of holding inventory such as:

- To receive quantity discount and price discount while purchasing materials
in bulk quantity.
- To minimize ordering cost and carrying cost

INVENTORY MANAGEMENT SYSTEM

- To minimize production set of costs.

1.2 PROBLEM STATEMENT

Although it is possible to consider these two decisions separately, they are so

closely related that a simultaneous solution is usually necessary. Typically, the
objective is to minimize total inventory costs. Total inventory costs typically
include holding, ordering, shortage, and purchasing costs.

In a continuous review system, managers continuously monitor the inventory

position. Whenever the inventory position falls at or below a level R, called the
reorder point, the manager orders Q units, called the order quantity. (Notice that
the reorder decision is based on the inventory position including orders and not
the inventory level. If managers used the inventory level, they would place
orders continuously as the inventory level fell below R until they received the
order.) When you receive the order after the lead-time, the inventory level
jumps from zero to Q, and the cycle repeats.

1.3 PURPOSE

The main five reasons which comes to mind are as under

1) Exploit the economy of scale

2) Production occurs during season and consumption happened over the year -
agree product.

3) Avoid the loss of sales due to stock out

4) High responsiveness

5) Achieving the balance between various conflicting variable like ordering cost
and holding cost.

INVENTORY MANAGEMENT SYSTEM

OBJECTIVE

Operational and financial goals may be examined in regards to inventory

management. The operational goal is to have an adequate supply of inventory,
so that we can fulfil customer demand and the financial objective is to minimise
unnecessary inventory and its associated expenses.

For these operational tasks, inventory management is done to help streamline

operations. Some of the most important purposes for which it is used are:

GOALS

Inventory management is the administration of a company’s inventory. It is a

vigilant control and monitoring of the supply and demand needs of a business.
Having either too little or too much stock is unhealthy for the business and can
increase corporate expenses unnecessarily. Understanding the basics of
inventory management is a fundamental part of running a successful business.

INVENTORY MANAGEMENT SYSTEM

 1.4 LITERATURE SURVEY

Inventory is basically assets (goods and materials) which are stock of any
business. Inventory management focus on the capacity of the inventory, the
place in which it is located so that one can use it when needed, the supply chain
management of the raw materials and goods.

1.5 SCOPE AND LIMITATIONS

 Manage Inventory: Inventory management helps to manage the

stock of the company. it provides proper details of the products
what kind of raw material, what are the sizes we require and etc. to
the purchasing department.
 Less Storage: When the inventory management provides proper
information to management, they buy according to them which
helps the company to store fewer products.
 Improve Productivity: Inventory management helps to improve
the productivity of the machines and manpower. Employees are
aware of stocks and the quantity that require to produce.
 Increase Profits: Inventory management helps to improve the
profits of the company. it helps to provide proper information
about stocks, that saves the unnecessary expenses on stocks.

INVENTORY MANAGEMENT SYSTEM

LIMITATIONS

The limitations of the periodic system include not knowing an exact inventory
count in the middle of the period and running the risk of stockouts. With the
periodic system, the company knows the inventory level with certainty only
when it physically counts the inventory at the end of each period. Throughout
the period, the company takes customer orders without knowing the exact
inventory count or whether enough products are available to meet customer
demand.

2. SYSTEM ANALYSIS

2.1 EXISTING SYSTEM:

Current system is a manual one in which users are maintaining ledgers, books
etc to store the information like suppliers details, inwards, deliveries and returns
of items in all godowns, customer details as well as employee details. It is very
difficult to maintain historical data. Also regular investments need to purchase
stationary every year.

2.2 SCOPE AND LIMITATIONS OF EXISTING SYSTEM

SCOPE:
The scope of an inventory system can cover many needs, including valuing
the inventory, measuring the change in inventory and planning for future
inventory levels. The value of the inventory at the end of each period provides
a basis for financial reporting on the balance sheet. Measuring the change in
inventory allows the company to determine the cost of inventory sold during
the period. This allows the company to plan for future inventory needs.

INVENTORY MANAGEMENT SYSTEM

LIMITATIONS:
The limitations of the periodic system include not knowing an exact inventory
count in the middle of the period and running the risk of stockouts. With the
periodic system, the company knows the inventory level with certainty only
when it physically counts the inventory at the end of each period. Throughout
the period, the company takes customer orders without knowing the exact
inventory count or whether enough products are available to meet customer
demand.

2.3 PROJECT PERSPECTIVE AND FEATURES

1) The most important inventory management software features

2) Real-time inventory tracking. ...
3) Real-time inventory value. ...
4) Reorder points & low stock alerts. ...
5) Purchase management & supplier management. ...
6) 7Unlimited SKUs. ...
7) Proper inventory reporting.

2.4 STACK HOLDERS

Stakeholders that will benefit from your inventory management system.

1) Owners and shareholders always want to successfully grow
business. ...
2) Top management. ...
3) Warehouse manager. ...
4) Shipper. ...
5) Strategic planner. ...
6) Inventory analyst. ...
7) Financial analyst. ...
8) Of course, our main goal is having satisfied customers.

INVENTORY MANAGEMENT SYSTEM

 2.5 REQUIREMENT ANALYSIS-FUNCTIONAL
REQUIREMENT PERFORMANCE REQUIREMENT,
SECURITY REQUIREMENT

1) FUNCTIONAL REQUIREMENT:
 Requirements for Effective Inventory Management
 A system to keep track of the inventory on hand and on order.
 A reliable forecast of demand, including forecast error.
 Knowledge of lead times and variability.
 Estimates of holding, ordering and shortage costs.
 Classification system for inventory.

2) PERFORMANCE REQUIREMENT:
Three essentials for effective Inventory management
Identify your items. Giving each stock item a unique identifier is very important
for effective inventory management. ...
Keep enough stock on hand. ...
Review what you have.

3) SECURITY REQUIREMENT:

The environment can be made secure by minimizing the attack surface to reduce
attack vectors. Methods of achieving this include:

 The client machine, application server machine, database server machine,

and LDAP server machine should all be protected by firewalls and use
separate user accounts and credentials.
 The environment can be further secured by removing or disabling all
unnecessary components. For example, if the wireless server is not used
then it should be shut down and removed post installation.

INVENTORY MANAGEMENT SYSTEM

  As WebLogic server supports one active security realm per domain it is
important to ensure that all applications deployed to the same domain
share the same identity management solution. For example, if multiple
applications use different identity stores then they should be deployed to
separate domains with their respective security providers.

3. SYSTEM DESIGN
3.1 E.R DIAGRAM

INVENTORY MANAGEMENT SYSTEM

3.2 DATA FLOW DIAGRAM

Zero level DFD diagram

INVENTORY MANAGEMENT SYSTEM

3.3 FIRST LEVEL DIAGRAM

FIRST LEVEL DFD DIAGRAM

INVENTORY MANAGEMENT SYSTEM

3.4 SECOND LEVEL DFD DIAGRAM

INVENTORY MANAGEMENT SYSTEM

3.5 USE CASE DIAGRAM

INVENTORY MANAGEMENT SYSTEM

 3.6 DATA BASE
CUSTOMER TABLE
Fields Data types
Customer id Int
Email string
Mobile Int
Phone no Int
Address String
Address String
City String
District String
Status String
Created on Date/Time

ITEM TABLE
Fields Data Types
Product Id int
Item number Int
Item Name String
Discount Int
Stock Int
Unit Price Int
Image URL URL
Status Active/un active

INVENTORY MANAGEMENT SYSTEM

PURCHASE TABLE
Purchase id Int
Item no Int
Purchase date Date
Item name String
Unit price Int
Countify Int
Vendor name String
Vendor id int

SALES TABLE
Fields Data types
Name String
Type Int
Collection String
Attributes Yes/no
Null Yes/no
Default String
Comment String
Extra string

USER TABLE
Fields Data Types
User id Int
Full name String
User name String
Password Int
status Active/deactive

INVENTORY MANAGEMENT SYSTEM

VENDOR TABLE
Fields data types
Vendor ID Int
Full name String
Email String
Mobile Int
Phone 2 Int
Address String
Address 2 String
City String
District String
Status Active/deactive

4. IMPLEMENTATION DETAILS

4.1 SOFTWARE AND HARDWARE REQUIREMENTS

SOFTWARE REQUIREMENTS

Operating system - windows XP/Windows

Language - PHP
Server-side script - PHP
Client side script - JavaScript, HTML
Server - XAMPP
Database - MySQL
Browser - Google Chrome

INVENTORY MANAGEMENT SYSTEM

4.2 HARDWARE REQUIREMENT

 PC with 20 GB HARD DISK At least

 PC with 2.56 MB RAM (Minimum)
 PC with Pentium 2 & above
 Processor Speed : Above 500 MHz

5. TESTING AND OUTPUTS

Testing presents an interesting anomaly for the software engineer.

During earlier software engineering activities, the engineer attempts to build
software from an abstract concept to a tangible product. Now comes testing.
The engineer creates a series of test cases that are intended to “demolish”
the software that has been built. In fact, testing is the one step in the
software process that could be viewed (psychologically, at least) as
destructive rather than constructive. Software engineers are by their nature
constructive people. Testing requires hat the developer discard
preconceived notions of the “correctness” of software ju s t de ve l op e d
an d ov e r c o m e a co nf l i c t of in t e r e s t th a t oc c u r s wh e n er r o r s
ar e uncovered.If te s ti n g is con du c te d su c c e s s f u ll y (a c c o r d i n g to th
e ob j e c t i v e s st a te d previously), it will uncover errors in the
software. As a secondary benefit,
testingd e m o n s t r a t e s t h a t s o f t w a r e f u n c t i o n s a p p e a r t o
b e w o r k i n g a c c o r d i n g t o specification, that behave oral and
performance requirements appear to have been met. In addition, data
collected as testing is conducted provide a good indication of software
reliability and some indication of software quality as a whole. But testing
cannot show the absence of errors and defects, it can show Only that software
errors and defects are present. It is important to keep this (rather gloomy)
statement in mind as testing is being conducted.

INVENTORY MANAGEMENT SYSTEM

 5.1 BLACK BOX TESTING:

Black-box is a software testing approach when test engineer designs test cases
as if she does not know anything about the internal structure of the software
under test. Black-box testing approach consists of seven testing methods that are
differentiated based on the source used for test case design process and based on
the level of formality of test case designs. The relation between black-box
testing methods
Specification-based testing is a testing method which includes all formal test
case design techniques. As can be derived from the name of the method,
specification (or requirements) documents are used as a source for test case
design. Formal test case design techniques or groups of techniques are Domain
Analysis, Logic-Based Testing, Combinatorial Testing, State Transition Testing,
Use Case Testing, and Syntax Testing. Domain analysis group consists of two
closely connected testing techniques: Equivalence Class Partitioning and
Boundary Value Analysis. The first technique
222 Ivans Kuļešovs, Vineta Arnicane, Guntis Arnicans, Juris Borzovs defines
the group (class) of inputs that produces the same output. The second technique
checks the boundary values of the equivalence classes. Logic-based testing
group consists of two testing techniques: Decision Tables and Karnaugh-Veitch
(KV) Charts. They all are used when combination of different inputs results into
specific output. They are used for checking business logic and user interface.
According to Copeland (2003), a decision table consists of conditions,
combinations of every condition alternatives that result into single rules, actions,
and actions occurrence under every rule. It is worth mentioning that cause-effect
graphing can also be used for designing decision tables according to Myers
(1979/2004). KV charts are used to simplify the Boolean algebra expressions.
They were introduced by E. Veitch in 1952 and improved by Karnaugh in 1953.
They allow decreasing the amount of calculation needed through humans'
pattern-recognition capability (Beizer, 1990). From our experience usage of
decision tables is more common technique in the field of business application
testing, especially nowadays.

INVENTORY MANAGEMENT SYSTEM

5.2 WHITE BOX TESTING:

224 Ivans Kuļešovs, Vineta Arnicane, Guntis Arnicans, Juris Borzovs

Random testing method uses randomly generated inputs from the definite subset
as test data. It can be a powerful method for functional testing when operational
profile (input domains) of the system and effective oracle are available. In such
cases systems are tested with condition that whole test fails if it fails on at least
one of the inputs. But in real situation the options mentioned above are hardly
available. Even if uniform distribution can be applied to the input values, it is
very hard to substitute the effective oracle for outputs. That is why random
testing is mostly used for reliability testing of the complex systems. It can prove
that system can work without failures for given amount of time (Hamlet, 1994).
When reliability of the system is tested with totally random input values it
means that Fuzz Testing technique is applied. Syntax testing is a static, black
box testing method for testing syntactic specification of a system’s (or
protocol’s) input values. “Anti-parser” can be used to compile the grammar to
produce “structured garbage”. This “structured garbage”, that can contain
misplaced or missing elements, illegal delimiters, and so on, is used to test how
object under test behaves when inputs deviate from the defined syntax. (Beizer,
1990) 7.4. White-box Testing White-box is a software testing approach when
test engineer designs test cases based on the internal structure of the software
under test. There are three most known white box testing methods: control flow
testing, data flow testing, and mutation testing. The relation between the white-
box testing methods. Control flow testing concentrates about testing the
sequence of the statements in which system under test operates. There are two
main programming paradigms that influence the statements’ sequence execution.
They are conditions and loops. The main technique of control flow testing is
called Decision-to-Decision Path Testing (Jorgensen, 2008). Decision-to-
Decision path testing technique uses program graph to represent all possible
statements (graph nodes) and conditions (graph edges). Coverage of different
code aspects can be checked when using this technique. Dataflow testing
method concentrates about the points of program graph where variables receive
values and where these variables are used. Thus dependent pairs of the DD-
paths coverage of previously mentioned Decision-to-Decision Path Testing
technique is most efficient exit criteria for such testing method while the whole

INVENTORY MANAGEMENT SYSTEM

lifecycle of the variable is monitored. Mutation testing method is used to prove
that the set of unit tests that pass actually is correct and complete. Mutation (i.e.
wrong peace of code) is introduced into the program itself. For example,
operators or commands execution order can be changed, or even some code can
be removed. If unit tests still pass after mutation introduction then it means that
some of the unit tests are wrong or that mutated code is never executed. Some
static testing techniques are used for software code testing. They differ based on
the formality and thoroughness of the process. Code review is often used to
improve the overall quality of the code and to educate less experienced
developers. This process helps to deliver more qualitative and tested code from
development to testing right at the moment, but educative aspects help to
improve the quality of the code for the future deliveries. Inspections and
walkthroughs are used when there is less time available to conduct the static
testing process.

5.3 OUTPUTS

LOGIN PAGE

INVENTORY MANAGEMENT SYSTEM

 ITEM DETAIL PAGE

PURCHASE DETAIL PAGE

INVENTORY MANAGEMENT SYSTEM

 VENDOR DETAILS PAGE

INVENTORY MANAGEMENT SYSTEM

 SALE DETAIL PAGE

ITEM SEARCH PAGE

INVENTORY MANAGEMENT SYSTEM

 REPORT PAGE

INVENTORY CONTROL SYSTEM PAGE

INVENTORY MANAGEMENT SYSTEM

 6. CONCLUSION AND RECOMMENDATIONS

Inventory and structuring of testing ideas and terms has resulted into
discovering of eight classes of the testing ideas. Initiation of such process has
helped to understand the need of making the clear definition of such terms as
testing approach, testing method, and testing techniques that has been achieved
using the solution made by Anthony in the field of language teaching.
Structuring of the ideas have also made it possible to schematize the software
testing on meta-level, defining the relation between such concepts as testing
strategy, testing tactics, testing schools, testing mission, testing vision, different
(organizational and project-wide) contexts, testing approach, testing method,
testing technique, testing plan, etc. As a further work we see the need in
providing more observable relation between the categorization of the testing
ideas and software testing review on meta-level, and between them and software
testing dichotomies. Categorization of testing terms between testing ideas
classes should be continued as well.

7. FUTURE SCOPE

The scope of an inventory system can cover many needs, including

valuing the inventory, measuring the change in inventory and planning
for future inventory levels. The value of the inventory at the end of
each period provides a basis for financial reporting on the balance
sheet. Measuring the change in inventory allows the company to
determine the cost of inventory sold during the period. This allows the
company to plan for future inventory needs.

INVENTORY MANAGEMENT SYSTEM

 8. BIBLIOGRAPHY AND REFERENCES

 www.slideshare.com
 www.googlex.com
 www.geekforgeeks.com
 www.tutorial.com
 www.academic.com

INVENTORY MANAGEMENT SYSTEM