INVENTORY MANAGEMENT SYSTEM

FOR
NEW ARJUN TRADE AND SUPPLIERS

BY
Jeewan Bhatta
Exam Roll No.:14302\21
T.U. Registration No.:7-2-464-37-2021
Sudur Paschimanchal Campus

A proposal for
A Project Report Submitted to
Faculty of Management, Tribhuvan University
in partial fulfillment of the requirements for the degree of
Bachelor of Information Management
Dhangadhi, Kailali
December, 2024
 Tribhuvan University
Faculty of Management
Sudur Paschimanchal Campus
CERTIFICATE FROM THE SUPERVISOR

This is to certify that the project entitled "Inventory Management System " is an
academic work done by "Mr. Jeewan Bhatta " submitted in the partial fulfillment of the
requirement for the degree of Bachelor of Information Management at Faculty of
management, Tribhuvan University under my guidance and supervision. To the best of my
knowledge, the information presented by him in the summer project report was not
submitted earlier.

Signature of the Supervisor

…………………………..
Er. Prakash Saud
(Supervisor, Lab tutor)
 Tribhuvan University
Faculty of Management
Sudur Paschimanchal Campus

Letter of Approval
This is to certify that this project prepared by Jeewan Bhatta entitled "Inventory
Management System " in the partial fulfillment of the requirement for the degree of
Bachelor’s in information management has been evaluated. In our opinion it is satisfactory
in terms of scope and quality as a project for the required degree.
Signature of Supervisor Signature of HOD/ Coordinator

………………………………….. ………………………………….
E.r. Prakash saud Dharma Raj Bhatta
(Supervisor, Lab Tutor) BIM Department, SPA campus
Signature of Internal Examiner Signature of External Examiner

……………………………… …………………………………
Internal Examiner External Examiner
 Sudur Paschimanchal Campus
Ref No:
Date:

Subject: Approval of Project Proposal

This project entitled "Inventory Management System " proposed by Mr. Jeewan Bhatta
for the partial fulfillment of the requirement for Bachelor in Information Management
(BIM), six semester has been approved for further development.

Proposal Evaluation Committee

1. ………………..

2. ………………

3. ………………..

4. …………………

……………………………………
Mr. Yog Raj Upadhaya
Campus chief.
 Contents
Chapter 1 Introduction...........................................................................................................6
1.1 Introduction to the system................................................................................................6
1.2 Introduction to the Organization......................................................................................7
Vision..................................................................................................................................7
Mission...............................................................................................................................7
Objectives...........................................................................................................................7
Business process.................................................................................................................7
Problem Statement..............................................................................................................7
Objective of the Project......................................................................................................7
Development Methodology................................................................................................8
Chapter 2 Methodology..........................................................................................................9
2.1 Requirement Identification and feasibility Study:........................................................9
2.2 Related Work/ Literature Review...............................................................................10
2.3 Analysis and Design Tools:.........................................................................................11
2.4 Implementation tools..................................................................................................15
Chapter 3: Expected Outcomes:...........................................................................................16
Chapter 4 Project Schedule..................................................................................................17
Reference..............................................................................................................................18
 Chapter 1 Introduction

1.1 Introduction to the system

An inventory management system is a software application that enables organizations to
efficiently track, manage, and optimize their inventory levels.
The system is designed to automate and streamline inventory-related tasks, providing real-
time visibility into inventory levels, locations, and movements. The system provides a
user-friendly interface for administrators to manage inventory, track orders, and monitor
stock levels in real-time. Key features include inventory tracking, stock management, order
management, and reporting and analytics.
The system is divided into two main categories: Administrator Panel and Reporting
Dashboard. Administrators can view and manage inventory levels, track orders, and
monitor stock levels, while the reporting dashboard provides insights into inventory trends
and optimization opportunities.
With this system, businesses can reduce stockouts and overstocking, improve inventory
accuracy, and increase efficiency and productivity. The system also provides real-time
visibility at inventory levels, enabling data-driven decision-making and improved customer
satisfaction.
 1.2 Introduction to the Organization
New Arjun Trade and Suppliers is located at Dhangadhi-4, Kailali, established in
2019A.D. New Arjun Trade and Suppliers is owned by Mr. Basu Dev Bhatta, with the
objective of serving quality goods, which includes packaged goods, beverages,
confectionary items etc. The organization opens at 8AM and closes at 6:30PM in the
summer and at 5PM in the winter during the weekdays and it is closed on Saturday.
New Arjun Trade and Suppliers is a growing organization which is famous for providing
confectionary items, packaged goods and beverages. This organization is dedicated to
providing quality goods to the market.

Vision
 To be the most trusted wholesaler by satisfying the customers.

Mission
 To be the preferred wholesaler providing fast and quality goods and products to the
customer.

Objectives
 To achieve organizational goal
 To achieve customer satisfaction
 To provide quality goods and products to the customers
 To build organizations brand

Business process
In every organization, there is its own structure according to their nature to achieve of
organization. The organization has the following business process model.

Problem Statement
New Arjun Trade and Suppliers uses the traditional method of pen and paper to track and
manage inventory levels. Manual processes are time-consuming and prone to errors. Data
inconsistencies due to lack of integration between systems. Limited real-time data access,
impacting decision-making.

Objective of the Project

The objective of this project is to develop a web application that helps the organization to
manage the inventory effectively and efficiently. The following points simplify the
objectives of this project more clearly.
 To automate manual processes to reduce time and errors.
 To provide real-time data access for better decision-making.
 To minimize inventory-related costs, such as storage, handling, and maintenance, to
improve profitability.
 To ensure that customer orders are fulfilled accurately and on time to improve
customer satisfaction.
Development Methodology
The Agile methodology has been selected for developing the proposed system. This
approach is chosen due to its flexibility, iterative progress, and continuous client feedback,
which allows for rapid adjustments. The key phases in this methodology include:
- Planning: Define the project scope and objectives.
- Design: Create system design and architecture.
- Development: Build the system in iterative cycles.
- Testing: Validate the system against requirements.
- Deployment: Roll out the system to users.

Figure: Agile Methodology

 Chapter 2 Methodology

2.1 Requirement Identification and feasibility Study:

In this topic we are going to study and understand about the process of collecting and
interpreting facts, identifying facts, and decomposition of the system into its components.
Requirement Identification: Requirement identification is the process of communicating
and collaborating with the key individuals to accumulate and identify the project needs at
minimum cost. Requirements in system development are broadly divided into two types:
1. Functional Requirement: It defines the specific behaviors or functions that a
system must perform. It describes what the system does in response to various
inputs and how it should behave in different situations. It is usually expressed as
user stories or use case and serves as the foundation for system design and
development.
2. Nonfunctional Requirement: It specifies the quality attributes or constraints that a
system must satisfy. It includes the aspect of performance, reliability, security,
usability and scalability to define how well the system performs certain functions
rather than what functions it performs.
 Performance: There should not be any slowdown and downtime into the
system and multiple users can concurrently use it.
 Security: There should be proper authentication mechanisms, encryption
techniques to protect the data from unauthorized access and breaches.
 Usability: The system should be user friendly i.e. the interface should be
institutive and easy to navigate.
 Scalability: The system should be able to scale horizontally to
accommodate an increase in users and data volume without significant
change to the architecture.
 Availability: The system should be available 24/7, with scheduled
maintenance windows communicated to users in advance.

Feasibility Study: A feasibility study is an evaluation and analysis of a project or system

that somebody has proposed. The following feasibilities were studied before building the
system to identify the risk factor associated with system development and deployment.
After the feasibility study the purposed project is either continued or abandoned.
 Technical Feasibility:
i. Analyze the technical capability and skills of system development team
members
ii. Determine the technical resources required to develop the project
iii. Inspects weather software can be built at all with available tools and experts
  Economic Feasibility:
i. Analyze the cost incurred in Hardware, Software, development team and
training costs
ii. Analyze the cost incurred in software study conduction
iii. The cost incurred in software development generates long benefit for the
organization or not.
 Operational Feasibility:
i. Determine if the expected issue in the user request is a high priority
ii. Analyze if the organization is satisfied with alternative solution purposed
iii. Determines whether the decision proposed by the development team is
acceptable or not
 Legal Feasibility:
i. Study of legal obstacles for the implementation of project
ii. Study of data protection rules, social media rules
iii. Consideration of project certificates, licenses, copyrights etc.
 Schedule Feasibility:
i. Analyze the project deadlines
ii. Identify the milestones
iii. Analysis of task dependencies

2.2 Related Work/ Literature Review

“An inventory management system (or inventory system) is the process by which you track
your goods throughout your entire supply chain, from purchasing to production to end
sales. It supervises how you approach Inventory management for your business. If you’re
holding a lot of inventory in your business, you need to stay efficient and maintain healthy
margins. An effective inventory management system exists to help you achieve this.”
(Munro, 2018)

“The Inventory Management System is extremely beneficial to business owners, as they

allow shops to properly store sales and purchase records. When inventory is mismanaged,
it leads to dissatisfied consumers, slower sales, too much cash on hand, and warehouses.
This inventory system reduces manual work, human mistakes, and manual delays while
simultaneously speeding up the process. This inventory management system will be able to
track sales information as well as inventories. Inventory management system is a web
application for Windows that focuses on inventory and sales clearance. It was created for
Windows operating systems. The inventory management system has a number of features.
This web application has logical tools for evaluating ideal inventory levels and selecting
the appropriate replenishment strategies automatically. It also has capabilities like the
ability to identify stock levels, compute reorder points automatically and highlight
potential stock-outs. This technique eliminates the risk of stock-outs of fast-moving goods
by minimizing delays.” (Varalakshmi, 2024)
2.3 Analysis and Design Tools:

System Analysis: It is the process of collecting and interpreting the fact, identifying the
problems and decomposition of a system into its components for the purpose of obtaining
its objectives. .
1.Use Case diagram: Use-case Diagram is the interaction between system and actors. In
the given use-case diagram it shows the interaction between Inventory Management
System and actors i.e., Inventory Manager, Warehouse Staff, System Administrator, Sales
Manager. Use-case diagram shows which actors can perform which functions of the
system and the relationship between them as well.

Figure: Use-Case Diagram

2.Data flow Diagram A Data Flow Diagram (DFD) is a graphical representation of the
flow of data through a system. It is a modeling technique used to analyze and design
information systems. A DFD shows the flow of data between different entities, processes,
and data stores within a system.

 Context Diagram

Figure: Context Diagram

 Level 1 DFD

Figure: Level 1 DFD

 Level 2 DFD

Figure

:
Figure: Level 2 DFD
Class Diagram
The class diagram depicts a static view of an application. It represents the types of objects
residing in the system and the relationships between them. A class consists of its objects,
and also it may inherit from other classes. A class diagram is used to visualize, describe,
document various different aspects of the system, and also construct executable software
code

(geeks for geeks, 2024)Figure: Class Diagram

2.4 Implementation tools
They are the software used during the implementation phase of SDLC to facilitate the
transition of a system from design phase to actual deployment and usage to ensure the
system is effectively built and meet the requirement.

1. Front End:
• HTML: HTML is mark language used for designing the skeleton
structure of web pages and websites. In "Inventory Management System "
we use html to create and structure sections like heading, links, paragraphs
using various tags and elements. This system has also defined forms, tables,
links and images tags to give the structure to the web pages.
• CSS: CSS stands for Cascading Style Sheets used to style the
HTML elements by providing visual appeal and layout control. In
"Inventory Management System" it is used to design the user interface (UI)
with consistent styles, themes and responsive design, ensuring the
application looks good on different devices.
• Java Script: JS is a scripting language that enables dynamic content
and interaction on the web pages. In " Inventory Management System " we
use JS for adding interactivity to the system such as handling form
submission, updating reservation status in real-time, managing feedback
submission and display real-time charging station data.
• Bootstrap: Bootstrap is a HTML, CSS and JS library that focuses on
simplifying the development of informative web pages (as opposed to web
apps). The primary purpose of adding it to a web project is to apply
Bootstrap choices of color, size, font and layout to the project.
2. Back End and Database Tools
• Python: Python is a versatile and powerful language which is widely
used for backend development. It is known for its simplicity and readability,
making it easier to write and maintain code. It offers a vast ecosystem of
libraries and frameworks such as Django and Flask that streamline web
development by providing tools for database interaction, request handling,
and security.
• SQLite for Database: SQLite is a lightweight, file-based relational
database management system (RDBMS) that is ideal for applications
requiring minimal setup and configuration. Unlike traditional databases,
SQLite does not require a separate server process, making it highly portable
and easy to embed in applications. It is perfect for smaller projects, mobile
apps, and systems where simplicity and low resource usage are keys.
 Chapter 3: Expected Outcomes:
An Inventory Management System (IMS) enhances inventory accuracy by providing real-
time updates and reducing manual errors, ensuring optimal stock levels to prevent
overstocking or understocking. It automates tasks, improves efficiency, and minimizes
costs associated with spoilage, theft, and manual labor. By offering detailed analytics and
forecasting, an IMS supports better decision-making and enables businesses to meet
customer demands, improving satisfaction and trust. Additionally, it streamlines supplier
management, reduces risks, and facilitates scalability, making it an essential tool for
growth and operational excellence.
 Chapter 4 Project Schedule
For project scheduling we use the Gantt Chart which is a type of bar chart showing the
start and finish date of a project's element such as planning, resource allocating and
dependencies. It divides the project into tasks, each task having beginning and ending date
to determine how long each tasks will take.
 Reference
(2024, 0ctober 18). Retrieved from geeks for geeks:
https://www.geeksforgeeks.org/unified-modeling-language-uml-class-diagrams/
Agrawal, V. (2024, October 30). Retrieved from https://www.simplilearn.com/feasibility-
study-article
Munro, O. (2018, march 21). Retrieved from Unleashed software:
https://www.unleashedsoftware.com/inventory-management-guide/inventory-
management-systems
Paliwal. ( 2024, september 23). agile methodology. Retrieved from geeks for geeks:
https://www.geeksforgeeks.org/what-is-agile-methodology/
Varalakshmi. (2024, August). Retrieved from ijarcce.com: https://ijarcce.com/papers/a-
review-of-inventory-management-system/
Woods, M. (2024, November 23). Retrieved from https://www.camcode.com/blog/what-is-
an-inventory-management-system/?srsltid=AfmBOoqYsFEi3S6F6Y-
EhjQcyM9B5-zJZTfXHq-uDf5ZaHJwE685oxC1