PROBLEM STATEMENT
INVENTORY MANAGEMENT SYSTEM
OBJECTIVE: To prepare a problem statement for the Inventory Management System
project.
REQUIREMENTS:
Hardware Interfaces:
Pentium 4 CPU 2.26 GHz
128 MB RAM
Screen Resolution of at least 800 x 600 for proper viewing
CD ROM Drive
Software Interfaces:
1. Operating System (OS) Interface
Supported Operating Systems:
o Windows:
Versions: Windows 10 or later
o Linux:
Distributions: Ubuntu 20.04 LTS or later, CentOS 7 or later
o macOS:
Versions: macOS Big Sur (11.0) or later
2. Memory (RAM) Interface
Minimum RAM Requirements:
o Client Machines:
Minimum: 4 GB
Recommended: 8 GB
o Server:
Minimum: 8 GB
Recommended: 16 GB or higher, depending on the number of
concurrent users and the size of the database.
THEORY:
INTRODUCTION
The current inventory management practices are inefficient, leading to issues such as stock
shortages, excess inventory, and difficulty in tracking supplier and customer information. The
proposed *Inventory Management System* aims to address these challenges by providing a
comprehensive solution that enables administrators to effectively manage inventory levels,
suppliers, and customers.
This system will facilitate user authentication, allowing secure access to inventory data. It
will include features for real-time inventory tracking, order management, and reporting
capabilities to enhance decision-making. The primary goal is to streamline inventory
processes, reduce operational costs, and improve overall efficiency within the organization.
CHALLENGES
1.Manual Processes:
Many small to medium-sized businesses still rely on manual processes for
tracking inventory. This includes using spreadsheets, handwritten logs, or
basic software that lacks integration. These methods are prone to human error,
such as incorrect data entry, lost records, or outdated information.
2. Inaccurate Inventory Levels:
Inaccurate inventory data can lead to stockouts, overstocking, and ultimately,
lost sales and increased holding costs. Stockouts result in missed opportunities
and customer dissatisfaction, while overstocking ties up capital that could be
used elsewhere.
3. Lack of Real-Time Data:
Without real-time tracking, businesses are unable to respond quickly to
changes in demand or supply chain disruptions. This lag in information can
cause delays in restocking, production halts, and inefficient order fulfillment.
4. Inefficient Supply Chain Management:
Inefficiencies in supply chain management, such as delayed supplier orders,
lack of visibility into supplier inventory, and long lead times, can further
exacerbate inventory management challenges. The lack of integration between
suppliers and inventory systems can lead to miscommunication and delays.
5. Complexity in Multi-Location Management:
For businesses with multiple locations or warehouses, managing inventory
across different sites can be highly complex. Issues such as inconsistent
inventory levels, difficulty in transferring stock between locations, and lack of
centralized control can hinder operations.
Features
1. Authentication and Authorization:
The system must provide secure login mechanisms, including username and password
authentication.
Implement role-based access control to restrict access to specific features based on
user roles.
2. Item Catalog:
The system must allow users to add, update, and delete inventory items. Each item
should have attributes such as item name, SKU, description, category, supplier
information, and unit price.
3. Stock Management:
The system must allow users to view current stock levels, track stock movements
(inflows and outflows), and set minimum and maximum stock level thresholds.
Implement automatic stock level updates when items are received, sold, or transferred
between locations.
4. Purchase Orders:
The system must allow users to create, approve, and track purchase orders (POs) to
suppliers. Users should be able to specify items, quantities, delivery dates, and
payment terms.
5. Multi-Warehouse Support:
The system must support managing inventory across multiple warehouses or storage
locations. Users should be able to view and transfer stock between locations.
6. Barcode and RFID Integration:
The system should support barcode and RFID scanning for easy tracking of inventory
items.
7. Batch and Expiry Management:
The system must allow users to manage inventory in batches, including tracking batch
numbers and expiry dates for perishable items.
8. Alerts and Notifications
Stock Alerts:
o The system must send alerts to users when stock levels fall below minimum
thresholds or exceed maximum thresholds.
Order Notifications:
o The system should notify users of new purchase orders, pending approvals,
and incoming shipments.
Conclusion
Summary:
o The software requirements outlined in this document provide a comprehensive
guide for the development of an Inventory Management System that addresses
the key challenges faced by businesses in managing their inventory. By
implementing these requirements, the IMS will improve efficiency, reduce
costs, and enhance decision-making processes.
