Assignment No.

3
Analysis

an Inventory Tracking Website involves evaluating its functionality, performance,

impact on business operations, and its technological architecture. This analysis helps
businesses understand the value such a system provides, including cost savings,
operational efficiency, and customer satisfaction. Here’s a structured analysis of an
Inventory Tracking Website, covering several key areas:
1. Purpose and Role of an Inventory Tracking Website
An Inventory Tracking Website serves as a digital platform that enables businesses to
manage their stock in real time. The key objectives of this system are to:
 Monitor stock levels, locations, and movement of products.
 Automate purchase orders and reordering processes.
 Track incoming and outgoing shipments, preventing stockouts and
overstocking.
 Provide detailed reporting and analytics to inform better business decisions.
2. Core Features of an Inventory Tracking Website
A robust inventory tracking system typically includes the following functionalities:
a. Real-Time Inventory Monitoring:
 Stock Visibility: Real-time updates on stock levels, allowing businesses to track
product availability at multiple locations or warehouses.
 Batch and Serial Tracking: Ability to track items through unique serial numbers
or batches, essential for industries like pharmaceuticals or electronics.
 Barcode/QR Code Integration: Enables fast and efficient scanning of products
for inventory updates, reducing manual errors.
b. Automated Reordering:
 The system can automatically generate purchase orders or notify managers
when stock levels fall below predefined thresholds, ensuring that critical
products are reordered in time.
 This prevents stockouts and improves the efficiency of the supply chain.
c. User Access and Permissions:
 Role-based access control ensures that employees have access only to the
parts of the system relevant to their job, reducing the risk of data errors or
unauthorized actions.
3. Challenges
Despite the benefits, there are several challenges in implementing and maintaining
an inventory tracking system:
a. Data Accuracy:
 Ensuring the accuracy of data input is critical. If the system is not updated
promptly with real-world inventory changes (e.g., returns, damages, manual
adjustments), discrepancies can arise.
b. Integration Complexity:
 Integrating with legacy systems, third-party tools, or external suppliers can be
complex and may require custom development.
c. User Training:
 Employees need to be trained to use the system effectively. Without proper
training, the benefits of automation and real-time tracking may not be fully
realized.
d. Cost of Implementation:
 The upfront costs for system development, customization, and training can be
high, especially for small businesses. While long-term savings are significant,
the initial investment can be a hurdle.
3.1 studying existing software, we come to that conclusion group by decide to
develop software using strategy or system stated in literature survey for
'Inventory Tracking' Website

1. Understanding Common Approaches:

 Review existing inventory tracking systems and their underlying frameworks,
architectures, and technologies (e.g., cloud-based, on-premises, or hybrid
systems).
 Look at how different systems handle real-time tracking, data integration, and
automation.
2. Identifying Requirements:
 Identify the functional requirements (e.g., product tracking, reporting, stock
management) and non-functional requirements (e.g., performance,
scalability) based on what has been successful in existing software.
 Prioritize user-friendly interfaces, scalability, and security features, as these
are common needs in inventory systems.
3. Choosing a Development Strategy:
Based on the survey, there are a few common strategies for inventory tracking
systems:
 Agile Development: Break down the project into small iterations, focusing on
building features incrementally, such as stock management, real-time updates,
etc.
 Modular Architecture: Develop the system with separate modules for
inventory, users, reports, etc. This approach allows better scalability and
maintenance.
 Cloud-Based Solutions: Many modern systems utilize cloud computing to offer
real-time access, better data storage and backup, and easy scalability.
4. Applying Relevant Models and Algorithms:
Literature surveys often highlight useful algorithms or techniques for inventory
management, such as:
 Demand forecasting: Algorithms to predict stock levels based on historical
data (e.g., time series analysis).
  Stock optimization: Techniques like Just-in-Time (JIT) or Economic Order
Quantity (EOQ) to minimize costs while meeting demand.
5. Choosing Technologies:
Based on the surveyed systems, you might decide to develop your inventory tracking
website using technologies like:
 Backend: Node.js, Django, or Java Spring for handling business logic and data
management.
 Frontend: React, Angular, or Vue.js for creating interactive user interfaces.
 Database: MySQL, PostgreSQL, or NoSQL options like MongoDB for efficient
data storage.

3.2 Format of output [Information,file,report(Gaphics)]

1. Information (On-Screen Output)
This refers to real-time or dynamic information presented directly on the website’s
interface, often interactive and easy to navigate.
 Tables or Lists: Used to display itemized inventory details such as product
name, stock level, SKU, location, reorder status, and supplier.
o Example Table Format:
Product Stock
SKU Location Reorder Status Supplier
Name Level

Item A 1234 50 Warehouse 1 In Stock Supplier X

Reorder
Item B 2345 10 Warehouse 2 Supplier Y
Needed
 Real-Time Alerts: Notifications when stock is low, shipments are delayed, or
other important inventory events occur.
o Example Alert Format:
 "Low Stock Alert: Product A has only 10 units left. Reorder
immediately."
 Dashboard Views: Summary of key metrics such as total stock, items running
low, upcoming deliveries, and orders. This can include:
o Total inventory value
 o Stock turnover rate
o Top-selling items
o Pending purchase orders
2. File (Downloadable Output)
Users may want to download detailed data or reports in various file formats for
further analysis or sharing.
 CSV (Comma-Separated Values): Useful for exporting raw data in a structured
format that can be opened in Excel or Google Sheets. Data can include fields
such as product name, SKU, stock level, supplier, cost, and sales.

a. Excel Files (XLSX): Similar to CSV but can include additional formatting, formulas,
pivot tables, and multiple sheets.
 Example Excel Sheets:
o Sheet 1: Inventory Stock Levels
o Sheet 2: Reorder Requirements
o Sheet 3: Supplier Performance Metrics
b. PDF (Portable Document Format): Suitable for creating shareable, non-editable
reports with a formal layout. Commonly used for end-of-month reports or financial
summaries of stock value.
 Example PDF Structure:
o Title: "Monthly Inventory Report - October 2024"
o Sections:
1. Overview of Stock Levels
2. Reorder Alerts and Actions Taken
3. Sales Performance by Category
4. Supplier Performance
o Summary Page: Key inventory figures, top-selling products, and
recommendations for the next month.

3. Report (Graphics and Visualizations)

Reports with graphical elements are useful for visualizing trends, performance
metrics, and inventory data in an easily digestible format. These typically involve
charts, graphs, and other visuals.
 Bar Charts: Comparing stock levels of different products or inventory trends
over time.
o Example: A bar chart showing the number of units for the top 10
products in stock.
 Line Charts: Visualizing trends such as sales, stock depletion, or reorder
frequency over a period of time.
o Example: A line chart showing stock levels of a particular item over the
last 6 months.
 Pie Charts: Displaying proportional data, such as inventory distribution by
category or supplier.
o Example: A pie chart showing the percentage of total inventory by
product category (e.g., electronics, apparel, home goods).
 Heat Maps: Useful for identifying high and low-performing products or
regions. For example, highlighting slow-moving inventory items in red and fast-
moving items in green.
o Example: A heat map of warehouse locations showing inventory
movement by color intensity.
 Histograms: Showing the distribution of stock levels across products or
warehouses.

3.3 Cost benefit analysis Cost flexibility, Economical flexibility, Behavioral

flexibility for 'Inventory Tracking' Website

1. Cost-Benefit Analysis (CBA)

Costs:
1. Development Costs:
o Initial development: Costs of hiring developers or buying off-the-shelf
software solutions.
 o Customization: Additional costs for tailoring the system to specific
business needs (e.g., custom features, integrations).
o Testing and deployment: Quality assurance, bug fixes, and ensuring
smooth rollout.
o Maintenance: Ongoing costs for software updates, bug fixes, and server
maintenance.
o Training costs: Educating employees on using the system efficiently.
2. Infrastructure Costs:
o Server costs: Hosting the website, especially for real-time inventory
updates.
o Cloud storage: Depending on the size of your business, the need for
cloud services (e.g., AWS, Azure) to store and process data securely.
o Security measures: Implementing encryption, firewalls, and regular
security audits.
3. Operational Costs:
o Software licenses: If using third-party platforms, the cost of licensing
can add up, especially for SaaS models.
o API integration fees: If integrating with other business tools (e.g., ERP
systems or e-commerce platforms), there might be fees for API usage.

2. Cost Flexibility
Cost flexibility refers to the ability to adapt and manage the costs of the inventory
tracking system as the business environment or requirements change. This flexibility
depends on factors such as scalability, the ability to customize features, and licensing
models.
 Scalability: If your business grows, adding new locations, products, or users
should not significantly increase costs. Cloud-based solutions often provide
cost flexibility by offering pay-as-you-go models.
 Customizable Features: You may not need all features upfront. Choosing a
system that allows for modular feature additions helps in managing costs over
time.
  Licensing Flexibility: Subscription-based or SaaS models often offer tiered
pricing based on business size or usage, allowing for flexible adjustments as
your business needs change.

3. Economical Flexibility
Economical flexibility refers to the system’s ability to adapt to changes in the
economic environment, such as market shifts, fluctuating demand, or budget
constraints.
 Adaptability to Demand Fluctuations: The system should allow businesses to
quickly respond to changes in demand, adjusting stock levels dynamically
based on real-time tracking. This helps optimize inventory costs by preventing
overstock during low demand periods and avoiding stockouts during high
demand.
 Integration with Economic Trends: Inventory tracking systems that offer
forecasting tools can help businesses predict demand based on market trends,
allowing them to manage inventory levels more effectively and save costs.
 Budget-friendly Scaling: In an economic downturn, businesses may need to
cut costs. A good inventory tracking system should offer the flexibility to scale
back features or reduce the number of users, thus reducing operating costs
without impacting critical functionality.
 Assignment No.4

4.1 System Design /Project Design for 'Inventory Tracking' Website

Flowchart :

1. System Design Overview

The system design focuses on the structure, architecture, and technological
components that will make the inventory tracking website function efficiently. The
design will incorporate both the frontend (user interface) and backend (server-side
logic, databases) aspects.
Key Components of the System Design:
1. Frontend (Client-Side):
o User interface (UI) and user experience (UX)
o Dashboards for users to view and manage inventory
o Real-time notifications for low stock and orders
o Reports and graphical representations of inventory data
 2. Backend (Server-Side):
o Inventory management logic and automation
o Real-time data updates and synchronization
o APIs for integration with external systems (e.g., ERP, e-commerce
platforms)
o Security and role-based access control
3. Database:
o Inventory data storage, such as product details, stock levels, supplier
information, and transaction history.
o Optimization for fast data retrieval and update performance
o Use of relational and/or NoSQL databases for flexibility and scalability

. System Architecture
The system architecture defines how the components interact, communicate, and
function together to deliver the inventory tracking features.
a. 3-Tier Architecture (Standard for Web Applications)
This architecture separates the system into three logical layers:
 Presentation Layer (Frontend):
o This layer handles the UI/UX and user interactions. It consists of web
pages and components that allow users to view inventory data, receive
notifications, generate reports, and manage stock.
o Technologies: HTML, CSS, JavaScript (React, Angular, Vue.js)
 Business Logic Layer (Backend):
o This layer contains the core business logic for managing inventory. It
handles tasks like tracking stock levels, automating reorders, managing
transactions, and running inventory reports.
o Technologies: Node.js, Django, Ruby on Rails, or Java (Spring Boot)
 Data Layer (Database):
o This layer stores and retrieves inventory data. It is designed to
efficiently handle large volumes of data and support operations like
 querying stock levels, updating product information, and keeping track
of inventory history.

3. Database Design
The database is at the core of the Inventory Tracking Website and needs to be
structured efficiently to support real-time data updates, fast retrieval, and scalability.
a. Tables and Entities:
 Products Table: Stores details about the products, including SKU, name,
category, and description.
 Inventory Table: Tracks current stock levels, warehouse locations, and reorder
thresholds.
 Orders Table: Logs purchase and sales orders, including quantities, dates, and
suppliers/customers.
 Suppliers Table: Holds supplier information, including contact details and
preferred products.
 Transactions Table: Logs every change in stock (e.g., shipments, returns,
sales).
b. Relational Database Schema Example:
 Products: (ProductID, SKU, ProductName, Category, Description)
 Inventory: (InventoryID, ProductID, WarehouseID, StockLevel, ReorderLevel)
 Warehouses: (WarehouseID, Location, Capacity)
 Suppliers: (SupplierID, SupplierName, ContactInfo, PreferredProducts)
 Orders: (OrderID, SupplierID, OrderDate, Status)
4. Frontend Design (User Interface & User Experience)
The frontend design focuses on creating a user-friendly and intuitive interface where
users can easily access inventory data and perform tasks.
a. Dashboard:
 A customizable dashboard that displays key metrics like:
o Total inventory value
o Stock levels for key products
 o Low stock alerts
o Recent transactions and orders
b. Reports & Graphical Analysis:
 Reports showing inventory trends, sales performance, and stock levels.
 Graphical representation through charts and graphs (e.g., bar charts, line
charts, pie charts) to visualize:
o Stock movement over time
o Product sales
o Supplier performance

4.2 Physical layout of the Output / Output Design /Input Design/Procedure

Design (Flowchart,DFD)

1. Output Design
The Output Design focuses on how information from the system is displayed to the
users. This involves organizing the presentation of data such as inventory levels,
reports, alerts, and notifications in a clear and intuitive manner.
a. Physical Layout of the Output
The physical layout refers to how the output is structured on screens or reports.
 Dashboard Layout: The dashboard should be the primary interface, presenting
an overview of inventory status. It typically includes:
o Inventory Levels Summary: Display the overall stock level for each
category.
o Low Stock Alerts: A real-time notification banner highlighting critical
items that require immediate action.
o Graphs and Charts: Use bar charts, pie charts, and line graphs for visual
representation of data.
Output Example:
 Main Dashboard View: A combination of key performance indicators (KPIs)
like "Total Inventory Value," "Low Stock Items," and "Top Performing
Products."
  Detailed Inventory Reports: CSV/PDF downloads that break down stock
movements, sales, and reorder suggestions.
 Real-Time Notifications: Alerts displayed as modals or pop-ups when stock is
low or when an order is delayed.

b. Reports
Reports can be generated in multiple formats for the users, such as PDF, Excel, or CSV.
These reports provide a summary of:
 Inventory Trends: Analysis of stock movements.
 Reordering Suggestions: Items that have reached reorder points.
 Supplier Performance: Graphical representation of supplier delivery times,
costs, and stock fill rates.
 Cost Summaries: Product purchase cost and total inventory value.

2. Input Design
The Input Design ensures that the data is entered into the system in an accurate,
timely, and simple manner. Inputs are critical for updating stock levels, managing
orders, adding new products, etc.
a. Input Forms
The website should provide user-friendly forms for different types of input data.
b. Order Forms:
 Fields: Order Number, Supplier, Product, Quantity, Delivery Date.
 Validation: Ensure proper validation for delivery dates and order quantities.
c. Supplier Information:
 Fields: Supplier Name, Contact Information, Product Categories Supplied.
 Validation: Ensure all required fields are filled out before submission.

3. Procedure Design (Flowchart, DFD)

The Procedure Design defines how the system operates through a logical sequence
of processes. The two most common tools to illustrate this are Flowcharts and Data
Flow Diagrams (DFD).
Flowchart
The flowchart visually represents the process flow for the most common tasks in the
system. Here's an example flowchart for Product Reordering in the inventory system.

4. System Flow for Key Processes

a. Adding New Product
 Process Flow:
1. User opens the "Add Product" form.
2. Enters product details (SKU, name, category, supplier, etc.).
3. System validates input (e.g., SKU must be unique).
4. System stores product data in the database.
5. The system updates the dashboard to reflect the new product.
b. Tracking Stock Movement
 Process Flow:
1. User logs product movement (e.g., sales, returns, or restocks).
2. System updates stock levels in the inventory database.
3. If stock falls below reorder level, the system generates a reorder
suggestion.
4. System sends a notification to the user or automatically places a
reorder.
c. Generating Reports
 Process Flow:
1. User selects the report type (e.g., Monthly Stock Report, Supplier
Performance).
2. System retrieves data from the database.
3. System generates graphical or tabular reports.
 4. The user can view the report on the dashboard or download it as
PDF/CSV.

DFD for Inventory Tracking

DFD Level 1 :