April 13,

STOCK MANAGEMENT SYSTEM

2011

INDEX

1. Introduction
2. Problem Analysis
2.1Object And Overall Description
2.2System Boundary
3. Project Planning
3.1Accepting Orders From Super Markets
3.2Responding Orders From Super markets
3.3Getting Super Markets Billed
3.4Sending Goods To Super Market(Outside system)
3.5Ordering From Suppliers
3.6Receiving Payment
3.7Paying Suppliers
3.8Processing Deliveries From Suppliers
3.9Conducting a Daily Sales Analysis
3.10Conducting a Weekly Sales Analysis
4. Scope
5. Model
6. Phases
7. ER Model

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1. Introduction:

In the USA and Canada the term has developed from a

list of goods and materials to the goods and materials
themselves, especially those held available in stock by a
business; and this has become the primary meaning of the term
in North American English, equivalent to the term "stock" in
British English. In accounting, inventory or stock is considered an
asset.

Inventory management is primarily about specifying the

size and placement of stocked goods. Inventory management is
required at different locations within a facility or within multiple
locations of a supply network to protect the regular and planned
course of production against the random disturbance of running
out of materials or goods. The scope of inventory management
also concerns the fine lines between replenishment lead time,
carrying costs of inventory, asset management, inventory
forecasting, inventory valuation, inventory visibility, future
inventory price forecasting, physical inventory, available physical
space for inventory, quality management, replenishment, returns
and defective goods and demand forecasting. Balancing these
competing requirements leads to optimal inventory levels, which
is an on-going process as the business needs shift and react to
the wider environment. Inventory management involves a retailer
seeking to acquire and maintain a proper merchandise
assortment while ordering, shipping, handling, and related costs
are kept in check. Systems and processes that identify inventory
requirements, set targets, provide replenishment techniques and
report actual and projected inventory status. Handles all functions
related to the tracking and management of material. This would
include the monitoring of material moved into and out of
stockroom locations and the reconciling of the inventory
balances.
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2. Problem Analysis:

2.1. System Objectives and Overall Description

2.1.1. The Stock Management System (SMS) assumes control over

the bookkeeping and accounting needed to operate a Warehouse
for a company specializing in retail sales of food and groceries. All
day-to-day operations of the warehouse, as well as conducted
weekly accounting of the products stored in the warehouse and
disbursed to participating supermarkets, will be performed by the
software.

2.1.2. The problem of storage of the accounting documents such

as invoices and orders would be solved.

2.1.3. Tedious arithmetic involved in the corresponding

bookkeeping will be automated.

2.1.4. A cost of maintenance of a specially trained accounting

professional in the warehouse would be saved by replacing this
position with a software tool and a less costly data entry
specialist.

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2.2. System Boundary
2.2.1. System Context

2.2.1.1. The SMS is located at central warehouse and keeps track

of the stock level of each item in the warehouse, orders from
supermarkets, and orders from the warehouse to the suppliers.
Items and product groups and their quantities in the warehouse
are all part of the system.

2.2.1.2. The SMS will provide supermarket managers with the

ability to enter ordering information directly into the system. But
it also accepts the order by phone from the supermarket that
doesn't have the connected computer system. In this case, a data
entry specialist will handle the paper formats of orders and
invoices.

2.2.1.3. A convenient GUI (graphical user interface) will provide

users with the ability to quickly enter the information from the
incoming orders from the supermarkets and to output the
invoices reflecting the outgoing flow of goods supplied to the
supermarkets.

2.2.1.4. To maintain the current level of the stock inventory, the

system will be provided with easy-to-use ways of entering the
product information such as names, quantities, purchasing/sales
prices, and stock level.

2.2.1.5. A database of records reflecting each in and out

transaction will be automatically maintained.

2.2.1.6. The SMS is supposed to provide the weekly sales analysis

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report reflecting the warehouse operations during the week in an

automatic manner.

2.2.1.7. A careful analysis and bookkeeping will be conducted

regarding the delayed orders arising from insufficient stock levels
happened during the week.

2.2.2. System Constraints and Assumptions

2.2.2.1. The SMS assumes that all deliveries from warehouse to

supermarkets are successfully completed, so there is no loss of
item or delay on the way to the supermarkets. Therefore any
trucking system is beyond the SMS boundary.

2.2.2.2. The SMS assumes all suppliers have enough stocks,

therefore whenever warehouse manager orders items, they can
be delivered within 24 hours.

2.2.2.3. Specific bookkeeping and accounting regulations

reflecting the current laws and regulations will have to be
programmed when updated.

2.2.2.4. The system will require some occasional supervision of a

trained accountant to verify its correctness upon the system
update.

3. Project Planning:

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3.1. Accepting Orders from Supermarkets

3.1.1 Informal Description

3.1.1.1. Supermarket Manager initiates the processing of the

order. The manager provides ordering information such as the
name of the supermarket, the requested item, the requested
amount of the item, and the date and time of ordering. Either the
supermarket manager keys the data into the SMS directly, or he
orders by phone and the warehouse operator keys the entry into
the SMS.

3.1.1.2. The orders from different supermarkets on each different

item will be enqueued daily up until 4 p.m., after which the queue
will be processed and the supply of each item will be determined
(batch processing). After the 4 p.m. threshold, the queue is
emptied and the accumulation of orders for the next business day
commences.

3.1.2. Precondition: Supermarket manager is at the terminal,

and the warehouse system is in a consistent state. The stock
level of the supermarket goes down to a certain level.

3.1.3. Post condition: The manager gets the unique order id

number in return.

3.2. Responding to Orders from Supermarkets

3.2.1. Informal Description

3.2.1.1. After the batch processing has been completed soon after
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4 p.m. on each business day, the SMS shall first process the
delayed (i.e. carried over from the previous day(s) orders, for
each of the items) orders. The recent orders (i.e. ones from
current day) will be serviced next.

3.2.1.2. Now that the order has been received, the system
responds to it and decides how much stuff the supermarket will
get. For each item for which any quantity has been ordered by
any supermarket, the SMS checks the amount of available items
versus the sum of the amounts in the orders.

3.2.1.3. If there is enough in the warehouse to complete all

orders, then they will all be filled, the goods sent, the
supermarkets billed, and the amount in stock will be reduced by
the amount sent.

3.2.1.4. If there is not enough stock, then the delayed orders are
filled proportionately to the amounts desired. The remainders for
each order shall thereby become delayed for some (or all) of the
items.

3.2.1.5. The stock inventory is updated for each item to reflect

the new quantities that remain. A record is kept of the state of
each order for each item.

3.2.1.6. An invoice shall be generated to reflect the Item, Amount,

Destination, and Date of shipping for each order.

3.2.2. Precondition: The batch job starts at 4:00 P.M., and the

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item, order id, amounts and order date and time are correct.

3.2.3. Post condition: The goods are then sent, the

supermarkets billed, and the amount in stock and requested by
the supermarket is reduced by the amount sent.

3.3. Getting Supermarkets Billed

3.3.1. Informal Description

3.3.1.1 The supermarket is billed for goods rendered.

3.3.2. Precondition: A supermarket’s order is filled and the

goods indicated in invoice are sent to it.

3.3.3. Post condition: Supermarket now owes the amount in

the invoice more money.

3.4. Sending Goods to Supermarket (outside System)

3.4.1. Informal Description

3.4.1.1. Put the items in the mail or on the truck to be shipped to

the market.

3.4.2. Precondition: There are enough of the appropriate

goods in the warehouse.

3.4.3. Post condition: The goods are no longer in the

warehouse but are on their way to the supermarket. They are
assumed to eventually arrive.
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3.5. Ordering from Suppliers

3.5.1. Informal Description

3.5.1.1. Upon processing all orders, the system checks the stock
inventory. For each item, if the remaining quantity is less than
100 items (i.e. may be from 0 to 100), an order is sent to the
corresponding supplier for 1000 units of the item.

3.5.1.2. If there is none of an item and the supermarkets have

requested some, additionally request the number for which the
supermarkets have asked.

3.5.2. Precondition: It is just after 5:00 P.M. after completing

all on a weekday and the item being ordered is already in the
system.

3.5.3. Post condition: Restock the supermarket shelves with

the appropriate items.

3.6. Receiving Payment

3.6.1. Informal Description

3.6.1.1. Get a payment from the supermarket manager on duty.

3.6.2. Precondition: The supermarket owes at least as much

money as the payment amount.

3.6.3. Post condition: The amount the supermarket owes has

been decreased by the amount of payment.

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3.7. Paying Suppliers

3.7.1. Informal Description

3.7.1.1. Give a timely payment to the suppliers who would be

really happy to have the money.

3.7.2 Precondition: The warehouse owes the supplier money.

3.7.3. Post condition: The supplier has accepted the payment.

The warehouse now owes the supplier the amount less money.

3.8. Processing Deliveries from Suppliers

3.8.1. Informal Description

3.8.1.1. Items from the supplier on a truck have arrived at the

warehouse. Some bookkeeping needs to be done.

3.8.1.2. The supplier is responsible for providing the information

such as name of supplier, delivered item, amount, date and time
of shipping from the delivery slip into the SMS system.

3.8.1.3. The delivery slips are put into a waiting queue in order to
be processed at 4 p.m. on each business day. After the 4pm
threshold, the queue is emptied and the accumulation of orders
for the next business day commences.

3.8.1.4. The stock inventory is updated to reflect the incoming

amounts of all the items.

3.8.2. Precondition: The delivery slip has arrived. The supplier

and the item have been entered into the system.
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3.8.3. Post condition: The stock of the item has been increased
by the appropriate amount. The amount in question has been
added to what the warehouse owes the supplier.

3.9. Conducting a Daily Sales Analysis

3.9.1 Informal Description

3.9.1.1. The system starts with the number delayed yesterday

and subtracts the number of delayed orders that have been
processed. Then it adds the number of new orders this day and
subtracts off the number of non-delayed orders processed. This
gives the new daily number of orders processed.

3.9.1.1. the system gives the output in rows and columns,

according to accounting regulations. For each supplier, it outputs
the amount due to that supplier. For each supermarket, the
amount it owes is given too.

3.9.2. Precondition: It is the end of the working day, at 5:00

P.M.

3.9.3. Post condition:. The warehouse manager can see the

sales analysis report of the previous business day in the morning.

3.10. Conducting a Weekly Sales Analysis

3.10.1. Informal Description

3.10.1.1. The SMS shall generate a weekly sales analysis report

that shall contain the following information:

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 1Total amount of delayed orders from previous sales analysis

2Total amount of orders received during this week from

supermarkets

3Total amount of delayed orders processed this week

4Total amount of non-delayed orders processed this week

5Total amount of orders currently delayed.

3.10.1.2. Sets the number delayed for the week equal to the
number delayed at the end of the last week minus the sum of the
numbers of delayed orders processed plus the new orders this
day minus the sum of the number of orders processed daily.

3.10.1.3. Outputs all of these numbers for the day and for the
week neatly in rows and columns according to day and gives the
sums in the right places.

3.10.2. Precondition: It is Friday night after completing the

daily sales analysis for Friday. There have been no problems with
the daily sales reports for the last week.

3.10.3. Post condition: Gives the weekly sales analysis for

each of the five business days, from Monday until Friday.
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4. Scope:

The project scope defines the concept and range of the proposed
solution. It’s also important to define what will not be included in
the product. Clarifying the scope and limitations helps to establish
realistic expectations of the many stakeholders. It also provides a
reference frame against which proposed features and
requirements changes can be evaluated. Proposed requirements
that are out of scope for the envisioned product must be rejected,
unless they are so beneficial that the scope should be enlarged to
accommodate them (with accompanying changes in budget,
schedule, and/or resources).
In this modern era as industrialization increases and limits of
any inventory system increases due to:
- There are supermarkets, suppliers, and warehouse
managers in the system.
- The company has 500 supermarkets and a big warehouse.
- About 4000 items are stored in the warehouse.
- Each item is provided from exactly one supplier.
So to handle this we can't rely only on accounting persons and
this led to many issues including space and time tradeoff both so
to handle these we need some advanced solutions such as
software development to keeping Inventory. This is efficient as
well as reliable although we may have database to keep track on
stock. We have great scope of this project in every part of world
because in daily life everyone is part of that system for supply of
their basic needs, now a days there are variety of products
belongs to same class and having different brands and all these
products are part of that system. The main feature of that project
is that instead of relying on expert professional accountant for
stock keeping we can have a data operator with this project
installed on machine.

Advantages Of Inventory Management:

1. Saves time and money.
2. Minimum efforts for record keeping.
3. Data Operator Instead of professional Accountant can fulfill
regular needs.

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 4. More reliable and easy picking due to DBMS.
5. Weekly and Monthly accounting keeps aware towards stock.

5. SDLC:
A software development process, also known as
a software development lifecycle, is a structure imposed on
the development of a software product. Similar terms include
software life cycle and software process. There are several
models for such processes, each describing approaches to a
variety of tasks or activities that take place during the process.
Some people consider a lifecycle model a more general term and
a software development process a more specific term. For
example, there are many specific software development
processes that 'fit' the spiral lifecycle model.
5.1SDLC Stages:

5.2Software Development Process Models:

Several models exist to streamline the development
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process. Each one has its pros and cons, and it's up to the
development team to adopt the most appropriate one for the
project. Sometimes a combination of the models may be
more suitable.
5.2.1. Waterfall Model
The waterfall model is a sequential design process.
This model is first developed by Herbert D. Benington at
Symposium on advanced programming methods for digital
computers on 29 June 1956. The waterfall development model
originates in the manufacturing and construction industries:
highly structured physical environments in which after-the-fact
changes are prohibitively costly, if not impossible. Since no formal
software development methodologies existed at the time, this
hardware-oriented model was simply adapted for software
development.

Phases of Waterfall model:

5.2.2. Prototype Model

Prototyping is a technique that provides a reduced
functionality or limited performance version of the eventual
software to be delivered to the user in the early stages of the
software development process. If used judiciously, this
approach helps to solidify user requirements earlier, thereby
making the waterfall approach more effective.
What is done is that before proceeding with design and coding, a
throw away prototype is built to give user a feel of the system.
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The development of the software prototype also involves
design and coding, but this is not done in a formal manner. The
user interacts with the prototype as he would do with the
eventual system and would therefore be in a better position to
specify his requirements in a more detailed manner. The
iterations occur to refine the prototype to satisfy the needs of the
user, while at the same time enabling the developer to better
understand what needs to be done.
Disadvantages
1. In prototyping, as the prototype has to be discarded, so might
argue that the cost involved is higher.
2. At times, while designing a prototype, the approach adopted
is “quick and dirty” with the focus on quick development rather
than quality.
3. The developer often makes implementation compromises in
order to get a prototype working quickly.

5.2.3. RAD Model

RAD is incremental software development process model
that allows usable systems to be built in as little as 60-90 days,
often with some compromises. The RAD model used for
information systems development. The RAD model contains the
following phases:
 Business modelling
 Data modelling
 Proccess modeling
 Application generation
 Testing and turnover
5.2.4. Evolution Process Model
An evolutionary process model is a model, whose stages
consist of expanding increments of an operational enviourment
5.2.4.1 Incremental Model
Incremental model is an evolution of waterfall model.
The product is designed, implemented, integrated and tested as a
series of incremental builds. It is a popular model software
evolution used many commercial software companies and system
vendor.
Incremental software development model may be applicable to
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projects where:
 Software Requirements are well defined, but realization may
be delayed.
 The basic software functionality are required early

Advantages
• Generates working software quickly and early during the
software life cycle.
• More flexible - less costly to change scope and requirements.
• Easier to test and debug during a smaller iteration.
• Easier to manage risk because risky pieces are identified and
handled during its iteration.
Disadvantages
o Each phase of an iteration is rigid and do not overlap
each other.
• Problems may arise pertaining to system architecture
because not all requirements are gathered up front for the
entire software life cycle.

5.2.4.2 Spiral Model

This model proposed by Barry Bohem in 1988, attempts to
combine the strengths of various models. It incorporates the
elements of the prototype driven approach along with the classic
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software life cycle. Is also takes into account the risk
assessment whose outcome determines taking up the next phase
of the designing activity.
Unlike all other models which view designing as a linear process,
this model views it as a spiral process. This is done by
representing iterative designing cycles as an expanding spiral.
Typically the inner cycles represent the early phase of
requirement analysis along with prototyping to refine the
requirement definition, and the outer spirals are progressively
representative of the classic software designing life cycle.
At every spiral there is a risk assessment phase to evaluate the
designing efforts and the associated risk involved for that
particular iteration. At the end of each spiral there is a

Six major
activities of each designing spirals are represented by six major
tasks:
1. Customer Communication
2. Planning
3. Risk Analysis
4. Software Designing Engineering
5. Construction and Release
6. Customer Evolution

Advantages
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1. It facilities high amount of risk analysis.

2. This software designing model is more suitable for
designing and managing large software projects.
3. The software is produced early in the software life cycle.

Disadvantages
1. Risk analysis requires high expertise.
2. It is costly model to use
3. Not suitable for smaller projects.
4. There is a lack of explicit process guidance in determining
objectives, constraints and alternatives..
5. This model is relatively new. It does not have many practioners
unlike the waterfall model or prototyping model.
5.2.4.3 WINWIN Spiral Model
In this model the developer and the customer both
together strive for a “win-win” result. The customer wins by
getting the system or product that satisfies the majority of the
customer needs and the developer wins by working on realistic
and achievable goals, budgets and deadlines. Rather than a
single customer communication activity the following activities
are defined:
• Identification of the Key Stakeholders in the organization.
• Determination of the Key Stakeholders “Win conditions” - a
crucial step.
• Negotiating of the stake holders win conditions into a set of
win-win conditions for all including the developers,
management, customers and the various other stake
holders.
In addition to the negotiations, the WINWIN spiral model also
introduces three process milestones (anchor points) which help
completion of one cycle around the spiral and provides the
decision milestones. The three process milestones are:
• 1. Life Cycle Objective (LCO) – defines a set of activity for
each major software engineering activity. Eg. Defining the
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 top-level system/product requirements.
• Life Cycle Architecture (LCA) – defines the objectives that
must be met as the system and software architecture is
defined. Eg. The software team can demonstrate that they
have evaluated the applicability of the software and also
considered the impact on architectural decisions.
3. Initial Operational Capability (IOC) – defines the set of
objectives
that must be prepared for software installations/distribution, site
preparation prior to installation and assistance required by all
parties that will use or support the system.
Advantages:
• Faster software production facilitated through collaborative
involvement of the relevant stake holders.
• Cheaper software via rework and maintenance reductions

5.2.4.4 Concurrent Development Model

5.2.5. Specialized Process Models

5.2.6. Unified Process Models
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7.ER Model:

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