【正文】 1 CHAPTER I INTRIDUCTION Introduction Inventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. This process usually involves controlling the transfer in of units in order to prevent the inventory from being too high, or dwindling to levels that could put the operation of the pany into jeopardy. Competent inventory management also seeks to control the costs associated with the inventory, both from the perspective of the total value of the goods included and the tax burden generated by the cumulative value of the inventory. Balancing the various tasks of inventory management means paying attention to three key aspects of any inventory. The first aspect has to do with time. In terms of materials acquired for inclusion in the total inventory, this means understanding how long it takes for a supplier to process an order and execute a delivery. Inventory management also demands that a solid understanding of how long it will take for those materials to transfer out of the inventory be established. Knowing these two importa nt 2 lead times makes it possible to know when to place an order and how many units must be ordered to keep production running smoothly. The aim of this project is to develop an inventory management system for a pharmaceutical pany (which will be referred later in the report as “ the pany”. Problem Statement Calculating what is known as buffer stock is also key to effective inventory management. Essentially, buffer stock is additional units above and beyond the minimum number required to maintain production levels. For example, the manager for the pany may determine that it would be a good idea to keep one or two extra boxes or units of a medicine on hand, just in case an emergency situation arises or demand is more than what they have guessed. Creating this cushion or buffer helps to minimize the chance for missing sales or demand from customers due to a lack of essential medicine in the operation supply inventory. The main problem of the pany is that the forecasting is not based on formal methods or puterized data mining. Currently, the decision to restock supplies is based on intuition and experience. Another problem with the existing (manual) system is the movement of stocks in the pany. Inventory management system is not limited to documenting the delivery of raw materials and the movement of those materials into the shelves. The movement of those materials as they go through the various stages of the operation is also important. Typically known as a goods in progress inventory, tracking materials as they are used to create finished medicines also helps to identify the need to adjust ordering amounts before the raw materials inventory gets dangerously low or is inflated to an unfavorable level. 3 Finally, inventory management has to do with keeping accurate records of sales. This often means posting the sales to the inventory totals as well as subtracting the most recent shipments of finished goods to buyers. When the pany has a return policy in place, there is usually a subcategory contained in the finished goods inventory to account for any returned goods that are reclassified as refurbished or second grade quality. Accurately maintaining figures on the finished goods inventory makes it possible to quickly convey information to sales personnel as to what is available and ready for shipment at any given time. In addition to maintaining control of the volume and movement of various inventories, inventory management also makes it possible to prepare accurate records that are used for accessing any taxes due on each inventory type. Without precise data regarding unit volumes within each phase of the overall operation, the pany cannot accurately calculate the tax amounts. This could lead to underpaying the taxes due and possibly incurring stiff penalties in the event of an independent audit. Objectives of Project The project objective is to develop an inventory management system that will facilitate the pany to effectively calculate the economic order quantity, tracking goods in progress inventory and control of the inventory system. Scope of Project This project is limited to the development of a prototype of an inventory management system based on the requirement obtained from the pany. This project will concentrate on fulfilling the objective of the project which are: 4 i. Calculate the economic order quantity ii. Tracking goods in progress inventory iii. Management control of the inventory system Development Methodology The adopted development methodology for this project is the traditional System Analysis and Design methdoology which is famously known as the waterfall model. These stages can be characterized and divided up into the following phase: Project planning and feasibility study: Establishes a highlevel view of the intended project and determines its goals. Systems analysis, requirements definition: Defines project goals into defined functions and operation of the intended application. Analyzes enduser information needs. This step involves demand analysis where this stage need to determine three things, which are the user interface, the data dictionary and user manuals. The data dictionary is specifies logical relationship. Systems design: Describes desired features and operations in detail, including screen layouts, business rules, process diagrams, pseudocode and other is the phase that is an important levels. The detailed design the specification shall take specific module in the most 39。clean39。 way to provide the coder, make whole system modular achieve maximum. Implementation: This project uses the Ap