TRIBHUVAN UNIVERSITY

FACULTY OF MANAGEMENT
A
PROJECT PROPOSAL
ON
INVENTORY MANAGEMENT SYSTEM
Course Code: IT 351

Submitted to Department of Information Technology

NIST COLLEGE
A summer project report submitted for the partial fulfillment of requirements for the degree of
Bachelor of
Information Management (Sixth Semester)
Submitted by
Jamuna Humagain (TU Regd No.7-2-1014-79-2020)
December 15,2023
 Letter of Approval
This summer project proposal entitled “Inventory Management System” by Jamuna Humagain
as a partial fulfillment of the requirements for the degree of Bachelor of Information
Management (Sixth Semester) has been inspected by me (Jamuna Humagain) and is accepted.
Panel of Examiners:
Name Signature Date
1. Bijay Shrestha
2. Samish Shrestha
3. Yubaraj Neupane

Acknowledgements
I would like to express my sincere gratitude and appreciation to all the individuals and
organizations who have supported me throughout the summer project proposal. I am
very grateful to the department of Information Technology, Nist College for providing
me a lucky chance to work on this project. I would like to sincerely express my
appreciation to all the faculty members who provided me with the invaluable
information, insights, and feedback during the development of the summer project.
Eventually, I would like to thank to all my families and friends for their unwavering
support and encouragement throughout this summer project development journey. I
acknowledge that this summer project would not have been possible without the
support of all these individuals and I am truly grateful for their contributions throughout
this journey.

Abstract

The proposed summer project is a real time implementation of an inventory

management system for an on-site corporate.

The actual problem is that the corporate staffs and managers are forced to keep the
track of the inventory by hand. This means that they must count what they have sold
and what they have left at the end of the day. They must also fill out order forms to be
sent to vendors so that they can restock their inventory in preparation for the coming
days. This wastes valuable man hours.

So, this proposed project helps to overcome all of these problems and helps to keep the
track of inventory in the “back of house”, and updates it accordingly to daily sales.

Tools used: HTML, CSS, PHP, JS, MySQL

Table of Contents
Letter of Approval……………………………………………………………
Acknowledgements……………………………………………………….
Abstract………………………………………………………………………….
Table of Contents………………………………………………………….
 List of Figures………………………………………………………………….
List of Abbreviations………………………………………………………….
Chapter 1: Introduction…………………………………………………….
1.1 Introduction……………………………………………………………….
1.2 Problem Statement……………………………………………………
1.3 Objectives…………………………………………………………………
1.4 Scope and Limitation…………………………………………………
Chapter 2: Background Study………………………………….
2.1 Background Study……………………………………………….
Chapter 3: Project Management………………………………
Chapter 4: Methodology……………………………………………
Chapter 5: Expected Outcomes……………………………….

List of Figures
Figure I Gantt Chart……………………………………………………………………….
Figure ii Waterfall Methodology……………………………………………………….

List of Abbreviations
IMS Inventory Management System
HTML Hypertext Markup Language
PHP Hypertext Preprocessor
JS JavaScript
CSS Cascading Style Sheets
 Chapter 1: Introduction
1.1 Introduction
Since, the proposed project i.e., IMS is a real time implementation of an inventory management
system in onsite corporate, it helps to ensure optimal inventory levels at all times by organizing
sourcing, storing and selling both raw materials and finished good. This project aims to optimize
supply chain management in any company or business in order to obtain more accurate inventory
data, and experience exponential growth. The IMS project propose with the proper inventory
tracking, that will let you know exactly how inventory is moving, so that any business won’t miss
out on sales as well as ruin the customer’s experience making your own image down. These
changes in inventory are kept track of through utilizing a database.

This project proposed to keep track of each and every ingredient by dynamically linking it to the
product and as a result create a dependent relationship to that product. At a specific time period
if the inventory is below the threshold level, order forms to the specific vendors are generated in
order to restock the required items for the next week. The project also makes smart predictions
on required inventory for the following week based upon the predicted climate and possible
occasions or events that may influence near future sales. At the end of the week, the software
considers all threshold levels, predictions and other factors to generate an order form, which after
being verified by the manager is sent out to the vendors.

1.2 Problem Statement

Managing the inventory is actually a difficult and complex part of a business. workers or the staffs
who keeps the record of stock level of a company in papers are inefficient and in logistic and
make very easy for staffs to cheat the system by entering the incorrect records on the paper
sheet. To avoid the aforementioned issues, an automatic and flexible system should be
implemented, of which the IMS is one.

1.3 Objectives
The main objectives of IMS are:
i. To ensure continuous supply of raw materials, finished goods
ii. To eliminate duplication in orders
iii. To give maximum clients service by meeting their requirement timely, effectively,
smoothly and satisfactorily.

1.4 Scope and Limitation

Scope: The scope of this project includes the solutions for accurate recording and monitoring of
stock levels, and item details with the help of login authentication along with authorization for the
users. In addition to this, the IMS will prepare the different kinds of reports that helps upper
management in decision making process. Similarly, it streamlines the process of ordering new
stock, including requisitioning, supplier communication. Efficiently managing the arrival of new
stock, verifying quantities and quality and updating inventory records.

Limitation: Here are some of the limitations of using this IMS:

Data entry mistakes can lead to inaccurate inventory levels, causing issues like overstocking or
understocking. Implementing and maintaining as IMS can be expensive especially for smaller
business. System downtime, bugs or integration problems can disrupt operations and cause data
loss. Employees might resist using a new system, leading to data inconsistencies and decreased
effectiveness. Similarly, supply chain disruptions, supplier delays, or transportation issues can
affect inventory levels beyond the control of the IMS.

Chapter 2: Background Study

2.1 Background Study
Inventory management system has been a critical aspect of business operations for centuries. It
involves balancing the need to have sufficient stock available to meet customer demand while
minimizing the associated costs of holding inventory. Inventory management systems have
emerged as powerful tools to optimize this process, offering automation, data-driven insights, and
improved efficiency. Manual record keeping and visual inspections were the traditional methods
for tracking inventory. These were prone to errors and lacked real-time data visibility.
Today’s IMS are sophisticated software solutions offering a wide range of features, including
integrated data management, automated workflows, advanced analytics.

Chapter 3: Project Management

I am looking forward to complete this summer project within two and half months. The Gantt
Chart reflects different aspects of this project.
 12/10/2023 12/20/2023 12/30/2023 1/9/2024 1/19/2024 1/29/2024 2/8/2024 2/18/2024

Project kickoff

Requirement analysis

System Design

Front-end development

Back-end development

Integartion testing

User acceptance testing

Documentation

Training session

Final review

Figure I. Gantt chart

Chapter 4: Methodology
The waterfall methodology is a linear, sequential approach to software development that consists of a
series of distinct phases. The waterfall model is an established approach that dominated software
development for a number of years and is widely used. In the waterfall model, software development
is split up into a number of independent steps. The approach is called "waterfall" because progress
flows downward through each phase, with each phase being completed before the next one begins.
The typical phases in the waterfall methodology include requirements gathering, design,
implementation, testing, deployment, and maintenance.
a) Requirement Identification
i. Study of existing system: The pre-existing system for this purpose is offline so doesn't
require any device or internet connection. Previously all the information was
recorded on the paper sheets and that are prone to errors. All this work will be
depended on the individual's working speed. All the employees have to synchronize
the paper work manually by communicating each other.
ii. Requirement Collection
Once the existing system has been studied, the next step is to collect the
requirements for the new Inventory Management System. This involves identifying
the features and functionalities that are necessary for the new system to perform
effectively. The requirements can be collected through user interviews, surveys, and
feedback from stakeholders.
b) Feasibility Study
i. Technical
The technical feasibility study involves analyzing the technical requirements for the
new system. This includes evaluating the hardware and software needed to support
the system, the availability of technical resources, and the compatibility of the new
system with existing systems.

ii. Operational
The operational feasibility study involves analyzing the operational requirements for
the new system. This includes evaluating the impact of the new system on the
organization's operations, assessing the user acceptance of the new system, and
identifying any training needs for the system's users.
iii. Economic
The economic feasibility study involves analyzing the economic aspects of the new
IMS. This includes evaluating the costs associated with the development and
implementation of the new system, assessing the benefits that the system will bring
to the organization, and determining the return on investment (ROI) of the system.
The economic feasibility study also involves identifying any risks associated with the
system's implementation and developing a risk mitigation plan.

Chapter 5: Expected Outcomes

Implementing an inventory management system (IMS) can bring about a multitude of
positive outcomes for business. An IMS provides real-time visibility into stock levels,
stock movements and automates many inventory management tasks, minimizing
human error and ensuring data integrity. As a result of that one can fulfill orders
faster and more efficiently, reducing the risk of backorders and customer
dissatisfaction.