Inventory Management Systems

Inventory Management Systems
Background: The client, my sister, owns a small clothing store. The store is not web-based; its customers are locals. There are three employees, a computer with Windows 7 Professional operating system, internet access, cash drawer and an inventory of over two hundreds clothing in stock. Client has been manually performing inventory and was frustrated at having to manually track and reorder high demand items.
Objectives: To develop an inventory management system that will automatically perform inventory and track high demand items. Client’s budget is $3000 and at the moment she does not have any plan for expansion to internet commerce. There are five key components in information system: hardware, software, data, processes and personnel (Shelly & Rosenblatt, 2012). Hardware includes computer, monitor, printer, modem, cables, cash drawer, scanner, barcode maker, and barcode label. For a small budget I would not recommend networking, however, if future expansion is planned then it is better to set up network as soon as possible. Computer will be the central storage for data and software used for the system. Monitor, printer, modem and cables are input/output devices for the computer. Scanner or scanners are necessary for performing inventory which is automatically entered to the computer. Barcode maker and barcode label are for the clothing items. Software will include an operating system such as Windows 7, anti-virus software, Small Business Inventory Control, Plexis point of sale (POS) and Microsoft Office. Data will be manually entered at first until the system is set up and running. Afterward, the system will be automatically updated as products arrived and sold via the use of scanner and point of sale software. The process will started when products arrived at the store. Items will be barcoded and scanned. The data is stored in the computer. As items are sold the POS software will automatically update the data. Client can view the inventory in real time and determine which high demand items are in need for reorder. Personnel must be trained on this new system. The allotted training is two hours. For the creation of the system we must evaluate the total cost of ownership (TCO). This includes the costs for hardware, software, maintenance supplies, setup costs, training and support costs. The hardware costs are the additional hardware we must purchase such as printers, barcode maker, scanner, and barcode labels. The price for inventory and point of sale software varies from free to several thousands. Freeware often are not user friendly and lack of features and technical support. The two recommended software are relatively inexpensive and easy to use. They are preferred choice for small business company such as yours. Microsoft Office is optional; they are useful for creating spreadsheet and report. We can alternately choose Open Office, a freeware, which has most of the Microsoft Office. Maintenance supplies costs are expenditure for printer cartridge, inks, paper, extra disk storage, software upgrades and miscellaneous. Setup cost can be minimal since the proposed system is small and can be setup by non-technical personnel i.e. current employees. Training and support cost will include the down time for inventory. The table below is the approximate cost of hardware and software. Items | Costs | Small Business Inventory Control 7.X Standard | $99.00 | PLEXIS POS | $299.00 | Cannon PIXMA MG2120 All in One Inkjet Printer | $48.99 | ID Tech EconoScan II Barcode Scanner (X2) | $108.00 | Zebra LP 2824 Barcode Printer | $473.90 | Misc. Cables | $50.00 | Computer is vulnerable to virus, spyware and hackers. Virus and spyware are small programs, normally written in script, if introduced to the operating system will cause the computer to slow down or freeze. Hackers use different schemes to get access to the hard drive and steal information. Anti-virus program normally prevents them, however, as part of ongoing maintenance we must regularly update. Software updates correct any glitches that the vendors found after the software developed. Maintenance also includes backup of the data on file. This is important since accident happens and the last thing we need is completed data lost. We should backup the data into storage other than the hard drive. USB, discs, external portable drive or web-based storage are examples of media we can use. The purchased software has technical support from its vendor. We should make use of it to ensure the software is running smoothly. Train the employees the new updates is part of day-day maintenance since they are our end users and data is only as good as how they are entered.

Provide a workflow diagram to illustrate how the system will work.