Automated stock level alerting system for inventory management

Project Abstract

Inventory management is a critical aspect of business operations, and maintaining optimal stock levels is essential for ensuring customer satisfaction and cost control. Traditional inventory management systems often rely on manual monitoring and periodic stock checks, leading to inefficiencies and potential stockouts or overstock situations. To address these challenges, an automated stock level alerting system is proposed in this research project. The automated stock level alerting system aims to enhance inventory management practices by leveraging technology to monitor stock levels in real-time and provide proactive alerts to stakeholders when inventory levels reach predefined thresholds. This system utilizes sensors, Internet of Things (IoT) devices, and cloud-based software to continuously track inventory levels and communicate data to a centralized dashboard accessible to authorized personnel. Key features of the automated stock level alerting system include customizable alert thresholds based on historical data analysis, automated notifications via email or SMS, and predictive analytics capabilities to forecast future stock requirements. By implementing this system, businesses can reduce the risk of stockouts, minimize excess inventory holding costs, and improve overall operational efficiency. The research methodology involves a comprehensive literature review to establish the theoretical foundations of inventory management principles and technologies relevant to the project. A prototype of the automated stock level alerting system will be developed and tested in a simulated warehouse environment to evaluate its functionality and performance in real-world scenarios. The expected outcomes of this research project include the validation of the automated stock level alerting system as a viable solution for enhancing inventory management practices. By providing real-time visibility into stock levels and automating alert notifications, businesses can make informed decisions to optimize stock levels, streamline supply chain processes, and improve customer service levels. Overall, the development of an automated stock level alerting system represents a significant advancement in inventory management practices, offering a cost-effective and efficient solution to address stock management challenges in diverse industry sectors. Through the integration of technology and data analytics, businesses can transform their inventory management processes and achieve sustainable competitive advantages in today's dynamic business environment.

Project Overview

<p> </p><div><p><strong>INTRODUCTION</strong></p><p><strong>1.0 Introduction</strong></p><p>Stock management is the function of understanding the stock mixed of a company and the different demands on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. Stock in the store represents solid cash and as such, it must be carefully protected and checked to similar ways as cash. Must be protected against fraud, theft and also high storage costs because stock have to be stored in certain conditions depending on the items involved e.g. warm, dry and cool these must be taken into account in order to prevent trust or evaporation deterioration which can lead to reduction in value of the materials concerned.. Stocks otherwise referred to as inventories by enterprises usually comprise, raw materials; and supplies used in Production work-in-progress and finished goods stocks also include livestock awaiting safe supplies to be consumed in the production of goods or the rendering of services [1].</p><p>Inventories occupy the most strategic position in the structure of working capital of most business enterprises. It constitutes the largest component of current asset in most business enterprises. In the sphere of working capital, the efficient control of inventory has passed the most serious problem to the cement mills because about two-third of the current assets of mills are blocked in inventories. The turnover of working capital is largely governed by the turnover of inventory. It is therefore quite natural that inventory which helps in maximize profit occupies the most significant place among current assets. In dictionary meaning of inventory, it is a “detailed list of goods, furniture etc.” Many understand the word inventory, as a stock of goods, but the generally accepted meaning of the word ‘goods’ in the accounting language, is the stock of finished goods only. In a manufacturing organization, however, in addition to the stock of finished goods, there will be stock of partly finished goods, raw materials and stores. The collective name of these entire items is ‘inventory’. The term ‘inventory’ refers to the stockpile of production a firm is offering for sale and the components that make up the production [1].</p><p></p></div><div><p><strong>1.1 Statement of Problem</strong></p><p>The following problems were identified in the old system:</p><ol><li>It was difficult to know when stock was reduced to be re-stock.</li><li>They loose funds because of not knowing when a stock is finished.</li><li>There was no effective system to update stock level.</li><li>No means of alert when the stock is reduced.</li></ol><p><strong>1.2 Aim and Objectives of the Study</strong></p><p>Objectives to realize the aim of this project work are as follows:</p><ol><li>To develop a database application to register stocks.</li><li>To monitor stock level by updating the database as they are being sold.</li><li>To alert users of the application when the stock level of any registered stock is low</li><li>To aid the presentation of inventory report of stocks.</li></ol><p><strong>1.3 Significance of the Study</strong></p><ol><li>It will help to avoid over stocking</li><li>It will enable easy updating of stock level</li><li>It will aid avoid disappointing customers</li><li>It will provide a means of alerting about stock level of registered items</li><li>The study will serve as a useful reference material to other researchers seeking related information.</li></ol><p><strong>1.4 Scope of the Study</strong></p><p>This study covers automated stock level alerting system for inventory management using Beverly Hills supermarket Ikot Ekpene as a case study. It is limited to the monitoring of the stock level of registered stock as they are sold.</p></div> <br><p></p>