Affiliated To

Tribhuvan University
Faculty of Humanities & Social Science

A Project Report
On

“Inventory Management System”

Submitted to
Department of Humanities (BCA)
New Summit College

In Partial Fulfillment of Requirements for the Bachelor Degree in Computer Application

Submitted by
Ankit kunwar
T.U. Registration No: 6-2-476-49-2022)
Kunal kharga
(T.U. Registration No:6-2-476-53-2022)

Under the Supervision of

Mr. Rishav Adhikhari

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 Affiliated To
Tribhuvan University
Faculty of Humanities and Social Sciences

SUPERVISOR’S RECOMMENDATION

I hereby recommend that this project prepared under my supervision by ANKIT

KUNWAR and KUNAL KHARGA entitled “Inventory Management System” in partial
fulfillment of the requirements for the degree of Bachelor of Computer Application is
recommended for the final evaluation.

SIGNATURE
Rishav Adhikhari
SUPERVISOR
Department of Computer Application
New Summit College
Shantinagar, Kathmandu, Nepal

2
 Affiliated To
Tribhuvan University
Faculty of Humanities and Social Sciences
NEW SUMMIT COLLEGE

LETTER OF APPROVAL

This is to certify that this project prepared by ANKIT KUNWAR and KUNAL KHARGA
entitled “Inventory Management System” in partial fulfillment of the requirements for
the degree of bachelor’s in computer application has been evaluated. In our opinion it is
satisfactory in the scope and quality as a project for the required degree.

SIGNATURE SIGNATURE
Rishav Adhikhari Chok Raj Dawadi
Supervisor Principal
Department of Computer Application New Summit College Shantinagar,
Shantinagar, Kathmandu, Nepal Kathmandu, Nepal

SIGNATURE SIGNATURE
Internal Examiner External Examiner

3
 ACKNOWLEDGEMENT

We are delighted to submit this project report on the “Inventory Management System”.
This report would not have been possible without the contributions of several individuals.
First and foremost, we extend our heartfelt gratitude to Tribhuvan University for
providing us with the opportunity to work on and present this report within the given
timeframe.

We are deeply thankful to our institution, New Summit College, for its academic support
and the nurturing, family-like environment it provided throughout this project. Our sincere
gratitude also goes to our esteemed Principal, Mr. Chok Raj Dawadi, as well as the faculty
members and our project supervisor, Mr. Rishav Adhikhari, for their unwavering
guidance, valuable advice, encouragement, and support during the preparation of this
report.

We also extend special thanks to our teammates for their collaboration and exceptional
support in successfully completing this project. We are immensely grateful to our families
for their constant encouragement and support. Furthermore, we would like to acknowledge
our seniors, whose assistance was invaluable in completing this paper, and our friends, who
inspired and helped us throughout this journey.

We trust that this project report fulfills the requirements of the course and represents our
collective effort.

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 ABSTRACT
The Inventory Management System is a web-based application aimed at simplifying
inventory, order, supplier, and customer management for any business. The system will
effectively allow tracking of the stock level of the products, processing of orders, and
management of suppliers with ease to ensure that the business can optimize its resources
for enhanced operational efficiency. The system is composed of several key components:
Product for managing inventory items, Supplier for tracking the details of suppliers, Order
for handling customer orders, Customer for maintaining customer information, and Admin
for managing the working of the system. Overall, the Inventory Management System is a
cost-effective, scalable solution for businesses to maintain optimal levels of inventory,
minimize waste, and assure smooth order fulfillment. Additionally, it offers a user-friendly
interface and secure access based on different user roles, making it an asset to organizations
of any size.

Keywords: Inventory-management, website.

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Table of Contents

SUPERVISOR’S RECOMMENDATION ........................................................................... 2

LETTER OF APPROVAL ................................................................................................... 3
ACKNOWLEDGEMENT ................................................................................................... 4
ABSTRACT......................................................................................................................... 5
LIST OF ABBREVIATIONS .............................................................................................. 8
LIST OF TABLES ............................................................................................................... 9
LIST OF FIGURES ........................................................................................................... 10
CHAPTER 1 ...................................................................................................................... 11
INTRODUTION ................................................................................................................ 11
1.1 Introduction ............................................................................................................ 11
1.2 Problem Statement ................................................................................................. 11
1.3 Objectives................................................................................................................ 12
1.4 Scope and Limitation ............................................................................................. 12
1.5 Development Methodology.................................................................................... 13
1.6 Report Organization .............................................................................................. 13
CHAPTER 2 ...................................................................................................................... 15
BACKGROUND STUDY AND LITERATURE REVIEW ............................................... 15
2.1 Background Study ................................................................................................. 15
2.2 Literature Review .................................................................................................. 16
CHAPTER 3 ...................................................................................................................... 17
SYSTEM ANALYSIS AND DESIGN .............................................................................. 17
3.1 System Analysis ...................................................................................................... 17
3.1.1 Requirement Analysis ....................................................................................... 17
3.1.2 Feasibility Analysis ........................................................................................... 18
3.1.3 Class Diagram ................................................................................................... 20
3.1.4 Sequence Diagram ............................................................................................ 21
3.1.5 Activity Diagram ............................................................................................... 22
CHAPTER 4 ...................................................................................................................... 23
IMPLEMENTATION AND TESTING ............................................................................. 23
4.1 Implementation ...................................................................................................... 23
4.1.1 Implementation tools and Database Platform ................................................... 23

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 4.2 Testing ..................................................................................................................... 24
4.2.1 Unit Testing ....................................................................................................... 24
CHAPTER 5 ...................................................................................................................... 25
CONCLUSION .................................................................................................................. 25
References .......................................................................................................................... 26

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LIST OF ABBREVIATIONS
CSS: Cascading Style Sheet.
HTML: Hypertext Markup Language
MYSQL: My Structured Query Language.
PHP: Hypertext Preprocessor.
XAMPP: X (cross Platform), Apache, MySQL, PHP, Perl

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LIST OF TABLES
Table 1: Gantt Chart ........................................................................................................... 19
Table 2: Unit Testing ......................................................................................................... 24

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LIST OF FIGURES
Figure 1: Iterative Waterfall Model ................................................................................... 13
Figure 2:Use Case Diagram of Eco-Planet Management System ..................................... 17
Figure 3: Class Diagram of Eco-Management System ...................................................... 20
Figure 4: Sequence Diagram of Eco-Management System .............................................. 21
Figure 5: Activity Diagram of Eco-Management System.................................................. 22

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 CHAPTER 1

INTRODUTION

1.1 Introduction
An Inventory Management System, or IMS for short, is a software package that allows a
business to track, manage, and organize its inventory in a streamlined fashion. It is one of
the most critical components for a business to have enough inventory at the right time to
satisfy customer demands and minimize related costs. Most businesses, especially those
involved in retail, manufacturing, and warehousing, have the following issues:
overstocking, stock-out, and mistakes due to manual inventory tracking. Sales losses,
inefficient resource utilization, and less customer satisfaction may result from such
problems. An Inventory Management System automates the inventory process and reports
on stock levels in real-time.

This system has been meant to increase productivity and accuracy in decision-making in
managing the inventory. To optimize stock, reduce wastage and ensure orderly operations,
ultimately better customer service and profitability will be achieved.

1.2 Problem Statement

Managing inventory manually is error-prone and inefficient, resulting in inaccurate,
outdated, or poor-quality data, lack of immediate adjustments, and a time-consuming
process. These challenges prevent companies from responding to changes in demand,
analyzing sales trends, and making informed decisions, ultimately leading to financial
losses and, sadly, customer dissatisfaction. Automated inventory management is essential
to improving inventory tracking, reducing errors, providing instant updates, and generating
meaningful insights to make better decisions and profits again.

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1.3 Objectives
The primary objectives of the Inventory Management System are:

• To automate inventory tracking, reduce errors, save time, and maintain optimal
stock levels.
• To provide real-time updates and generate reports for better decision-making.
• To ensure user-friendly operation and secure data with role-based access controls.
• To streamline processes, save costs, and enhance business focus.

1.4 Scope and Limitation

The scope of the proposed Inventory Management System includes:

• Product Management: Allow users to add, update, or delete product details,

including name, price, quantity, and other relevant information to keep records
accurate and up-to-date.
• Inventory Tracking: Enable real-time monitoring of stock levels, track sold items,
and identify low-stock products for timely restocking.
• Order Management: Manage supplier purchases and customer sales by
documenting all transactions, ensuring a seamless flow of goods in and out of
inventory.
• Reports and Analytics: Provide detailed reports and insights on sales, stock levels,
and trends to help businesses make informed and data-driven decisions.
• User Management: Offer secure, role-based access controls for different users,
such as managers and staff, ensuring proper authorization and accountability.

Limitations

• No Integration: Does not connect with other software like accounting or ERP.
• Small Business Focus: Suited for small to medium businesses; large ones may need
customizations.
• Internet Required: Cloud version needs internet for real-time updates.
• Initial Feature Set: Some advanced features may not be available in the first
version.

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1.5 Development Methodology

Figure 1: Iterative Waterfall Model

The Iterative Waterfall Model is a software development approach that combines the
sequential steps of the traditional Waterfall Model with the flexibility of iterative design. It
allows for improvements and changes to be made at each stage of the development process,
instead of waiting until the end of the project. The iterative waterfall model provides
feedback paths from every phase to its preceding phases, which is the main difference from
the classical waterfall model [1].

1.6 Report Organization

Report organization in an Inventory management system typically includes the following
elements:

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Chapter 1: Introduction

In this section, the brief introduction of our project, statement of problem and its objectives
are discussed.

Chapter 2: Literature Review and System Analysis

The previous work related to our projects and similar works were studied and different
feasibility analysis is summarized in this system.

Chapter 3: System Design

Here discussion on how to design system are done to lay out the blueprint of system using
various system designing tools.

Chapter 4: Implementation of Testing

In this section, various implementation method and tools are discussed and also contains
description of testing

Chapter 5: Conclusion

Conclusion to our project is written down in this section.

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 CHAPTER 2

BACKGROUND STUDY AND LITERATURE REVIEW

2.1 Background Study

Any business needs an inventory management system (IMS) to manage its inventories,
supplies, orders, sales, and deliveries effectively. In earlier days, organizations relied on
manual methods, such as ledgers and spreadsheets, to keep an eye on the inventory. This
way of inventory management led to various inaccuracies and inefficiencies. Today, very
advanced technologies have come to revolutionize inventory management through
sophisticated software that makes data easy to track and report. It has also been very easy
for businesses to maintain accurate records and respond quickly to market demands.

Several types of IMS are available, including periodic systems that update inventory levels
per cycle and perpetual systems-they give real-time updates for each transaction. Important
features mostly include real-time tracking, barcode scanning, and complement integration
with all other business systems, boosting overall efficiency. Proper inventory management
may help businesses in cost-effectiveness as well as efficiency and improved customer
satisfaction which is an advantage.

Like every other aspect, IMS is also challenged for various reasons, having its initial
investments and setup costs extremely high. Besides, there is always the fear of inaccuracy
of data, as well as resistance to the change by employees used to the old methods and
application of such systems. In the future, such things-as AI, cloud computers, and internet
of things technologies-would continue enhancing developments in this area of inventory
management. This would further add an agile dimension to supply chain operations for
better performance of businesses with great responsiveness to consumers.

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2.2 Literature Review
This is what I got for your essay on an effective inventory management system (IMS),
which focuses on existing systems for feature implementation. For instance, one study that
relates, "Design of the Inventory System Based on Internet Environment," emphasizes
secure transactions over the internet that stresses on virtual banking solutions responsible
for payments, which complements data security and integrity. Another study, "Short
Documentation on Inventory System," explains a web-based IMS designed for small to
medium enterprises that makes it reliable, flexible, and scalable. This system does not only
handle inventories but develops critical significant components that can effectively
improve operation and decrease, by a considerable amount, the operating costs, showing
the value of a well-designed IMS in many ways.

Here are some of the similar existing systems:

Tally ERP 9

A widely used accounting and inventory management software that provides features for
managing inventory, sales, and financials. Real-time inventory tracking, multi-currency
support, invoicing, and reporting.

MediBill

An inventory management system tailored for healthcare providers, particularly hospitals

and clinics. Management of medical inventories, supply chain tracking, and billing
functionalities.

Nepal ERP

A comprehensive ERP solution that includes inventory management as part of its suite.
Procurement management, stock tracking, sales order management, and reporting.

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 CHAPTER 3

SYSTEM ANALYSIS AND DESIGN

3.1 System Analysis
System Analysis is the process of collecting and interpreting facts, identifying the
problems, and decomposition of system into its components.

3.1.1 Requirement Analysis

i) Functional Requirement

Figure 2:Use Case Diagram of Inventory Management System

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ii) Non-Functional Requirement
• The system must provide customers 24 hours billing service.
• System should able to handle multiple users.
• Database updating should follow transaction processing to avoid data inconsistency.
• System is portable and we can switch the server very easily.
• The system should support almost in all browser.

3.1.2 Feasibility Analysis

A feasibility analysis checks the ability of a project in multiple dimensions: whether it can
be executed successfully with the resources available, within constraints, and effectively to
achieve its purpose. In this regard, technical, economic, operational, and schedule
feasibility are part of the feasibility analysis that should be conducted for the IMS project.

i) Technical Feasibility
The Inventory Management System is technically feasible given your expertise in HTML,
CSS, PHP, and JavaScript. These technologies are sufficient to build a robust system with
features like real-time inventory tracking, order management, and analytics. A MySQL
database can handle inventory data effectively, and additional features like barcode
scanning or cloud integration can be implemented later as your skills grow.

ii) Economic Feasibility

Developing the system is cost-effective since it relies on open-source technologies and does
not require expensive software or hardware. For hosting, local servers like XAMPP can be
used during development, and affordable hosting plans can be explored for deployment.
This ensures minimal financial investment while providing significant value for businesses
needing inventory solutions.

iii) Operational Feasibility

The system is operationally feasible as it addresses critical business needs like stock
management, accurate record-keeping, and improved order processing. Its user-friendly
interface ensures ease of use for non-technical staff, and role-based access control allows
for secure and efficient operations within an organization.

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iv) Schedule Feasibility

The project is achievable within a reasonable timeframe. With proper planning and
consistent effort, a basic version of the system can be completed within a few weeks.
Advanced features like analytics or barcode integration can be added in subsequent phases,
making the project manageable and time-efficient.

Table 1: Gantt Chart

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3.1.3 Class Diagram
The main purpose of a class diagram is to visually represent the structure of a system by
defining its key components (classes), their attributes, behaviors (methods), and
relationships.

Figure 3: Class Diagram of Inventory Management System

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3.1.4 Sequence Diagram
A sequence diagram is dynamic model representing the time dependent aspects of the
system. Here, this diagram simply depicts interaction between activities that takes place in
system. [2]

Figure 4: Sequence Diagram of Inventory Management System

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3.1.5 Activity Diagram
Activity diagram represents the flow of control among the activities of the system. In
Inventory Management System, the activity diagram shows the user, admin and other
activities. [2]

Figure 5: Activity Diagram of Inventory Management System

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 CHAPTER 4

IMPLEMENTATION AND TESTING

4.1 Implementation
The Inventory Management System works as Web application system. It was
implemented usingHTML, CSS and JavaScript as a front end, PHP was used as backend
programming and MYSQL was used for the database and the text editor used was Visual
Studio code and XAMPP was used as the offline local server. As planned in the designed
phase, ITERATIVE WATERFALL model was used as the development methodology.

4.1.1 Implementation tools and Database Platform

PHP

PHP is used as a programming language for this project. Back end of the system is
designed with PHP. PHP version:7.4

Html

In our system, Html is used for creating webpages.Version: HTML 5.

CSS

CSS is used for designing the HTML pages and to layout the HTML documents.

JavaScript

JavaScript was also used during frontend development.

Visual Studio

To write and modify code Visual Studio was used.

MySQL

MySQL is an open-source relational database management system. It is used to store the

information of admin as well as users.

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4.2 Testing
This part will look at the testing of the system developed to ensure it has met its
requirements. As a fairly flexible methodology was adopted for the development the
testing of the application started during its development with bugs being fixed as they
were discovered. After each section of the application was completed it was tested so
that errors could be corrected.
4.2.1 Unit Testing
Table 2: Unit Testing

Test Test Description Test data Expected Pass

Case Result /Fail
S.N. ID
1 UT- Check Username= Message Pass
001 response admin Display
when invalid Password= "Incorrect
username and
admin username or
password
password"
is
entered.
2 UT- Check response Username= Message Pass
002 with blank Password= display "All

username and fields are

required"
blank password
is submitted
3 UT- Check response Username= Message Pass
003 when correct Admin Password= Display "

username and Incorrect

username or
incorrect
password "
password is
entered

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 CHAPTER 5

CONCLUSION
In this system, the recording of Inventory is done manually. The previous system was time
consuming, less secured and took effort and physical space to keep track of paper
documents. To solve this problem Billing system is designed. It records data and
information in a systematic way and also contains log-in system in which authentication is
needed to use the system that makes system secure. As the system records the data digitally
it won’t take effort and physical space to keep track of paper document.

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 References

[1 GeeksforGeeks, "Iterative Waterfall Model - Software Engineering," GeeksforGeeks,

] 22 May 2024. [Online]. Available: https://www.geeksforgeeks.org/software-
engineering-iterative-waterfall-model/. [Accessed 07 August 2024].

[2 M. Al-Ani, "Inventory management system," September 2012. [Online]. Available:

] https://www.researchgate.net/publication/242071321_Billing_System_Design_Based
_on_Internet_Environment.

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