IS480 Team wiki: 2010T1 Cowabunga ResourceManagement
This layer provide Chee Song with a greater inventory control. Manages transaction of inventory, capturing the inflow and outflow transaction of each individual products. As well as the product catalogue of each individual suppliers. Provide business analytics tool to aid the company in answering “When is the best time and how much to order”
3 key modules: Supplier & Product Management Module; Inventory Tracking Module; Inventory Business Analytics Module.
Supplier & Product Management Module
Functionality 1: Supplier Management
Manages the suppliers information, by allowing the users to store relevant information such as contact information, contact personnel for each suppliers. Key functionalities includes create new suppliers, delete suppliers, find suppliers and update supplier's information. This replace the current book format of keeping track of creditors list.
Functionality 2: Product Management
Manages the product information, by allowing the users to store relevant information such as type of brand, country of product. Key funcationlities includes create new product, delete product, find product and update product information. Currently, product information are recorded in paper form.
Functionality 3: Product Catalogue Management
Manages the supplier’s product range that they carry. This showcase all the information of a particular supplier and the different types of product that it carries. The supplier product catalogue is used when the new orders are made. This ensures that the users will only order new inventory from valid suppliers.
Inventory Tracking Module
Functionality 1: (Inflow) New Inventory Management
Manages creation of new order form (from suppliers). This order form is keyed into the system by the boss when a new order is placed. (Left image) The new order form is synchronize with the product catalogue of each supplier, hence ensuring that all supplier product line is recorded and allows audit trails.
Once new orders are created, the warehouse view will automatically notified of new expected products. The WORM system will guide the warehouse personnel exactly how and where to place each individual product after the algorithm of optimization and maximization is processed. (Right image)
Functionality 2: (Outflow) Demand Transaction Management
The distribution center will create new request form to notify the warehouse that new inventory must be sent over to the distribution center. This request form are currently done in manual paper format. This module will ensure that this process is automated with proper notification and digital transaction logging.
The warehouse will be notified of expected goods coming in on the day, along with the area dedicated (reserved) to place those goods. This allows forward planning and reservation of space for pipeline inventory. (Left Image)
Once the warehouse has gathered each individual request line, the information is immediately routed to the distribution center. Aligned with the current business practice, the inventory products are collected by assigned trucks. Once all the product of a particular assigned truck is packed and ready, a "ready for collection" status will be raised to alert the distribution center staff to drive over to the warehouse. Thus improving the overall communication portal of the business process. (right image)
Functionality 3: Current Inventory Management
Provides real time summary information for display at the distribution center; selective information are displayed and projected. “Andon” board is a concept spearheaded by Toyota in their Toyota Production System. The andon board showcase the current inventory along with the gauge of each inventory level. The 4 main levels of inventory is highlighted as "Green", "Yellow", "Amber" and "Red".
The formulae applied is as followed: (Current Inventory\Average Demand (Calculated) ) * 100
Result is the overall percentage of current inventory status:
Red: 1% - 50%
Amber: 51% - 100%
Yellow: 101% - 150%
Green: 150% and above
The AVA-status sign will highlight if any of the current batch of product has not been AVA-approved. Allowing the management to have greater inventory control. Such AVA allocation is currently done primitive way, written on the plastic cover of each batch.
Functionality 4: Product Overview Management
By Product View. When product is chosen, it will highlight key product information at a glance. Also highlights current inventory status. System will pitch every batch’s current stock against the overall ordered quantity (Percentage of total used). Fuel gauge will highlight the products current inventory against the average demand of the goods. (Right Image)
Another important view is the historical transaction records of the particular product selected, past outflow transaction as well as inflow transaction. Providing a detailed audit trail of all products. This automated process will replace the tedious and time consuming paper format that the company is currently using. (Left Image)
Functionality 5: Inventory Flagging Management
By Warehouse View. The entire warehouse plotted are displayed in grids and addresses. The user will be able to have a “bird-eye” view of all the stock allocation on each different grids within the warehouse. As products are assigned using the algorithm in the Optimization and Maximization method, this functionality will ease the reliance on key personnel on locating each individual product. Simply selecting the product you wish to locate, a graphical representation of the warehouse will be provided. (Left Image)
After zooming down on each warehouse, the different address is also highlighted to let the user knows exactly which warehouse and which address the product is currently being stored at. It also highlights the optimization rate as well as the maximization rate based on the current product and the assigned address. (Right Image)
Inventory Business Analytics Module (KIV)
Functionality 1: Cost Price - Quantity Generator
Provide the boss cost of price to sell the item, based on the following factors chosen:
1) Quantity to sell
3) Preferred Batch (Optional)
Based on the quantity that is expected to sell, the computer will generate the total cost price and average cost price (May run across various batch of products). Also allows the boss to increase the profit margin, the suggested sell price will shift accordingly. Currently, the boss quote price to the vendors based on intuition and memory. This functionality will give the boss real time information of the based line cost to quote the retailers that will ensure that he will not accidentally quote a price lower than his cost price.
￼Functionality 2: Optimal Reordering Point
Calculate the re-order point for every individual product. Once the product hits a re-order point, allowing the user to know when is the optimal re-order the product. Based on the average demand (outflow) for each product, we will also determine the forecasted days left to the possible reorder point.
Demand per Day: (Past 14 days demand Calculated)
Demand Standard Deviation: (Calculated)
Z-value: (Based on Confidence level input by user, default is 85%)
Lead Time: (Day Days, input by the users, default is 1 day)
Demand During Lead Time: (Lead Time in days * demand per day)
Safety Stock: (z-value * Sqrt(Lead Time) * Standard Deviation of Daily Demand))
Reorder Point = (daily demand * Lead Time Period * (z-value * Sqrt(Lead Time) * Standard Deviation of Daily Demand)) Estimated Day to Reorder = (Current Inventory - Reorder Point) / Daily Demand