IS480 Team wiki: 2010T1 Cowabunga scope

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Resource Management

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 & 
Module; Inventory 
Module; Inventory 

Supplier & 

Functionality 1: Supplier Management

Manages the suppliers information, by allowing the users to store relevant information such as contact information, contact personnel, price of ordering, lead time for delivery, also include overstocking ‘loaning’ price per day. This is the list of creditor manage by the company.

Functionality 2: Product Management

Manages the product information, by allowing the users to store relevant information such as type of brand, country of product. Currently, product information are recorded in paper form.

Functionality 3: Product Catalogue Management

Manages the supplier’s product range that they carry, including price quotation. The prices varies base on demand basis, this functionalities allows tracking of suppliers product offering with their determined prices and fluctuation over the different ordering time period.


Functionality 1: (Inflow) New Inventory Management

New Order Form (Conceptual)
Warehouse View (Daily Transaction)(Conceptual)

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

Expected Goods of the day (Warehouse)(Conceptual)
Ready For Collection (Distribution Center)(Conceptual)

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

"Andon" Board view of all Inventory(Conceptual)

The "Andon" board is used by the toyota way to showcase all product information in a glance. 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. Hence, allowing the management to have a better view and greater inventory control. Such AVA allocation is currently done primitive way - written on the plastic cover of each batch.

Functionality 4: Product Overview Management

Product View (Conceptual)
Product Historical Transaction (Conceptual)

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

Bird Eye view of all Warehouse space and inventory location (Conceptual)
Individual warehouse view of each product (Conceptual)

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)


Functionality 1: Product Trend Analysis

Product Trend Graph (Conceptual)

Provide intelligent information that display product demand and supply movement through a pre-defined time period. The graph will plot against the average demand for goods, against the order made by the company, while showing the current inventory trend of each product.

This allows the user to have a better view of the expected demand of the goods and match with the current intake. Providing better view of the product is usually overstock or under-stock.

Functionality 2: Cost Price - Quantity Generator

Cost Price - Quantity Generator (Conceptual)

Provide the boss cost of price to sell the item, based on the following factors chosen:

1) Quantity to sell

2) Product
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 3: Optimal Reordering Point

Product Optimal Reorder Point (Conceptual)

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