Grocery Store InventoryEssay Preview: Grocery Store InventoryReport this essayGrocery Store Inventory SystemAbstractIn this paper, Learning Team B will describe a grocery store inventory system for Florida Food Mart, which includes information about the ordering, delivery, and stocking of items in a grocery store. Included within the paper is an Entity-Relationship Diagram (ERD), which is a comprehensive breakdown of the different entities and relationships within the grocery store inventory system. The intention of this paper is to provide the reader with enough information to conduct a thorough assessment of the inventory system. Learning Team B has provided a scope of the project as well as the mission statement used in order to accomplish its goals. Provided within the paper are the business rules, entity-relationship diagram and the data fields.
IntroductionFlorida Food Mart is a medium size grocery store located in Tampa, Florida. The store and management offices are housed in a 20,000 square foot facility on the North West side of Tampa. There are approximately 45 employees consisting of 20 Cashiers, 10 Stock Clerks, 8 Bagging Associates, 3 Shipping and Receiving Clerks, 3 Store Managers, 1 Technician, 2 Purchasing Agents, 1 Accountant, 1 Marketing Director, 1 Vice President, and 1 President.
Learning Team B has been assigned the task of upgrading Florida Food Marts outdated inventory processing system by designing and implementing a state of the art relational database management system utilizing MS Access integrated with Florida Food Marts present point-of-sale (POS) software.
Learning Team B has agreed to have a fully functional system in place by December 1, 2002. A preliminary budget of $75,000.00 has been approved and allocated to this project.
ScopeThe Learning Team B proactively worked on the development of the Entity Relationship Diagram (ERD). The ERD is being designed as a management tool to assist with the development of the Teams Grocery Store Inventory System. The Grocery Store Inventory System is to be utilized by four main sections: purchasing agents ordering merchandise, merchandise being received and placed in storage, customer purchasing merchandise, and accounting paying invoices and calculating profit and losses. Learning Team B has established the following methodology that will be followed throughout the project.
Establish a scope of workAnalysis of current systemAnalysis of future systemCost analysisRequirements documentationDatabase Entity-Relationship modelDetail design of database systemTestingImplementationMaintenancePurposeThe purpose of the grocery inventory system is to track inventories, sales, and the calculation of profits and losses to effectively manage a grocery store. This inventory system will allow for the close monitoring of many different aspects of the inventory process including shipping, receiving, and invoicing. This will, in turn, allow the grocery store to take a more active role in the inventory process, which will allow employees to become more effective and productive due to this automation. We feel that with this grocery store inventory system it will allow for the increased efficiency, increased productivity and increased accountability in the inventory process.
AssumptionsIn addition to the business rules that constrain the design of the inventory system, the design team has made several assumptions regarding the functionality and implementation of the inventory system. The inventory system will use the vendor file currently maintained and used by accounting for the payment of invoices. The invoicing process will be integrated with the existing payables process. The current POS equipment will provide the sales receipt transactions to the inventory system. Every invoice from a vendor will reference the PO number and associate the invoice line items with the PO line items. Every receipt from a vendor will reference the PO number and associate the invoice line items with the PO line items. Items that are received will be properly received against the PO, line item that they were ordered against. No additional computing hardware or infrastructure will be necessary since existing computer systems and the placement of those systems is sufficient to support the inventory project. Microsoft Access, which is currently being used to provide accounting support, will be used for the inventory system. The personnel currently involved in the manual processing of the inventory function will be retrained to support the automated inventory system. The automated input process will reduce the time needed to process purchase orders and receipts. The discovered business rules will remain in force throughout the design and implementation of the project, which will allow for a minimum development time in a stable environment.
Cost AnalysisThe following figures represent the cost analysis of current inventory operation versus the anticipated costs for the automated inventory system:Present inventory processing expense:$20,000.00/Month$240,000.00/YearEstimated inventory processing expense after completed database implementation:$14,000.00/Month$168,000.00/YearEstimated cost to develop and implement new database management system:$75,000.00/TotalCost benefit estimated to be achieved after 12 monthsEstimated monthly cost savings after the first year:$6,000.00Estimated annual cost savings after the first year:$72,000.00Estimated cost savings in five year after the first year:$360,000.00Based on this cost analysis, Florida Food Mart management has decided that the initial investment of $75,000.00 for the development, and implementation
MISC.1 [ edit ]
Misc [ edit ]
Cost of Inventory [ edit ]
1.3 / m3 The total cost of the inventory system and its components will be:Total $150,000.00 $75,000.00 Total Inventory Building costs $50,000.00 $44,000.00 Total Cost of Equipment $60,000.00 $36,000.00 Total Total Cost of Materials $12,000.00 $14,000.00 Total Cost of Fuel $2,600.00 $1,000.00 Production Expense:$4,100.00 $2,600.00 Production Tax:$5,100.00 Production Tax Increase:$4,000.00 Production Tax Decrease:$2,100.00
Cost of Materials [ edit ]
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Production Expense [ edit ]
[edit] 2
(000) 10.0
15% 2.0
9.6% 2% 2.3
10.7% 2% 3.3
25.6% 1% 20.0
1.3% 15.0
3% 20
10.8% 3% 3
25
25.6% 1% 20.5
1.4% 10.8
3% 20
11.7% 3% 3
MISC.1 [ edit ]
Misc [ edit ]
Cost of Inventory [ edit ]
1.3 / m3 The total cost of the inventory system and its components will be:Total $150,000.00 $75,000.00 Total Inventory Building costs $50,000.00 $44,000.00 Total Cost of Equipment $60,000.00 $36,000.00 Total Total Cost of Materials $12,000.00 $14,000.00 Total Cost of Fuel $2,600.00 $1,000.00 Production Expense:$4,100.00 $2,600.00 Production Tax:$5,100.00 Production Tax Increase:$4,000.00 Production Tax Decrease:$2,100.00
Cost of Materials [ edit ]
[edit]
Production Expense [ edit ]
[edit] 2
(000) 10.0
15% 2.0
9.6% 2% 2.3
10.7% 2% 3.3
25.6% 1% 20.0
1.3% 15.0
3% 20
10.8% 3% 3
25
25.6% 1% 20.5
1.4% 10.8
3% 20
11.7% 3% 3