INVENTORY MANAGEMENT SYSTEMS
Jerry Long
CIS210 Systems Analysis and Development
Strayer University
Dr. Wesley Phillips
October 19, 2015

Inventory Management Systems

My sister is opening a small clothing store named Sheila’s Formal Gowns. While attending her niece’s wedding, she mentioned the difficulties of finding unique and affordable formal gowns to weddings, formal dinners and special occasions. Her business plan is to design a one of a kind dress for each female customer to wear to formal attires. In this paper I will describe all the necessary equipment, maintenance and cost for starting her business. Sheila’s name and expert workmanship has been established for over 20 years as a prestigious theater costume designer.

Necessary equipment

My sister’s business plan is to purchase fabrics and materials as needed and only take a few orders at a time. Her start-up costs include a sewing machine, computer, computer design software, high end printer and an automated system inventory system, which should be keep cost reasonably low. To accomplish her goals and track business expenditures she implements an inventory management system. Inventory management technology is a mix of hardware and software designed to add reliability to inventory accounting, reduce incidents of theft and facilitate inventory audits. Individual inventory items or batches of items could be equipped with RFID tags that identify the item type, cost, price, shipment number, date of shipment and virtually any other useful information. Software inventory management streamlines the process and replaces pen and paper systems. We will start with the use of the inflow inventory system from Inflow. She will purchase a variety of fabrics to begin her inventory and to make a few formal dresses to advertise her expertise and to wear to functions. The inventory management software will help my sister to take orders and deduct fabric out of the inventory with one click. This software will also generate reports one of which will show the demand for a given design. We will also will setup the laptop with wireless internet access which will enable her to conduct online sales and to conduct onstock inventory with the same equipment using a wireless bar code scanner. We will add or upgrade the system in future as soon as business becomes financially profitable.

Cost involved in the Creation of the System

The following equipment’s will be needed to setup an effective business and inventory management system: 1. Singer 9960 Quantum Stylist 600 stitch computerized Sewing machine at a cost of $ 299.00 This sewing machine has many advanced functions to include: * Automatic needle threader and top drop-in bobbin system make for quick and easy set-up

* 600 built-in stitches including 13 styles of fully automatic one-step buttonholes and 5 different fonts provide endless project possibilities

* Stitch editing capabilities allow you to control the exact look of a stitch pattern with elongation and mirror imaging

* One-touch automatic thread cutter trims the upper and lower threads when you are done sewing for faster and easier sewing

* Electronic auto pilot and speed control provide complete control of sewing speed making sewing difficult areas easier and error-free. 110 volt machine designed for United States and Canadian use only.

2. Laptop - A laptop is a computer for mobile use to access the internet wirelessly. My sister’s preference is the Apple MAC Pro with 2.2 GHZ quad core Intel Core I7 processor and 6MB shared L3 cache 5.6 expandable (Apple.com). The dual display and video mirroring supports two simultaneous HD resolution web cam connections which will allow customers to Skype or Face-time with the designer throughout design process. Additionally, she will purchase an Apple stylus pen for instant drawings and modifications of designer gowns. These purchases will allow her to be more creative with her design concepts and to display to potential buyers. The cost of both these items is 2,500 dollars. 3. Wireless Router – The wireless router will provide wireless access points for the laptop. The router allows the flexibility of working in different areas in the house and is easily portable to remote locations. We will purchase ASUS RT_N66U DUAL-Band Wireless N900 Router at a cost of $150.99. The ASUS offers fast speed and expansive range. It will connect computers, wireless printers, and other Wi-Fi devices at speeds up to 600 Mbps. MIMO antenna technology provides broad wireless coverage throughout your home. WPA/WPA2 encryption and SPI firewall will help keep your network protected (2015, Amazon) 4. Printers/ Faxes - This printer will be used to print receipts, invoices, orders, reports and to send out fax. We will purchase a Canon PIXMA Pro-100 wireless color Professional Inkjet photo printer SG-201 series. The PIXMA PRO-100 Wireless1 Professional Inkjet Printer possesses the functionality and technology you need to achieve high-quality output so your prints can look as good as the images you capture. The 8-ink dye based ChromaLife100+ system provides you with an amazing color gamut so your prints will look as vivid as you remember. The PIXMA PRO-100 shares technology with the rest of the PIXMA PRO line utilizing the Optimum Image Generating System to ensure what you envision is exactly what you get. The OIG System analyzes each area of the print and chooses the best ink mixture so you see the colors you expect to see in your print. The new Print Studio Pro2 plug-in software makes it even easier to get amazing results from your favorite photo applications. In addition to that you have connectivity options like Wi-Fi, Ethernet and USB and a professional machine that easily fits into your workflow that you can place anywhere around the studio. The cost to buy this item will be $229.76. The printer will also need thermal labels. We can buy Zebra Compatible Direct Thermal Labels at a cost of $10.99 (2015, Amazon). The printer can be used for multiple purposes. It will include printing receipts, reports and sending faxes (2015, Amazon).
. We can have everyone working off the same data in real time using multi-user mode. We can restrict who has access to see or modify usage. Inflow allows you to create different login users, each with a different set of access rights such as who can reorder stock, who can make a sale or who can do inventory. Inflow allows you to rename any labels or messages within the software. Inflow integrates with Excel or QuickBooks by importing and exporting data in the industry-standard CSV format. Inflow is offered in three different editions. They are available in basic, regular and premium. I recommend a purchase of regular edition for a cost of $299. This will allow unlimited product listing and up to five user license. It also give you access to one of the essential reports which can give data on high demand items (inflowinventory.com). The total cost to completely set up this process will be approximately $ 5000.00.

Maintenance required

The maintenance budget of running a formal gown business are the cost of purchasing fabrics, sewing materials and shipping items. Additional costs are software license fees and the cost of software upgrades. Internet service will be provided by Comcast Business Class at a cost of $199.99 per month which will include phone service. Other maintenance service will include thermal paper for the label printer at a cost of $10.99 printer ink and ink for the inkjet printer. There are 1280 labels in the one roll of Zebra compatible thermal paper. My sister will initially use the basement of her house as her office and work space, again to keep cost down.

Conclusion

Sheila’s Formal gown service is the fulfillment of a dream and the result of years of sweat equity and a reputation born on sacrifice and persistence. Sheila’s previous experience as a theater costume designer for over 20 years will greatly assist in her transition to an independent business owner. Her exemplary reputation throughout the industry will ensure immediate business opportunities but the key to success and potential growth of her company will be her ability to manage and delegate to her staff as her business expands.

Reference

http://www.amazon.com http://www.apple.com/shop/buy-mac/macbook-pro

http://www.inflowinventory.com/software-features.aspx

Shelly, G. & Rosenblatt, H. (2012). Systems analysis and design: 10th edition.