SYSTEM ANALYSIS AND DESIGN SYSTEM

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Running Head: SYSTEM ANALYSIS AND DESIGN
System Analysis and Design
Student’s Name
Institution

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SYSTEM ANALYSIS AND DESIGN
System Analysis and Design
Project description
Business systems are vital IT assets for any company that seeks to gain leverage over its rivals.
Many businesses rely on business systems to enhance their operational efficiency which has a
significant influence on the quality of their services as well as revenue generated. Inventory
management system is a vital business system that helps businesses to track inventory levels,
orders, and sales made (Stevenson, 2007). Various firms such as e-commerce companies,
retailers, and suppliers use this system to manage their inventory. This ensures the inventory is
maintained at the appropriate levels. Thus, firms can align their inventory levels with the market
demand. Through inventory management systems (IMS), businesses that operate in dynamic
markets such as e-commerce firms can adapt to the changing demand without incurring a lot of
costs (Jacobs, 2011). In this project, we’ll explore on the functionality of the IMS including its
key features and functions. We’ll also discuss problems encountered when using the system.
Inventory Management System
IMS is a system used to track inventory levels as well as orders and sales made. It is used in
various industries including manufacturing industries to monitor product stock to prevent
overstock or outages. IMS organizes inventory data which was previously stored in spreadsheets.
The system tracks products and parts as they are moved from a vendor to a distributor and a
retailer or customer (Binti, 2016). IMS helps businesses to maintain stock balance by aligning
the inventory levels with the market demand. The system not only tracks inventory as it is
transported between locations but also receives items into a warehouse. Firms use the system
when picking, packing, or shipping items from a warehouse. Retailers leverage the system to

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SYSTEM ANALYSIS AND DESIGN
track product sales made and current inventory levels. The system is instrumental in managing
stock to reduce product spoilage and avoid missing out on sales due to low stock levels.
Features
IMS has various features which are designed to provide capabilities that enable a business to
manage its stock. Key features include inventory management, financial management, and
customer management. Inventory management feature offers businesses the capability to track
changing customer demand and monitor input costs to improve production (Vora, 2010). This is
critical in improving purchasing efficiency as well as reducing delays in the inventory. This
feature gives employees reliable information on inventory available hence a firm can achieve
inventory control. Financial management feature allows a firm to update, track, and establish
specific pricing structures in different locations for various products. This helps in tracking
accounts and performing banking functions. Customer management feature allows businesses to