Difference between revisions of "Inventory Management System"

From MIT Technology Roadmapping
Jump to navigation Jump to search
Line 29: Line 29:
[[File:DSM v1.png|frameless|center|750px|Inventory Management System DSM (under Supply Chain Management (SCM) System]]
[[File:DSM v1.png|frameless|center|750px|Inventory Management System DSM (under Supply Chain Management (SCM) System]]


The tree structure of the Inventory Management System. This roadmap focuses on the Inventory Management System.  
The tree structure of the Inventory Management System.  


[[File:DSM List v1.png|frameless|center|600px|Inventory Management System]]
[[File:DSM List v1.png|frameless|center|600px|Inventory Management System]]

Revision as of 17:06, 12 October 2023

Technology Roadmap

Roadmap Overview

Inventory management system is a critical component of business operations' supply chain management that ensures efficient flows of materials and products from vendors to customers.

‎Key Goals of the SCM – inventory management system are:

  • Providing timely, complete, and accurate inventory levels to managements
  • Minimizing carrying costs while ensuring product availability.
  • Reducing stockouts and overstock situations.
  • Enhancing supply chain visibility and responsiveness.
  • Streamlining operations and reducing inefficiencies.
  • Lowering costs while maintaining service levels.
  • Meeting customer demand accurately and on time.
  • Adapting to changes in demand, supply, and market conditions.


Effective management systems provide the right products at the right time and place to meet growing customer demand. It is a critical aspect of modern business operations and plays a crucial role in achieving profitability and customer satisfaction.

(https://jelvix.com/blog/automated-inventory-management-system

*image-source - https://jelvix.com/blog/automated-inventory-management-system

Design Structure Matrix (DSM) Allocation

DSM of the Inventory Management System:

Inventory Management System DSM (under Supply Chain Management (SCM) System

The tree structure of the Inventory Management System.

Inventory Management System

Object Process Model (OPM)

This OPM represents the Inventory Management System:


Invt System OPM.png


OPL 1.png
OPL 2.png

Figures of Merit (FoM)

The table below show a list of FOMs by which can assess an Inventory Management System technology:

Figure of Merit Units Metric
Value of transactions processed per annum [US$] Monetary value of all transactions processed per annum.
Productivity Number of transactions processed per annum # of transactions processed per country, per individual or business client type Count of the number of transactions processed per annum.
Machine learning accuracy Weighted False Positive ratio <math>\sum_{i=1}^{Systems} Weight_i \frac{FalsePositives_i}{(FalsePositives_i + TrueNegatives_i)} </math>
Efficiency Average cost per transaction [US cents] The total Earnings Before Interest and Tax (Tax) divided by the Number of transactions processed per annum
Transaction settlement period [Seconds] The time lag between the payment initiation of the payment order and its final settlement.
Sustainability System downtime per year [Seconds] The seconds in a year is that the system is not online and processing successfully, i.e., not “up and running”.
Payment conversion rate [%] # of settled transactions per annum / # of attempted transactions per annum
Fraud prevention [%] # of fraudulent transactions / # approved transactions

Examples of FOM performance

Over the last 52 years, inventory management system was improved by about 7% annualized growth based on the FoM trend indicated below:

Global Export Value in USD vs. Total Global Population (1950-2022)