Inventory Management System

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.

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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.

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

Design Structure Matrix (DSM) Allocation

DSM of the Inventory Management System:

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

Object Process Model (OPM)

This OPM represents the Inventory Management System:

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: