Functional Specification for Inventory Management Workload

• State: Draft
• Work Item Link: [Link to backlog item]
• Key Cross Links: [Link to related technical specs, disaster recovery plan]
• Key Individuals:
  • Business Analyst: Jane Doe
  • Product Owner: John Smith
  • Technical Lead: Alex Johnson

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Overview

This document defines the functional requirements for a new Inventory Management System to optimize stock levels, improve order accuracy, and enhance supply chain visibility for Company XYZ. This system will replace the existing manual processes and enable real-time tracking of inventory across multiple warehouses.

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Scope

In Scope:

• Integration with existing ERP system for data synchronization.
• Real-time stock level updates and reporting.
• User role-based access control for inventory managers, warehouse staff, and administrators.
• Alerts for low stock levels and critical inventory shortages.
• Support for barcode scanning during stock check-ins and check-outs.

Out of Scope:

• Predictive analytics or AI-driven stock forecasting (to be considered in a future phase).
• Support for third-party supplier integrations.
• Mobile application development (web-first only in this release).

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Business Problem

Currently, the inventory tracking process relies on manual spreadsheets, leading to frequent errors, miscounts, and delayed order fulfillment. As a result:

• Customers experience delays due to stock inaccuracies.
• Operations are impacted by excessive inventory carrying costs.
• The manual process consumes significant time and effort.

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Objectives

• Eliminate manual processes and introduce automation.
• Reduce stock discrepancies to less than 2%.
• Enable users to access real-time stock data anytime.
• Notify relevant stakeholders when stock levels fall below predefined thresholds.

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Process Flows

User Flows

This section includes User Flows (if any) and System Process Flows for scenarios without direct user involvement.

Flow 1: Adding New Inventory

1. User logs into the system using role-based credentials.
2. Selects “Add New Inventory” from the dashboard.
3. Enters item details (SKU, quantity, warehouse location).
4. Confirms the entry. The system updates the stock levels and logs the transaction.

Flow 2: Stock Below Threshold Notification

1. The manager logs into the system, reviews the alert, and initiates a restock order.

System Process Flow

Flow 1: Stock Alert Notification

1. System monitors inventory levels in real-time.
2. When stock of an item falls below the critical threshold, a notification is sent to the Inventory Manager via email and SMS.

Diagram: Include a visual representation, such as a sequence diagram or data flow diagram.

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Measurable Success Criteria

• Key Performance Indicators (KPIs):
  • 99% system uptime during business hours.
  • 90% reduction in manual inventory tracking errors within the first quarter post-implementation.
  • Real-time stock updates visible within 2 seconds of a transaction.
• Measurement Plan:
  • System performance will be tracked via Azure Application Insights.
  • Error reduction will be validated by comparing error rates pre- and post-implementation.

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Accessibility and Compliance Requirements

• Adhere to WCAG 2.1 AA for accessibility.
• Ensure data privacy compliance with GDPR and other relevant regulations.

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Rollout Strategy

• Phase 1 (Beta): System available to Warehouse A for internal testing over a 2-month period.
• Phase 2 (Pilot): Expand to all warehouses after successful beta testing.
• Phase 3 (Full Launch): Provide access to all inventory managers and authorized users across the organization.

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Key Assumptions

1. Existing ERP system APIs are available and functional.
2. All warehouses are equipped with compatible barcode scanning devices.