Smart Inventory System

1. Smart Inventory System

2. Step 1: Manage inventory • Step 2: Record New Purchase • Step 3: Generate New Purchase Plan (smartly)

3. Slow Intelligence Algorithm • At beginning, there is not many information in the database to compute which supplier is best, so system will choose a supplier with lowest purchase frequency, this is to populate the data and give every supplier fair chance to show there price.

4. Slow Intelligence Algorithm • When system has enough data which is indicated by a threshold variable. The system will use other method to choose supplier: • Lowest Last Price • Lowest Average Price • Lowest Purchase Freq • Highest Purchase Freq • Price Trend

5. Slow Intelligence Algorithm • After the manager use the generated plan to do a new purchase, he needs to record it into database to reflect the generated plan worked or not.

6. Slow Intelligence Algorithm • If the plan worked, which means we get a lower price or same price. System will continually use the current method to choose a supplier • If the plan didn’t work, which means we get a higher price. System will randomly choose another method to choose a supplier

7. Two Cycles of The algorithm • Cycle 1 enumeration: at this cycle, system will in turn use the following 5 algorithms to choose supplier： • lowest last purchase price. • lowest average purchase price • lowest purchase frequency • highest purchase frequency • lowest price trend change

8. Two Cycles of The algorithm • Cycle 2: elimination • At this Cycle, system will rate the enumerated methods according the purchase results that user recorded, and eliminate bad results. The elimination criteria is how much money each method saved. System will use the method that survived the elimination to generate new purchase plan until such method no longer save money and then go back to cycle 1.

9. System Diagram Record Purchase Result Compute Purchase Plan Result Cycle 1: enumerate all methods Cycle 2:eliminate bad methods Generate New Plan