Management Information

Systems
GROUP 7
Problem Statement
The logistics company DIB Logistics Pvt. Ltd., operating across five
regional warehouses in South Asia, faces significant challenges in
managing its inventory and delivery operations due to poor inter-
warehouse coordination, manual tracking systems, and delayed
restocking decisions.

Inventory inconsistencies have increased operational costs, customer

dissatisfaction, and delivery delays.

There is an urgent need for an integrated information system that

leverages RFID technology, SCM principles and, Logistics Information
System.
Proposed Solutions To address inefficiencies in warehouse coordination and
DIB Logistics should implement a centralized ERP inventory tracking, DIB will implement Logistics
system with an integrated SCM module to enable real- Information Systems (LIS) for real-time visibility and
time inventory visibility, seamless data sharing, and optimized decision-making. Complementing this, Supply
efficient coordination between warehouses. This will Chain Management (SCM) modules will centralize
centralize stock, order, and delivery management, procurement, warehousing, and distribution. Together,
improving decision-making speed and accuracy. they will replace manual processes with a data-driven,
agile logistics framework.

Implementing RFID will enable automatic

tracking of goods from arrival to dispatch,
reduce manual errors, and improve tracking of A DSS helps optimize operations by
returns. It will also provide real-time updates to forecasting demand, simulating what-if
the ERP system for accurate stock levels. scenarios, and improving decisions on
stock transfers, routing, and
warehouse utilization.
FLOWCHART
ASSUMPTIONS
assuming a case scenario:-
nepal has low inventory to meet its demand
(a) cost of delhi to nepal - 120000
(a1) cost of bhutan to nepal - 100000
(a2) cost of china to nepal - 90000
(a3) cost of sri lanka to nepal - 180000
(a4) cost of bangladesh to nepal - 110000
assuming that except Shri lanka, bangladesh
and delhi (ofc) none of the warehouses have
enough supply to send to nepal.
Testing
Is Total Inventory > (set
level) NO Is a<a1
NO

Is a1<a2
NO A

is a2 < a3
Yes Is a2<a4
Yes

does china have enough

supply for nepal NO is a3<a1
NO
Testing
does bhutan have enough
is a1<a4
Yes inventory to supply needed
demand in nepal?
No

Is a3 < a No Is a4 < a
Yes

Yes
does bangladesh have
enough supply to send to Order from bangladesh
nepal?

stop
Value to Stakeholders - Empowering Every
link in the chain
Warehouse Managers: Operations & Supply IT & Systems Staff: Customers :
Chain Team: Unified ERP/SCM systems
Real-time inventory Faster deliveries with real-
tracking across all Predictive analytics enable reduce maintenance time order tracking.
locations. demand forecasting. workload.
Reduces Supports Just-in-Time (JIT) Lower risk of cancellations
Eliminates data silos and and out-of-stock issues.
stockouts/overstock and practices and minimizes
improves space utilization. simplifies upgrades.
waste. Enhanced service reliability
Enables faster, Improves coordination Allows focus on and customer satisfaction.
coordinated restocking across the supply chain. innovation and
decisions. optimization.

Suppliers: Logistics Senior Management: Return Processing Team:

Dashboards offer a
Partners/Delivery Agents:
strategic overview of
Receive accurate, timely RFID enables real-time
operations.
restocking requests. Efficient routing with GIS return tracking.
Supports faster, data-
Improved coordination and integration. Speeds up reintegration of
driven decision-
reduced lead times. Real-time validation through returned goods.
making.
Strengthens trust and long- RFID tracking. Reduces financial loss and
Enhances ROI and
term relationships. Reduces delivery delays and supports sustainability.
aligns with business
failed attempts. goals.
Fuzzy Logic Design for Warehouse Selection Based
on Lead Time Lead Time (Days) Fast Moderate Slow
1. Input Variable: Lead Time (in
3. Output Variable: Warehouse Suitability
Days) 1 1 0 0
Fuzzy sets:
We define fuzzy sets for lead time: Highly Suitable 2 0.5 0.5 0
Fast: 0–2 days Moderately Suitable
Moderate: 1.5–4 days
Not Suitable 3 0 1 0.3
Rule Base:
Slow: 3.5–7+ days 1. IF Lead Time is Fast, THEN Suitability is Highly Suitable 4 0 0.5 0.6
Each set will have a membership 2. IF Lead Time is Moderate, THEN Suitability is Moderately
5 0 0 0.9
function showing the degree to Suitable
3. IF Lead Time is Slow, THEN Suitability is Not Suitable
which a lead time belongs to each 6 0 0 1
category.
Here's the diagram showing the
Membership Functions (Triangular for
degree of membership for lead time
Simplicity)
a. Fast using fuzzy logic. The categories are:
Full membership (1.0) at 1 day Fast: High membership for lead
Decreases linearly to 0 at 2.5 days times up to 1 day.
b. Moderate
Moderate: Highest membership
0 at 1 day, peaks at 3 days (1.0), and drops
back to 0 at 5 days around 3 days.
c. Slow Slow: High membership for lead
Starts at 3.5 days (0), rises to 1.0 at 6 days times above 5 days
and stays at 1 beyond 6
 Developing the MIS
Limited Variable Scalability Issues with
Consideration Additional Warehouses
The current model considers only two variables The current flowchart works for a limited
—cost and inventory—which limits its ability to number of locations, but adding more
reflect real-world complexities like transit warehouses will exponentially increase
time, regional constraints, storage limits, complexity in decision-making. This highlights
spoilage, and demand shifts. While adding more the need for a more dynamic and scalable
variables in the future would enhance accuracy, design, potentially supported by AI or advanced
it would also increase the system’s complexity. decision-support algorithms.

Assumptions Made for Complexity in Fuzzy Logic

Simplification Ranges
Defining cost thresholds for fuzzy logic (a, a1, a2, The model assumes negligible lead time, which
etc.) is challenging, as assigning appropriate fuzzy oversimplifies logistics. In reality, delivery
membership functions and linguistic ranges like delays from different countries can greatly
"low", "medium", or "high" requires substantial
impact decision-making and system
historical data or expert judgment.
effectiveness.
 Integrated GIS-Based Supply Chain
Management for DIB Logistics
02 04
2.Cross-Border Data
01
1. Real-Time Global Inventory

03
Integration Tracking

Standardizes units, currencies, Promotes two-way collaboration between

1. Real-Time Global Inventory compliance norms, and language 3. Demand Forecasting & JIT
headquarters and warehouses, enabling
shared decisions on procurement, logistics,
Tracking interfaces across locations. Enablement and restocking.

RFID + IoT Integration ensures every Enables HQ and regional managers GIS analyzes region-wise Automates stock reallocation (e.g., low
item is trackable from supplier→ to access uniform, multilingual consumption patterns and seasonal stock in Colombo triggers a shift from
→
warehouse customer. dashboards. trends using predictive analytics. overstocked Kathmandu warehouse).

Synchronizes inventory visibility Triggers Just-in-Time (JIT)

Allows both centralized (HQ-
across all five regional warehouses, Enhances interoperability replenishment, reducing
driven) and decentralized
eliminating blind spots. between local warehouse systems overstocking and storage costs.
(warehouse-level) interventions,
and central SCM platform. improving agility.
Prevents inventory mismatches (e.g., Combines historical data + real-
stockout in Mumbai while surplus in time sales velocity to align
Dhaka) by providing instant access restocking with actual demand.
to quantity and location data.
 Transnational Structure in DIB Logistics'
Supply Chain
In an organization with a transnational
1. Collaborative Policy structure, the parent and all the subsidiaries 2. Two-Way
Design work together in designing policies, procedures, Information Flow
and logistics for delivering products and services
Headquarters and regional Expertise (e.g., best practices,
warehouses jointly define logistics
to the right market. forecasting models) flows from HQ
policies, inventory norms, and service to warehouses.
protocols.
Operational and financial data
Encourages standardization with flows from warehouses to HQ
room for regional flexibility. for informed decision-making.

4. Standardization with
3. Regional Authority Local Responsiveness
Sharing Use of universal data formats, item
codes, and processes while
Warehouses are empowered to
accommodating local languages,
make real-time stocking, rerouting,
currency, and compliance norms.
and vendor engagement decisions.

Enhances integration while

Enables responsiveness to local
demand and disruptions. respecting regional uniqueness.
Learnings
Reduced stockouts Enhanced
and overstocking customer
through satisfaction due
synchronized, to accurate
intelligent deliveries and
inventory planning. reduced delays. Lower operational Improved
costs from handling of
minimized waste, returned goods,
better reducing losses
coordination, and and improving
real-time resource
oversight. utilization.
Learnings
Traditional, manual logistics Technologies like RFID, IoT,
operations are no longer and LIS enhance visibility,
sustainable in today’s dynamic automate processes, and
environment. optimize delivery routes.
A robust Management
Centralized SCM modules help
Information System (MIS) is
crucial for data-driven, real- manage procurement,
time decision-making across warehousing, inventory,
the supply chain. distribution, and order
fulfillment more efficiently. Extranet portals foster
secure, real-time
collaboration with 3PLs,
suppliers, and customers.
CRM integration improves
customer engagement
through personalized
communication and
automated workflows.