Anirban Final Project

INVENTORY MANAGEMENT AT RELIANCE FRESH CHAPTER- 1
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BANGALORE INSTITUTE OF MANAGEMENT STUDIES
INVENTORY MANAGEMENT AT RELIANCE FRESH
INTRODUCTION
In financial parlance, inventory is defined as the sum of the value of raw materials, fuel and lubricants, spare parts and semi-processed materials and finished goods stock at any given point of time. The operational definition of inventory would be: the amount of raw materials, fuel and lubricants, spare parts and semi-processed materials to be stocked for the smooth running of the plant. Since these resources are idle when kept in the stores, inventory is defined as an idle resource of any kind having an economic value. Inventories are maintained basically for the operational smoothness which they can affect by uncoupling successive stages of production, whereas the monetary value of inventory serves as a guide to indicate the size of the investment made to achieve this operational convenience. The material management department is expected to provide this operational with a minimum possible investment in inventories. The objectives of inventory operational and financial, needless to say, are conflicting. The material department is involved in both stocks outs as well as large investment in inventories. The solution lies in exercising a selective inventory control and application of inventory control techniques. 1.1 MEANING OF INVENTORY The term Inventory refers to the stock of raw materials, spare parts and finished products held by a business firms. It is aggregate quantity of materials, resources and goods that are idle at a given point of time. The resources may be of any type; for example men, materials, machines or money, when the resources involved in materials or goods in any stage of completion, inventory referred to as stocks. Hence, inventory refers to the stocks that a business firm keeps to meet its future requirement of production and sales.
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Inventory of an Industrial undertaking consists of: Stocks of raw materials to be consumed in the production of goods for sale. Work-in-progress (i.e. stock of semi-finished goods) in the process of production of finished goods for sale. Stock of finished goods held for sale in the ordinary course of business. Maintenance of stores and spares parts or production supplies. Consumable supplies. 1.2 DEFINITION OF INVENTORY: The term Inventory has been defined by several authors. The most popular of them are The term Inventory includes Raw-materials, in process, finished packaging, spares and other stocked in order to meet an unexpected demand or distribution in the further. 1.3 IMPORTANCE OF INVENTORY: Inventories constitute the largest component of current assets in many organizations. Poor Management of inventories therefore may result in business failures. A stock-out creates an unproductive situation for the organization. In case of a manufacturing organization, (in stock out ability to supply an item from inventory) could, in extreme cases, bring production process to a half. Conversely, if a firm carries excessive inventories, the added carrying cost may represent the difference between profit and loss. Efficient inventory control therefore, can significantly contribute to the overall profit-position of the organization.
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1.4 OBJECTIVES, NEEDS&BENEFITS OF CARRYING OR HOLDING INVENTORY: Purchase, production and sale are not one continuous activity. There are separate activities. So, basically there is the need to carry inventory so that the functions of purchase, production and sale can precede it their own optimum pace or speed. Large purchases of raw materials or finished good may be to take advantage of the discounts offered on bulk purchases. Bulk purchases; naturally result in holding of inventories. Large orders may be placed for goods to cut down the ordering costs the cost of checking, handling and payments involved in small orders, large orders, naturally results in taking advantage of price factor. Holding of sufficient inventories of raw materials or finished goods becomes necessary in times of scarcity to prevent stoppage of production or business. Production of components in large batches will be helpful to reduce the set-up cost. This (i.e.; the production of components in large batches) would naturally, result in holding of large stocks of components. Vital spares and tools are required to be kept in stock so as to avoid long spells of production due to non-availability of important spare parts or tools. Holding goods in the process of production (i.e.; work-in-process) is a technological necessity. It depends mainly on the length of manufacturing process. Sufficient stocks of finished goods are required to be held to meet the demands of the customers, which may be uneven.
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1.5 CLASSIFICATION OF INVENTORY
CLASSIFICATION OF INVENTORY
ANTICIPATION INVENTORY FLUCTUATION INVENTORY
LOT-SIZE INVENTORY
MOVEMENT INVENTORY
PRODUCTION INVENTORY
IN-PROCESS INVENTORY
M.R.O. INVENTORY
FINISHED GOOD INVENTORY
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1.6 TYPES OF INVENTORIES ANTICIPATION INVENTORIES Such inventories carried to meet predictable changes in demand. In case of seasonal variations in the availability of some raw materials, it is convenient and also economical to build up stocks were consumption pattern may be reasonably uniform and predicted. FLUCTUATION INVENTORIES Demand fluctuates overtime and it is not possible to predict it accurately. Business firms maintain reserve stocks to meet unexpected demand and thereby to avoid the risk of losing sales. These safety stocks are known as Fluctuation Inventories. There is a time gap between production and use of certain products. The goods produced in one season are held in stock for sale and used throughout the year. When the availability of raw-material is seasonal, bulk stock are purchased for used throughout the year. LOT-SIZE INVENTORIES In order to keep costs of buying, receipt, inspection, transport and handling charges low, large quantities are brought for immediate need. It is a common practice to buy some raw material in large quantities in order to avail quantity of discounts. MOVEMENT OR TRANSIT OR TRANSPORTATION INVENTORIES Raw material and finished goods one place to another, some amount of inventory is always in transit. Longer the transportation period, greater is the amount of transport and inventories. The average amount can be determined mathematically: I=SxT
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Where; S = the average rate of sales (say, weekly average) T = transit time required to move from one stage to another in a week I = the movement of inventory needed PRODUCTION INVENTORIES Raw materials and other supplies, parts and components which enter into the product during the production process and generally from part of the product. IN-PROCESS INVENTORIES Semi-finished, work-in-progress and partly finished products formed at various stages of production. M.R.O. INVENTORIES: Maintenance, repairs and operating supplies which are consumed during the production process and generally do not from part of the product itself (e.g.:- oils & lubricants, machinery & plants, soaps etc.) FINISHED GOODS INVENTORIES: Completed finished products ready for sale. Major Dangers of Over Investments in Inventory: Blocking of firms funds in inventory. Excessive carrying costs. Risk of liquidity.
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The excessive level of inventories consumes the funds of the firm, which cannot be used for any other purpose. The carrying costs such as the cost of storage, handling, insurance, recording and inspection also increase in proportion to the volume of inventory. An excessive inventory carried from a long period brings down the liquidity of the firm. Problem of Inadequate Inventories: 1) Inadequate raw materials and work-in-progress will result in stoppage of production.
2) If the finished goods inventories are sufficient to meet the demands of the customers regularly, the customers may shift to other competitors, which will amount to a permanent loss to the firm. An effective inventory management should avoid both these extreme situations namely over investment and under investment in inventories.
Norms for Inventory: The norms (limits) for inventory could be set by either the top management, or the materials management department. The top management usually sets monetary limits for investment in inventories. The materials department then has to allocate this investment to the various items and ensure the smooth operation of the company. It would be worthwhile if the inventory norms are set by the management by objectives concept. This concept accepts the top management to set the inventory norms in consultation with the materials department. The norms thus evolved should be specific and quantified. The achievement of the targets set is the responsibility of the material department. In the setting up of the norms, the involvement of persons who are directly responsible for maintaining the inventories is very desirable. Other departments involved in setting the norms are finance, production, marketing and materials control. The norms of inventory should be converted to specifically spell out parameters like the number of stock outs permitted, the sales to inventory ratio and inventory to consumption ratio.
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1.7 MEANING OF INVENTORY MANAGEMENT: Inventory Management covers a much wider field. The inventory management is concerned with the entire range of functions which affects the flow, conservation and utilization, the quality and the cost of materials. It is that aspect which is concerned with the activities involved in the acquisition and storage of all materials directly and indirectly employed in the production of the finished products. These activities include material planning, programming, functions such as customer service requirements, production scheduling, purchasing, traffic etc. Viewed in that perspective, inventory management is broad in scope and affects a great number of activities in organisation. Because of these numerous inter relationships, inventory management stresses the need for integrated information flow and decision making, as it relates to inventory policies and overall systems.Inventory control on the other hand, is defined in a narrower sense than inventory management and pertains primarily to the administration of established policies, systems and procedures. For example, the actual step taken to maintain the stock levels or stock records refers to inventory control. Factory Influencing Inventory Management & Control: Several factors influence inventory management and control. The principal effects of these factors are reflected most strongly in the levels of inventory and the degree of control planned in the Inventory Control System. The factor includes type of product, type of manufacture, volume of output and others. Type of Product: Among the factors influencing inventory management and control, the type of product is fundamental. If the materials used in the manufacture of the product have a high unit value. When purchased, a much closer control is usually in order. If the material used in the product is in a short supply or is auctioned by the government, this may influence the purchase of this material and stock maintained.
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The manufacture of standard products as compared to custom-made items still influences inventories. Materials needed to manufacture a standard product are easy to obtain and a close control on the stock is not necessary. Material required to product made-to-order items needs strict control to ensure that no items are cost in the process of manufacture. Such materials and tools are of special and expensive type and a loss of any small part will hold up the production. Type of Manufacture: Besides type of product, Type of Manufactures also influences inventory management and control. Where continuous manufacture is employed at the rate of production is the key factor. Here inventory control is of major important ad in reality controls the production of the product. The economic advantage in this type of manufacture is the uninterrupted operation of the machines and assembly lines in the plant. Intermittent manufacture, on the other hand permits greater flexibility in the control of material. Volume: The Volume of product to be made as represented by the rate production of may have little effect on the complexity of the inventory problems. On the other hand, the manufacture of a large number of sarees involves the planning and control of thousands of inventory. Both the inventory problem and the difficulty of controlling production increase in difficulty with the number of component parts of the product and not with the quantity of products to be made.
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The other factors are:The objectives of the company as they relate to inventories and the level of service to be provided to customers. The qualifications of staff personnel who will design and co-ordinate the implementation of the system. The capabilities of personnel who will be responsible for managing the system on a continuing basis. The nature and size of inventories and their relationship to the other functions in the company, such as manufacturing, finance, marketing etc. The capability of present and future data processing equipment. The potential savings that might be anticipated from improved control of inventories. The current, or potential, availability of data that can be used in controlling inventories. The present method for controlling inventories and for making inventory decisions. The degree of commitment by management personnel to the development of more effective inventory management system and the results anticipate from such a system.
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1.8 INVENTORY VALUATION METHODS: First-in, First-out (FIFO) : Under FIFO, the cost of goods sold is based upon the cost of material bought earliest in the period, while the cost of inventory is based upon the cost of material bought later in the year. This results in inventory being valued close to current replacement cost. During periods of inflation, the use of FIFO will result in the lowest estimate of cost of goods sold among the three approaches, and the highest net income. Last-in, First-out (LIFO) : Under LIFO, the cost of goods sold is based upon the cost of material bought towards the end of the period, resulting in costs that closely approximate current costs. The inventory, however, is valued on the basis of the cost of materials bought earlier in the year. During periods of inflation, the use of LIFO will result in the highest estimate of cost of goods sold among the three approaches, and the lowest net income.
Weighted Average : Under the weighted average approach, both inventory and the cost of goods sold are based upon the average cost of all units currently in stock at the time of reporting. When inventory turns over rapidly this approach will more closely resemble FIFO than LIFO. Average : Under the average approach, both inventory and the cost of goods sold are based upon the average cost of all units received in stock.
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1.9 BENEFITS OF INVENTORY MANAGEMAENT & CONTROL: Proper management and control of inventories will result in the following benefits to an organization: Inventory control ensures an adequate supply of materials, stores, etc., minimises stock-outs and shortages, and avoids costly interruptions in operations. It keeps down investment in inventories, inventory carrying costs and obsolescence losses to the minimum. It facilitates economical purchasing through the measurement of requirements on the basis of recorded experience. It eliminates duplication in ordering or in replenishing stocks by centralising the source from which purchase requisitions emanate. It permits a better utilization of avoidable stocks by facilitating interdepartmental transfers within the company. It provides a check against the loss of materials through carelessness or pilferage. It facilitates cost accounting activities by producing a means for allocating material cost to products, departments or other operating accounts. It enables management to make cost and consumption comparisons between operations and consumptions comparisons between operations and periods. It serves as a mean for identifying and disposal of inactive and obsolete items of stores. Perpetual inventory values provide consistent and reliable basis for preparing financial statements.
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1.10 PROCESS OF INVENTORY MANAGEMENT AND CONTROL: As mentioned earlier, Inventory Management and Control refers to the planning for optimum quantities of materials at all stages in the production cycle and evolving technique, which would ensure the availability of planned inventories. Four steps are involved in the process, they are:Determination of optimum inventory levels and procedures of their review and adjustments. Determination of degree of control that is required for the best results. Planning and design of the inventory control system. Planning of the inventory control organization 1) OPTIMUM INVENTORY LEVELS: Determination of inventory that an organization should hold is a significant but difficult task. Too much of inventory result in locking up of working capital accompanied by increased carrying costs (but reducing ordering costs). Excess inventories, however guarantee uninterrupted supply of materials and components, to meet production schedules and finished goods to meet customers demand. Too less of inventory releases working capital for alternative uses and induces carrying costs (increases ordering costs). But there is risk of stock-out costs. All these and other related factors must be considered to determine a level of inventory, which an organization should hold. An interesting aspect is that the level of inventories is not static. What is the optimum level today may not be so tomorrow. Hence, inventory management must plan for the review of the stock often
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2) DEGREE OF CONTROL: The second aspect of inventory management is to decide just how much control is needed to realise the objectives of inventory management. The difficulty is best overcome by classification of inventory on the basis of value, popularly called ABC, VED, FSN analysis and other methods is useful in deciding the degree of control. More importance should be given not only to produces of high value items but also to items of high consumption. 3 ) PLANNING AND DESIGN OF THE INVENTORY SYSTEM: An inventory system provides the organizational structure and the operating policies for maintaining and controlling goods to be inventoried. The system is responsible for ordering and receipt of goods, timing the order placement, and keeping track of what has been ordered, how much, and from then. Further, the system must provide follow up to enable the answering of such questions as: Has the vendor received the order? Has it been shipped? Are the items correct? Are the procedures established for reordering or returning undesirable merchandise? 4) ORGANIZATIONAL ARRANGEMENT: The last aspect of inventory management and control is to determine an organization structure to handle inventory. Organizationally speaking, inventory control function is assigned to materials management or production planning and control. Attaching inventory control to material management activity is feasible in organizations were integrated material management is in practice. There is a strong justification for such an arrangement as inventory control is part of material activity and all material functions must be integrated into one group.
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Assigning inventory control function to production planning and control however has advantages. Production planning and control department will be in a better position to plan its production schedule with the knowledge of inventory under its control. Besides, the production planning and control department will be able to issue timely requisitions for replenishment of stocks used in the production operation. And logically speaking it is the production department which is the user of inventories, and the same department must be held responsible for controlling them. Actually the nature of a firms production operation, its product, and the type of market in which it operates determine the preference for assigning inventory function to production. An engineering oriented company producing specialised technical products on a job-shop basis might well choose to emphasize production, considerations as long as analysis of total cost justifies such a decision. Hence, inventory may report to the production division. On the other hand, a mass producer of electronic motors light will find itself in just the opposite situation and be compelled by relative cost consideration to integrate inventory control with purchasing. Whatever the consideration, it may be pointed out that any inventory control system is not once set goes automatic type but needs to be reset from time to time as the conditions such as lead time, consumption pattern etc., keep changing. 1.11 INVENTORY CONTROL TECHNIQUES/TOOLS: Inventory control techniques are employed by the inventory control organization within the framework of inventory models. Inventory control techniques represent the operational aspect of inventory management and help realise the objectives of inventory management and control. Several techniques of inventory control are is use and it depends on the convenience of the firm to adopt any of the techniques. What should be stressed, however, is the need to cover all items of inventory and all stages, i.e. from the stage of receipt from suppliers to the stage of their use.
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INVENTORY CONTROL TECHNIQUES: ABC Classification HML Classification VED Classification SDE Classification FSN Classification Level Setting Two Bin System Materials Requirement Planning Physical Verification of Stock Just-In-Time Technique
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ALWAYS BETTER CONTROL (ABC) CLASSIFICATION: One of the widely used techniques for control of inventories is ABC Analysis. The objectives of ABC control is to vary the expenses associated with maintaining appropriate control according to the potential savings associated with a proper level of such control. ABC analysis consists of the classification of the materials into categories A, B and C on the basis of their value. Items of high value and comparatively less in number are included in A category. Generally, they constitute about 70% of the total value and about 15% of the total number. Items of low value, be large in number are included in C category. Generally, they account for above 10% of the total value and about 60% of the total number. Items of moderate value and moderate in numbers are included in B category. They account about 20% of the total value and 25% of the total number. Items of A category are subject to strict with regard to purchase storage and use. Items of B category are subject to moderate control. Items of C category are not subject to much control. The objective of this analysis is to reduce the investment on inventory, the cost of inventory control, and also loss of inventory. HIGH, MEDIUM & LOW (HML) CLASSIFICATION: The high medium and low classification follows the same procedure as adopted in ABC classification. Only difference is in HML classification unit value is the criterion and not the consumption value. The items of inventory should be listed in descending order of unit value and it is up to the management to fix limits for the three categories. For example: - The management may decide that all units with unit value of Rs.2000 and above will be H items, Rs.1000 to 2000 M items and less than Rs.1000 L items.The HML analysis is useful for keeping control over consumption at department levels, for deciding frequency of physical verification, and for controlling purchases.
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VITAL, ESSENTIAL & DESIRABLE (VED) CLASSIFICATION: While in ABC classification inventories are classified on the basis of their consumption value and in HML analysis unit value is the basis, critically of inventories is the basis for vital, essential and desirable categorisation. The VED analysis is done to determine the critically of an item and its effect on production and other services. It is specially used for classification of spare parts. If a part is vital it is given V classification, if it is essential it is given E classification and if it is not so essential, the part is given D classification. For V items a large stock of inventory is generally maintained, while for D items minimum stock is enough. SCARE, DIFFICULT AND EASY TO OBTAIN (SDE): The SDE analysis is based upon the availability of items and is very use full in the context of scarcity of supply. In this analysis, S refers to Scares items, generally imported, and those which are in short supply D refers to difficult items which are available indigenously but are difficult items to procure. Items, which have to come from distant places or for reliable suppliers are difficult to come by, fall into D category. E refers to items which are easy to acquire and which are available in the local markets. The SED classification based on problem faced in procurement is vital to lead time analysis and is deciding o purchasing strategies. FAST-MOVING, SLOW-MOVING & NON-MOVING (FSN): FSN stands for fast-moving, slow-moving and non-moving. Here classification is base on the pattern of issues from stores and useful in controlling obsolescence. To carry out FSN analysis, the date of receipt or the last date of issue whichever is later, is taken to determine the number of months, which have moved since the last transaction. The items are usually grouped in periods of 12 months.
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FSN analysis is helpful in identifying active items, which need to be moved regularly, and surplus items, which have to be examined further. Non-material moving items may be examined further and their disposal can be considered. LEVEL SETTING: Setting up of inventory levels, such as Maximum level, Minimum level, Re-order level, Danger level and Average stock level. The above level are calculated when a storekeeper should place an indent for fresh stock and also to avoid over stocking of any material, at the same time to ensure follow up sufficient materials to production process. The main purpose of fixing the levels is to control the investment on inventories. MINIMUM LEVEL: This is the limit below which the stock should not be allowed to fall. It is fixed on the basis of average consumption and average lead time required to measure the item. The main purpose of fixing this level is to ensure adequate check for continuous production and sales.
MINIMUM LEVEL = RE-ORDER LEVEL (NORMAL CONSUMPTION INTO NORMAL RE-ORDER PERIOD)
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MAXIMUM LEVEL: This is the limit or level beyond which the stock of an item should not exceed. This level is fixed for avoiding over stocking of materials and its associated risks.
MAXIMUM LEVEL = RE-ORDER LEVEL + RE-ORDER QUANTITY (EOQ) (MINIMUM CONSUMPTION x MINIMUM RE-ORDER PERIOD)
RE-ORDER LEVEL: It is the point fixed between maximum and minimum level at which the storekeeper has to initiate action to obtain fresh supplies of materials. This point will usually be slightly higher than the minimum stock to cover such emergencies is abnormal usage or un-expected delay in supply. Re-ordering level depend on lead time, rate of consumption and economic order quantity.
RE-ORDER LEVEL = MAXIMUM CONSUMPTION x MAXIMUM RE-ORDER PRIEOD
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DANGER LEVEL: It is the level below the minimum level. When the stock reaches this danger level urgent action for purchases is necessary. As normal lead time is not available it is necessary to resort to unorthodox purchase procedure resulting in higher purchase cost.
DANGER LEVEL = MINIMUM CONSUMPTION x EMERGENCY RE-ORDER PERIOD AVERAGE STOCK LEVEL:
ECONOMIC ORDERING QUANTITY (EOQ): It can be described as the basic how much to buy model. It is shortened to EOQ and is the oldest and widely known inventory model. It dates back to 1915. The purpose of using EOQ model is to find that particular quantity of order which minimizes total inventory costs. EOQ is the technique which solves the problem of the materials manager. EOQ is the order size at which the total cost, comprising ordering cost and plus carrying cost, is the least. EOQ will be fixed at a level where the total of ordering costs will be minimum. EOQ can be calculated by a mathematical formula:
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Where: A refers to annual consumption in units O refers to ordering cost per order C refers to carrying cost per unit per annum TWO-BIN SYSTEM: It is mainly adopted to control C group inventories. In the two bin system, stock of each item is separated into two bins. One bin contains stock, just enough to last from the date of placing a new order until it is received in inventory. The other bin contains a certain quantity of stock that will be sufficient to satisfy probable demand during the period of replenishment. Stock first issued from the 1st bin. When the 1st bin is empty an order of replenishment is made and the stock in the 2nd bin is utilized until the ordered material is received. MATERIAL REQUIREMENT PLANNING: It is fairly recent technique, which has been introduced to control inventories; it is based on computer technology, material requirement planning mainly helps in ensuring arrival of materials exactly when it is needed for production. At the same time it reduces the length of time materials are held in inventory. Material requirement plans and control goods on order and helps in determining when and what specific materials will be needed to meet the previously planned production schedules.
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PHYSICAL VERIFICATION OF STOCKS: Under this system of stock verification, materials are verified on a continuous basis. The verification is undertaken in such a way that all materials in the store room get checked up at least 2 or 3 times a year. The selected items of materials are counted at frequent intervals and compared with the bin card and stores ledger. With the help of the bin card and stores ledger one can determine the goods received, issued and stock on hand at any time. Any difference between book entries and items of material denote discrepancies. ANNUAL STOCK VERIFICATION: Under this system, all the materials kept in the stores are verified once in a year. The stock verification is undertaken at the end of the financial year. Stock verification under this system is undertaken by the storekeeper. During the period if annual stock taking no material is issued or received. An advance notice is served to all the heads of the departments concerned regarding stock verification and the staffs of the store-keeping department is assigned duties for the purpose of verification. Arrangements are made to disposal of materials which are incapable of being used. Reports are prepared for excessive and shortage of stocks. JUST-IN-TIME (JIT): The concept JIT means that virtually no inventories are held at any stage of production and that exact number of units is brought to each successive stages of production at the right time. It is also called Zero Inventories. The concept JIT was started in the Motto Machi plant of Toyota in Japan, when the system has been perfected and results achieved. The plant has a long time of trucks waiting outside with full loads of automobile parts for the assembly line. As soon as one truck comes out from one end of the plant, another truck gets inside. There is no warehouse for the parts. In India, the Maruti Udyog Ltd. has adopted JIT.
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1.12 USE OF BIN CARDS & STORES LEDGER: BIN CARD: Bin is a place, rack or cupboard where materials are stored. Each bin shall have a card to show the position of stock in the bin. It is known as Bin card. A bin card gives bin number, description, code number of materials and different levels of materials. It is ruled in columns to depict stock received; goods received note number, materials issue, materials requisition number, balance of stock on and remarks. The bin card thus indicates ready stock position of an item at any moment. Entries are made usually by stores personnel. STORES LEDGER: Stores ledger contains the same columns, which a bin card has, but in addition the amount columns for pricing receipts and issues of materials are provided. Stores ledger shows, at any time, the value on hand. The ledger is maintained in stores as well as cost office to provide a cross check on the stores personnel. Entries in stores ledger are supported by goods received note, material requisition etc.
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INVENTORY MANAGEMENT AT RELIANCE FRESH 2.1 RESEARCH DESIGN

Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure. Research design, stands for advance planning of the methods to be adopted for collecting the relevant data and the techniques to be used in their analysis. The dissertation work in fact, has a great bearing on the reliability of the results arrived at end as such constitute the firm foundation of the entire edifice of the dissertation work. The data regarding company history and profile are collected through explanatory research design particularly through the study of secondary source and discussions with the individuals. The type of research design used in the collection and analysis is Historical Research Design. 2.2 TITLE OF THE STUDY The title of the dissertation is Inventory management and control in Reliance Fresh.
2.3 STATEMENT OF THE PROBLEM The Study has been done to analyze proper utilization of inventory resources in the company for last three years. Analysis of stock position of the company for three years. Liquidity of over-storage inventory Shortage due to under-storage inventory
2.4 OBJECTIVES OF THE STUDY The main objectives of the study are: To study the working of inventory control system. To identify and track all data processing assets in an Inventory System Repository. To define the process by which assets are identified and maintained in the Inventory System.
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To find out the degree of relationship between cost control and inventory control. To study the historical background of Reliance Fresh To study the competitive environment. To determine critical evaluation for inventory management and control. To study the effectiveness of inventory management in todays world. To know how the stock is taken into account. To know the methods and procedure for stock replenishment. To study the materials stored. To know the purchase of materials. To study the inventory level.
2.5 DATA COLLECTION METHOD: Source of data: Both primary and secondary data are used to obtain the required information. Source of data can be classified as: PRIMARY DATA: Primary data is a data collected through gathering the information from different department managers and officers of the company to get information about the company and its activities. SECONDARY DATA: Secondary data is a data collected from different published sources. Collection of data through company annual reports, company manuals and other relevant documents. By textbooks, journals& websites. Collection of data through the literature provided by the company.
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2.6 FIELD WORK: 1. Stores depot: Information regarding the stocking of materials, receipt and issues to
workshops, inventory, and control procedures in various branches inside the department was obtained. 2. Accounts Department: Rest of the information was obtained from accounts and
marketing department through personal interviews with section officials. 2.7 SCOPE OF THE STUDY The study enables the company counter the concept of liquidity and enhances the efficiency of the organization. From the point view of individual it is a learning experience (knowledge) which would be helpful in analyzing and understanding financial aspects 2.8 LIMITATIONS OF THE STUDY: A financial analysis will have always a limited time. This study also has certain limitations. They are as follows: o Tools used for analysis are limited. o The subject study is purely for academic purpose. o The subject analysis is so vast and therefore analysis and interpretation are confined to the objectives. o Risk involved in carrying inventory o The major risk is that the market value of the specific inventories will be less than the value at which they were acquired. o Certain inventories are obsolescence, whether it is in technology or in consumer tastes.
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o When demand or usage of inventories is uncertain. The finance managers try to effect policies that will reduce the average lead time o A change in style may cause a retailer to sell dresses at substantially reduced price
2.9 SAMPLING TECHNIQUE: Random Sampling.
2.10 METHODOLOGY: o Data: Secondary Data like Inventory reports, Balance sheet, etc. o Statistical Tools: Tables, Graphs, Charts and other tools will be used.
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INDUSTRY PROFILE Retailing is the combination of activities involved in selling or renting consumer goods and services directly to ultimate consumers for their personal or household use. In addition to selling, retailing includes such diverse activities as, buying, advertising, data processing and maintaining inventory. According to Kotler: Retailing includes all the activities involved in selling goods or services to the final consumers for personal, non business use 3.1 Wheel of Retailing: A better known theory of retailing wheel of retailing proposed by Maclcomb McNair says, 1. New retailers often enter the market place with low prices, margins, and status. The low prices are usually the result of some innovative cost-cutting procedures and soon attract competitors. 2. With the passage of time, these businesses strive to broaden their customer base and increase sales. Their operations and facilities increase and become more expensive. 3. They may move to better up market locations, start carrying higher quality products or add services and ultimately emerge as a high cost price service retailer. 4. By this time newer competitors as low price, low margin, low status emerge and these competitors too follow the same evolutionary process. 5. The wheel keeps on turning and department stories, supermarkets, and mass merchandise went through this cycles.
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3.2 Functions of a Retailer: Sorting Manufacturers usually make one or a variety of products and would like to sell their entire inventory to a few buyers to redu7ce costs. Final consumers, in contrast, prefer a large variety of goods and services to choose from and usually buy them in small quantities. Retailers are able to balance the demands of both sides, by collection an assortment of goods from different sources, buying them in sufficiently large quantities and selling them to consumers in small units. The above process is referred to as the sorting process. Through this process, retailers undertake activities and perform functions that add to the value of the products and services sold to the consumer. Supermarkets in the US offer, on and average, 15,000 different items from 500 companies. Customers are able to choose from a wide range of designs, sizes and brands from just one location. If each manufacturer had a separate store for its own products, customers would have to visit several stores to complete their shopping. While all retailers offer an assortment, they specialize in types of assortment offered and the market to which the offering is made. Westside provides clothing and accessories, while a chain like Nilgiris specializes in food and bakery items. Shoppers Stop targets the elite urban class, while Pantaloons is targeted at the middle class.
Breaking Bulk Breaking bulk is another function performed by retailing. The word retailing is derived from the French word retailer, meaning to cut a piece off. To reduce transportation costs, manufacturers and wholesalers typically ship large cartons of the product, which are then tailored by the retailers into smaller quantities to meet individual consumption needs.
Holding Stock Retailers also offer the service of holding stock for the manufacturers. Retailers maintain an inventory that allows for instant availability of the product to the consumers. It helps to keep prices stable and enables the manufacturer to regulate production. Consumers can keep a small
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stock of products at home as they know that this can be replenished by the retailer and can save on inventory carrying costs.
Additional Services Retailers ease the change in ownership of merchandise by providing services that make it convenient to buy and use products. Providing product guarantees, after-sales service and dealing with consumer complaints are some of the services that add value to the actual product at the retailers end. Retailers also offer credit and hire-purchase facilities to the customers to enable them to buy a product now and pay for it later. Retailers fill orders, promptly process, deliver and install products. Salespeople are also employed by retailers to answer queries and provide additional information about the displayed products. The display itself allows the consumer to see and test products before actual purchase. Retail essentially completes transactions with customers.
Channel of Communication Retailers also act as the channel of communication and information between the wholesalers or suppliers and the consumers. From advertisements, salespeople and display, shoppers learn about the characteristics and features of a product or services offered. Manufacturers, in their turn, learn of sales forecasts, delivery delays, and customer complaints. The manufacturer can then modify defective or unsatisfactory merchandise and services.
Transport and Advertising Functions Small manufacturers can use retailers to provide assistance with transport, storage, advertising and pre-payment of merchandise. This also works the other way round in case the number of retailers is small. The number of functions performed by a particular retailer has a direct relation to the percentage and volume of sales needed to cover both their costs and profits.
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3.3 COMPANY PROFILE RELIANCE GROUP The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses, The Group exports products in excess of USD 15 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial Infrastructure Limited.
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3.4 FOUNDER PROFILE
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream It, you can do it." Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002 Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses.
BOARD OF DIRECTORS OF RELIANCE INDUSTRIES LIMITED
Mukesh D. Ambani
Nikhil R. Meswani Executive Director Chairman & Managing Director Hital R. Meswani
Executive Director
H.S. Kohli Executive Director
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3.5 RELIANCE FRESH
APKA FRESH APKA PADAOS ME Indias Fortune 500 private sector giant, Reliance Industries Ltd, has, in fact, been first off the blocks by launching its first Reliance Fresh outlets in Hyderabad, Reliance fresh is the retail chain division of reliance industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores into almost every metropolitan and regional area of India. Reliance plans to invest rs 25000 crores in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the country. The reliance fresh supermarket chain is rils rs 25,000 crore venture and it plans to add more stores across different g, and eventually have a pan-India footprint by year 2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian products. Besides, the stores would provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people, according to the company. The company also has plans to train students and housewives in customer care and quality services for part-time jobs. Reliance Fresh will Forge strong and lasting bonds with millions of farmers and will transform the Relationship with customers to a new level Offer unmatched affordability, quality, convenience, service and choice Offer our customers the widest range of fruit and vegetables at the best prices in the neighborhood Provide for the daily needs of our customers by offering staples, grocery and household products at great prices Offer consistent high quality, unbeatable freshness and great service so that our Customers know that we can be trusted every day.
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3.6 PRODUCT PROFILE
S.NO 1 2 3 4 5 6 7 8
PRODUCT RANGE FRUITS & VEGETABLES STAPLES CONFECTIONARIES & SNACKS PROCESSED FOOD DAIRY PRODUCTS BEVERAGES REFRIGERATED PRODUCTS READY TO EAT ITEMS
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CHAPTER- 4
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TABLE-1 4.1 INVENTORY TURNOVER RATIO
YEAR 2007-08 2008-09 2009-10
INVENTORY TURNOVER IN TIMES 38.10 9.58 7.82
ANALYSIS:
From the table it is clear that the inventory turnover ratio for the year 2008 was 38.10 times and in the year 2009 it comes to 9.58.in the year 2010 it again decrease in to 7.82 times
Inventory Turnover Ratio:

The inventory turnover or stock turn over, measures how fast the inventory is moving through and generating sales. It is defined as:
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GRAPH-1
The graph showing the inventory turnover ratio
INVENTORY TURNOVER RATIO

40 30 20 10 0 2007-08 2008-09 YEARS 38.1 9.58 7.82
INVENTORY TURNOVER
2009-10
INTERPRETATION:
From the above graph it can be inferred that there is marginal decrease in inventory turnover ratio from 2008 to 2009 and then 2009 to 2010.this indicates that, there is a very low rate of conversion of stocks in to sales and then in to cash.
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TABLE-2 4.2 COMPARISION AND ANALYSIS OF INVENTORY RATIO
PARTICULARS STOCK IN TARADE
2008 65862344
2009 78785327
2010 95864232
STORES AND SPARES STAPLES DAIRY PRODUCTS TOTAL 2085643 11475147 79423134 1987423 17597691 98370441 3518476 43845621 143228329
ANALYSIS:
This table showing the inventory ratio for the year 2008, 2009 and 2010. The inventories include stock in trade, staples and dairy products. We can observe that, each inventory is increasing year to year. In the year 2008 total inventory was 79423134 it increased up to 98370441 in the year 2009 And it again increases to 143228329 in the year 2010.
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GRAPH-2
The graph showing the comparison and analysis of inventory ratio
100000000 90000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 STOCK IN TRADE STAPLES DAIRY PRODUCTS 2008 2009 2010
INTERPRETATION:
This graph clearly showing an increasing trend in case of inventories that is in stock in trade, staples and dairy products. This shows that the company can depend on its credibility in order to fulfill the demand for the products.
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TABLE-3 4.3 ANNUAL SALES FOR LAST THREE YEARS:
YEARS 2007-08 2008-09 2009-10
SALES OF SEEDS (in crore) 170 70 60
ANALYSIS:
The above sales table shows that what rate the Reliance Fresh products are turned over every year. The sale of the 2007-08 is more as compared to 2009 and 2010. In the year 2008 the sales was high then it decrease in the year 2008-09 and again decrease in the year 2009-10.
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GRAPH-3
The graph showing the annual sales of last three years
ANNUAL SALES TURNOVER RATIO

200 ANNUAL SALES 150 100 50 0 2007-08 2008-09 YEARS 170 70 60
2009-10
INTERPRETATION:
From the above table the annual sales are clearly shown. In the year 2007-08 sales is Rs 170 crore and the year 2008-09 sales is Rs 70 crore, it is decreased because of low production due to flood and in the year 2009-10 sales again decreased to 60 because of quality of production became low.
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INVENTORY MANAGEMENT AT RELIANCE FRESH TABLE-4 4.4 PURCHASE CHART
YEAR 2007-08
STAPLES
DAIRY PRODUCTS
2089.53 5053.78 6962.15
132.87 230.14 550.65
2008-09 2009-10
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GRAPH-4
The graph showing the purchase chart
6962.15 7000 6000 5000 4000 3000 2000 1000 0 2007-08 2008-09 staples dairy products 2009-10 132.87 230.14 550.65 2089.53 5053.78
INTERPRETATION:
The above table shows purchases made by Reliance Fresh for last three years. The table indicates purchases of staples & dairy products. It is clear from the table that, the purchases of staples is lower in the year 2008. Then it increased in the year 2009 and again increases in the year 2010. But in case of dairy products it shows increasing order every year. In 2008 it was 132.87, in 2009 it increase up to 230.14 and again in the year 2010 it increased up to 550.65.
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TABLE 5 4.5 TURNOVER OF WORK-IN-PROGRESS WORK IN PROGRESS TURNOVER RATIO:
This ratio obtained by ascertaining cost of production (annual) an average work in progress during the year. Average work-in-progress is half of opening and closing WIP turnover ratio is expressed as
YEAR 2007-2008 2008-2009 2009-2010
RS. IN CRORES
7654 0.77 0.532
ANALYSIS: The W.I.P turnover ratio has been high in the year 2008 and it decreased in the year 2009 and 2010.
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INVENTORY MANAGEMENT AT RELIANCE FRESH GRAPH-5

WIP TURNOVER RATIO (in times)
WIP TURNOVER RATIO

8000
WIP TURNOVER
6000 4000 2000 0 2007-08 2008-09 YEARS 7654 0.77 0.532
2009-10
INTERPRETATION:
In the year 2008 to 2010 its work-in-progress turnover ratio has decreased because work-inprogress is converted into in to finished goods.
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INVENTORY MANAGEMENT AT RELIANCE FRESH TABLE-6 4.6 RAW MATERIALS
YEAR
RS. IN CRORES
2007-2008
186.56
2008-2009
49.86
2009-2010
58.28
ANALYSIS:
The stock of raw materials in the 2008 is 175.71, and in the next year i.e. 2009 the companys raw material decreased and gradually. But in the year year 2010 it again increase up to 56.38.
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INVENTORY MANAGEMENT AT RELIANCE FRESH GRAPH-6

Graph representing stock raw material for three years
STOCK OF RAW MATERIAL

200 WIP TURNOVER 150 100 50 0 2007-08 2008-09 YEARS 186.56 49.86 58.28
2009-10
INTERPRETATION
The above graph shows that in 2008 the company has maintained good stock. But in the next year the loss is reported because of that, the company has not been able to maintain the good stock i.e., 2009. The stock has been increased in 2010 compared to 2009 which shows the company maintaining good stock to avoid the shortage of raw material and to avoid wastages.
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TABLE-7 4.7 WORK-IN-PROGRESS
YEAR 2007-2008 2008-2009 2009-2010
RS. IN CRORES 66.98 157.43 192.73
ANALYSIS: The stock of work in progress has been increased from year to year in year 2008 it was Rs 66.98(lakhs), and in the year 2009 it was Rs 157.43(lakhs), and in the year 2010 it was Rs 192.73( lakhs).
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GRAPH-7 Graph representing work in progress for three years
WORK IN PROGRESS
200 WIP TURNOVER 150 100 50 0 2007-08 2008-09 YEARS 66.98 157.43 192.73
2009-10
INTERPRETATION:
Reliance Fresh has good work force and hence, it will adopt good technology. So it will increase its work-in-progress and also it is earning good profit (2008 & 2009). There is decrease in the profit in 2010.
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TABLE-8 4.8 STRUCTURE OF INVENTORY AS ON 31ST MARCH 2010
INVENTORY IN 2010 PARTICULARS IN FIGURE STOCK IN TRADE STORES AND SPARES: STAPLES DAIRY PRODUCTS TOTAL 2065431 10765421 70700093 2.84% 14.90% 100% 57869241 IN %AGE 82.26%
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GRAPH-8 Graph representing inventory in the year 2009-10
INVENTORY IN THE YEAR 2009-10
3%
15% stock in trade staples 82% dairy products
INTERPRETATION
In this graph it is clear that stock in trade occupy high position that is 82% which has a turnover of Rs. 57869241 where as staples occupy 3% i.e. turnover of Rs 2065431 and dairy products occupy 15 % that has turnover of Rs 10765421.
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TABLE-9
4.9 STRUCTURE OF INVENTORY AS ON 31ST MARCH 2009
INVENTORY IN 2009 PARTICULARS IN FIGURE STOCK IN TRADE STORES AND SPARES: STAPLES DAIRY PRODUCTS TOTAL 3718876 46885541 145572164 2.02 20% 100% 73923204 IN %AGE 78.88%
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GRAPH- 9
Graph representing inventory in the year 2008-09
20% 2% stock in trade staples 78% dairy products
INTERPRETATION In this graph it is clear that stock in trade occupy high position that is 78% which has a turnover of Rs. 73923204 where as staples occupy 2% i.e. turnover of Rs 3718876 and dairy products occupy 20% that has turnover of Rs. 46885541
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TABLE-10 4.10 STRUCTURE OF INVENTORY AS ON 31ST MARCH 2008
INVENTORY IN 2008 PARTICULARS IN FIGURE STOCK IN TRADE STORES AND SPARES: STAPLES DAIRY PRODUCTS TOTAL 3718876 46885541 145572164 2.56% 32.20% 100% 94967747 IN %AGE 65.24%
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GRAPH-10
Graph representing inventory in the year 2007-08
32% stock in trade staples 65% 3% diary products
INTERPRETATION In this graph it is clear that stock in trade occupy high position that is 65% which has a turnover of Rs.94967747 where as staples occupy 3% i.e. turnover of Rs 3718876 and dairy products occupy 32% that has turnover of Rs. 46885541.
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TABLE-11 4.11 Table showing technique adopted by the organization for inventory control
Particular Always Better Control Technique Just-In-Time Technique Two Bin Technique Total inventory CONCEPT ANALYSIS:
Percentage 50 30 20 100
ABC: A system of inventory management which divides the inventory into three categories. 1. A: Includes items that involve the largest investment. 2. B: Items requiring the second largest investment. 3. C: Category involving the smallest investment. Accordingly appropriate inventory control technique can be applied. JIT: It is a complete reengineering of production process that emphasizes continuous improvement, quality management, reduced set up times, improved maintenance procedures and co-operation with suppliers. Two-Bin-Technique: One to stock the inventory required satisfying the probable demand during the period of replenishment and the other to stock the inventory required from the date of placement of new order to the date of receipt of inventory.
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To start with Reliance Fresh uses inventory from the first bin. After this bin is exhausted an order for replenishment is placed during which the stock in second bin is utilized, till the ordered materials takes position.
GRAPH-11 Graph showing technique adopted by the organization for inventory control
TECHNIQUES OF INVENTORY CONTROL

50 WIP TURNOVER 40 30 20 10 0 ABC TECHNIQUES JIT TECHNIQUES 50 30 20
TWO BIN TECHNIQUES
YEARS
INTERPRETATION:
From the above table and graph we can know the techniques adopted by the organization for inventory control. The organization is been using the three methods of control which going to give them optimum utilization. They are ABC, JIT and Two-Bin-Technique. We can see that the organization is using the ABC method effectively i.e., for up to 50%, they are also using JIT on the basis of schedule i.e., for up to 30% and also two-bin-technique for up to 20% of inventory.
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CHAPTER- 5
Page 62
5.1 FINDINGS
1. RELIANCE FRESH uses standard norms for Inventory Management for all the materials as been maintained.
2 Material planning is done based on orders obtained from different customers. The material requirement plan is processed is to give exact requirements of materials to be produced. 3 Vendors are related based on their performance with respect to delivery, a quality price standard. 4 The received material are inspected as per standard plan is finished products are tested on 100% basis no material is released is handled properly. 5 Physical verification of high value materials in holding store is conducted in accordance with predetermined programmers. 6 All material is stored in right condition at respective locations and The Company has items, which are slowing moving and non-moving, which are disposed off at regular intervals. 7. The scrap obtained in the process is comparatively very low.
8.
As the production cycle is very high, and leads to accumulation of WIP, in turn increase the cost, the company should flow the sub-contracting method where some part of the work is done by other contracts and only assembling and furnishing of the product is done. This leads to systematic and distributed work.
9.
The production layout may be changed to cellular manufacturing concept. I.e. Raw materials fed in one end and finished products are received in another end where every step is automatic and mechanized.
10. FIFO method is being adopted to issue the materials to production department
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5.2 SUGGESTIONS
1. To follow just in time (JIT) technique The concept of JIT means that virtually no inventories are held at any stage of production and that exact number of units is bought to each successive stage of production at the right time is also called zero inventories.
2. It is found that in every ward there is A, B, C items. It is suggested keep the materials a class items in some ward and C class items in some wards, so that it is easy to keep attention on every ward according to their importance.
3. Method of analysis; It is found that ABC analysis is followed to a large extent; hence it is suggested to follow the different methods.
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CHAPTER- 6
Page 65
CONCLUSION
The research topic inventory management and control, has a greater implication on Indian industries. From the analysis of inventory management and control in Reliance Fresh, it is very clear that, it has achieved greater importance in production control to a large extent, it also enhance the arising need of the organization, in respect of inventory management and control. The inventory management and control in Reliance Fresh is very complex function. The functions of stores depot, its inventory control technique to achieve the effective production program, necessitates the importance of inventory management and difficult task in todays business world in spite of complex function, Reliance Fresh has maintained a very good system of inventory management and control has achieved great progress in production program year to year.
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CHAPTER- 7
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BIBLIOGRAPHY Books
Title 1. Financial Management 2. Financial Management 3. Production Management 4. Inventory Control Author I.M.Pandey P.V.Kulkarni K.Ashwathappa James. L.Lundy
Magazines:
1. Manuals used in the company 2. Annual report for the period 2007-08 , 2008-09 & 2009-10.
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CHAPTER- 8
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ANNEXURE Schedule As at 31st march, 2010 (Rs in lakhs) SOURCES OF FUNDS Shareholders Funds Share Capital Loan Funds Secured Loans Unsecured Loans B C 58.93 210,028.95 210,087.88 TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work in Progress D 71,513.50 11,327.32 60,186.18 52,887.51 113,073.69 Investments E 49.00 210,092.88 A 5.0
Deferred Tax Assets
20,104.73
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Current Assets Loans & Advances Current Assets Inventories Sundry Debtors Cash & Bank Balances F 21,467.06 5,221.87 1,793.64 28,482.57 Loans & Advances G 21,052.82 49,535.39 Less: Current Liabilities & Provisions Current Liabilities Provisions H 13.313.34 549.78 13,863.12 Net Current Assets Profit & Loss Account TOTAL 35,672.27 41,193.19 210,092.88
Schedule
As at 31st march, 2009 (Rs in lakhs)

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SOURCES OF FUNDS Shareholders Funds Share Capital Loan Funds Secured Loans Unsecured Loans B C 109.25 177,573.42 177,682.67 TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work in Progress D 66,645.73 5923.62 60,722.11 53,931.03 114,653.14 Investments E 49.00 177,687.67 A 5.0
Deferred Tax Assets Current Assets Loans & Advances Current Assets F
11,912.17
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Inventories Sundry Debtors Cash & Bank Balances 17,392.79 5536.86 736.40 23,666.05 Loans & Advances G 14,720.67 38,386.72 Less: Current Liabilities & Provisions Current Liabilities Provisions H 14,204.25 785.89 14,990.14 Net Current Assets Profit & Loss Account TOTAL 23,396.58 27,676.78 177,687.67
Schedule
As at 31st march, 2008 (Rs in lakhs)
SOURCES OF FUNDS Shareholders Funds

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Share Capital Loan Funds Secured Loans Unsecured Loans B C 8970.87 8970.87 TOTAL APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work in Progress D 2570.18 454.00 2116.18 1582.81 3698.99 8975.87 A 5.0
Deferred Tax Assets
528.83
Current Assets Loans & Advances Current Assets Inventories Sundry Debtors Cash & Bank Balances E 4,976.53 1,002.99 342.28
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6,321.80 Loans & Advances F 658.91 6980.71 Less: Current Liabilities & Provisions Current Liabilities Provisions G 3,368.56 42.78 3,411.34 Net Current Assets Profit & Loss Account TOTAL 3569.37 1178.68 8,975.87
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INVENTORY MANAGEMENT AT RELIANCE FRESH CHAPTER- 1

BANGALORE INSTITUTE OF MANAGEMENT STUDIES

INVENTORY MANAGEMENT AT RELIANCE FRESH

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INVENTORY MANAGEMENT AT RELIANCE FRESH

FINISHED GOOD INVENTORY

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INVENTORY MANAGEMENT AT RELIANCE FRESH

RE-ORDER LEVEL = MAXIMUM CONSUMPTION x MAXIMUM RE-ORDER PRIEOD

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INVENTORY MANAGEMENT AT RELIANCE FRESH CHAPTER- 2

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INVENTORY MANAGEMENT AT RELIANCE FRESH 2.1 RESEARCH DESIGN

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2.9 SAMPLING TECHNIQUE: Random Sampling.

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INVENTORY MANAGEMENT AT RELIANCE FRESH CHAPTER- 3