Documentos de Académico
Documentos de Profesional
Documentos de Cultura
ON
INVENTORY MANAGEMENT
In
AHMEDABAD (2007-09)
CONTENT
Sr.No. Topics Page
No.
1 Acknowledgement 3
2 Objectives 4
3 Introduction 5
4 Definition 6
5 Types of Inventory 7
6 Inventory management 8
7 Inventory Systems 9
8 Inventory Cost 10
9 Inventory management in Reliance Fresh 11
10 Outcome 12
11 Conclusion 13
Acknowledgement:
In corporate world all the organization run with their long term goal
or objectives. To meet the goal or to become success the
organizations have their own policy and strategies which are going
to help them to reach the destination. There are main objectives of
the firm is to earn the profit and customer satisfaction.
Semi-finished Goods:
-Processing steps can be temporarily delinked, which allows
flexibility in planning each step.
-Unequal production rates of processing stations may result in
process slow-down, in the absence of inventories.
-Production and transporting in larger batches reduces
material handling and production costs.
Finished Goods:
-Production of products as and when the customers demand
them can be uneconomical.
-Backlogs in customer order may not always be allowed.
-Maintaining stocks result in higher levels of production and
lower production costs.
-Production can be shown to customer.
Inventory Management:
Management of the inventory would be helping the
organization to achieve the long term profitability of the business
and the customer satisfaction. There are five possible course of
action that will help firms manage inventory better.
1) Computerization of Records
Inventory Systems:
The series of activities involved in maintaining adequate levels of
inventory is referred to as inventory cycle. The activities include
ordering of inventory, receiving, storing, and using them in the
process of production. While ordering inventory, firms place the
orders on the basis of any of the following inventory systems.
In this system, the order quantity (Q) is always constant and the
order is placed when the level of inventory reaches the reorder
point. This system assumes that demand of the inventories over a
period of time is constant and lead time also zero.
In this system the order period is fixed, but the order quantity varies
with the requirement. Here the quantity might be varies with the
orders it depends upon the current level of inventories and future
requirement.
Both the system has their own have their strengths and weaknesses.
In general, operations managers adopt a combination of this system
in maintaining their inventory.
Inventory costs:
Reliance Fresh will source fruits, vegetables and other farm offerings
from farmers through the agriculture hubs being set up by the company
This will while eliminating middlemen from the trade ensure higher
remuneration for farmers, lower prices for consumers and lesser wastage
of farm produce for the country.
RIL officials claimed that the company’s retail format for selling
vegetables, fruits and groceries, ‘Reliance Fresh,’ in fact, offers an
opportunity to push cart vendors and small traders (like kirana
merchants) to meet their requirements at competitive rates.
Reliance Retail has planned to capture the food retail market of Gujarat
by unveiling more than 180 ‘Reliance Fresh’ stores in the next six
months, 45 of which are expected to be launched within a month. These
180 Reliance ‘Fresh’ outlets to be set up in the next six months will
come up in 16 cities and towns of the State including Surat, Vadodara,
Rajkot, Jamnagar, Bhavnagar, Palanpur, Anand, Nadiad and Mehsana.
-Their employees do work in two shifts (6:30 to 2:30 & 2:30 to 10:30)
- They know the stock help of the SAP software and according to the
information they place the order.
Conclusion:
In FMCG sectors to manage the inventory level is the difficult task
and that time technology and network connection or internet
system playing the important role because they have small branches
in different area at that time without software and computerize
system it would be difficult to manage the inventory level.
So that’s why inventory management is a very important task
in an organization.