Scm Central Mall

8/3/2019 Scm Central Mall

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INVENTORY MANAGEMENT

@

CENTRAL MALL

AHMEDABAD


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GROUP MEMBERS :-

ABHISHEK SHARMA (P1045)PANKTI PARIKH (P1027)

HARSHAL JOSHI (P1016)

JAIMIN MANASATTA (P1020)

HARSHAL SHAH (P1042)

HARSHIL PATEL (P1029)


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PRESENTATION FLOW :-

1. INTRODUCTION TO INVENTORY2. PROBLEM STATEMENT

3. INVENTORY @ CENTRAL MALL

a. SINKAGES @ CENTRAL MALL

b. ABC ANALYSIS @ CENTRAL MALL

c. ESTIMATED COSTING

4. RECOMMENDATIONS


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INTRODUCTION TO INVENTORY

Inventory is the stock of any item or resource in

an organization.

An inventory system is the set of policies and

controls that monitor levels of inventory and

determine what levels should be maintained,

when stock should be replenished and how large

the orders should be.


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Reasons of Maintaining Inventory

To maintain independence of operations

To meet variation in product demand

To provide a safeguard for variation in raw material

delivery time

To take advantage of economic purchase order

size


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Inventory Cost

Holding (or carrying) Costs

Set - up Costs

Ordering Costs

Shortage Costs


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Inventory System

An inventory system provides the organizational

structure and the operating policies for maintaining andcontrolling goods to be stocked

There are different types of inventory model which are

mentioned below:

1. Single Period Inventory Model

2. Multi - period Inventory Model

3. Fixed order quantity Model4. Fixed time period Model

5. Price Break Model


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Retail

Stages of Retailing

Suppliers and / or Manufacturers

Logistics Partners

Warehouse

Distribution Centers

Stores

Customers


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Objective of Inventory

Management To identify and track all data processing assets in an Inventory

System Repository

To define the process by which assets are identified andmaintained in the Inventory System.

To provide Inventory System access to all necessary personnel(data entry, update and deletion).

To provide a full range of reports that will satisfy informational

requirements.

To document the Inventory Management System within theStandards and Procedures Manual

To provide training to personnel responsible for supporting the


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Purpose of Inventory Management

Companys Strategic Goals

Sales Forecasting

Sales & Operations Planning

Production & Materials Requirement Planning.


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PROBLEM STATEMENT

Shrinkages in the

Management of Inventory is

very high


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INVENTORY @ CENTRAL MALL

Inventory Manager takes care that the Inflow and

the outflow of the goods are being done as and

when required.

And the record for the

same is kept in manual

bases as well as software

base and for the same a

hierarchy is being followed.


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CONT.


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BARCODE FOR SAFETY

The goods which are being received in the mall from

the vendor is firstly Bar-coded so that safety of the

goods can be created.

BARCODE can be used to

identify the goods when

customer purchases it andwhen the new stock is being

brought into the mall.


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SINKAGES @ CENTRAL MALL

CITY % OF SINKAGE OF SALES

VALUEAHMEDABAD 0.5

SURAT 0.99

BARODA 0.1


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Main reason of shrinkages is theft ofproducts

Theft is done by customers

And by employees also


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ABC

ANALY

SIS

ABC ANALYSIS @ CENTRAL MALL

PARTICULARS

PRODUCTQUANTITY

PRODUCTVALUE

A 20% 60%

B 30% 20%

C 50% 20%

The ABC analysis provides a mechanism foridentifying items that will have a significant impact

on overall inventory cost. The ABC analysis suggests

that inventories of an organization are not of equalvalue.


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They have three way of inspection ofinventory

One is periodic check

Other is on going check

And some time random check is

done Products are counted manually and

by scanning machine both.

periodic count is done every 6


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ESTIMATED COSTING OF

INVENTORY MANAGEMENTParticulars Rs.Attendants for washrooms to stop theft

(4 wash rooms * 12 months * 3,500 salary)

1,68,000

Every floor have 1 manager for its inventory

management(4 floors * 12 months * 12,000)

5,76,000

Salary of inventory manager of north zone

(12 months * 45,000 salary)

5,40,000

People who work for in house inventory

(10 people * 12 months * 7,000 salary)

8,40,000

Software for inventory management (maintenance)

(50000 yearly)

50,000

Administrative work

(3 people * 10,000 salary)

30,000

Total 22,04,000


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Scanning machine to count inventory

(fixed cost)

4,00,000

Software for inventory management

(installation)

7,00,000

Some Fixed Costs

Costing is little high But shrinkages

are going down after implementationof all this methods of inventorymanagement


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RECOMMENDATIONS

Some of the Recommendations are as

follows:-

There is no any meager recommendation as faras inventory management is concern because

all the aspects are taken care in the inventorymanagement system of central mall

One thing is that this systems are very costly

they should find some new methods which willcost less to the organization.


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slide no 1 to 6 harshal shah

7 to 10 harshil patel

11 to 18 harshal joshi, abhishek and

jaimin

19 to 22 pankti

Scm Central Mall

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