Project Of Inventory Control

A Project Report On

INVENTORY CONTROL MANAGEMENT AT

(INTERIORS & PLANSTICS DIVISION)

TALEGAON PUNE

Submitted By: PANDURANG S. MORE Under the Guidance of (NAME OF THE RESPECTIVE GUIDE) MBA Supply Chain Management 2016-18

Submitted to SAVITRIBAI PHULE PUNE UNIVERSITY In Partial Fulfilment of Degree of Master of Business Administration (MBA)

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Certificate from the Institute This is to certify that Mr. /Ms. Pandurang Sopan More have successfully completed his/her Summer Internship project titled Inventor Control management. For the partial fulfilment of the course MBA of Savitribai Phule Pune University during the academic year 2016-18 He / She has worked under our guidance and satisfactorily completed his/her project work.

Place: Talegaon Date:

Name & Designation of Official

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Format of certificate from company/organization This is to certify that Mr Pandurang Sopan More, student of Akemi Business School, Pune has successfully completed Summer Project Report titled INVENTORY CONTROL MANAGEMENT. From 15th June 2017 to 15th Sept. 2017 with us. In partial fulfilment of Master of Business Administration. While completing the assignment, we found him to be very sincere and hardworking. We wish him / her success in his / her future endeavours.

Place: Company

Signature of Official

Date:

Name & Designation of Official

Seal of

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Declaration It is hereby declared that all the facts and figures included in the Dissertation is a result of my own research and investigations including formal analysis of the entire project work and the same have not been previously submitted to any examination of this University or any other University. This declaration will hold good and in my wise belief with full Consciousness.

Date: Place:

Name & Signature of the Student

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ACKNOWLEDGEMENT

I, undersigned express my sincere, gratitude to following persons who helped me in completing the project work. Director:

Project Guide: Mr. Nilesh Wankhade

Manager / supervisor of the Industrial Unit: Mr. Sunil Kulkarni , Mr. Chakaraj Joshi

Other officers / persons: Mr. Rohit Patkhar

Date: Place:

Signature of the Candidate

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INDEX SR.NO CONTENT .

PAGE NO.

1 INTRODUCTION 2 OBJECTIVE 3 METHODOLOGY 4 COMPANY PROFILE 5 INVENTORY CONTROL 6 OBJECTIVE OF INVENTORY CONTROL 7 FROMS OF INVETORIES 8 TECHNIQUES OF INVENTORY MANAGEMENT 9 INVENTORY EXPLANATION 10 SUGGESTIONS 11 CONCLUSION 12

BIBLIOGRAPHY

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INTRODUCTION

Inventory control has been attracting their attention of managers in India for a long time for control purpose it is very essential to study the inventory in detail – raw material, production components in progress & finished goods and the cause for their size are different. The size of inventory is dependent upon the factors such as internal lead time for purpose supplier lead time, vendor relation availability of raw material, government import policy in the case of imported material, the annual consumption of the material.(ABC classification) and the relative critically and the material(VED classification) the size of inventory depends upon the production cycle time, the percentage of machine utilization, the make / buy decoupling the various stages of manufacturing. The finished goods inventory in maintained to assure a free flowing supply to the customers and for this the marketing department insists on substantial finished goods inventory. The size also depends on the company’s ability to stick the delivery scheduled of the client the shelf life and the warehousing capacity. Two factors which influence the inventories of all the types as, the accuracy and detail of the final forecast- all the inventories are the accuracy and details of cost all the inventories. Geared for future requirement and are there for sensitive to this factor and available storage space the logical sequence to these the shelf of the items stores a factor consideration the case of perishable goods.

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Here I concentrated on mainly B & C class items the procedure which is discussed in later gave, how we control the ordering quality and stock level. How we can calculate in the inventory of any item of above class by putting the values of future consumption lead time and necessary costs. In calculation part I take the number of machines consumed per month from observation in the company and from the assumption and there wasps and down in consumption for understanding how the safety stock used the items like spring purchased part and gear manufactured part taken for a sample of calculation.

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OBJECTIVES The inventory control is essential for every organization because 70 to 80% of capital has been used in inventory. So its control and to stop pillferation and deterioration. We selected the TATA Auto comp. System ltd. Because it can be the best for the study for the inventory control in raw materials, finish goods and paint & BOP. Whenever one organization invests his capital 70 to 80 % so every employee should be careful about the rejection, scrap and about deterioration and fillferation. All employee focus to zero PPM. Proper issue and receipt (proper counting of materials), scientific store keeping and accounting. To get more profit we have to account properly every rupees invested in inventory. My root cause to make this project that how can construct this profit of this company from inventory control. We have to stop the wastage of inventory. Find out the sub contact details. Inventory usage in every area where inventory can make control. Industrialization has given rise to many problems, one of which is problem of cost reduction and cost control. As the cost of materials accounts for nearly 2/3 rds. Of the total cost, efficient materials management through inventory control has become necessary. Increase in size and activities of industrial organizations calls for more economics operations, so as to achieve savings, and enjoy advantages of large scale production, which is possible through inventory control. To overcome from above my project objective is this. TATA Auto comp. System Ltd. (TAPS-IPD DIVISION) practically adopted the inventory control method i.e. FIFO & LIFO method.

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METHODOLOGY This project is done in inventory control. The project carried out through the full method 1. Working to TATA AUTOCOM SYSTEM LTD (IPD), TALEGAON, PUNE 2. Introduction with the concern person and got the information from them about industrial project. 3. Primary data collected from organizations different department like raw material stores, finance, purchase and CSG. Bellow table show the primary data collection report. Dept.

Question 1) How many raw usage in a day?

Answer

Stores

Finance

Purchase

Customer Service group

4. Secondary data collection from the Am phenol Interconnect India Pvt. Ltd. For FIFO & LIFO method inventory control which is practically done in that firm. 10

COMPANY PROFILE:

ABOUT TATA AUTOCOMP SYSTEMS LTD.

Tata Auto Comp Systems Limited, promoted by the Tata Group, provides products and services in the automotive industry to Indian and global customers, including Ashok Leyland, DaimlerChrysler, Fiat, Ford, General Motors, Honda, Hyundai, John Deere, Mahindra and Mahindra, Piaggio, Tata Motors, Toyota and VW. Tata Auto Comp Systems has own capabilities in automotive interiors and plastics, PV suspension systems, engineering, mobility tracking solutions, tooling and supply chain management. Tata Auto Comp Systems operates through offices in India, Germany, China, Japan and the US. The Company also has 15 joint ventures in partnership with leading companies from the global auto component industry. With 30 manufacturing facilities and six engineering centers, Tata Auto Comp Systems is rapidly growing its business in India and overseas.

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ABOUT TACO-IPD: Build technology, business process capabilities and leadership; to become global supplier in chosen areas of business, by 2015. TATA AUTOCOM SYSTEM LTD (INTERIOR AND PLASTIC DIVISION) is an ISO 9001 & QS 9000 and ISO 14001 and TS certified company having branches & customer all over Globe. TACO-IPD one of the leading injection molding company in India having turnover 850 cores. Who is subsidiary to TATA MOTORS – PCBU/CVBU, PUNE units, Pantanagar, Uttaranchal Units, and Sanand, Gujarat Units for Nano Small car? Major supplier TML (TATA MOTORS LTD), General Motors Ltd. (Halol, Gujarat and Talegaon, Pune), Mahindra Renault Pvt. Ltd., Mahindra & Mahindra, Nasik, Fait India automobiles Pvt. Ltd. Company manufactures plastic interior & exterior components for passenger vehicles comprising of Dashboard panels, Bumpers, Door panels, Consoles, Pillar, Package tray, & etc.

MISSION: Differentiation through Safety, Quality and Constant Innovation. VISION: Tata Autocomp will be amongst the Top Five Indian Auto-Component Companies, Delivering value to all Stakeholders

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VALUES: Integrity: - We must conduct our business fairly, with honesty and transparency. Everything we do must stand of public scrutiny Understanding: - We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve. Excellence: - We must constantly strive to achieve the highest possible standards in our day -to-day work and in the quality of the goods and services we provide. Unity: - We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Responsibility: - We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

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INVENTORY CONTROL

Introduction: Inventory control is function of planning and maintaining the right quality of material at right time. The stocking of large inventories does not guarantee necessarily. Inventory control aim at maintaining the optimum stock of goods at minimum cost to the company. As investment in inventory represent in many cases are one of the largest item of business assets hence, the proper management and control of the capital invested in the inventory is most desirable. It is the prime responsibilities of the financial executive to have a proper management and control over the amount of investment in the inventories so that it should not be unprofitable for the business.

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Inventory control has the following aspects:

1. Size of inventory maximum & minimum level. 2. Establishing timing schedules procedures and lot of size for new order. 3. Ascertaining minimum safety level. 4. Coordinating sales, production & inventory policies. 5. Providing proper storage facilities.

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OBJECTIVES OF INVETORY CONTROL A] OPERATING OBJECTIVES B] FINANCIAL OBJECTIVES

A] OPERATING OBJECTIVES 1. Availability of material: This first and the foremost of inventory control is to make all types of material available at all time whenever they are needed by the production department, so that the production many not be held up for want of material. 2. Minimizing the wastage: Inventory control is essential to minimize the wastage at all levels i.e. during its storage in the Warehouses or at work in the factory, normal wastage in other words uncontrollable should strictly be controlled. 3. Promotion of manufacturing efficiency: The manufacturing efficiency of the enterprises increase if right type of raw material is made available to the production department at right time 4. Better service to customer: In order to meet the demand of the customer it is the responsibility of the concern to produce sufficient stock of finished goods to executive the order received.

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5. Control of production level: The concern many decided to decrease the production level in favorable time and the inventory many be controlled accordingly. B] FINANCIAL OBJECTIVES 1. Economy in purchasing: Proper inventory control brings certain advantage and economics in purchasing the raw material.

2. Optimum investment and efficient use of capital: The financial objective is to have an optimum level of investment in inventories. There should neither be any deficiency of stock of raw material so as to hold up the production process not should there by ant excessive investment in the inventories so as to block the capital. 3. Reasonable price:Management should insure he supply of raw material at the reasonable the low price without sacrifice the quality of it.

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FORMS OF INVETORIES 1) Raw material:These represent inputs purchased and stored to be converted in to finished product in future by certain manufacturing process on the same.

2) Work in process:These represents semi-manufactured product which need further processing before they can be treated as finished products. 3) Finished Goods:These represent the finished product ready for sale in the market. 4) Stored and supplies:These represent that part of the inventory which does not become a part of the final product but are required for production process.

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Techniques of Inventory Management

Economic Order Quantity (EOQ)

It indicates that quantity which it fixes in such a way that the total variable cost of managing the inventory can be minimized. Such cost basically consists of two parts.

A)

Ordering cost:

This in turns consists of the cost associated with the administrative efforts connected with preparation of purchase requisition, purchase enquiries, comparative statement and handling of more number of bills and receipts B)

Carrying Cost:-

These refer to cost of carrying or holding the inventory; it is possible to fix the economic order quantity with the help of mathematical formula.

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Fixation of Inventory Level Fixation of various inventory levels facilities in initiating proper action in respect of the movement of various materials in time. The various levels which can be fixed are as below: A)

Maximum Level:

It indicates the level above which the actual stock should not exceed. If it exceeds. It may involve unnecessary blocking of funds in inventory. B)

Minimum Level:

It indicates the level below which the actual stock should not reduce. If it reduces, it may involve the risk of non-availability of material whenever it is required. C)

Reorder Level:

It indicated that level of material stock at which it is necessary to take the steps for procurement of further lots of material. This is the level falling in between the two existences of maximum and minimum level. D)

Danger Level:

This is the level fixed below minimum level. If the stock reaches this level, it indicates the need to take urgent action in respect of getting the supply.

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Calculation of various levels

1. Recorder Level: Maximum Lead Time X Maximum Uses. 2. Maximum Level: Recorder Level + Recorder Quantity – 9 (Minimum Uses X Minimum Lead Time) 3. Minimum Level: Recorder – (Normal uses X Normal Lead Time) 4. Average Level: Maximum level + Minimum Level 5. Danger Level: Normal Uses X Lead time for Emergency Purchases.

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Inventory Turn Over Inventory turnover indicates the ratio of materials consumed to the average Inventory Held. It is calculated bellow: Value of material consumed: Average Inventory Used. Value of material Consumed: Value of material consumed can be calculated as below. Opening stock + Purchases – Closing stock Average Inventory Held: Average inventory held can be calculated as below. Opening Stock + Closing Stock 2

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ALWAYS BETTER CONTROL (ABC Analysis) This technique assumes the basic principal if “Vital Few Trivial Many “while considering the inventory structure of any organization and is popularly known as “Always Better control”. It is an analytical method of inventory control which is aim at concentrating efforts in those areas where Attention is required most. It is usually observed that in practice only a few number of items of inventory or value of consumption while a very large number of items of inventory account for a very large number of items of inventory account of investment in inventory of value of consumption. This technique classifies various inventory items according to their importance e.g. 1. A Class consists of only a very small percentage of total number of items handled But important in nature. 2.

B Class items include relatively less important items.

3. C Class items consist of very large number of items which are less important. The importance of various items may be decided on the basis of following factors. I II III

Amount of investment. Value of material consumption. Critical nature of inventory items.

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For Example:

Class

No of Items

% of Total no. of Items

Value/ Consumption Rs.

A

300

6

5,60,000

70

B

1,500

30

1,60,000

20

3,200

64

80,000

10

100

8,00,000

100

C

TOTAL 5000

% of Total Value Consumption.

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For Example: BETTER CONTROL (ABC Analysis) at TATA AUTOCOMP.

Category (A+B category Parts) Total

SUPPLIER NAME

DESCRIPTION

Black 4 4 12%

MM 60 Rate

Red 21 21 64%

Oct 17 MRP

Yellow 3 3 9%

Net Sept MRP

Green 2 2 6%

Per Day Req

Blue 3 3 9%

Total 33 33 100%

Stock in Lead time No. of in days days

17.06 Lac

26.59 Lac

1705874.62

Norm Value

2659124.5

Opening stk

NET SHORT

%Penetra Color tion

Call up to M/s SAPL

Inventory value

ABC Category

Project

SAP CODE

MCM

N2063062 SAPL

MCM APPLIQUE-FRT S/D T/PNL LIQ PLTNM LH

210.19

4200

4620

231

1

3

291323.34

854

532

62%

Yellow

532

179502.26

A

MCM

N2063064 SAPL

MCM APPLIQUE-FRT S/D T/PNL LIQ PLTNM RH

210.19

4200

4620

231

1

3

291323.34

620

766

45%

Red

766

130317.80

A

MCM

N2063067 SAPL

MCM APPLIQUE-FRT S/D T/PNL HERB BEIGE LH

198.86

2800

3080

154

1

3

183746.64

168

756

18%

Red

756

33408.48

A

MCM

N2063068 SAPL

MCM APPLIQUE-FRT S/D T/PNL HERB BEIGE RH

198.86

2800

3080

154

1

3

183746.64

70

854

8%

Black

854

13920.20

A

MCM

D0701463 Avesta

MCM NB RR DR WEATHER STRIP LH 1 LIP

70.00

1500

1650

83

2

3

115500.00

300

1350

18%

Red

1350

21000.00

A

MCM

D0701347 Trimoorty

FRONT DOOR CRUSH PAD LH

33.22

10000

11000

550

1

3

73084.00

1620

580

74%

Green

580

53816.40

B

MCM

F2062002 Mayur

M300 BOOT ASM-PARK BRK LVR

53.17

10000

11000

550

1

3

116974.00

220

1980

10%

Black

1980

11697.40

B

MCM

F2061126 Maan plant

MCM FRT S/D MAP POCKET RH (L) JETBLACK

95.12

8700

9570

479

1

3

136544.76

317

1119

22%

Red

1119

30153.04

B

MCM

F2061125 Maan plant

MCM FRT S/D MAP POCKET LH (L) JETBLACK

95.12

8700

9570

479

1

3

136544.76

543

893

38%

Red

893

51650.16

B

MCM

D0701538G GMI

MCM SWITCH BEZEL(L) FR LH 4PIN+DL(S) JB

0.10

2000

2200

110

2

3

55.00

555

-5

101%

Blue

-5

55.50

C

MCM

D0701539G GMI

MCM SWITCH BEZEL (L) FR RH 1 PIN(S) JB

0.10

2000

2200

110

2

3

55.00

1120

-570

204%

Blue

-570

112.00

C

MCM

D0701546G GMI

MCM SWITCH BEZEL (L) FR LH 1 PIN(S) JB

0.10

60

66

3

2

3

1.65

16

1

97%

Green

1

1.60

C

MCM

D0701547G GMI

MCM SWITCH BEZEL(L) FR RH 4PIN+DL(S) JB

0.10

60

66

3

2

3

1.65

12

5

73%

Green

5

1.20

C

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Policies of control for A,B and C categories 1.

Degree of Control.

A items as discussed earlier account for bulk of the annual uses value and hence must attract our almost attention up to date and accurate records should be maintained for these items. The inventory should be kept at minimum by placing open orders. B items should be brought under normal control made possible by good record keeping and periodic attention. Little control is required for C items. 2.

Stock Records:

Detail records for good ordered, received, issued and goods on hand should be maintained for ‘A ‘category items. Tight control and accurate records are also required for scrap, loss and rejection of such items. No such detailed records are necessary. Any routine method that ensures good and accurate record is enough for B category of items. 3.

Safety stock:

Safety stock should be less for a items. The responsibility of stock outs can considerable be cut down by closer forecasting ,frequent reviewing and more progressing items on the contrary, should have sufficient safety stock to eliminate progressing and to reduce the probability of stock out.

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Advantages of ABC Analysis. A. A close and strict control is facilitated. On the most important items which constitute a major portion of overall inventory valuation or over all material consumption and due to this cost associated with inventories may be reduced. B. The investment in inventory can be regulated in a proper manner and utilization of the available funds can be assured. C. Help to maintain accurate stock record.

Steps in ABC Analysis:

1)

Calculate use by value (Uses value = unit price X use volume)

2)

Shorting the list into item by order of value descending.

3)

Calculate percentage that each item contributes to total value.

4)

Drive a cumulative percentage of value.

5)

Evaluate cumulative list and identify appropriate break points.

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Economic Lot Size: Investment in inventories largely depends upon the quantities in which they are ordered for replenishment order in larger lots infrequently reduces administrative works but makes investment in stock large. Ordering small lots frequently keeps investment low but increases – administrative work the reasons are obvious. Small lots imply high order frequency more purchase requisitions need to be raised, more frequently materials require receiving and inspected, more frequently materials require to received and inspected, more progressing to be done, more posting needs to be done, more bills require to be handled. All these increase activities call for more staff and higher administrative costs. A rational approaches, therefore is needed to fix the ordered quantities of the items Inventory models under the quantitative techniques mainly deals with this economics lot size aspect of inventory control.

Economic Lot Size of an item Depends on following: I

Possibilities of placing repeat orders.

II

Nature of Demand.

III

Availability of discounts at different order quantities.

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Lead Time Analysis Lead time is the time that elapses between the realizations of the need for the item until the fulfillment of the need. It is, therefore, total time necessary to replenish stock of an item.

Elements of Lead Time

1. Time required by indenting department to convey requirements to purchase. Materials may be required as routine replenishments or for a specific use. Purchase indents for regular items are generally raised by the stores as soon as they are stock falls to bellow a pre-fixed level. Purchase indents for non-stock items are generally initiated by the user department. The duration of this element depends on the channel through which a purchased indent is made to pass. Purchased indents of C items may be initiated and sent directly to purchase department by the storekeeper. 2. Time required by purchase department to convert a purchase indent into a purchase order. When indent is received, the purchase department invites quotations. The request for quotations, which is in various form and shapes is mailed to certain selected vendors, samples are tested to a certain quality and terms of delivery are locked into, such procedure enables the purchase department to select a supplier, who can supply to goods of right quality, at the right price, at the right time.

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3. Transit time for goods to reach buyers works: The transit time which depends on two major factors, (a) The distance and (b) Mode of transports has the greatest bearing on the lead time of them. Transportation time is less if the vendor is located nearby. Transit time includes time required by buyer’s traffic department to collect goods form transport’s good owns whenever necessary.

4. Time required by the receiving department to inward good. Incoming goods are received and verified for quantity by the receiving department. The department verifies the making of the packages before accepting the delivery, unpacks and quantity actually received trolley before inspection and prepares Goods Receipt Report(GRR).This may be different in different organization Like GIN(Goods Inward Note),GRIR(Goods Receipt and Inspection Report),GRN(Goods receipt Note) like that. 5. Time required by stores department to take goods into stock and update stock records. The time of these elements includes time to: a) Verify the quantity received against Goods Receipt Report. b) Verify receipt quantity on stock card and work out the balance. c) Arrange for storage of materials in to the respective bins or trolley.

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Major Part of Lead Time Lead –time of an item can be divided into two parts: Internally lead-time and External lead-time. Internal Lead Time: Also called buyers lead time, is the sum of surviving time and receiving time. The servicing time includes time required by the buyer to call quotations, compare quotations visit vendors, negotiate terms, obtain sanction and receiving time is made up of the time required to increate and inspect goods, move them between stores, deposit them into appropriate stores and make entries stock cards. External Lead time: Also called as processing time or suppliers lead-time is made up of administrative and manufacturing and delivery times required by the supplier. External lead-time therefore is the time required to get the items from selected supplier. Control Lead Time: Lead time of an item has a major influence on investment in Inventories. The longer the Lead Time, Higher is the working as well as the Safety Stock. Therefore the management must take a deliberate & determined effort to reduce Lead time both External & Internal.

Internal Lead Time of an item can be reduced by the Following actions of management.  A selectively delegating power.  B Better paper work procedures.  C Fixed target for individual activities of Lead-time.

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External Lead time of an item can be reduced by Following actions of management: A Developing local supplier.  B Negotiating annual contracts with staged Deliveries.  C Making suppliers carry Inventory at their Plants.

How Lead time information is utilized for Inventory Control? Under ideal situation the fresh supply shall be received as soon as possible the stock of an item reaches to zero. This is possible only if, I The replenishment action at the right time. II There is no increase in demand during the Lead time. III There is no delay getting the suppliers.

A trigger point called recorder level satisfies the first condition. Trigger is that level of stock at which the store-keeper is authorized to raise an indent for replenishment of an item. Re-order Level under ideal situation therefore equals “Lead-time” consumption.

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Replenishment System A replenishment system is means to decide “ when to order” & “how much to order” The Former represents time of ordering & the latter represents quantity to order the time of ordering can either be according to “ Stock Level “ It can be according to Prefixed scale”

Fixed Order Quantity System Fixed Oder system is also called fixed order system. Characteristics of the system are:I Re-order quantity is always the same, which is usually Economic Order Quantity. II Replenishment action is initiated when the stock on hand sufficient to meet demand during the Lead-time. III Reorder level equals Safety Stock plus average consumption during Lead-time.

Operation System. The system is very simple & easy to operate. The Daily issue of item posted on each Stock Register & stock balance is worked out & which is compared with its Re-order Level.

Essentials of this System:A Incoming materials & material return from shops must been posted for good inward Note & material Return Notes. B Gate-Entry of the challans. C Item should be received In correct quantities. 33

D Material offered to Q A Dept. for Inspection. E OK material is kept on Respective locations. F The balance on the stock cards should be periodically tallied with the Physical Stock. G Entries must be made on correct card. H Individual issues & receipts should be posted.

Disadvantage of Fixed Order Quantity System. A replenishment orders always at irregular which may be inconvenient to order supplier. B In case of item with the long Lead time. More the one order pending with the supplier & there is every possibility of that they may be feel of pending order at one time.

Two Bin Systems. Two bins System which operators on the principal of re-order level physically segregates on the entire stocks of any Item into bins. The second bin contain stocks equivalent to Re-order level & is demand to be sufficient to satisfy probable demand during the period necessary for replenishment. The first bins contain enough stock to satisfy the demand between material & the placing next Order. To start with stock from the first bin is consumed. The Empty of first bin indicate that stock has a reach the order level & the same is to be replenished stock is in the seconds bins then utilized until receipt of next supply.

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FIRST IN FIRST OUT

(FIFO METHOD)

First in first out method is adopted in the TATA Auto comp System Ltd (Interiors & Plastic Division) for inventory control. It means first material purchases are preferred for first take for production. Plastic Molding, Assembly & painting is the nature of the business of Taco –IPD Ltd. As all raw materials are received in batches & 80% raw materials are having shelf life the best suitable method can be used is FIFO.

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SUGGESTIONS:

Over viewing the whole inventory control system of a firm, following suggestion can be made for better inventory control The overall situation is that the firm has adopted F I F O (First In First Out) method for inventory. I would like to suggest that they might continue with the adaptation of F I F O method only because they are dealing with the items with expiry dates. In addition to that they can go for batch management.

Raising working capital they manage the working capital between debtors & creditors by giving stipulated period of credit. I would like to suggest raising the working capital finance. They may raise the working capital finance; by bank credit / overdraft facility. This will helpful for the development of the firm.

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CONCLUSION:

The overall performance of the organization seems to be satisfactory. The entire department related with material are very co-operative and help full. In this period whatever data is required they have given me for successfully completion of my project. Inventory control is the most productive area to rebuild the company’s profit. The firm has adopted the inventory control method i.e. F I F O. It is one of the best methods followed in most of the organizations. By this method they can control the inventories & purchases of raw material. This method also followed in FG stores and seriously followed in paint & Bop stores. Paint and chemical has shelf life so FIFO is the necessity to be maintained here. For rising of working capital they manage between debtors & creditors. This method is also good but the bank overdraft and etc. methods of rising of working capital also better helpful in future.

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BIBLIOGRAPHY:

- www.google.co.in - www.inventory-management-system.com - www.inventorybase.com - Inventory Control & management - Distribution & Logistics Management – Mr. Madhup Gandhi

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