Name: Roll no: Section: Assignment: Submitted to:

Wasif Ammar 11014220-093

H
Process of Inventory Maintenance of CNG Station

Sir aisa! I"#a!

MBA (3.5 years) 2nd Semester E ening session

As!ra"ia #etroleum $N%

&'ner and #artners:
$%&M'ta%ir $a!eem $%&)'%air As%raf $%& a-a, $a!eem Amir $%'rs%i, Mir/a

Address:
As%rafia Petro!e'm CNG( *-+m( Pin,i Si,e( $ot S%a%an( .a%-a!i( G&0&.oa,( G'1ran-a!a&

Manager &(erations and Admin: A%me, $%'rs%i, Mir/a

$N% is a c!eaner a!ternative f'e! for a'tomo#i!es an, is economica! in com2arison to 2etro!3,iese!& It is a safe f'e! as it is !i4%ter t%an air an, in case of !ea+a4e3s2i!!( it 4ets ,is2erse, into t%e atmos2%ere -it%o't inc'rrin4 %arm to t%e environment& CNG %as #ecome t%e most so'4%t after a!ternative f'e! in Pa+istan #eca'se of t%e s'rmo'ntin4 2etro! an, ,iese! 2rices&

)ision
0o e5ce! in ,e!iverin4 va!'e to c'stomers as an innovative an, ,ynamic ener4y com2any t%at 4ets to t%e f't're first&

Mission
We are committe, to !ea,ers%i2 in ener4y mar+et t%ro'4% com2etitive a,vanta4e in 2rovi,in4 t%e %i4%est "'a!ity 2etro!e'm 2ro,'cts an, services to o'r c'stomers( #ase, on6 Professiona!!y traine,( %i4% "'a!ity( motivate, -or+force( -or+in4 as a team in an environment( -%ic% reco4ni/es an, re-ar,s 2erformance( innovation an, creativity( an, 2rovi,es for 2ersona! 4ro-t% an, ,eve!o2ment 7o-est cost o2erations an, ass're, access to !on4-term an, cost effective s'22!y so'rces S'staine, 4ro-t% in earnin4s in rea! terms Hi4%!y et%ica!( safe environment frien,!y an, socia!!y res2onsi#!e #'siness 2ractices

#urc!ase *n entory:
Main!y Gas 8iese! Maintenance 9"'i2ments Misce!!aneo's

#urc!ase #rocess
0%e 2'rc%ase 2rocess of As%rafia Petro!e'm CNG is a "'ite sim2!e one& P'rc%asin4 is ,one from main s'22!y 4as 2i2e!ine of SNGP7 :S'i Nort%ern Gas Pi2e!ine;& P'rc%ase is ,one on cre,it #asis an, #i!! is 2ai, at t%e en, of t%e mont%& In a,,ition to t%is sec'rity ,e2osit is ,e2osite, to SNGP7( #y -%ic% 2'rc%ase !imit of As%rafia CNG is ,eci,e,& 0%e 2'rc%ase 2rocess of 4as ,e2en,s on t%e cons'm2tion of 4as #y t%e CNG station& 0%ey %ave to 2ay for t%e cons'm2tion of 4as accor,in4 to t%e rea,in4 t%eir meter s%o-s&

*n entory Storage and +uantity Record

*n entory Storage 8'e to t%e nat're of #'siness t%ey cannot store t%eir inventory& Inventory stora4e main!y inc!',es Gas& 0%e Government of Pa+istan ,oes not a!!o- t%e stora4e of Gas as it is rea!!y ris+y an, ,an4ero's& A !itt!e f!a- can ca'se %a/ar,o's e52!osions& 0%ey cons'me 4as from main 2i2e!ine -%ic% is com2resse, an, is t%en ,is2ense, t%ro'4% stora4e cy!in,ers& 0%is re,'ces c%ances of any im2'rity t%at co'!, %ave #een ,ra2e,& Stora4e cy!in,ers a!so %e!2 to maintain t%e 2ress're as -e!!&

+uantity Record 0%e "'antity recor, of As%rafia CNG is maintaine, #y fo!!o-in4 activities6 Main SNGP7 Meter .ea,in4s 8is2enser Meter .ea,in4s 8ai!y sa!es re2ort 8ai!y Com2'ter recor,

<y t%ese t%ey maintain an, +ee2 '2 to ,ate "'antity recor, an, t%ey can see t%eir ,ai!y sa!es&

Met!od ,sed (-*-&. /*-&. 0eig!ted A erage)

0%ere are 's'a!!y t%ree met%o,s invo!ve, in ca!c'!ation for inventory& 0%ese t%ree met%o,s 's'a!!y 'se, are6 I = Met%o, : irst In irst ='t; 6 An asset-mana4ement an, va!'ation met%o, in -%ic% t%e assets 2ro,'ce, or ac"'ire, first are so!,( 'se, or ,is2ose, of first& I = may #e 'se, #y a in,ivi,'a! or a cor2oration& 7I = Met%o, :7ast In irst ='t; 6 An asset-mana4ement an, va!'ation met%o, t%at ass'mes t%at assets 2ro,'ce, or ac"'ire, !ast are t%e ones t%at are 'se,( so!, or ,is2ose, of first& Wei4%te, Avera4e Met%o, 6 An avera4e in -%ic% eac% "'antity to #e avera4e, is assi4ne, a -ei4%t& 0%ese -ei4%tin4s ,etermine t%e re!ative im2ortance of eac% "'antity on t%e avera4e& Wei4%tin4s are t%e e"'iva!ent of %avin4 t%at many !i+e items -it% t%e same va!'e invo!ve, in t%e avera4e& 0%e met%o, 2referre, to #e 'se, #y ASH.A IA CNG is t%e I = met%o,& 0%e reason for a22!yin4 I = met%o, is t%at t%e 4as -%ic% comes in first is com2resse, o't first #eca'se of -%ic% it %as to #e 'se, first& So I = is t%e met%o, t%at s'its t%em to #e 'se,& Ho-ever( -%en rates of CNG c%an4e accor,in4 to Government anno'ncin4s( t%ey 2refer t%e Wei4%te, Avera4e Met%o, to #e im2!ie,& It is #eca'se t%e rate c%an4in4 of CNG( affects t%e -%o!e 2roce,'re ratin4s& 0%e 4as store, on 2revio's rate %as to #e converte, accor,in4!y of ne- rate #eca'se inventory is never /ero( -%ic% is very time cons'min4& 0%'s( to avoi, t%e conversion of -%o!e met%o, into a ne- one( -ei4%te, avera4e met%o, is 2referre,( 4ivin4 avera4e res'!ts& So most!y I = met%o, is im2!ie, an, -%en rate c%an4es t%en Wei4%te, Avera4e Met%o, is 2referre,&

$oding System
As%rafia CNG ,oesn>t 'se any +in, of a't%entic Co,in4 System for its 2ro,'ct& 0%ey %ave a 2rice t%at is fi5e, as t%ey offer on!y one 2ro,'ct& i-e& CNG :Com2resse, Nat'ra! Gas;&