VISVESVARAYA TECHNOLOGICAL

UNIVERSITY
POST GRADUATE STUDIES, MYSURU

Synopsis On

Inventory Management of the

WIPRO ENTERPRISES (P) LIMITED

SUBMITTED BY
MANJESHGOWDA A N
USN: 4VZ14MBA44
2nd YEAR MBA,
VTU PG STUDIES, MYSORE

INTERNAL GUIDE:
Mr SHIVA KUMAR
ASSISTANT PROFESSOR
VTU P.G STUDIES
Mysuru

EXTERNAL GUIDE:
Mr BHOOPAL KRISHNA URS
HR MANAGER
WIPRO ENTERPRISES (P) LTD
Mysuru

INTRODUCTION
Wipro Consumer Care and Lighting, a part of Wipro Enterprises (P) Limited,
is among the fastest growing FMCG businesses in India. Wipro Consumer Cares
businesses include Personal wash products, toiletries, personal care products, baby
care products, wellness products, electrical wire devices, Domestic and Commercial
lighting and Modular office furniture. It has a strong brand presence with significant
market share across segments in India, South East Asia and the Middle East.
The acquisition of Unza, Yardley and LD Waxsons has given Wipro Consumer
Care a global footprint. Its key brands include Santoor (a Toilet soap brand with
extensions in personal care), Chandrika, Glucovita Glucose powder, Northwest
Switches, Enchanteur (a female toiletry brand), Romano (a male toiletry brand), Bio
Essence (a skincare brand) and Yardley (a luxury toiletry brand).
Wipro Infrastructure Engineering specializes in design & manufacture of
custom built Hydraulic Cylinders (Double Acting, Single Acting and Telescopic),
Actuators and Precision Engineered Components for infrastructure and related
industries such as Construction & Earthmoving, Material/Cargo Handling and
Forestry, Truck Hydraulic, Farm & Agriculture, Mining, and Aerospace & Defence.
Wipro Infrastructure Engineering is the largest independent hydraulic cylinder
manufacturer in the world, delivering around 1.5 million cylinders to OEMs in
different geographies. Apart from the above it also has a platform offering end-to-end
solutions in Water and Wastewater treatment for industrial applications, catering to
industries such as Oil & Gas, Steel, Power, Pharma & Chemical to name a few.
Wipro Enterprises has two joint ventures namely:
1. Wipro GE Healthcare Private Limited
2. Wipro Kawasaki Precision Machinery Private Limited

Inventory Management:Inventory management is primarily about specifying the size and placement of
stocked goods. Inventory management is required at different locations within a
facility or within multiple locations of a supply network to protect the regular and
planned course of production against the random disturbance of running out of
materials or goods. The scope of inventory management also concerns the fine lines
between replenishment lead-time, carrying costs of inventory, asset management,
inventory forecasting, inventory valuation, inventory visibility, future inventory price
forecasting, physical inventory, available physical space for inventory, quality
management, replenishment, returns and defective goods and demand forecasting.
Balancing these competing requirements leads to optimal inventory levels, which is
an on-going process as the business needs shift and react to the wider environment.

Literature Review:Success of any industrial undertaking depends upon the 6 ms

1) Money 2) Manpower 3) Machine 4) Market 5) Material
6) Management
material are pivotal importance not less than any other ms problems have their root
in material affects the efficiency of all men, machine, money &marketing decisions of
the firms and thus becomes the grave concern of management at all levels. If there
were too much of material problems like ideal funds lied up in excessive inventory
storage and obsolesces difficulties market pressures would arise. Thus, the important
of inventory management is realised.
A number of studies have been done in the field of inventory management by
various researchers. Some of them are given below;
1. Author :-Bern at de William year 2008
this study tells that the main focus of inventory management is on transportation and
warehousing. The decisions taken by management depends on the traditional methods
of inventory control models .The traditional methods of inventory management is how
much useful in these days the author tells about it is so much expensive but the
managing the inventory is most important work for any manufacturing unit.
2.

Author :- Jon schreibfeder 1992

He said that it is easy to turn cash into inventory, he challenge is to turn inventory
back into cash. In early 1990s many distributor recognize that they needed help
controlling and managing their largest asset inventory. In response to this need several
companies developed comprehensive inventory management modules and systems,
these new package may include new features designed to help distributors effectively
managed warehouse stock but after implementing this many distributors not feel that
they have gained controls of their inventory
3.

Author:- Wolf Bagby, Managing inventory

In this study Mr, W. Bagby explains that by managing the inventory it becomes easier
for the organisation to meet profit goals, shorter the cash cycle, avoid inventory
shortage, avoid excessive carrying costs for unused inventory, and improve
profitability by decreasing cash conversion and adopt JIT system. According to this
study, companies need to get smart about inventory.

4.

Author:- D.Hoopman April 7,2003

(Article from inventory planning and optimization)
In this article he said that inventory optimization recognize that different
industry have different inventory profiles and requirements. Research has indicated
that solutions are priced in a larger range from tens of thousands of dollars to millions
of dollars. In this niche market sector price is definitely not an indicator of the quality
of solution, ROI and usability.

5.

Author:-Asfaque Ahmed October 12,2004

(Article from master requirement planning and master production scheduling)
He said that most of the manufacturing company vendors have planning and
scheduling product, which assume either infinite production capacity for calculating
quantities of raw material and work in progress (WIP) requirements or infinite
quantities of raw material and WIP materials for calculating production capacity.
There are many problems with this approach and how to avoid these by making sure
that the product you are buying indeed takes into account finite quantities of required
materials as well as finite capacities of work canters in your manufacturing facilities.

PROBLEM STATEMENT
Issue related to the current system in the company under inventory
management systems like safety stock, which leads to scare for stock at emergency if
safety stock properly not specified.
In addition, all the financial implication related to inventory management of a
particular department (to be assigned by the company) and all the financial
implications related to it. Especially the cost related to it.

OBJECTIVES:
Primary objective:To analyse that the existing inventory management system in Wipro
Enterprises (P) Limited.
Secondary objective:1. To verify the mismatch between the order and receipt of mate
2. To find out the impact of inventory on working capital.
3. To find out minimum stock level, how much stock should be order.
4. To find out the effect of proper inventory management in pricing of the
goods.

METHODOLOGY:
The methodology in the study of inventory management includes the collection of
primary and secondary data through the different methods of each.

Data will be collected from existing records of the company. Both present and
past records were used.

Secondary data is the information that already existing somewhere, which has
collected to serve another purpose. In this study, secondary data has been
collected from the following sources:
o Company Records and Reports.
o Newspapers/Magazines.
o Various Websites.

SCOPE
Area Covered:
The study will be focused on the stock levels and the costing related to inventory
management under the department (to be assigned by company).
Period of Study:
The study will be carried out for two month in the year of 2016 during which the
researcher is going to study the companys relationship with dealers and distributers
and obtain their view.
Technique to be used:
Required data for research will be collected from the store department and personal
interview if needed.
Thus the study on inventory management

of a particular department at Wipro

Enterprise (P) Limited will give knowledge about the method of inventory
management and how it affects the pricing of the goods. This research will also help
in understanding the retail business in better way.