Contents

0.1 Executive Summary .............................................................................................................................. 2

0.2 Objective of the study ........................................................................................................................... 3
2.1 Scope of the study.............................................................................................................................. 3
2.2 Methodology ...................................................................................................................................... 3
2.2.1 Primary data............................................................................................................................... 3
2.2.2 Secondary data ........................................................................................................................... 3
2.3 Limitation .......................................................................................................................................... 3
0.3 Industry profile ..................................................................................................................................... 3
3.1 Vision.................................................................................................................................................. 4
0.4 Production section ................................................................................................................................. 4
4.1 Knitting .............................................................................................................................................. 4
4.2 Dyeing ................................................................................................................................................ 5
4.3 Finishing............................................................................................................................................. 5
4.4 Garments ........................................................................................................................................... 5
4.5 Embroidery........................................................................................................................................ 5
4.6 Printing .............................................................................................................................................. 5
0.5 Inventory control .................................................................................................................................. 6
5.1 Organizational Production Department Structure ........................................................................ 6
5.1.1 Merchandising Department ...................................................................................................... 7
5.2 Inventory cost .................................................................................................................................... 7
5.2.1 Ordering cost .............................................................................................................................. 7
5.2.2 Carrying cost .............................................................................................................................. 9
5.2.3 Safety Stock ................................................................................................................................ 9
0.6 Conclusion ............................................................................................................................................. 9
References .................................................................................................................................................. 10
0.1 Executive Summary
Inventory control isn't just a concern for companies that deal in finished goods, such as retailers
and wholesalers. It's also critical for manufacturers, who maintain three types of inventory: raw
materials, works in process and finished goods. Not having enough inventory means its run the
risk of losing sales, while having too much inventory is costly in more ways than one. That's why
having an efficient inventory control system is so important. Modern inventory control systems
often rely upon barcodes and radio-frequency identification (RFID) tags to provide automatic
identification of inventory objects. Inventory objects could include any kind of physical asset:
merchandise, consumables, fixed assets, circulating tools, library books, or capital equipment. To
record an inventory transaction, the system uses a barcode scanner or RFID reader to automatically
identify the inventory object, and then collects additional information from the operators via fixed
terminals (workstations), or mobile computers. Economy of Bangladesh is largely dependent on
the garments sector. It has attracted worldwide attention in the sector of garments. Garments
accounts for a nominal 76% of the country’s exports. International quality compliances are made
at every stage. Reedisha Knitext is 100% export oriented composite knit textile unit established
with the commitment to cater the global needs for knit and casual clothing. Reedisha fabrics and
RMG are performed on specialized and highly technologically advanced knitting. They have their
own dyeing department. Reedisha Knitext Limited was established with the objectives and vision
to prevail at par with world class of textiles precisely because of Bangladesh’s position as a major
textile exporting country. Inventory is a central process in manufacturing Unit. This inventory is
concerns to all departments. So managing of inventory is having wide scope in manufacturing
company.
0.2 Objective of the study
 To find out the composition of the inventory.
 To study the inventory control techniques of the company.

2.1 Scope of the study

Inventory management being a very important concept in all the companies having a void coverage
often calls for the managerial attention. In the modern time inventory management has become
integral part of the all companies. So all the firms gives special importance for inventory
management. The major objective of the study is to examine the effectiveness of inventory
controlling system adopted by Reedisha Kintex Ltd. Co. The study mainly focuses on the
techniques used by the company to control the inventory.

2.2 Methodology
2.2.1 Primary data

The data is collected from the respected person of the company. The communication was informal
in nature.

2.2.2 Secondary data

The data was analyzed from the balance sheet, various tables’ graphs, charts, referred some of the
company’s report.

2.3 Limitation

Because of the safety issues merchandizing/purchase department couldn’t give us all the data that
we wanted. Only estimated data is given to us for the report making purpose.

0.3 Industry profile

Group Reedisha is one of the leading and fast growing full composite knit textile and garments
industries in Bangladesh, having its own spinning, knitting, dyeing, fabric finishing, printing,
embroidery, garments cutting and sewing units. Reedisha’s specialty in novelty knit fabric e.g. low
GSM to medium and high GSM PIMA, VISCOSE, CUPRO, MODAL, beside regular cotton,
organic & BCI fabric based Tank-top, T Shirt, Polo Shirt, Sweat Shirt, Legging, etc. Reedisha
Knitext is 100% export oriented composite knit textile unit established with the commitment to
cater the global needs for knit and casual clothing. The project has employed the state-of –art
technology in its every piece of investments. Aiming at the context of the changing global demand
pattern, international environment on trade specially the withdrawal of quota system and GSP and
the availability of craftsmanship in the country, the project encompassed the knitting, Dyeing and
processing of fabrics and Ready-made Garments production to be available from one stop service.
The project ensures sampling to supply of finished RMG all from one source, ensuring in time
delivery and complying quality. The machines and equipment’s setup for the projects are procured
from world-class brand, names renowned for their high quality, product integrity and dependable
production.

Reedisha Knitex Limited has been established with the objective and vision to cater the needs of
21st century of worldwide knit apparels market from one stop service being committed to On-time
Delivery, Short Lead Time, Quality Assurance, Price Affordability and Social Accountability.
Reedisha Knitex Limited already achieved Worldwide Responsible Apparels Production (WRAP)
certificate in April’2007.

Reedisha Knitex Limited is equipped with the most advanced textile technology from the US,
Europe and Japan. This built-in composition is to ensure quality in producing legit textiles for
onward manufacturing of ready-to-wear knit garments and knit fabrics-all under one roof.

Reedisha Knitex Limited was established with the objectives and vision to prevail at par with
world class of textiles precisely because of Bangladesh’s position as a major textile exporting
country beyond the MFA regime from 2005. That is why we have not only ensured the best ever
technology, but also groomed a band of highly skilled, professionally dedicated industrial
manpower and management team to excel in tune with our technology. Altogether, we are
equipped to ensure quality production, on-time delivery, price of affordability, all regulatory
compliances and social accountability.

3.1 Vision

Reedisha want to be a force to reckon with in the burgeoning textile industry of Bangladesh. Their
vision is to make their presence felt both at home and abroad. Reedisha envision of landing the
merchandise of our apparel to distant ports. By integrating quality and ethics of business with the
state-of-the-art machine and highly skilled workers.

0.4 Production section

4.1 Knitting

Reedisha Knitex Ltd is one of the world class pioneers in the knitting and processing of stretch
fabrics for use in manufacturing sportswear, active wear, performance wear, body waer, intimate
apparel and swim wear. Reedisha’s fabrics and RMG are performed on specialized and highly
technologically advanced knitting, Dyeing and finished machineries. The processing of fabrics
that contains stretch yarns require precision technology, special conditioning and consistently
clean machinery and constant maintenance over and above the standards of the units.

4.2 Dyeing

The process of dyeing to produce the most reliable color quality and steadfastness is a very
sensitive and sophisticated process on any fabrics. Especially the stretch fabrics requires the level
of sophistication in the dyeing process. The quality of our dyeing equipment coupled with the high
precision skill of our dyeing plant operators have enabled with the high precision skill of our
dyeing plant operators have enabled us to excel in this very complex process. To meet the
worldwide demand trend unit has the combination of tubular and open width fabrics processing.

4.3 Finishing

Reedisha Kintex Limited has amassed a highly successful prows of finishing based on process
scientific methods, collective experience and accumulated expertise, because finishing is one of
the most critical stages in the final performance of fabrics. Their latest state-of-the-art finishing
technology is constantly updated to meet the fabric specific requirements for quality,
standardization and performance.

4.4 Garments

Reedisha’s acquired mileage is ensured from the fact that its consumption of fabrics comes entirely
from its own making. Good fabrics help tailoring good apparel for the demanding buyers of the
world. Reedisha’s range of apparel includes T-shit, Polo shirt, Ladies wear, sportswear, Tank tops
and children’s wear, Sacket, Trousers etc. The support for printing, embroidery and washing are
organized from associated projects.

4.5 Embroidery

The embroidery section of Reedisha Kintex limited has two set 9 colors embroidery machine in
20 head each.

4.6 Printing

The printing unit of Reedisha Knitex limited has the strength to produce various types of garments
printings like Pigment Print, Rubber Print, Discharge Print, Plastisol Print, High Density Print,
Flock Print, Foil Print, Puff Print, Crack Print, Gel Print, Glitter Print, Sticker Print, Stone Setting,
Metallic Print etc.
0.5 Inventory control
Inventory is always dynamic. Inventory management requires constant and careful evaluation of
external and internal factors and control through planning and review. Inventory management is
the supervision of non-capitalized assets (inventory) and stock items. It track goods through the
entire supply chain or the portion of it a business operates in. That covers everything from
production to retail, warehousing to shipping, and all the movements of stock and parts between.
It is the ongoing process of moving parts and products into and out of a company’s location(s).
Companies manage their inventory on a daily basis as they place new orders for products and ship
orders out to customers.

Besides Raw materials and finished goods, organizations also hold inventories of spare parts to
service the products. Defective products, defective parts and scrap also forms a part of inventory
as long as these items are inventoried in the books of the company and have economic value. There
are diverse types of inventory management technology and systems, designed to properly sort,
control and act upon information with a company’s inventory. There is two dominant types of
inventory management technologies include manual and automated systems. But, there are
additional levels of inventory management in between.

Reedisha Kintex ltd. follows two types of system to maintain their inventory. First, they record
their all inventory data in excel sheet in detail. Where they keep record initially. Second, they use
a software for maintaining their inventory and to keep all the record properly in detail. After a
certain period they cross matched all the data to check that everything is properly recorded.

5.1 Organizational Production Department Structure

Merchandising
Department Head

Production Assistant
General Manager

Supply chain Production Quality Assurance Machine dept.

Management Head department Head Head head

Store Production Assistant Q.A Machine

Supervisor Supervisor Operators

Subordinate Workers Helpers

Members
5.1.1 Merchandising Department

All the works that are included in inventory are mainly managed by merchandising department.
Reedisha knitex produce garments product. Basically they have their own factory for doing all the
other stuff they needed like knitting, dyeing etc. their only one inventory needed to buy is cotton.
They have their own inventory holding place to keep all the raw materials so there is no holding
cost. And they did all their buying transaction by LC. For buying raw materials from supplier they
received PI (Proforma Invoice) where suppliers send their cost with transportation cost included.

Reedisha Knitex placed their order based on their buyers order. After receiving the order from the
buyer they decide how much raw materials they needed to buy for their production. Buyer opened
a LC account for the payment of their product.

After receiving the order by confirmation Reedisha opened back to back LC for the payment of
their suppliers. They received PI from their supplier and confirmed their order and the payment is
secured by those back to back LC. In the PI suppliers showed their cost chart for the specific raw
materials. All those raw materials are needed to buy suppliers show their product cost with
transportation cost included.

Form this Proforma Invoice Reedisha decide to which suppliers they will buy their raw materials.
And they opened Back to back LC.

5.2 Inventory cost

Inventory procurement, storage and management is associated with huge costs associated with
each these functions. Inventory costs are the costs related to storing and maintaining
its inventory over a certain period of time.

5.2.1 Ordering cost

Ordering cost is mainly depend on per order of their product. For the different types of product
they have different types of ordering cost. Transportation cost is also included with the ordering
cost. When suppliers send their price chart for the require raw materials it is their responsibility to
reach the material properly.
 Short sleeve polo shirt 73000 pcs $145,270

Accessories 8%

Main label 8%

Size label 8%

Care label 0%

Sewing thread color 0%

Sewing thread color (white) 0%

Sewing thread filament 0%

Interlining 10%

Hand tag+ carton label+ Dispatch label 10%

Twill tape 8%

Button 5%

Tag pin (5000pcs=1box) 8%

Gum tape roll (30ydays=1Roll) 0%

Round sticker orange color 0%

Protect sticker & carton sticker 0%

Reedisha followed Just In Time process to order their raw material.

5.2.2 Carrying cost

Reedisha Knitex ltd has no carrying cost for their inventory. As they have their own place to store
their inventory they don’t have to pay extra cost for their inventory carry. And suppliers added the
transportation cost with the cost unit per product.

5.2.3 Safety Stock

Reedisha knitex didn’t maintain any safety stock usually because they go for their production only
when the orders are confirmed by the buyers. After confirming the order they go for the further
process. And if any uncertain additional requirement needed they added that cost to the product
and take enough time to get that product perfectly completed.

0.6 Conclusion
Reedisha knitex mainly follow Just in Time to procure their production. All the transaction are
happened by LC so there is basically no cost method to follow. They have no safety stock to
maintain and they hold their inventory in their own factory if needed though they don’t need to
hold inventory because they only purchase those amount of inventory they need. All the LC and
back to back LC processes sample is added in the last page of the report.
References

 http://fashionsource.dk/supplier-source/reedisha-knitex-ltd
Picture 1: Buyers LC
Picture 2: Back to back LC
Picture 3: Proforma Invoice (suppliers)