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Submitted by
Ojaswita Shrivastava
17/095
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CERTIFICATE
This is to certify that the project work done on “Inventory Planning and
Management for Grasim Store” submitted to Apeejay School of
Management, Dwarka by Ojaswita Shrivastava in partial fulfillment of
the requirement for the award of PG Diploma in Business Management,
is a bonafide work carried out by him/her under my supervision and
guidance. This work has not been submitted anywhere else for any other
degree/diploma. The original work was carried during 10-05-10 to 18-
06-10 in Grasim Bhiwani Textiles Ltd
Address:
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DECLARATION
I hereby declare that the project work entitled “Inventory Planning and
management for Grasim stores” is submitted to Apeejay School of
Management, Dwarka is a record of original work done by me under the
guidance of Mrs. Neetu Sardana, faculty member, Apeejay School of
Management, Dwarka and this project work has not been performed the
basis for the award of any degree or diploma and similar project if any.
Ojaswita Shrivastava
Roll number: 17/095
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ACKNOWLEDGEMENT
I also wish to thank each and every employee of the organization who contributed
in their own ways in successful completion of this project.
Ojaswita Shrivastava
Apeejay School of Management
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TABLE OF CONTENT
1. Executive Summary……………………………………8
2. Company Brief…………………………………………8
3. Need of the project……………………………………..9
4. Overview of the Grasim industry……………………...13
5. Vision, Mission and values……………………………14
6. Distribution channel…………………………………...15
7. Grasim retail identity………………………………….15
8. Management Team……………………………………17
9. The Brand……………………………………………..19
10. Product line…………………………………………...22
11. Strategies of BTM…………………………………....30
12. Competitors Analysis………………………………...33
13. SWOT Analysis of BTM…………………………….34
14. HR policies…………………………………………..36
PART-B
1. About the project……………………………………...38
2. Literature review……………………………………...40
3. Research methodology………………………………..42
4. Problem identification………………………………...42
5. Approach to problem…………………………………....43
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6. Basic fixed order quantity model and reorder Behavior..48
7. Primary research………………………………………...50
8. Secondary research……………………………………...51
9. Sample size……………………………………………...52
10. Data Collection…………………………………………..52
11. Data Analysis……………………………………………53
12. Synopsis…………………………………………………60
13. DFD of Inventory management process………………...61
PART –C
1. Key learning and conclusion……………………………66
2. Recommendations………………………………………70
3. Annexure – Questionnaire……………………………...71
4. Annexure – Layout and elevation plans of stores………74
5. Bibliography…………………………………………….78
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EXECUTIVE SUMMARY
8
Grasim's strong nationwide retail network includes 50 exclusive showrooms as
well as 200 wholesalers and 25,000 multi-brand outlets through which it reaches its
customers. Grasim caters to international fashion houses in the USA and UK
supplying fabric to them for manufacturing of garments, which are available in
some of the largest retail chain stores.
Time : The time lags present in the supply chain, from supplier to user at every
stage, requires that you maintain certain amount of inventory to use in this "lead
time".
Economies of scale : Ideal condition of "one unit at a time at a place where user
needs it, when he needs it" principle tends to incur lots of costs in terms of
logistics. So bulk buying, movement and storing brings in economies of scale, thus
inventory.
Thus inventory planning and management is required for the efficient on going of
the business.
9
OVERVIEW OF THE GRASIM INDUSTRY
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks
among India's largest private sector companies, with consolidated net turnover of
Rs.184 billion and a consolidated net profit of Rs.22 billion (FY2009).
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The Aditya Birla Group is the world’s largest producer of VSF, commanding a 23
per cent global market share. Grasim, with an aggregate capacity of 333,975 tpa
has a global market share of 12 per cent. It is also the second largest producer of
caustic soda (which is used in the production of VSF) in India.
In cement, Grasim along with its subsidiary UltraTech Cement Ltd. has a capacity
of 45.7 million tpa as on 30 June 2009 and is a leading cement player in India. In
July 2004, Grasim acquired a majority stake and management control in UltraTech
Cement Limited. One of the largest of its kind in the cement sector, this
acquisition catapulted the Aditya Birla Group to the top of the league in India.
CEMENT
Grasim ventured into cement production in the mid 1980s, setting up its first
cement plant at Jawad in Madhya Pradesh and since then it has grown to become a
leading cement player in India.
Grasim’s cement operations today span the length and breadth of India, with 11
composite plants, 11 split grinding units, four bulk terminals and 64 ready-mix
concrete plants as on 30 June 2009.
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Leveraging the strong equity and goodwill of the house mark, the company has a
strong national brand UltraTech cement under the Aditya Birla Group logo.
Grasim is also nurturing some regional brands like Vikram Cement and Rajashree
Cement.
Grasim is one of the largest ready mix concrete (RMC) players in India. RMC
business is in a rapid growth phase. The company has consolidated capacity of
11.31 million cubic meters with the network of 64 plants as on 30 June 2009.
Grasim is also the largest producer of white cement in India, with a capacity of
560,000 tpa as on 30 June 2009. Branded as "Birla White", white cement division
manufactures world-class white cement in a variety of textures
and finishes. It has applications in floorings and exterior wall
finishes, apart from other innovative uses. The division also manufactures value
added products like putty, GRC etc. which are used in wall finishing and various
architectural applications.
CHEMICALS
TEXTILES
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This has since grown to 258,000 tpa, making it the country's second largest caustic
soda unit.
It uses cost-effective membrane cell technology and is 100 per cent self-sufficient
in power. For gainful utilisation of chlorine, the unit has expanded its operations
with the production of stable bleaching powder (SBP) used in water purification,
sanitation and as a bleaching agent; poly aluminium chloride (PAC) used in water
treatment, paper sizing and effluent treatment; and chloro sulphonic acid, used in
vinyl sulphate, the raw material for dyes and intermediates, saccharin, drugs and
pharmaceuticals, etc.
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VISION
MISSION
VALUES
• Integrity
• Commitment
• Passion
• Seamlessness
• Speed
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DISTRIBUTION CHANNEL
Brand Grasim’s retail foray has been lined up along with it’s commitment to
bring innovative products, international styles and designs at very affordable
prices to customers. Brand Grasim already enjoys huge acceptance and
popularity across the country due to its innovative and customer oriented
offerings.
A WORLD OF OPPORTUNITY
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• A careful spender
• One who affordable fashion
• Strong on middle-class value system
• High on self-worth and self-esteem
• Keen to make a mark for himself
• A SELF MADE MAN
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MANAGEMENT TEAM
BOARD OF DIRECTORS
:: Mr. M. L. Apte
:: Mr. B. V. Bhargava
:: Mr. R. C. Bhargava
:: Mr. Y. P. Gupta
:: Mr. S. G. Subhrahmanyan
BUSINESS HEAD
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:: Mr. Saurabh Misra, cement
:: Mr. D. D. Rathi
COMPANY SECREATORY
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THE BRAND LOGO
A MARQUE OF EXCELLENCE
The name "Aditya Birla" evokes all that is positive in business and in life. It
typifies integrity, quality, performance, perfection, and above all, character.
Our corporate logo, 'The Rising Sun', symbolizes these traits. ('Aditya' is the
Sanskrit word for sun).
The logo consists of an inner circle, symbolizing the internal universe of the
Aditya Birla Group, an outer circle, symbolizing the external universe, and a
dynamic meeting of rays converging and diverging between the two.
Grasim is a major brand in the Rs 2500 crore Ready to Stitch market. The
brand which had its existence since 1957 .Grasim is a major player in the Rs
2500 crore Ready to Stitch textile segment.
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Grasim has repositioned itself. The brand was earlier positioned as a Modern
Fashion Brand. The positioning was reinforced by a series of new fiber
launches. The collections like Aqua Soft, Ice Touch etc kept the brand in the
limelight. The brand used the tagline "Power of Fashion" to convey the
positioning. Now the brand has changed its positioning. Grasim has roped in
the Bollywood Super hero Akshay Kumar as the brand ambassador. The
tagline has been changed to "For the Self Made". The TVC featuring the
actor is now on air.
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THE GRASIM BRAND AMBASSADOR
The Grasim brand already enjoys huge acceptance and popularity across the
country due to its innovative and customer-oriented offerings. To bolster its
brand presence, the company has roped in bollywood actor Akshay Kumar.
Akshay Kumar is not only the bollywood superstar but he is the self made
man. His personality matches with the brand as the Grasim has also raised
itself on its own.
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PRODUCT LINE
:: VSF
:: CEMENT
:: CHEMICALS
:: TEXTILES
Product
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1. VISCOSE STAPLE FIBRE:-
2. CEMENT:-
3. SPONGE IRON:-
4. CHEMICALS:-
5. TEXTILES:-
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PREMIUM BRAND OF GRASIM SUITINGS
UNCRUSHABLES
PURISTA
CLEANFAB
ICETOUCH
FINESSEE
STRETCH
FREEDOM
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GRASIM SUITINGS AND GRAVIERA SUITINGS
ICE TOUCH
One of the most successful innovations of Grasim in the past couple of years
is ‘ICETOUCH’. Ice Touch is a pioneer and continues to hold its preeminent
position in moisture management based products in India. This product is well
accepted all over India continues to be the market leader.
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In short ICE TOUCH is a unique range of fabrics possessing excellent handle,
feel and drape along with extraordinary moisture absorption and evaporation
giving a very cool and icy feeling.
CLEANFAB:-
UNCRUSHABLES:-
Uncrushables is a low crush fabric, first winter poly-wool fabric with anti-
wrinkling quality to be launched in the industry.
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FINESSE:–Fine Fabric for Fine People
One of the most comfortable trousers made out of fine yarn. The fabric has a
finer count which lends itself to luxurious feel and handle. It is ideal for night
wear, party wear and outdoors.
Finesse is very easy to maintain and can be washed easily and carries a very
elegant shape and drape all day long.
The fabric provides greater comfort like cotton and comes in some of the most
exotic colors blue, black, beige, limestone, graphite and grey.
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MAIN UNITS OF GRASIM INDUSTRIES
Vikram Cement
Jawad (M.P.)
Grasim cement
Raipur (M.P.)
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Graviera & Grasim Suiting
Bhiwani (Hry.)
Elegant Spinners
Bhiwani (Hry.)
Vikram Ispat
Raigarh (M.P.)
Aditya Cement
Shambhupura
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STRATEGIES OF BTM
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• Participative Management
3. QUALITY CIRCLES
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Checks. It is a part of total manufacturing system. Quality is
first parameter.
Again in order to maintain a superior quality of the product
various
Management practices and being carries out by top
management. Quality
Circles meetings have been formed by the top management
with a view to
Increase the involvement and responsibility in their individual
work areas.
After completion of the Project, award by way of recognition
are given to all
The quality circles team members.
Good quality management producers can prosper only in clean and serene
Atmosphere an so the top management at BTM have implemented the 5-S
Technique(related to the wok environment).
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Seison Sweeping of work place
and machines.
Seiketsu Sanitizing.
Shitsuke Self disciplining
Today’s executive view the task of improving product and service quality as
their top priority. Most customers, whether they are internal or external will no
longer accept average quality performance. If company wants to stay in they
have no choice but to adopt TQM.
Because of this strong quality consciousness of BTM, in 1994 Graviera
was
awarded the prestigious ISO 9002 so certification. Each
process from buying the fiber to the finished fabric monitored
by the computerized machines, highly observant workers and
technicians.
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COMPETITORS ANALYSIS
Which brand comes into your mind when you go for buying a fabric.
provogue
louis philips
raymond
koutons wills life style
reid & taylor van hussain
flying machine wrangler
peter england allen solly
raymond allen cooper
dockers
john player
arrow
levis levis
wills life style dockers
arrow
van hussain peter england
john player
flying machine
allen cooper reid & taylor
allen solly koutons
wrangler louis philips
provogue
The graph conveys that Grasim lags behind many brands in the brand recall.
36% consumers prefer Raymond & their sub brands like Parx, Park Avenue
over other brand. It shows that brand of the Raymond are very strong over
the other brands. Levis, Van husain, Peter England, John players are the other
brands which consumer prefer while buying fabric or garment.
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SWOT ANALYSIS OF BTM
STRENGTHS:-
WEAKNESS:-
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4. Marketing and visibility needs inertia of motion.
5. It needs more promotional strategies for RMG section.
.
OPPORTUNITIES:-
THREATS:-
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HR POLICIES
1. Basic HR Policies
2. Compensation and benefits policies
3. General HR policies
4. Job analysis and Evaluation
5. Learning and development
6. Organizational effectiveness
7. Talent management
8. Talent staffing (policies related to recruitment)
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Part -B
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ABOUT THE PROJECT
The present project is to identify the optimum stock level by taking into
consideration the sales and demand per year, present stock quantity available
and the storage capacity for all the forty consignment stores of Grasim in
India.
For every store maximum stock level, minimum stock level and optimum
stock level has to be maintained. Maximum stock level is the stock that needs
to be maintained to ensure cost effectiveness. Minimum stock level refers to
the point below which the stock level may not go. Optimum level is the level
which is sufficient for a store to maintain its working capital.
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Optimum level is required to avoid the working capital blockage. The
working capital blockage came through deadstock.
Dead stock is the old store item that is unused and never sold. Sometimes
referred to as NOS (never off shelf). Often come with original packaging,
tags, etc. These items may further be called "new old stock".
When such stock is created than company takes the stock correction plan in
which it redefine the stock quantity and stock value.
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LITERATURE REVIEW
Techniques to plan inventory levels are the basic stock, percentage variation,
quarter’s supply, and stock to sales methods.
With the basic stock method, a retailer carries more items than it expects to
sell over a specified period. There is a cushion if sales are more than
anticipated, shipments are delayed, or customers wants to select from a variety
of items.
Basic stock (at retail) = Average monthly stock at retail- Average monthly
sales.
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Beginning of month planned inventory level = Planned inventory sales + basic
stock
With the stock to sales method, a retailer wants to maintain a specified ratio
of goods on hand to sales.
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RESEARCH METHODOLOGY
PROBLEM RECOGNISED:
stores.
2. The designs which are in demand in the market are not supplied to the
store on time.
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APPROACH TO THE PROBLEM:
Techniques to plan inventory levels are the basic stock, percentage variation,
quarter’s supply, and stock to sales methods.
With the basic stock method, a retailer carries more items than it expects to
sell over a specified period. There is a cushion if sales are more than
anticipated, shipments are delayed, or customers wants to select from a variety
of items.
Basic stock (at retail) = Average monthly stock at retail- Average monthly
sales.
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The party selects the sample as per their
requirements and send the order.
These purchase orders are taken at the store end. Now the store managers send
these orders to Bhiwani, the manufacturing plant.
45
PROCESS OF TAKING BOOKING ORDERS AND
SHIPMENT AT BHIWANI
46
Then it is sended to folding department for grading like 12 meter
than, 12.50 than
This is how whole process of taking orders and booking and dispatching of
stock takes place at Bhiwani.
Before showing to the trade partners sampling in conference is done in which
it is decided which samples are to be shown to the clients. Then selected
samples called latest estimation are taken. The booking orders of the same is
then taken and compilation of the order in national label is done. After this
order is passed away to the production team according to the demand. The
production team take 30-45 days to deliver the order. Then it is sended to
folding department for grading like 12 meter than, 12.5 meter than. After this
all the stock is sent to warehouse at Bhiwani and from there it is dispatched to
different stores through transport. The transport takes 15 days and through
courier it takes 5 days. The company takes quarter wise booking or three
months booking in advance.
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INVENTORY PLANNING FOR THE NEW STORES
2. If it is not the tear 1 town, then retail space of 300-400 square feet is to
be found out.
3. Then franchisees are asked that at what price point they can sell in this
market. They give the better idea of pricing.
4. Then company sends 170-200 thans accordingly.
5. The focus is to display all the varieties and all available collection.
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BASIC FIXED ORDER QUANTITY MODEL AND
Number
of units
on
hand
Q Q Q
R
L L
Time
R = Reorder point
Q = Economic order
quantity
L = Lead time
This model sometimes called Production Order Quantity Model. In the basic
model we have assumed that the entire inventory, which is ordered, arrives
simultaneously. However, this is not a valid assumption, because the vendor
delivers the order in partial shipment or portions over a period of time. In the
case of GBTL, the replenishment is done quarterly, the whole stock is sent at
once.
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In such cases inventory is being used while new inventory is still being
received and the inventory does not build up immediately to its maximum
point. Instead, it builds up gradually when inventory is received faster than it
is being used; then it declines to its lowest level as incoming shipments stop
and the use of inventory continues. This version of the EOQ model is also
referred to as the “Gradual Usage Model ” and “Production Lot Size Model”.
In this, noninstantaneous receipt model, the order quantity is received
gradually over time, and the inventory level is depleted at the same time it is
being replenished.
GBTL uses fixed order quantity model as it replenishes the stock quarterly in
a certain fixed ratio. But for the stores where the stock value is high and
already the problem of over stocking is existing, the company avoids the
replenishment. If the replenishment of the stock is required in such stores than
the old stock is sell out through discount schemes. And then the stock
correction is done.
GBTL also follows the Just-in-time plan as the stock is also dispatched
according to the demand created. If certain store requires certain quantity in
particular shade and variety and if its available in the warehouse than it is
courier to that store and hence just-in-time process is also followed.
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PRIMARY RESEARCH:
Primary research is the basic market research which helps to know the current
trends. It helps to get the real picture of the sector we are reaching for.
The primary research helped to know the existing problems in the stores.
Through brainstorming with the store managers the reasons for the dead stock
and the reasons for the lack of variants which are in demand in the market
came out. These problems affects the sales of the store and hence the profit of
the company. The survey which is conducted is a telephonic survey. The
company maintains the stock and sales data through a software called shopper
9.
SECONDARY RESEARCH:
51
management processes. It gives the idea about how to maximize control over
operations and inventory in order to better service customers.
There are various processes or models that our followed while maintaining
and planning the inventory called inventory model. For eg. Fixed order
quantity model, Fixed time period model, Just in time model.
Different industries uses different software and the models that suits their
business.
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SAMPLE SIZE:
The sample size for this is the focus group of 40 respondents. These 40
respondents include the store managers of the various Grasim stores exclusive
and franchisee across the country.
DATA COLLECTION:
The data was collected through the telephonic survey. The questions were
open ended so as to get the better insight of the store issues. A study was
conducted in which all the stores were covered to know the present stock data
and sales data and compared to the storage capacity available.
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DATA ANALYSIS
There are three sections in every store, these are suiting section, shirting
section and RMG section. The layout and elevation plans of all the stores
are provided. Layout plan is the map of the store when seen from the roof
or top. Elevation plan is the front view of any section. Each plan is divided
into three section AA’, BB’ and CC’ depicting the suiting, shirting and
RMG section respectively (shown in annexure).
These maps help to find out the storage capacity in a store. There are two
kinds of shelves available for suiting racks, these are upper vertical shelves
and lower horizontal shelves. The upper vertical shelves are visible to the
customers but the lower horizontal shelves are hidden due to the counters
and the seating arrangements.
For every store the maximum stock level, minimum stock level and
optimum stock level has to be maintained. The maximum stock level is
achieved when the entire shelves are required to be filled i.e, the entire
storage capacity is fulfilled. The minimum stock level is the stock that is
filled only to those shelves which are displayed and visible to customers. In
the vertical big shelves the thaan patties are kept vertically or
standing rolls are kept while in the lower shelves the thaan patties are
placed horizontally. The optimum level is also needed to be defined.
Optimum level is the level which is sufficient for that store to maintain its
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working capital. There should be no working capital blockage. The
working capital blockage comes through deadstock.
1. ALLAHABAD STORE
55
allahabad stock and sales analysis
70
60
50
40
30 Series1
20
10
0
suiting sell shirting sell rmg sell
stock through stock through stock through
Inferences:
Out of total stock suiting stock is 52.59% and sales is 48.34%
The ratio of sales to stock value that is sell through is 49.60%
This shows that sales of suiting are half of the total sales and also the
2. BELGAUM STORE
56
1 60
1 40
1 20
1 00
80
Series1
60
40
20
0
suiting sell shirting sell rmg sell
stock through stock through stock through
INFERENCES:
The suiting stock is 58% of the total stock and sales is 54% of the
total sales and the sales value in ratio to stock value of suiting is
78%.
The shirting stock is only 13% and its sales out of total is one-fourth
that is 25% but the sales value to stock value ratio is 155%
RMG stock is 27% and sales is 21% and the sell through that is sales
value to stock value of RMG is 65%.
3. BHILWARA STORE
57
70
60
50
40
30 Series1
20
10
0
suiting sell shirting sell rmg sell
stock through stock through stock through
INFERENCES:
The suiting stock is 63.24% and sales is 39% but the sales value in
relation to stock value is only 11.45%
The shirting stock and sales is one-fourth of total stock and sales and
the sales value to stock value is 19%.
The RMG stock is only 9% of total stock and sales is 30% but the
ratio of sales value to stock value is 66%.
4. GHAZIABAD STORE
58
1 00
90
80
70
60
50
40 S eries1
30
20
10
0
s uiting s ell s hirting s ell rm g s ell
s toc k through s toc k through s toc k through
INFERENCES:
The suiting stock is 71% of total stock and sales is 57% and the ratio
of stock value to sales value is 35%
The shirting section contains stock of only 17% of total stock and
sales of 18.26% but sell through is of 45.88%
RMG is 11.46% of total stock and sales is 24.71% of total sales
5. GORAKHPUR STORE:
59
80
70
60
50
40 Series1
30
20
10
0 gh
gh
es
gh
k
s
s
itin ck
k
le
le
oc
oc
l
ou
ou
ou
o
sa
sa
sa
st
st
st
hr
hr
hr
G
g
G
g
g
g
ll t
ll t
ll t
in
itin
in
RM
RM
irt
se
se
se
irt
su
su
sh
sh
INFERENCES:
The suiting stock is 63.72% of total stock and sales is 51% of total
sales
The ratio of stock to sales value of suiting section is 34%
The shirting stock is 17% of total stock and sales is 30.46% of total
sales
The ratio of stock to sales value of shirting section 75.70%
RMG stock is 19.34% of total stock and sales is 17.8% of total sales
The ratio of stock to sales value of RMG section is 39%
60
SYNOPSIS:
1. The stock and sales analysis of any store or the asset turnover which is the
performance measure based on retailer’s net sales and a total asset reveals
the current status of assortment.
2. The average stock division in any of the store is suiting is 60%, shirting is
10. For RMG the stock% is less than 10% for Bhilwara, Ganganagar,
Mumbai.
11. The asset turnover in RMG is 0.82% ahemdabad while 94.32% in
Ghaziabad.
61
DIAGRAMATIC REPRESENTATION OF INVENTORY
MANAGEMENT PROCESS
62
Inventory Model data flow diagram is shown above.
This basically helps us to precisely understand the flow of information in a
system and point out the exact stage/personnel/department responsible for a
particular process at any given time.
Some common symbols used are:
• Circles represent processes
• Cylinders represent information data stores
• Rectangles show a resource
• Rhombus is used to show a gate process
• Arrows show the direction of data flow.
As shown in the above diagram, the process is initiated when the customer
places an order. Here the data would consist of details like number of items,
delivery dates, shipment details etc. Then the inventory is checked where
again data is fed from a data store. This data store (1) keeps a record of the
historical data. The data store (1) also has input from data store (2) which
keeps the warehouse records like inventory levels, location etc.
The inventory is checked for availability, which is a gate process. If there is
availability, then the item is retrieved and the shipment is scheduled. The
customer receives the item and provides feedback, which again goes into data
store (1). If enough inventory is not available then Reorder placement is done.
A lot of factors are to be considered for the reorder placement.
63
Looking at the bottom of the diagram, it can be seen how the model is
determined. Input from data store (5) goes into the SKU classification
process. The key factors that are considered are volume flow rate, size etc.
This SKU classification influences the type of model that is to be used for that
SKU. The demand patterns are also considered and are fed into data store (6),
which also determines the model to be selected. After the model is
determined, the EOQ and reorder points are set. Various factors like lead-time
and back order costs are considered and then the reorder placement is done.
This DFD shows the exact information flow in the system, which can help
recognize the individual processes and the data transfer associated with it.
64
SUITING SECTION
RMG SECTION
65
Part -c
66
KEY LEARNING’S / CONCLUSION
67
The higher priced range fabric are in the starting shelves of the store
and the lower priced range are towards the end of the store. This
give ease to the seller to show the customer their product.
to the party and then they select the samples which are in demand or
required.
The purchase order is made for the required samples.
The P.O. is then sent to the company where compilation of the latest
estimation (booking order) is done and then it is sent to the
production house.
The production team takes 30-45 days to deliver the order and then it
payment.
For every store the maximum, minimum and optimum stock level is
maintained.
Maximum stock is when entire shelf is required to be filled,
minimum stock is the stock required to fill those shelves which are
68
visible to the customers and are required for running the smooth
business.
In the front and big shelves the stock is placed vertically while in the
catalogue and they should show the sample to the store manager or
69
merchandiser so that he can select the samples from that which are
required.
The level of inventory and sales for each item in every store branch
should be revealed. This improves the transfer of goods between
branches and alerts salespeople as to which branches have desired
products. Also less stock can be held in individual stores, reducing
costs.
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RECOMMENDATION
merchandiser who can look after the product mix, color palette and
price range.
There should be balance between the basic fixed order quantity
model and just-in-time model which is followed in the company. So
that the stock which is in demand should reach the store on time.
Grasim is suffering from weak distribution channel. The main
problem with the Grasim brand is that Grasim is not easily available
to customer. Customer wear that brand which are easily available to
them. So Grasim should increase their stores, showrooms in semi
urban areas.
Grasim is now in readymade garments also so Grasim need to open
their showrooms in the mall.
People do not know about the Grasim RMG so there is need to
increase the awareness about Grasim RMG.
Grasim enjoys the loyalty of the customers. Customers are satisfied
with Grasim in terms of quality but they are highly dissatisfied with
Grasim in terms of location of store, promotion, advertising.
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ANNEXTURE-QUESTIONNAIRE
(To know the problems regarding the inventory planning and management
these questions were asked to the store managers telephonically)
NAME:
STORE NAME:
LOCATION:
CARPET AREA:
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i) thaan patties_______ ii) bookfolds_______ iii) rolls_______
6. In shirting section how many racks or shelves are available?
_________________
7. How many number of rolls in shirting section are available?________
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24. What is the reorder point for shirting section _______
25. What is the reorder point for RMG section _______
28. What are the key problems existing regarding the inventory management
in the store?
i)______________________________________________
ii)______________________________________________
iii)_____________________________________________
29. What are the probable solution to the problems listed above according to
you?
i)_______________________________________________
ii)_______________________________________________
iii)_______________________________________________
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LAYOUT PLAN OF THE GRASIM SHOWROOM
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ELEVATION PLAN FOR THE SUITING SECTION
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ELEVATION PLAN FOR SHIRITING SECTION
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ELEVATION PLAN FOR RMG
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BIBLIOGRAPHY
WEBSITES:
www.adityabirla.com
www.udel.com
www.emeraldinsight.com
www.inventory-management.de/inventory management-354.htm
BOOKS:
Retail management: A strategic approach by Berman Barry and Evans.R. Joe
Integrated retail management by Wrice mark
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