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(A Study on Amul)
Dissertation Submitted to Assam University, Silchar for the award of the Degree of Business Administration
By
SAGARDWIP DEY
: 03842-270200, 270847
Dr .D.Ghosh
CERTIFICATE
I certify that the work entitled INVENTORY STRATEGY FOR PROCESSING INDEPENDENT DEMAND written and submitted by Sri Sagardwip Dey in partial fulfillment of the requirement for the Degree of Master of Business Administration is a work by him. Sri Sagardwip Dey is a very hard working and sincere student.
(Debomalya Ghosh)
Preface
I SAGARDWIP DEY declare that the project report titled INVENTORY STRATEGY FOR PROCESSING INDEPENDENT DEMAND in Amul Silchar, carried out by me under the supervision of Dr.D.Ghosh is the result of the original work done by me. To the best of my knowledge and belief this report would not be submitted to any other institution apart from Department of Business Administration of Assam University or any other organization for using any purposes. My special thanks are to Mr. Ajay Agarwal & my friends who helped me a lot in data collection and their encouragement in the successful completion of my work. For the Purpose of the research I have visited Amuls warehouse, distributor & retailers
(Sagardwip Dey)
INDEX
Chapters INTRODUCTION
Introduction of study Objectives of study Scope of study CONCEPTUAL & THEORITICAL FRAME Meaning & definition of inventory Classification of inventory Risk & cost associated with inventory Understanding inventory management Historical review of inventory management Types of inventory Inventory cost Purpose of inventory management Benefits of inventory management Inventory control techniques
Page no.
6-7 7 7 7 8-19 9 9 9 11 12 13 14 15 15 16
ORGANIZATION PROFILE Introduction Organization overview Organization structure Production function Operation analysis Amul supply chain Plant
20-50 21 25 28 30 30 33 34
36 50
RESEARCH METHODOLOGY Research meaning Research design Nature of data Research type Sampling size & technique
51-53 52 52 52 53 53
DATA ANALYSIS & INTERPRETATION Inventory movement data Findings Suggestions Conclusion
54-92 55 91 92 92
APPENDIX BIBILOGRAPHY
93-99 100-101
CHAPTER 1 INTRODUCTION
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The term inventory refers to the stockpile of the products a firm is offering for sales and the components that make up the product. Inventories are the stocks of the product of a company, manufacturing for sale and the components that make up the product. The various forms in which inventories exist in manufacturing company are (1) raw material (2) work-in process, (3) finish goods and (4) store and spares. However, in commercial parlance, inventory usually includes store, raw material, work-in process and finish goods. The term inventory includes raw material, work-in process, finish goods packaging, spares and others stocked in order to meet an unexpected demand or distribution in the future.
CLASSIFICATION OF INVENTORIES
Classification of Inventory
Production Inventory
Work-in Progress
Finished goods
MRO inventory
1. Production Inventory In production inventory there are two types of production inventory that are as follows: a) Material, which are purchases from the market like raw material and readymade Parts & components require for manufacturing of equipment.
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b) Special part or component manufactured in once own company & kept in stock for uses in manufacturing. 2. Maintenance Repair Operating supplies (MRO Inventory) There are material purchase from vendor & require for Maintenance or production process. 3. Work in progress There are semi-finished products in various stages of production on the factory floor. 4. Finished goods inventory These consist of manufactured kept in warehouses or retail outlets & are meet for sale.
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Managements goal should be to hold only what is necessary to satisfy customer requirements and manage it effectively (Gourdin 2001:82). Inventory problems preoccupy profit- making organizations and nonprofit institutions as well. Inventories are common to agriculture, manufacturers, wholesalers, retailers, hospitals, churches, prisons, zoos, universities and national, state and local governments. Indeed, inventories are also relevant to the family unit in relation to clothing, pharmaceutical products, food and so forth. This indicates how inventories are important and deserve a serious attention in order to achieve organizational objectives.
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Types of inventory
According to Stock and Lambert, inventories can be categorized into six distinct forms that are: a) Cycle stock. Cycle stock is inventory that results from the replenishment process and is required in order to meet demand under conditions of certainty, that is, when the firm can predict demand and replenishment times (lead times) almost perfectly. For example, if the rate of sales for a constant 20 units per day and the lead time is always 10 days, no inventory beyond the cycle stock would be required. While assumptions of constant demand and lead time remove the complexities involved in inventory management, lets look at such an example to clarify the basic inventory principles. b) In-transit inventories. In-transit inventories are items that are en route from one location to another. They may be considered part of cycle stock even though they are not available for sale and /or shipment until after they arrive at the destination. For the calculation of inventory carrying costs, in-transit inventories should be considered as inventory at the place of shipment origin since the items are not available for the buyer, sale, or subsequent reshipment.
c) Safety or buffer stock. Safety or buffer stock is held in excess of cycle stock because of uncertainty in demand or lead time. The notion is that a portion of average inventory should be devoted to cover short-range variations in demand and lead time. Average inventory at a stock-keeping location that experiences demand or lead time variability is equal to half the order quantity plus the safety stock. d) Speculation stock. Speculation stock is inventory held for reasons other than satisfying current demand. For example, materials may be purchased in volumes larger than necessary in order to receive quantity discounts, because of a forecasted price increase or materials shortage, or to protect against the possibility of a strike.
e) Seasonal stock. Seasonal stock is a form of speculative stock that involves the accumulation of inventory before a season begins in order to maintain a stable labour force and stable production runs or, in the case of agricultural products, inventory accumulated as the result of a growing season that limits availability throughout the year.
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f) Dead stock is inventory that no one wants, at least immediately. The question is why any organization would incur the costs associated with holding these items rather than simply disposing of them. One reason might be that management expects demand to resume at some point in the future. Alternatively, it may cost more to get rid of an item that it does to keep it. But the most compelling reason for maintaining these goods is customer service. Perhaps an important buyer has an occasional need for some of these items, so management keeps them on hand as a goodwill gesture.
Inventory costs
According to Gourdin there are three types of costs that must be considered in setting inventory levels. a) Holding (or carrying) costs are costs such as storage, handling, insurance, taxes, obsolescence, theft and interest on funds financing the goods. These charges increase as inventory levels rise. In order to minimize carrying costs, management makes frequent orders of small quantities. Holding costs are commonly assessed as a percentage of unit value, i.e. 15 percent, 20 percent, rather than attempting to derive a monetary value for each of these costs individually. This practice is a reflection of the difficulty inherent in deriving a specific per-unit cost for, for example, obsolescence or theft. b) Ordering costs are those costs associated with placing an order, including expenses related to personnel in a purchasing department, communications and the handling of the related paperwork. Lowering these costs would be accomplished by placing a small number of orders, each for a large quantity. Unlike carrying costs, ordering costs are generally expressed as a monetary value per order.
c) Stock-out costs include sales that are lost, both short and long term. These charges are probably the most difficult to compute, but arguably the most important because they represent the costs incurred by customers (internal or external) when inventory policies falter. Failure to understand these costs can lead management to maintain higher (or lower) inventory levels than customer requirements may justify.
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BENEFITS OF INVENTORY MANAGEMENT 1. 2. 3. Reduced stocking costs resulting from efficient matching of requirements to stock Re-order recommendations highlight urgent needs. Help prevent Stock-outs. Instant access to 24 month usage pattern aids decision making reveals trends. Old
data easily purged. 4. 5. 6. 7. 8. 9. Automatic capture on audit trail of all stock movement details helps resolve Instant month-end valuation of receipt, issues adjustment etc. Rapid stock and work-in progress evaluation. True multi-location without constraints. Easy monitoring of slow moving stocks. Automation of inventory checking cycles ensures that items are not forgotten.
Improves accuracy 10. Automatic tracking of scrap rates and recalculation of safety levels reduces effort, improves control 11. ABC analysis system focused attention on high value stock holdings.
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Where,
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A = Annual usage in units B = Cost of placing an order C = cost per unit S = Carrying cost as a percentage of Aug inventory. If EOQ determined in terms of rupees where annual usage expressed in rupees by formula Annual usage = annual usage unit unit cost. Continuous Review A continuous review (Q) system, sometimes called a reorder point (ROP) system or fixed order-quantity system, tracks the inventory of an item each time withdrawal is made to determine whether it is time to reorder. In practice, these reviews are done are done frequently and are often continuous. At each review, a decision is made about an items inventory position. If it is judged to be too low, the system triggers a new order. Inventory Position= On-Hand inventory + Scheduled receipt Backorders IP = OH + SR BO When demand is certain When demand & lead time are constant. The downward-sloping line represents the onhand inventory, which is being depleted at a constant rate. When it reaches reorder point, a new order is placed. The on-hand inventory continues to drop throughout lead time until the order is received. At that time, this marks the end of the lead time, on hand inventory jumps up. A new order arrives just when the inventory drops to 0. The time between orders is the same for each cycle.
IP IP Q IP Order received
On-hand inventory
OH
When demand is uncertain In reality demand & lead times are not always predictable. This system operates when demand is variable and uncertain. We assume that the variability in lead times is negligible and, therefore, can be treated as constant. The wavy downward-sloping line indicates the demand varies from day to day. Its slope is steeper in the second cycle, which means the demand rate is higher during this time period. The changing demand rates means the time between order changes, so TBO1TBO2TBO3. Because of uncertain demand, sales during lead time are unpredictable, and safety stock is added to hedge against lost sales. This addition is why re-order level is higher in this than the reorder level of certain demand.
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Hybrid Systems
Various hybrid inventory control systems merge some but not all features of the P & Q systems. There are two types Optional Replenishment System Base-stock system Optional Replenishment System It is used to review the inventory position at fixed time interval and, if the position has dropped to (or below) a predetermined level, to place a variable size order to cover expected needs. Base-stock system In this system replenishment order is issued each time when withdrawal is made, for the same amount of withdrawal.
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AMUL means "priceless" in Sanskrit. A quality control expert in Anand suggested the brand name Amul, from the Sanskrit Amoolya, Variants, all meaning "priceless", are found in several Indian languages. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, NutrAmul, Amul Milk and Amulya have made Amul a leading food brand in India. Today Amul is a symbol of many things. Of high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization and have a proven model for dairy development. Symbol of Amul is a ring of four hands, which are coordinated each other .The actual meaning of this symbol is coordination of hand of different people by whom this union is now at top. First hand is for the farmers (producers), without whom the organization would do not existed. Farmers are the inspiration of the AMUL the taste of India. Second hand is for the representatives of processors by whom the raw milk processed into different finished products. Third hand is for marketers without whom the product would have not been able to reach to the customer. Fourth hand is for customers without whom the organization could not carry on because they are the people who consume the product. The union of Amul would not have been the second biggest successful company in the world without the coordination of the above four hand
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They were in general illiterate. But they could see that the system under which contractors could buy their produce at a low price and arrange to sell it at huge profits was just not fair. This became more noticeable when the Government of Bombay started the Bombay Milk Scheme in 1945. Milk had to be transported 427 kilometers, from Anand to Bombay. This could be done only if milk was pasteurized in Anand. After preliminary trials, the Government of Bombay entered into an agreement with Polsons Limited to supply milk from Anand to Bombay on a regular basis. The arrangement was highly satisfactory to all concerned except the farmers. The Government found it profitable; Polsons kept a good margin. Milk contractors took the biggest cut. No one had taken the trouble to fix the price of milk to be paid to the producers. Thus under the Bombay Milk Scheme the farmers of Kaira District were no better off ever before. They were still at the mercy of milk contractors. They had to sell their milk at a price the contractors fixed. The discontent of the farmers grew. They went in deputation to Sardar Patel, who had advocated farmers co-operatives as early as 1942. Sardar Patel reiterated his advice that they should market their milk through a co-operative society of their own. This co-operative should have its own pasteurization plant. His advice was that the farmers should demand permission to set up such a co-operative. If their demand was rejected, they should refuse to sell their milk to middlemen. Sardar Patel pointed out that in undertaking such a strike there should be some losses to the farmers as they would not be able to sell their milk for some time. If they were prepared to put up with the loss, he was prepared to lead them. The farmers deputation readily accepted his proposal. Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to organize milk co-operative and a milk strike if necessary. Mr. Desai held a meeting in Samarkha village on January 4, 1946. It was resolved that milk producers cooperative societies should be organized in each village of Kaira District to collect milk from their member-farmers. All the milk societies would federate into a Union which would own milk processing facilities. The Government should undertake to buy milk from the Union. If this wasnt done, the farmers would refuse to sell milk to any milk contractor in Kaira District.
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The Government turned down the demand. The farmers called a milk strike. It lasted 15 days. Not a drop of milk was sold to the milk merchants. No milk reached Bombay from Anand, and the Bombay Milk Scheme almost collapsed. After 15 days the milk commissioner of Bombay, an Englishman, and his deputy visited Anand, assessed the situation and accepted the farmers demand.This marked the beginning of the Kaira District Cooperative Milk Producers Union Limited, Anand. It was formally registered on December 14, 1946. Its objective was to provide proper marketing facilities for the milk producers of the district. The Union began pasteurizing milk in June 1948, for the Bombay Milk Scheme just a handful of farmers in two village co-operative societies producing about 250 liters a day. An assured market proved a great incentive to the milk producers in the district. By the end of 1948, 432 farmers had joined village societies, and the quantity of milk handled by the Union had increased to 5000 liters a day. In the early stages, rapid growth brought in its wake serious problems. Their solution provided the stimulus for further growth. For example, as the co-operative movement spread in the district, it was found that the Bombay Milk Scheme could not absorb the extra milk collected by the Union in winter, when buffaloes yielded an average of 2.5 times their summer yield. Thus by 1953, the farmer-members had no regular market for the extra milk produced in winter. They were again forced to sell a large surplus at low rate to middlemen. The only remedy was to set up a plant to process the extra milk into products like butter and milk powder. The logic of this step was readily accepted by the Government of Bombay and the Government of India, except for a few doubting Thomases. The government of India helped the Union to get financial help from UNICEF and assistance from the Government of New Zealand under the Colombo Plan. Technical aid was provided by F.A.O. A Rs.50 lakh factory to process milk powder and butter was blueprinted. Its foundation stone was laid by the then President of India the late Dr. Rajendra Prasad on November 15, 1954. The project was completed by October 31, 1955, on which day the late Pandit Jawaharlal Nehru, the then Prime Minister of India, declared it open. The new dairy provided a further fillip to the co-operative movement among milk producers. The union was thus enabled to organize more village cooperative societies and to handle more and more milk each year. This event also brought a breakthrough in dairy technology as the products were made processing buffalo milk for the first time in the world. Kaira Union introduced the brand Amul for marketing its product range. The word Amul is derived from Sanskrit word Amulya which means priceless or precious. In the subsequent years Amul made cheese and baby food on a large commercial scale again processing buffalo milk creating a history in the world.
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1964 was the turning point in the history of dairy development program in India. Late Shri Lal Bahadur Shastri, the then Prime Minister of India who visited Anand on 31s October for inauguration of Amuls Cattle Feed Plant, having spent a night with farmers of Kaira and experiencing the success wished and expressed to Mr Kurien, then the General Manager of Amul that replicating Amul model throughout our country will bring a great change in the socio-economic conditions of the people. In order to bring this dream into reality, 1965 The National Dairy Development Board (NDDB) was established at Anand and by 1969-70 NDDB came out with the dairy development program for India popularly known as Operation Flood or White Revolution. The Operation Flood program, even today, stands to be the largest dairy development program ever drawn in the world. This saw Amul as model and this model is often referred in the history of White Revolution as Anand Pattern. Replication of Anand Pattern has helped India to emerge as the largest milk producing nation in the world.
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The Amul model has helped India to emerge as the largest milk producer in the world. More than 13 million milk producers pour their milk in 1, 28,799 dairy cooperative societies across the country. Their milk is processed in 176 District Co-operative Unions and marketed by 22 State Marketing Federations, ensuring a better life for millions.
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Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) is the largest Organization in FMCG industry engaged in marketing of milk & milk products under the brand names of AMUL and SAGAR with an annual turnover exceeding Rs 5000 crores. GCMMF is a unique organization. It's a body created by Farmers, managed by competent professionals serving a very competitive and challenging consumer market. It is a true testimony of synergistic national development through the practice of modern management methods. Vision: GCMMF will be an outstanding marketing organization, with specialization in marketing of food and dairy products both fresh and long life with customer focus and IT integrated. The network would consist of over 100 offices, 7500 stockiest covering at least every Taluka. Head quarter servicing nearly 10 lakhs outlets with a turnover of Rs.10, 000 Cr and serving several co-operatives. GCMMF shall also create markets for its products in neighboring countries. Mission: We at GCMMF endeavor to satisfy the taste and nutritional requirements of the customer of the world through excellence in the marketing by our committed team. Through cooperative networking, we are committed to offering quality product that provides best value for money.
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6,34,675
Number of Village Dairy Cooperative Societies 1163 Total Milk Handling Capacity Milk Collection (Daily Average 2010-11) Milk Drying Capacity Whey Drying Capacity Cattle Feed Manufacturing Capacity 2.4 Million liters per day 1.5 Million liters 100 Mts per day 60 Mts per day 1100 Mts per day
Sales Turnover
Sales Turnover 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Rs (Million) 5090 4690 4880 5460 6000 7090 8220 10770 13780 16950 21110 US $ (in million) 113 100 102 116 138 160 202 272 310 360 469
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Organization Structure:
Organization Structure is divided into two parts: External Organization Structure Internal Organization Structure
External Organization Structure is the organization structure that affects the organization from the outside. The following is internal organization chart of Amul.
Villagers
As we know, GCMMF is unit of Gujarat Milk Marketing Federation, which is a cooperative organization. The villagers of more than 10000 villages of Gujarat are the bases of this structure. They all make village milk producers union, district level milk producers union and then a state level marketing federation is established. The structure is line relationship, which provides easy way to operation. It also provides better communication between two stages
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Managing Director
General Manager
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Production Function:
Expansion of the production technology and changes in technical field is going to bring out revolution in the industry sector which eventually gives stand to study and favors the come backing subject i.e. production and management. Production and operation management is planning, organizing, staffing, directing and controlling of all the production system that portion of organization that converts inputs into products and services. In general production system takes raw material, personnel, machines, buildings and other resources and produce products and services. The core of production system is its conversion subsystem where in workers; raw materials are used to convert inputs into products and services. This production department is at heart of the firm, as it is able to produce low cost products and superior quality in timely manners. Thus, there arises enormous need of giving due importance to this department as a whole and a strong concrete base being foundation pillars of a manufacturing organization, if the intention is to succeed domestically and globally.
Operating AnalysisAmuls only source of raw material is Village Milk societies. Milk is brought from such village milk societies every morning and evening. This milk is then sent to the dairy plant. In the dairy plant the milk is processed i.e. it is made free from germs.
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Milk Processing
The entire process of milk can be divided into following steps:
Distribution Network:
Most producers work with marketing intermediaries to bring their products to market. The marketing intermediaries make up a marketing channel also called distribution channel. Distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. The Head Office of GCMMF is located at Anand. The entire market is divided in 5 zones. The zonal offices are located at Ahmadabad, Mumbai, New Delhi, Kolkata and Chennai.
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Moreover there are 49 Depots located across the country and GCMMF caters to 13 Export markets. A zero level of channel also called a direct marketing channel consists of a manufacturer selling directly to the final customers. A one level channel; contains one selling intermediary such as retailer to the final customers. A two level channel two intermediaries are typically wholesaler and retailer. A three level channel are typically wholesaler, retailer and jobber in between. GCMMF has an excellent distribution. It is its distribution channel, which has made it so popular. GCMMFs products like milk and milk products are perishable. It becomes that much important for them to have a good distribution.
Distribution Chart
We can see from above figure that GCMMF distribution channel is simple and clear. The products change hands for three times before it reaches to the final consumer. First of all the products are stored at the Agents end who are mere facilitators in the network. Then the products are sold to wholesale dealers who then sell to retailers and then the product finally reaches the consumers.
Distribution Chart
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Farmer s
Village
Cooperative Societies (Without
Network Services Milk Processing
Union &
* Veterinary
Services * Animal Husbandry * Animal Feed
Warehouses
Factory
* Milk Can Producers *
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Plants
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutrAmul, Amul Ganthia and Amul lite
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Today, twelve dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.
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AMUL PRODUCTS
Product Name: Amul Gold Packing: Poly Pack - 500ml, 1000ml, 5 Ltr Shelf Life: 48 Hours from the date of packing Storage condition: Under Refrigeration (Below 8C)
Product Name: Amul Taaza Packing: Poly Pack - 500ml, 1000ml, 200ml, 5 Ltr Shelf Life: 48 Hours from the date of packing Storage condition: Under Refrigeration (Below 8C)
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Product Name: Delicious Table Margarine Packing: 100g, 500g, 200g tub & Single serve pack Shelf Life: 9 months under refrigeration Storage condition: Store Under Refrigeration under 10 C
Product Name: Amul Cooking Butter Packing: 100g, 500g, 50g, 20g, 8.1g Shelf Life: Best before 6 months from packaging Storage condition: At 4C or below
Product Name: Amul Processed Cheese Packing: Cheese Block( 200g,400g, 1 kg) Cheese Tins (400g NEOE,EOE),EOE tin has an easy open end Cheese Slices (200g,400g,750g), Amul A+ Cheese Slices 200g Cheese Chiplets (200g, 500g and 1 kg) Shelf Life: 9 Months for Cheese Tins and Cheese Chiplets and 6 Months for Cheese Blocks and Cheese Slices Storage condition: Refrigerated at 4C or below.
Product Name: Amul Emmental Cheese Packing: Amul Emmental Cheese is available in a 400 gm pack for the comsumer and a large wheel (5.5 Kg) for the institutional segments. Shelf Life: 45 days from date of packaging Storage condition: Refrigeration temperature i.e. 4 Centigrade to 8 Centigrade 39
Product Name: Amul Gouda Cheese Packing: Amul Gouda Cheese is available in a 250 gm pack for the comsumer and a larger wheel of 1 Kg for the institutional segments. Shelf Life: 6 Months from date of packaging Storage condition: Refrigeration temperature i.e. 4 Centigrade to 8 Centigrade
Product Name: Amul Cheese Spread Packing: Amul Cheese Spread Tub 200g (Plain, Pepper, Garlic,) Shelf Life: Storage condition:
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Product Name: Amul Taaza Packing: 1000 ml, 500 ml & 200 ml Shelf Life: 180 days when stored in cool and dry place Storage condition: Ambient
Product Name: Amul Calci+ Milk Packing: 1000 ml & 200 ml Shelf Life: 120 days when stored in cool and dry place Storage condition: Ambient
Product Name: Amul Lite Milk Packing: 1000 ml, 200 ml Shelf Life: 180 days when stored in cool and dry place Storage condition: Ambient
Product Name: Amul Kool Koko Packing: 200 ml Glass Bottle, 250 ml Can & 200 ml Tetra Shelf Life: 180 days when stored in cool and dry place Storage condition: Ambient
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Product Name: Amul Kool Milk Shaake Packing: Can: 220ml and Tetra: 180ml Shelf Life: Best before 180 days from date of packing Storage condition: Needs no refrigeration until opened
Product Name: Nutramul Energy Drink Packing: Shelf Life: Best before 180 days from date of packing Storage condition: Needs no refrigeration until opened
Product Name: Amul Masti Spiced Butter Milk Packing: 200 ml & 1 Litre in Tetrapak Shelf Life: 180 days when stored in cool and dry place Storage condition: Ambient
Product Name: Amul Kool Cafe Packing: 200 ml Glass Bottle, 250 ml Can & 200 ml Tetra Shelf Life: 180 days when stored in cool and dry place Storage condition: Ambient
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Product Name: Amul Kool Lassee Packing: 200 ml & 1 Litre in Tetrapak Shelf Life: 120 days when stored in cool and dry place Storage condition: Ambient
Product Name: Amul Prolife Probiotic Lassee Packing: 200 ml Glass Shelf Life: Best Before 10 days from Packaging Storage condition: Keep Under Refrigeration below 8 C
Product Name: Amul Stamina Packing: 200 ml Tetra Pack, 250 ml Can( Orange & Lime)
Shelf Life: Best before 120 days from packaging Storage condition: Cool and dry place
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Product Name: Amul PRO Packing: 500g Glass Cube Jar & 500g Refill Shelf Life: Best before 12 months from the date of manufacture Storage condition: Ambient
Plastic 1 litre, 750 ml, 500 ml, 125 ml, 100 ml, 80 ml Container & 60 ml Stick 70 ml, 60 ml, 40 ml Bulk / catering packs (5 litre, 4 litre), take home packs (2.2 litre, 1.5 litre, 1.25 litre, 1 litre), combo packs (750 ml+750ml Free) and family packs (500 ml, 250 ml)
Take Home
Shelf Life: Best before 12 months from the date of manufacture Storage condition: -18C or below Product Name: Amul Flaavyo Packing: 125 ml, 500 ml cup, 5 ltr Bulk pack Shelf Life: Best Before 6 months from Packaging Storage condition: Keep Under -18C
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Product Name: Amul Malai Paneer Packing: Diced Paneer - 100 g, 200 g & 1 kg , Block Paneer - 200 g & 1 kg Shelf Life: Best before 6 months Storage condition: Stored Frozen
Product Name: Amul Flaavyo Yoghurt Packing: 100 g Cup Shelf Life: Best Before 15 days from Packaging Storage condition: Under Refrigeration (Below 8C)
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Product Name: Amul Ghee Packing: Pouch: 500 ml & 1 Ltr Tin: 200ml, 280ml, 500ml, 1Lrt, 2 Ltr and 5 Ltr Refill: 200ml, 500ml and 1 Ltr PET Jar: 200ml & 500 ml Bulk Pack :10 Kg Plastic Bucket , 15 Kg Tin Shelf Life: Pouch Packing: 9 Months Tin Packing : 12 Months Refill Packing : 9 Months Jar Packing : 6 Months Bulk Packing : 12 Months Storage condition: Dry and Cool place
Product Name: Sagar Ghee Packing: Pouch: 500ml & 1 Ltr & Tin: 1 Ltr, 2Ltr & 5 Ltr Shelf Life: Pouch Packing: 9 Months & Tin Packing: 12 Months Storage condition: Dry and Cool place
Product Name: Amul Cow Ghee Packing: Pouch: 500 ml & Tin: 1 Ltr Shelf Life: Pouch Packing: 9 Months & Tin Packing: 12 Months Storage condition: Dry and Cool place
Product Name: Amulspray Packing: 1 Kg Pouch / Tin, 500g Pouch / Tin/ Refill, 200g Pouch / Refill, Rs 10 Pack, Rs 5 Pack Shelf Life: 12 months Storage condition: Ambient
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Product Name: Amulya Packing: 1 Kg Pouch, 500g Pouch / Refill, 200g Pouch / Refill, Rs 10 Pack, Rs 5 Pack Shelf Life: 12 months Storage condition: Ambient
Product Name: Sagar Skimmed Milk Powder Packing: 500g Pouch Shelf Life: 12 months Storage condition: Ambient
Product Name: Sagar Tea & Coffee Whitener Packing: 42 g Pouch pack & 10 kg Jar Shelf Life: 12 months Storage condition: Ambient
Product Name: Amul Full Cream Milk Powder Packing: 1 Kg Pouch / Tin, 500g Pouch / Tin/ Refill, 200g Pouch
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Product Name: Nutramul Packing: 500g Refill Shelf Life: 12 months Storage condition: Ambient
Product Name: Amul Shrikhand Packing: 100g, 200g, 500g, 1 Kg, 10 Kg, 20 Kg Shelf Life: 6 months when stored at 0 C Storage condition: Refrigerated
Product Name: Amul Gulab Jamun Packing: 1 kg (26 units of Gulab Jamun), 500 g (13 units of Gulab Jamun) Shelf Life: Best before 9 months from packaging Storage condition: Cool and dry place
Product Name: Amul Basundi Packing: 500 ml Tetrapak, 1 Lit Tetrapak Shelf Life: 180 days when stored in cool and dry place Storage condition: Ambient
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Product Name: Amul Avsar Ladoo Packing: Each box contains 15 Ladoos, Net weight 500g Shelf Life: 45 Days Storage condition: Store in a cool and dry place
Product Name: Amul Mithai Mate Packing: 400 g Tin: For Household Consumption. , 7.5 kg Tin: Bakery and Institutions, 280 kg Barrel : For Industrial Use like Biscuit and Chocolate manufacturing etc Shelf Life: 400 g Tin : Best before 12 months, 7.5kgTin : Best before 6 months, 280 kg Barrel : Best before 3 months Storage condition: cool and dry place
Product Name: Amul Rejoice Assorted Chocolate Gift Packs Packing: Amul Rejoice assorted chocolate 135g, 173g, and 412g Shelf Life: 9 months Storage condition: 15 C, dry place
Product Name: Amul Cooking Chocolate Packing: 500g, 10 kg, 20 kg Shelf Life: 12 months Storage condition: 15 C, dry place
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Product Name: Amul Chocolate Packing: Milk Chocolate 12g, 22g, 35g
Fundoo Milk Chocolate 12g, 30g Dark Chocolate 35g Fruit & Nut 40g, 2x150g
Product Name: Amul Chocozoo Packing: Chocozoo Tub : 500g, Chocomini Tub : 300g, Chocozoo Tin : 232g, Chocozoo Birthday pack : 81g, Chocozoo Elegant Pack : 93g, Chocozoo pack of three : 27g Shelf Life: 12 months Storage condition: 15 C, dry place
Product Name: Utterly Delicious Chocolate Syrup Packing: Chocolate syrup 650g plastic bottle, Chocolate syrup 3kg plastic Jar Shelf Life: 6 months Storage condition: Ambient, refrigerate after opening
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Product Name: Amul wafer chocolates Packing: Amul Bindaaz wafer 15g (chocolate flavor). Amul Bindaaz wafer 15g (strawberry flavor). Shelf Life: 9 months Storage condition: 15 C, dry place
Product Name: Amul Pouch Butter Milk Packing: Poly Pack - 500ml Shelf Life: 48 Hours from the date of packing Storage condition: Under Refrigeration (Below 8C)
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Amul 1956
Chocolates 1973
Shrikhand 1980
Cheese 1962
Breadspread
Ghee 1956
Nutrauamul 1973
Gulabjamun 1997
Amulspray 1968
Eclairs 2001
Paneer 1997
Buttermilk 1998
Amulya 1987
Margarine 2004
Chocozoo 2005
Laddoo 2004
Basundi 2005
Khoa 2006
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Research Meaning:
A sane inventory management is of great necessity in any business organizations. The future of business organizations depends upon how the top management defines and considers inventory in relationship with the companys objectives or service levels. Knowing factors that push to a purchasing behavior and meeting customers needs remain a crucial matter for the growth and survival in nowadays competitive market. Baki et al add that todays competitive marketing environment forces producers and customers to get closer to each other. This means organizations should give a great importance to customers needs and listen to their voices, and suppliers and customers should be closer and closer to each other in order to produce goods or services based on the customer needs. Therefore, manufacturers and service producers need an effective planning and control system for a powerful coordination in between all stages of the organizations (processes, and other). The implementation and the use of an effective planning and control system in an organization improve productivity and performance of distribution, while decreasing waiting times. The enterprise resource planning (ERP) systems are examples of the most strategic tools, which provide robust tools for planning, coordination and control of the processes in all organizations.
Research Design
A research design is a plan that specifies the objectives of the study, method to be adopted in the data collection, tools in data analysis and hypothesis to be framed. A research design is an arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to research purpose with economy in procedure.
Nature of Data
The approach of this study consists of combining research into primary and secondary data. Secondary data, that is, the literature phase of the research has essentially been provided in the previous chapters. The theoretical part or the literature of the study is represented by the debate of various parameters relative to inventory management and customer service management. This is of a vital importance in the sense that it provides a measured explanation concerning inventory management and customer service management in a business logistics environment where globalization, technological innovation and changing societal expectations negatively or positively impact on the growth and survival of business organizations on one side and manufacturing industries logistics on the other. Primary data has also been analyzed in the form of an empirical study. In this phase, manufacturing industries in Gauteng Province (especially in Pretoria and Johannesburg) were included in the study. In light of the above, it has to be indicated that the respondents in this population (manufacturing industries in Gauteng Province) were precisely those dealing with inventory management and customer service management.
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Employees or managers of business organizations that were approached were typically in manufacturing industries logistics according to sectors.
Research Type
Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when, "why" and how... Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, Descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative research often has the aim of description and researchers may follow-up with examinations of why the observations exist and what the implications of the findings are.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
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Amulya 10 kg jar
15 level of inventory 10 5 Outwards 0 1 2 3 4 5 6 days Closing Balance Opening Balance Inwards
Opening Inwards Outwards Closing Balance Balance Standard 2.345207 Deviation 10.5 Mean
1.602082 0 0 0.833333 9.6666667 1.6329931
Amulya 25 Kg bag
40 level of inventory 30 20 10 0 1 2 3 4 5 6 days Closing Balance Opening Balance Inwards Outwards
Opening Inwards Outwards Closing Balance Balance Standard Deviation 54.02838 Mean 64.33333
0 0 8.93868 8.5 54.13470 75.83333
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Inwards Outward s
0 0 4.27395 3.66666
Closing Balance
9.93478 124.5
Opening Inwards Outwards Closing Balance Balance Standard Deviation 5.16397 Mean 11.66666
0 0 4.08248 1.66666 5.47722 10
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Opening Inwards Outwards Closing Balance Balance Standard Deviation 16.62227 Mean 40.5
0 0 7.27782 5.83333 14.88175 34.66666
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Opening Inwards Outwards Closing Balance Balance Standard Deviation 108.9293 Mean 408
0 0 36.48013 55 97.07522 353
Opening Inwards Outwards Closing Balance Balance Standard Deviation 10.32795 Mean 227
0 0 8.16496 3 8.164965 223
Opening Inwards Outwards Closing Balance Balance Standard Deviation 46.96239 Mean 75
36.7423 15 19.125 10 43.01976 80
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Opening Inwards Outwards Closing Balance Balance Standard Deviation 73.48469 Mean 271
0 0 73.4846 30 0 241
Opening Inwards Outwards Closing Balance Balance Standard Deviation 0.516397 Mean 8
0 0 0.408248 0 0.408248 8
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Opening Inwards Outwards Closing Balance Balance Standard Deviation 160.4992 Mean 1430
0 0 60.22181 87 112.1903 1343
Opening Inwards Outwards Closing Balance Balance Standard Deviation 70.56817 Mean 58
0 0 55.01151 32 19.043809 25
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Opening Inwards Outwards Closing Balance Balance Standard Deviation 16.32993 Mean 33
0 0 10.32796 7 10.32795 27
Opening Inwards Outwards Closing Balance Balance Standard Deviation 10.84435 Mean 14
0 0 9.62808 5 1.224744 10
Milk Chocolate 35 gm
600 level of inventory 500 400 300 200 100 0 1 2 3 4 5 6 days Closing Balance Opening Balance Inwards Outwards
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Opening Inwards Balance Standard Deviation 1465.734 1837.117 Mean 7925 750
Opening Inwards Outwards Closing Balance Balance Standard Deviation 402.8237 Mean 1038
0 0 130.259 179 297.1514 859
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Mithai Mate
4000 3500 3000 2500 2000 1500 1000 500 0 1 2 3 4 5 6 days level of inventory Opening Balance Inwards Outwards Closing Balance
Opening Inwards Balance Standard Deviation 728.9761 391.9184 Mean 2472 160
Opening Inwards Outwards Closing Balance Balance Standard Deviation 687.8120 Mean 1505
357.189 324 121.639 188 635.32146 1699
Amulspray 18 gm Pch
10000 level of inventory 8000 6000 4000 2000 0 1 2 3 4 5 6 days Outwards Closing Balance Opening Balance Inwards
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Opening Inwards Balance Standard Deviation 1101.661 1995.996 Mean 3831 1600
Opening Inwards Outwards Closing Balance Balance Standard Deviation 766.5331 Mean 2126
0 0 268.842 328 592.4689 1798
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Opening Inwards Balance Standard Deviation 3066.791 1290.065 Mean 18919 526.6667
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72
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Basundi
25 level of inventory 20 15 10 5 0 1 2 3 4 5 6 days Outwards Closing Balance Opening Balance Inwards
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College road Sonai road Hailakandi road Central road Tarapur Malugram
I.
College Road
Information regarding the flow of inventories of retailers of College Road are given below
1st Retailer
100 90 80 70 60 50 40 30 20 10 0 1 2 3 4 5 6
Almond bar 35gm Bindazz Wafers 18gm jar Choco Zoo 60x81gm Birthday Amul Butter 100gm Amul Butter 500gm
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120 100 80 60 40 20 0 1 2 3
2nd Retailer
Amul Butter 100gm Amul Butter 500gm Amulspray 18 gm Pch Amulspray 1kg Pch Amulspray 200 gm Pch
4 5 6 Almond bar 35gm Choco Zoo 3-pack 27gm Choco Zoo 60x81gm Birthday Dark Chocolate 35gm Amul Butter 100gm Amul Butter 500gm Mithai Mate Amulspray 18 gm Pch Amul Taaza 1Ltr 1 2 3 4 5 6
70 60 50 40 30 20 10 0
3rd Retailer
4th Retailer
140 120 100 80 60 40 20 0 1 2 3 4 5 6
Amul Butter 100gm Mithai Mate Amulspray 18 gm Pch Amulspray 200 gm Pch Amulspray 500gm pch Amulya 36gm Pch Amul Taaza 1Ltr Amul Taaza 500ml
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120 100 80 60 40 20 0 1 2 3
5th Retailer
Almond bar 35gm Choco Zoo 3-pack 27gm Dark Chocolate 35gm Mithai Mate Amulspray 18 gm Pch Amulspray 200 gm Pch Amulya 36gm Pch Amulya 500gm Pch
II.
Sonai road
Information regarding the flow of inventories of retailers of Sonai Road are given below
1st Retailer
60 50 40 30 20 10 0 1 2 3 4 5 6
Amul Butter 100gm Amul Butter 500gm Mithai Mate Amulspray 1kg Pch Amulspray 200 gm Pch Amulspray 36gm pch Amulya 36gm Pch Amul Taaza 1Ltr
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70 60 50 40
2nd Retailer
Cheese Slice 200gm Amul milk chocolate 20 gm Choco Zoo 3-pack 27gm Amul Butter 100gm Mithai Mate
30 20 10 0 1 2 3 4 5 6
Amulspray 36gm pch Amulya 18gm Pch Amulya 36gm Pch
35 30 25 20 15 10 5 0 1 2 3
3rd Retailer
Amulspray 18 gm Pch Amulspray 1kg Pch Amulspray 200 gm Pch Amulspray 36gm pch Amulya 36gm Pch Amul Taaza 1Ltr
40 35 30 25 20 15 10 5 0 1 2 3
4th Retailer
Cheese Tin 400gm Amul milk chocolate 20 gm Choco Zoo 3-pack 27gm Amul Butter 100gm Amul Taaza 1Ltr Amul Taaza 500ml
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40 35 30 25 20 15 10 5 0 1 2 3
5th Retailer
Amul milk chocolate 20 gm Choco Zoo 60x81gm Birthday Milk Chocolate 35 gm Amul Butter 100gm Kool Bottle 200ml Amul Gold 1Ltr Amul Taaza 1Ltr Gulab Jamun 1kg tin
III.
Hailakandi road
Information regarding the flow of inventories of retailers of Hailakandi Road are given below
1st Retailer
Amul Butter 100gm Mithai Mate Amulspray 200gm Refill Amulya 18gm Pch Amulya 36gm Pch Amul Taaza 500ml 4 5 6
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120 100 80 60 40 20 0 1 2 3
2nd Retailer
Cheese Tin 400gm Amulspray 200gm Refill Amulya 36gm Pch Amul Ghee 1Ltr Refill Amul Taaza 1Ltr Amul Taaza 500ml
40 35 30 25 20 15 10 5 0 1 2 3
3rd Retailer
Amulspray 500gm pch Amulya 1Kg Pch Amulya 500gm Pch Amulya 900gm Pch Amul Ghee 1Ltr Refill
4 5 6
40 35 30 25 20 15 10 5 0 1 2 3
4th Retailer
Cheese Tin 400gm Almond bar 35gm Choco Zoo 3-pack 27gm Milk Chocolate 35 gm Amul Butter 100gm Amul Butter 500gm Mithai Mate Amulspray 36gm pch
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40 35 30 25 20 15 10 5 0 1 2 3
5th Retailer
Cheese Chiplet 200gm Amul Butter 100gm Amul Butter 500gm Amulspray 36gm pch Amulya 36gm Pch Amul Taaza 1Ltr
IV.
Central road
Information regarding the flow of inventories of retailers of Hailakandi Road are given below
1st Retailer
140 120 100 80 60 40 20 0 1 2 3 4 5 6
Cheese Spread 200gm Amul milk chocolate 20 gm Amul Butter 100gm Amulspray 36gm pch Amulspray 500gm pch Amulspray 500gm tin Amulya 36gm Pch Amul Taaza 1Ltr
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2nd Retailer
Amul A+ Cheese Slice 200 gm Cheese Tin 400gm Amul milk chocolate 20 gm Choco Zoo 3-pack 27gm Amul Butter 100gm Amul Butter 500gm Mithai Mate Amulspray 36gm pch
20 0 1 2 3 4 5 6
70 60
3rd Retailer
50 40 30 20 10 0 1 2 3 4 5 6
Amulspray 500gm tin Amulya 1Kg Pch Amulya 36gm Pch Amulya 500gm Pch Amul Taaza 1Ltr Amul Taaza 500ml Gulab Jamun 500gm tin
80 70 60 50 40 30 20 10 0 1 2 3
4th Retailer
Amul Butter 100gm Amulspray 1kg Pch Amulspray 200 gm Pch Amulspray 36gm pch Amulya 1Kg Pch
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30 25 20 15 10 5 0 1 2 3
5th Retailer
Cheese Chiplet 200gm Cheese Tin 400gm Choco Zoo 3-pack 27gm Amul Butter 100gm Amulspray 1kg Pch Amulspray 200 gm Pch Amulspray 200gm Refill Amulya 1Kg Pch Amulya 500gm Pch Amul Taaza 1Ltr Amul Taaza 500ml
V.
Tarapur
Information regarding the flow of inventories of retailers of Hailakandi Road are given below
1st Retailer
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60 50 40 30 20 10 0 1 2 3
2nd Retailer
Amulspray 1kg Pch Amulspray 200 gm Pch Amulspray 36gm pch Amulya 36gm Pch Amul Taaza 1Ltr
60 50 40 30 20 10 0 1 2 3
3rd Retailer
Amul Butter 100gm Amul Butter 500gm Mithai Mate Amulspray 1kg Pch Amulya 1Kg Pch Amul Taaza 1Ltr 4 5 6
45 40 35 30 25 20 15 10 5 0 1 2 3
4th Retailer
Mithai Mate Amulspray 36gm pch Amul Taaza 1Ltr Amul Taaza 500ml
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30 25 20 15 10
5th Retailer
Amul A+ Cheese Slice 200 gm Amul milk chocolate 20 gm Amul Butter 100gm Amul Butter 500gm
5 0 1 2 3 4 5 6 Mithai Mate
VI.
Malugram
Information regarding the flow of inventories of retailers of Malugram Road are given below
80 70 60 50 40 30 20 10 0 1 2 3
1th Retailer
Amul Butter 100gm Amulspray 1kg Pch Amulspray 36gm pch Amulya 1Kg Pch
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30 25 20 15
2nd Retailer
Cheese Tin 400gm Amul Ghee 1Ltr Refill Amul Taaza 1Ltr
10 5 0 1 2 3 4 5 6 Almond bar 35gm Choco Zoo 3-pack 27gm Dark Chocolate 35gm Mithai Mate Amulspray 18 gm Pch Amulspray 200 gm Pch Amul Taaza 1Ltr 1 2 3 4 5 6 Amul Taaza 500ml
35 30 25 20 15 10 5 0
3th Retailer
60 50 40
4nd Retailer
Amulspray 200 gm Pch 30 20 10 0 1 2 3 4 5 6 Amulspray 36gm pch Amulya 36gm Pch Amul Taaza 1Ltr
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5nd Retailer
60 40 20 0 1 2 3 4 5 6
Amul Butter 100gm Amulspray 36gm pch
Satisfaction level of retailers regarding the distribution of Amul products Are you satisfied with the distribution of amul products?
14 12 10 8 6 4 2 0 Strongly agree Agree Neither agree nor disagree Disagree Strongly Disagree
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Findings
1. Warehouse a) They use Pull System of replenishment process. b) Generally they place order weekly but in case of shortage they place order on due date. c) They use optional replenishment system technique for inventory control. d) The lead time is three days. e) The orders grouped for dispatch is on the basis of location of distributors. f) They measure your warehouse performance on the basis of On-time Dispatch, On-time delivery, Inventory acuracy & Unit handled. g) The rate of obsolesce is less than 10%.
2. a) b) c) d) e) f)
Distributor They use Pull System of replenishment process. They place order three times in a week. They use periodic review system technique for inventory control. The lead time is 24 hrs. The orders grouped for dispatch is on the basis of location of retailers. The rate of obsolesce is more than 10%.
3. a) b) c) d) e)
Retailers They use Pull System of replenishment process. They place order one time in a week. They use periodic review system technique for inventory control. The lead time is one week. The rate of obsolesce is more than 10%.
The Overall findings are as follows:1. The retailers are not satisfied with the distribution of Amul products. 2. There is monopoly in the market due to the presence of only one distributor in the Silchar market. 3. Amul warehouse is not providing all the SKUs regularly.
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4. When there is excess of inventory, they use to dump their products in the lower leg (specially Amul Taza). 5. As per Amul officials the obsolesce rate is less than 10%. But as per the distributor & retailers it is more than 10%.
Suggestions
1. As the retailers are not satisfied with the distribution of Amul products, the efficiency level of distribution should be increased. And the distribution should be done more than once in a week. 2. Proper forecasting should be done by Amul officials to overcome overstocking & stock out problem. 3. They should provide regularly all those SKUs which they have already provided to the consumers. 4. The Amul officials should take feedback from the retailers & consumers to understand their needs & wants. 5. Amul officials should take strict steps to stop this monopoly.
Conclusion
Inventory is a quantity or store of goods that is held for some purpose or use (the term may also be used as a verb, meaning to take inventory or to count all goods held in inventory). Inaccurate inventory counts can cost you sales and delay shipments past the promise date. Out-of stock items as well as overstocked items in inventory can be devastating to your business. Additionally, an overstated or understated inventory valuation can result in incorrectly reported assets within your financial statements. Inventory Management offers comprehensive reporting capabilities to keep you on top of inventory status. Centralized inventory management consolidates inventory information by tracking lot numbers, on-hand levels and expiration dates, making the re-ordering process more efficient. It also enables simultaneous tracking and documenting supplies during studies to reduce redundant data entry and increase workflow efficiency. So the biggest challenge Amul has to deal with was managing the continuous flow of all SKUs in the Silchar market to have competitive edge over the competitors.
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APPENDIX
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(QUESTIONARE) (Warehouse) Dear Sir/Madam I am a student of Dept. of Business Administration of Assam University, Silchar. I am doing my project in operations management on the topic INVENTORY STRATEGY FOR PROCESSING INDEPENDENT DEMAND. For the completion of the project I kindly request your valuable opinion& suggestion & I expect your co-operation also to fill the questionnaire given below. I assure you that the information furnished will be strictly confidential & used for academic purpose only. (Sagardwip Dey)
1. What is the replenishment process? Pull System Push system 2. How frequently you place order in C&F/Plant? Weekly Fortnight Any other ___________________________ 3. What inventory control system you are using? Continuous review system Periodic review system Optional replenishment system Base stock system Any other _______________ 4. What is the lead time? 24hrs 48hrs 1 week 15 days Any other ______________ 5. Different stock keeping units do you currently having in your following products? I. Amul Butter 20g ______ 50g _______ 100g______ 500g____ II. Amul Cheese 400g ______ III. Amul Gold 1L ______ IV. Amul Taza 1L _______ 200 ml ______ 500 ml ______ V. Amul Kool Cafe 200ml glass bottle _______ 250ml can________ VI. Amul Kool Lassee 200ml _____ VII. Amul Spray 1kg _____ 200gm_____ 500gm _____ VIII. Amullya 1kg _____ 200gm_____ 500gm _____ IX. Amul Mithai Mate 400g Tin ____ X. Amul Chocolate a) Milk chocolate 12g _____ b) Fundoo milk chocolate 12g _____ c) Dark chocolate 35g _____ d) Fruit & Nut 40g _____ e) Almond Bar 35g _____ XI. Amul chocolate Syrup 650g plastic bottle ______ XII. Amul Bindaaz wafer 15g _____ XIII. Amul Fresh cream 200 ml ______ 1L _____
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Amul Rejoice Associated chocolate 135g _____ 173g _____ 412g _____ 6. How are orders grouped for dispatch? By location of distributors / stock list / customer On first booked first dispatch basis irrespective of location & item By similar items By route Any other ____________________ 7. How you measure your warehouse performance On-time Dispatch On-time delivery Inventory acuracy Accuracy of invoice Stock outs Mismatch / error in dispatch Warehouse cycle time Customer complains Unit handled Value handled Do not measure Any other _________ 8. What is the average replenishment time for the dealers/distributors? 24hrs 48hrs 1 week 15 days Any other ______________ 9. What is the rate of obsolete inventory? <10% 10-25% 25-50% >50%
XIV.
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(QUESTIONARE) (Distributor) Dear Sir/Madam I am a student of Dept. of Business Administration of Assam University, Silchar. I am doing my project in operations management on the topic INVENTORY STRATEGY FOR PROCESSING INDEPENDENT DEMAND. For the completion of the project I kindly request your valuable opinion& suggestion & I expect your co-operation also to fill the questionnaire given below. I assure you that the information furnished will be strictly confidential & used for academic purpose only. (Sagardwip Dey)
1. What is the replenishment process? Pull System Push system 2. How frequently you place order ? Weekly Fortnight Any other ___________________________ 3. What inventory control system you are using? Continuous review system Periodic review system Optional replenishment system Base stock system Any other _______________ 4. What is the lead time? 24hrs 48hrs 1 week 15 days Any other ______________ 5. Different stock keeping units do you currently having in your following products? XI. Amul Butter 20g ______ 50g _______ 100g______ 500g____ XII. Amul Cheese 400g ______ XIII. Amul Gold 1L ______ XIV. Amul Taza 1L _______ 200 ml ______ 500 ml ______ XV. Amul Kool Cafe 200ml glass bottle _______ 250ml can________ XVI. Amul Kool Lassee 200ml _____ XVII. Amul Spray 1kg _____ 200gm_____ 500gm _____ XVIII. Amullya 1kg _____ 200gm_____ 500gm _____ XIX. Amul Mithai Mate 400g Tin ____ XX. Amul Chocolate f) Milk chocolate 12g _____ g) Fundoo milk chocolate 12g _____ h) Dark chocolate 35g _____ i) Fruit & Nut 40g _____ j) Almond Bar 35g _____ XV. Amul chocolate Syrup 650g plastic bottle ______ XVI. Amul Bindaaz wafer 15g _____ XVII. Amul Fresh cream 200 ml ______ 1L _____
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Amul Rejoice Associated chocolate 135g _____ 173g _____ 412g _____ 6. How are orders grouped for dispatch? By location of distributors / stock list / customer On first booked first dispatch basis irrespective of location & item By similar items By route Any other ____________________
XVIII.
7. What is the average replenishment time for the retailers? 24hrs 48hrs 1 week 15 days Any other ______________ 8. What is the rate of obsolete inventory? <10% 10-25% 25-50% >50%
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(QUESTIONARE) (Retailers) Dear Sir/Madam I am a student of Dept. of Business Administration of Assam University, Silchar. I am doing my project in operations management on the topic INVENTORY STRATEGY FOR PROCESSING INDEPENDENT DEMAND. For the completion of the project I kindly request your valuable opinion& suggestion & I expect your co-operation also to fill the questionnaire given below. I assure you that the information furnished will be strictly confidential & used for academic purpose only. (Sagardwip Dey)
1. What is the replenishment process? Pull System Push system 2. How frequently you place order? Weekly Fortnight Any other ___________________________ 3. What inventory control system you are using? Continuous review system Periodic review system Optional replenishment system Base stock system Any other _______________ 4. What is the lead time? 24hrs 48hrs 1 week 15 days Any other ______________ 5. What is the rate of obsolete inventory? <10% 10-25% 25-50% >50% 6. Product movement Products Day1 Day2 Day3 Day4 Day5 Day6
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7. Are you satisfied with the distribution of amul products? Strongly agree Agree Neither agree nor disagree Strongly Disagree
Disagree
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BIBILOGRAPHY
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BOOKS Chopra, Sunil and Peter Meindl, 2007, Supply Chain Management Strategy, Planning and Operation, 3rd Edition , Pearson Education. KRAJEWSKI L J & RITZMAN L P, 2007, Operations management. Strategy and Analysis, 8th edition, ADDISON-WESLEY. Stevenson, William J, 2005, Production Operations Management. Boston, MA: Irwin/McGraw Hill. Bose D, 2006, Inventory Management, 4th Edition, PHI Private Limited. Muller (2003), Essentials of inventory management, [online] Available: http://www.books.co Kothari C.R., 2004, Marketing Research, 2nd Edition, New Age international Publisher WEBSITES http://www.amul.com http://www.scribd.com
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