PRESENTED BY NITIN ARORA

Introduction of inventory Introduction of company Objective of the study Dairy products Structure of Anchal diary Inventory cycle A B C Classification Inventory turnover of Anchal Turnover of Anchal industries Research methodology Finding Recommendation and Suggestion Conclusion

Inventory is the aggregate of those item of tangible personal property which are held for sale in the ordinary course of business or in the process of production for such sale or currently consume in the production of goods and services to be available for sale there are various form in which inventories exists in a manufacturing company like raw material ,finished good, semi finished good ,store and spare etc

The milk revolution started in India in 1946 in a small town called Anand (Gujarat), has made a big contribution to the socio-economic development of rural milk producers. It has also established an effective partnership between farmers and professionals in the dairy industry.

There is about 75,000 dairy cooperative societies, spread all over the country with a membership of 10 million. There are nearly 70 million households engaged in milk production, of which more than 10 million are in the cooperative sector. However, except for the brand name Amul,most of the state federation brands are regional. These include Verka in Punjab, Nandini in Karnataka, Vijaya in Andhra Pradesh, Saras inRajasthan,

To study and analyze the company inventory system A B C Analysis To analyze the time period of inventory To analyze the cost of inventory Fast moving-slow moving analysis

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Non fat dry Milk Cheese powder Butter salted Butter unsalted Cream Ghee Cheese sauces

STORES/WORKER/USER

PURCHASE DEPARTMENT(P.O) SUPPLIRES MATERIAL RECEIVED REJECTED MIN PREPARED

GRN PREPARED
STORES REQUISITION SLIP) STORES USERS VICE VERSA

Material Planning Material Purchasing and Receving Material Storing Material issuing Material Accounting

Centralized purchasing or decentralized purchasing Classification and codification Standerdisation and simplification Types of stores i.e., centralized store or decentralized store Fixation of levels (re order,minimum,maximum,danger,EOQ) Selective controls through ABC analysis, VED analysis Perpetual inventory system

Exploring of supply Calling quotations Preparing comparative statement of quotation Select one of them Receiving and inspecting materials Checking and passing of bills for payments

Location and layout of stores Maintainers of stores records, bin cards and store ledger Perpetual inventory systems Calculation of inventory turnover ratio

Materials requisition Bills of materials Material returned to stores loss/surplus of materials

Receipts of materials Issues of materials losses/surplus of materials

Class A

5 15 % of unit 70 80 % of value 30 % of units 15 % of value

Class B

Class C

50 60 % of units 5 10 % of value

Practically, every household in the rural and semiurban areas own livestock, a mixture of cows and buffaloes. Most of the households own more than one cattle head, so milching is available throughout the year by rotation. The analysis of inventories according to the data available in the company. The data used in the analysis are secondary arranged: By report of company By internet By supervisors

If we see from the above table ( Data of the Company ) that the days of inventory holding in the year 2009-10 has come down to 19 days from 22 days in the year 2005-06. In spite of increase in turnover i.e. 596.36 cr in 2009-10 from 523.36 in the year 2008-09 the days of inventory holding decreases. This indicates that the company is using effective strategy to bring down its inventory level. This makes very less investment in inventory.

More man power is required. At least 2-3 people must be there for the distribution of material.
The time to updating of issuing and receiving is to be done.

The materials are to be stored in the particular racks.

The inventories should not be mixed or scattered. The employees or the workers are not to be allowed to collect the material by themselves. The space in the stores should be properly utilized. The BIN must be allotted to each and every item, so as to keep the record of each and every item and also increases the assets of the company in the books of account

Investment on inventories to the minimum. Idle time is minimized by avoiding stock outs and shortages.

Carrying cost is reduced.

Quality is being improved. Profit is being improved as compared with the carrying cost.