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INVENTORY MANAGEMENT
AT
By
N.S AMBASA
(10908123)
(KEERTHI)
Hyderabad
ACKNOWLEDGEMENT
N.S
AMBASA
H.T.NO: 10908123
DATE:
degree/diploma/certificate.
INTRODUCTION
Natural stone products are mostly used in making and decorating building,
office, industry, organizations etc. These are also custom made as per the
requirement and specifications of the customer. They are used in
construction industries and in most of the industrial sectors.
The range of natural stones includes slate stone, sand stone, mosaic stone,
cobble & pebble, marble, granite, minerals and genuine, natural stones that
are not dyed, synthesized, stabilized or enhanced - just genuine cut and
polished gemstones, or pure rough gem material for your use.
Granite tile and marble flooring are excellent floor materials. Both marble
and granite tile are natural stone products, very durable and stain resistant.
Other options for floors include slate and terrazzo. All except for terrazzo
are installed like ceramic tile. Marble and granite tile exhibit a wide range
of stain resistance. Marble is more porous than granite.
The bulk (90%) of the Indian stone exports is by way rough granite and
marble blocks and only about 10% is by way of value added or branded
products. Indian stone industry and the Government have set a target of
raising this to 50% over the next 5 years.
The bulk of the Indian stones are produced in the Indian states of Rajasthan,
Tamilnadu, Karnataka and Andhra Pradesh. Rajasthan accounts for nearly
90% of all the marble produced and the other three states in Southern India
produce almost all the granite exported.
STATISTICAL OUTLOOK
Major Importers
India possesses enormous deposits of all types of natural dimensional
• Marble
• Granite
• Kotahstone(Flaggylimesto
ne)
• Sandstone
• Slate
- Dimensional blocks
- Slabs and tiles
- Monuments
- Architectural and sculptured
pieces
- Moulded pieces
- Cobbles and pavement
stones
- StoneHandicrafts/Artifacts
MARBLE INDUSTRY
A Vibrant Industry
Rajasthan
• Udaipur-Rajsamand -Chittorgarh region
• Makrana-Kishangarh region
• Banswara - Dungarpur region
• Abu region
• Andhi (Jaipur) - Jhiri (Alwar) region
• Jaisalmer region
Gujarat
• Ambaji region
• Makrana-Kishangarh region
GRANITE INDUSTRY
Granite
• Ranks 1st in Raw Siliceous Exports in the world
• Exports valued at 244 million dollars in 1997-98
• Widespread availability - Karnataka, Andhra Pradesh,
Tamilnadu, Orissa, Rajasthan, Utter Pradesh, Bihar, West
Bengal
• Estimated Geological Reserves - Over 5,000 million cubic
metres
• Important Quarrying & Processing Centres - Bangalore,
Bellary, Hospet, Chamrajnagar, Chennai, Hyderabad,
Warangal, Jhansi, Jalore, Pali, Barmer etc.
• Magnificent Varieties - Merry Gold, Platinum White,
Mokalsar Green, Rosy Pink, Nagina Green, Tiger Skin, Royal
Gold, Jhansi Red, Galaxy Black, Kashmir White, Paradiso,
Cira Grey, Juparana, Absolute Black, New Imperial Red, Raw
Silk etc.
Sandstone
FLAGGY LIMESTONE
• Widespread availability - Rajasthan, Andhra Pradesh
• Color & pattern - Greenish Blue, Pale Brown & Black
• Important Quarrying & Processing Centres -
Ramganjmandi, Modak, Cuddapah
• Estimated Geological Reserves - Over 2,000 million tons
• Production - Over 2 million tons
SLATE
% of India's total
Mineral
production
Marble 91%
Kotahstone (Flaggy
90%
limestone)
Sandstone 90%
Slate 10%
Granite 2.2%
COMPANY PROFILE
Kakatiya Overseas has carved a niche for itself for producing world class
natural stones. This company has grown into one of the country’s largest
corporate houses to the exporting quality granite in a wide spectrum finish to
customer’s world wide.
PLANT LOCATIONS:
#27, Road No.5
Indraprasthan Industrial Area,
Kota , Rajasthan
Narnaul Road,Kund-123102
Rewari, Haryana.
Plot #247,IDA ,
OFFICE:
KAKATIYAOVERSEAS
127BKiranMansion,G-1
VengalaRaoNagar,Hyderabad
AP, India
LOCATION:
Kurnool Road,
Betamcherla-518599
Kurnool Dist,
Andra Pradesh,India.
OFFICE:
KAKATIYAOVERSEAS
127BKiranMansion,G-1
VengalaRaoNagar,Hyderabad
AP, India
BOARD OF DIRECTORS:
G.Rama Rao.
C.VINIL
BANKERS:
HDFC
ICICI.
1. UK
2. BELGIUM
3. ITALY
4. MOROCCO
5. AUSTRALIA
6. ALGERIA
7. NETHER LANDS
8.UNITED STATES OF AMERICA.
9.Greece
10.France
11.UAE
OBJECTIVE:
Established with a commitment to serve India’s Ornamental Stone
IndustriesThat specialize in marbles, sandstone’s, slates, limestone,
quartzite etc.,
All/India Natural Stones and Stone Association (AIGSA) has been serving
India’s stoneand Allied Industries with a single track objective of our stone
industries i.e. Granites,Marbles, Sandstone, Slates, Limestone’s and
Ornamental Building Stones in anyform and its ancillaries Of Machinery
too, Equipment, anything directly related to the stone.
Welfare:
Welfare activities include canteens supplying subsidized meals,
transport facilities, to employees.
Quality:
Standards and quality assurance group (SQAG) at kakatiya overseas is
a corporate quality assurance service facility. While the individual business
groups have their own quality control/quality assurance sections, this
corporate facility caters to the common requirements.
RECEIPT DOCUMENTS:
CSRV : certified stores receipt voucher, which is issued by the stores
personnel to bills section in order to classify the material into Raw materials,
stores and spares, consumable tools, packing material, subcontractors
services, and other operational expenses, based on the purchased order, the
bills section does the provisional valuation by using fixed percentages for
freight, insurance and other incidentals and with regard to customs duty the
percentages as per tariff are adopted and the following entry proposed.
Material
Inspection
Strategies:
Technical up gradation and R&D efforts.
Effective new markets and exports.
Gather delegation of authority and tuning up management information
system.
Diversification.
PRODUCT RANGE:
The company offers a wide variety of Stone Products to all the customers –
“Quality Stones at Quantity rates”. They have a team of experienced
professionals working throughout their locations looking after processing,
dressing, inspecting and shipment of natural stones.
The usage of stone has been an integral part of human civilization and has
played a pivotal role in shaping establishments. Continuing this tradition,
The Company, excel as a supplier & exporter of varieties of natural stones.
They have earned a respectable position in setting new heights in quality
products, customer satisfaction and on-schedule delivery of the products.
They supply and export a comprehensive range of high quality natural stones
such as sandstone, limestone,slate,granite and other construction and
building stones for discerning buyers around the globe.
Slate Stones
Sandstone
Limestone
Granite
PRODUCT EXPORTED:
SAND STONE:
Dholpur Beige, Agra Red, Bansi Pink, Fossil, Panther, Tint Mint,
Rainbow, Chanderi Pink, Lalitpur Grey, Lalitpur Yellow (Camel Yellow),
Teakwood, Kandla Grey, Modak, Mandana, Raveena, Raj Green, Autumn
Brown.
LIMESTONE:
Products Available:
Kota Blue, Kota Brown, Cuddapah Black, Lime pink, Lime Green,
Shahbad Yellow.
Finish:
Natural Cleft both faces , One side Honed, Both sides Honed, Hand
Cut/Machine Cut/Gangsaw Cut, Polished, Mirror Finish, Calibrated.
Cobbles of limestones are very popular.
SLATE:
GRANITE:
Products Available :
Over 34 different products in Slabs and Tiles . Tiles in Square size,
free lengths, odd sizes and foot strips. They can offer you Granite Vanity
Tops,Bar Tops,etc., in prefabricated, precut, ready to install. They have CNC
(Contouring) machine to do these jobs with perfection, which very few
processors have in India.
2004 5514
2005 6980
2006 6986
2007 10688
2008 11580
LIMITATIONS:
1.Longer delivery and payment time frames
4.Lack of information.
8.Unstable government.
SYSTEMS OVERVIEW:
The following systems are being followed in kakatiya overseas and the
main features of the systems are as follows:
1. Receipt vouchers are prepared on receipt of material.
2. Issue vouchers are prepared for all issues of out of stores.
3. All receipts, issue and returns are recorded in priced stores ledger.
4. Stock transfer voucher (STV) are used for recording transfer of raw
materials from one division/group to another. Transfers are made at
weighted average prices.
5. Finished goods delivery notes (FGDN) are used for transferring
finished production in shop floor to finished goods (FG) stores.
6. Physical verification is carried out at 6 regular internals and
discrepancies are and reconciled and recorded.
7. Work-In-Progress (WIP) valuation is as per the accounting policy of
the company.
8. Finished goods valuation is as per the accounting policy of the
company.
RECEIPT DOCUMENTS:
In this similar fashion, some other receipt documents and issued
documents are operated like:
1. CPRV (Cash purchase receipt voucher) for cash purchases receipt.
2.FGIN(finished goods issue note)the finished products particularly of
CG like hybrids , Networks and PCBs are consumed as raw materials in
other group for which a credit is given in the expenses of CG and stock of
that group is debited.
3. STV (Rs) stock transfer voucher: any stores useful for any group is
taken from other group from STV for which only stock accounts of the
divisions are operated.
4. MRNs (Material Return Note): The items lying unused at shop
floor after production activity is over are returned to stores under this
document.
DEFINITION:
The American production and inventory society defines:
“Inventory management as the branch of business management
concerned with planning and controlling inventories. The role inventory
management is to maintain a desired stock level of specific products or
items”.
.
Types of study:
RAW MATERIALS:
An inventory of raw materials allows separation of production scheduling
from arrival of basic inputs to the production process. Factories affecting the
amount the raw materials inventory include proximately to the suppliers
relationship with the suppliers, predictability of the production process, lead
time required to place on order, and transportability and perishability of raw
materials.
WORK IN PROCESS:
An inventory of partially completed units allows the separation of
different phases of the production process, the amount of work in process
inventory is in past a function of the type of product, the measurement
period and the nature of the product process.
FINISHED GOODS:
An inventory of finished allows separation of production from
selling , with a stock of finished merchandised on hand a firm can fill order
as they are received rather than depend upon the completion of production to
satisfy customer demands.
FUNCTIONS OF INVENTORY:
The functions of the firm such as purchase of raw materials
,processing, and having a finished goods available for sales, have a
sequential physical dependence maintenance of inventories allows the firm
to decouple those functions so that each can be planned, scheduled ,and
operated independently. For retail firms inventory provides customers with
selection choice and decouple the purchasing functions from the selling
functions.
PRIMARY DATA:
The information collected directly without any reference in primary data in
the study it is mainly through concerned offers or staff member either
individually or collectively data includes
®Conducting personal interview with officers of the company.
®Individual observation inference.
®From the people who are directly involved with the transaction of the firm.
SECONDARY DATA:
Study has been taken from secondary sources that is published annual
report of the editing, classifying and tabulation of the financial data for their.
REVIEW OF LITERATURE:
For this purpose, previous abstracts on inventory management,
periodicals, academic journals. Articles will be reviewed in this section.
4.1. INTRODUCTION:
This system enables control on the inventories and at the same time
costs on some are checked.
Materials issued to subcontractors are booked to consumptions as and
when issued through MIRS. A record is being maintained at subcontracts
section, park wise, job wise and description of materials and quantities
issued.
1. Avoiding loss sales: without goods on hand that are ready to be sold
most firms would lose business. Some clusters are ready to wait,
particularly when an item must be made on order or is not widely
available from competitors. Affirm must be prepared to deliver goods
on demand. Shelf stock refers to items that are stored by the firm and
sold with little or no modification to the customers.
2. Gaining quantity discounts: inurn for making bulk purchases many
Finished Goods:
These are the goods which are ready for the consumers. The stock of
finished goods provides a buffer between production and market. The
propose of maintaining inventory is to ensure proper supply of goods to
customers. In some concerns the production is undertaken on order basis, in
these concerns there will not be a need for finished goods. The need for
finished goods. The need for finished goods inventory will be more when
production is undertaken in general without waiting for specific orders.
Spares:
Spares also form a part of inventory. The consumption pattern of raw
materials. The stocking policies of spares are different from industry to
industry. Some industry like transport will require more spares than the other
concerns. The costly spare parts like engines, maintenance spares etc. are not
discarded after use, rather they are kept in ready position for furtherer use.
All decisions about spares are based on the financial cost of inventory on
such spares and the costs that may arise due to their non-availability.
Consumables:
These are the materials, which are needed to smoothen the process of
production. These materials do not enter directly into production but they act
as catalysts. Consumables may be classified according to their consumption
and critically. Generally, consumables stores do not create any supply
problem and form a small part of production cost. There can be instances
where these materials may account for much value than the materials. The
fuel oil may from a substantial part of the cost.
Cycle Inventory:
The portion of total inventory that varies directly with lot size is
called inventory. Determining how frequently to order, and in what quantity,
is called lot sizing. Two principles apply.
1. The lot size, Q, varies directly with the elapsed time (or cycle)
This formula is exact only when the demand rate is constant and uniform.
However, it does provide reasonably good estimate even when demand rates
are not constant. Factors other than the demand rate (e.g., scrap losses) also
may cause estimating errors when this simple formula is used.
Safety Stock Inventory:
To avoid customer service problems and the hidden cost of
unavailable components, companies hold safety stock. Safety stock
inventory protects against uncertainties in demand, lead time, and supply.
Safety stocks are desirable when suppliers fail to deliver the desired quantity
on the specified date with acceptable quality or when manufactured items
have significant amounts of scrap or rework. Safety stock inventory ensures
that operations are not disrupted when such problems occur, allowing
subsequent operations to continue.
To create safety stock, a firm places an order foe delivery earlier than
when the item is typically needed. The replenishment order therefore arrives
ahead of time, giving a cushion against uncertainty.
the marketplace, both of which can (and do) have a big impact on
inventory decisions.
Institute “continuous improvement” philosophy in inventory in
inventory management.
Make inventory management decisions that reflect a recognition that
inventory is deeply interrelated with many other areas of business
operation.
To summarize, inventory management system should be regularly
reviewed from top to bottom as an essential part of the annual strategic and
business and business planning processes. Indeed, even cursory
examinations of inventory statistics can sometimes provide business owners
with valuable insights into the company’s foundations. business consultants
and managers alike note that if an individual business has an inventory
turnover ratio that is low in relation to the average for the industry in which
it operates, or if it is low in comparison with the average ratio for the
business, it is pretty likely that the business is carrying a surplus of obsolete
or otherwise unsalable stock inventory. Conversely, they note that if a
business is experiencing unusually high inventory turnover when compared
with industry or business averages, then the company may be losing out on
sales because of a lack of adequate stock on hand.” it will be helpful to
determine the turnover rate of each stock item so that you can evaluate how
will each is moving, “noted the entrepreneur magazine small business
advisor.” You may even want to base your inventory turnover on more
frequent periods than a year. For perishable items, calculating turnover
periods based on daily weekly or monthly periods may be necessary to
ensure the freshness of the product. This is especially important for food-
service operations.”
Material Control:
Most of the manufacturing concerns. The cost of raw materials
represents a major part of the total cost of production. Hence proper control
over material is necessary from the time the order is place with the supplier
till they are actually consumed. An efficient system of material control will
lead to significant reduction in production cost.
Material control may be defined as the “Systematic control over the
procurement, storage and usage of materials so as to maintain an even flow
of materials and avoiding at the same time excessive investment in
inventories”. Material control covers three stages namely.
Purchases of material
Storing of material
Issue of material
Objectives:
The objectives of material controls as follows:
1) To ensure regular and uninterrupted supply of materials i.e., to make
materials available as and when they are needed.
2) To keep investment in stock at a reasonable levels, so that there is no
loss of interest on capital.
3) To purchase the materials at a reasonable price without sacrificing the
quality of such materials.
4) To avoid abnormal wastage by exercising direct control.
5) To avoid the risk of spoilage and obsolescence of the materials by
fixing the maximum stock level.
Material Identification
Standardization
Make or Buy
Quality specification
• A.B.C. Analysis.
A.B.C. Analysis.
Minimum Level:
This presents the quantity, which must be maintained in hands at all
times. If stock is less than the minimum level then the work will stop due to
shortages of materials.
Lead time:
A purchasing firm requires some time to process the order and time is
also required by the supplying firm to execute the order. The time taken in
processing the order and then executing it is known as lead-time. It is
essential some inventory during this period.
Rate of consumption:
It is the average consumption of materials in the factory. The rate of
consumption will be decided on the basis of past experience and production.
Nature of material:
The nature of materials also affects the minimum level. If material is
required only against special orders of the consumers then minimum stock
will not be required for such materials minimum stock level can be
calculated using the formula:
Re-order level:
When the quantity of materials reaches at a certain figures then fresh
order is sent to get materials again. The order is sent before the materials
reach minimum stock level. Re-ordering level or ordering level is fixed
between minimum stock level and maximum stock level. The rate of
consumption, number of days required on any day is taken into account
while fixing reordering level. Re-ordering level is fixed with the following
formula;
Maximum level:
It is the quantity of materials beyond which a firm should not exceed
its stock. If the quantity exceeds maximum level limit then it will be over-
stocking. A firm should avoid over-stocking because it will result in high
materials costs. Over stocking will more blocking of more working capital,
more space for storing the materials, more wastage of materials and more
chances of losses from obsolescence. Maximum stock level will depend
upon following factors:
seasons then they have to store for the rest of the period.
The possibility of change in fashion and production process will also
affect the maximum stock level.
The following formula may be used for calculating maximum stock level:
Danger level:
It is the level beyond which material should not fall in any case. If
level arises then immediately steps should be taken to replenish the stock
even if more cost is incurred in arranging the materials. If materials. If
material is not arranged immediately then there is a possibility of stoppage
of work. Danger level is determined with the formula:
The basic problem of inventory is ton decide the re-order point. The
point indicates when an order should be placed. The re-order point is
determined with the help of these things
Q = √2CO\I.
Where: q = quantity to be ordered.
I = interest payment including variable cost of storing per unit per year i.e.,
holding costs of inventory.
Economic order quantity is determined keeping in view the ordering costs
and carrying costs. With the interaction of these two costs, the economic
ordering costs
During a particular period are equal to carrying costs during that period and
total cost to order and carry is lowest.
There are many variations on the basic EOQ model. I have listed most
useful once below,
Quantity discount logic can programmed to work in conjunction with
the EOQ formula to determined optimum order quantity. Most systems will
require this additional programming.
While these assumptions would seem to make EOQ irrelevant for use
be paid.
There are chances of obsolescence of stocks. Consumers will
prefer goods of latest design, etc.
Slow disposal of stacks will mean slow recovery of cash also
which will adversely affect liquidity.
There are chances of deterioration in quality if the stocks are held
possible. On the other hand, too low inventory may mean loss of
business opportunities. Thus, it is very essential to keep sufficient
stocks in business.
Inventory turnover ratio also known as stock velocity is normally
calculated as sales/ average inventory or cost of goods sold/ average
inventory. It would indicate whether inventory has been efficiently used or
not. The purpose is to see whether only the required minimum funds have
been locked up in inventory. Inventory turnover ratio indicates the number
of times the stock has been turned over during the period and evaluates the
efficiency with which a firm is able mange its inventory
Inventory turnover ratio is calculated to indicate whether inventories
have required minimum funds in inventory. The inventory turnover ratio
also known as stock velocity is normally calculated as sales/average
inventory or cost goods sold/ average inventory cost. Inventory conversion
period may also be calculated to find the average time taken for clearing the
stock.
Inventory Reports:
From effective inventory control, the management should be kept
informed with the latest stock position of different items. This usually done
by information necessary for managerial action. On the basis of these reports
management takes corrective action wherever necessary.
Valuation of Inventory:
The value of materials has a direct bearing on the income of a
concern, so it is necessary that a method of pricing of materials should be
such that it gives a realistic value of stock the traditional method of valuing
materials cost price or market price which ever is less is no longer the only
method. If management is interested to show more profits then it can choose
such methods which will more stock of vice versa. To safe guard public
interest the government of India has instituted statutory controls to prevent
frequent change of material valuation methods. A concern will have to use a
particular valuation method for least three years and any changes there from
must be approved by the board.
The following methods of pricing material issues or generally used:
System Overview:
The following system is being followed in Kakatiya overseas, and the
main features of the system are as follows:
1. Receipt vouchers are prepared on receipt of materials.
2. Issues voucher are prepared for all issues of out of stores.
3. All receipts, issues and returns are recorded in priced stores ledger
(PSL).
4. Stock transfer voucher (STV) is used for recording transferring raw
materials from one division/ group to another. Transfers are made at
weighted average prices.
5. Finished goods delivery notes (FGDN) are used for transferring
finished production in shop floor to finished stores.
6. Physical verification is carried out at regular interval and
discrepancies and reconciles and recorded.
7. Finished goods, work in progress valuation is as per the accounting
policy of company.
Stock A/c Dr
To
Sundry Creditors A/c
Material code, quantity etc which is fed to EDP which calculates the value
based on monthly weight average method.
Based on MIR data the WIP is brought out by collating material analysis.
The direct material is booked job wise in WIP ledger and the same is
reconciled with financial records. Thus, the direct materials job wise may be
traced from WIP ledger.
In the similar fashion, some other receipt document and issue document are
operated like;
INTERPRETATION
ABC analysis:
The material is divided into a number of categories for adopting a
selective approach for material control. It is generally seen that in
manufacturing concern, a small percentage of items contribute a large
percentage of value of consumption and a large percentage of items of
materials contribute a small percentage of value. In between these two limits
there are some items which have almost equal percentage of value of
material. Under ABC analysis, all the materials are divided in to three
categories viz. A, B&C. past experience has shown that almost 10% of items
contribute to 70% of value of consumption and this category is called
category A. about 20% of the items contribute about 20% of value of
consumption and this is known as category B. category C covers about 70%
of items of material which contribute only 10% of value of consumption.
There may be some variation in different organizations and an adjustment
can be made in these percentages.
following steps:
period.
item by multiplying annual consumption (of units) with the unit price.
above.
S.NO DESCRIPTION RATE VALUE RANKS
1Desert Black Limestone
600x600x2cm,Calibrated:Natural and Vibration
1 Surface:150sqms.
60x60x2cm ,honed,qty 700sqms. 50 850 13
Granite:black galaxy,800x800x2cm
Quantity:850sqm.
2
50 850 14
Slate:Peacock Slate,600x600x2cm
3 Natural/Calibrated:870sqm. 15 945 12
4 Black lime hand cut:900x900.25-35mm 30 3,150 10
Tandur yellow Natural and
Calibrated:400x600cms,2.5cm gauged-roman
5 pattern:edges:hand cut. 119 77,376 5
Kadapa Black Natural:400cmx500cm,free
lengthx2cm gauged;hand cut.850qty.
6 101.90 1,366,784.70 1
Limestone:Crème White Honed,280x280x2cm
gauged,qty:500cms and tandur grey
7 naturals:400cmx500cm,hand cut.
8.8 250140 2
Tandur yellow Natural and Vibration
8 Machine:390x590cms:190x390cm.
5cm gauged-roman pattern;edges:handcut. 21.31 24,868.77 7
9 Limepink,320x140x4cm bullnose,qty:1750.
Lime green 400x600x25-35cm,qty:1000sqm. 18.53 36,744.99 6
10 Cudappah Natural Surface:200x200x4cm
Edges Machine Cut,qty:600cms. 13.90 16,763.40 8
Premium Quality Kashmir
White:505x505x20mm,qty:360tilesx8pallets and
11 belved and calibrated.
16.21 203,224.77 3
Absolute Black:505x505x20mm, qty:360tilesx8pallets
12 and belved and calibrated.
8.80 194,427.20 4
Cuddapah Black Limestone:half+tumbled in
13 vibration M/C;500X600X4cm,hand cut.
15.20 8,299.20 9
Green roofing stone:50x70x8-2.cm,edges hand
14 cut,70cm side,round corner on one 50 cm side.q
56 2,912 11
Sandstone Gurden items:rainbow
sphere,50cm,40cm,30cm.teak
15 sphere:50cm,40cm,30cm,qty450.
18.53 630.02 15
CONSUMPTION CONSUMPTION VALUE
Rank Description VALUE CLASS VALUE IN
EACH PERCENTAGE
CLASS
Kadapa Black Natural:400cmx500cm,free
1 lengthx2cm gauged;hand cut.850qty 1,366,784.70
Limestone:Crème White
Honed,280x280x2cm gauged,qty:500cms
and tandur grey
2 naturals:400cmx500cm,hand cut.
250,140.00
Premium Quality Kashmir
White:505x505x20mm,qty:360tilesx8pallets
3 and belved and calibrated. A 2014576.67 91
203,224.77
Absolute Black:505x505x20mm,
qty:360tilesx8pallets and belved and
4 calibrated
194,427.20
Tandur yellow Natural and
Calibrated:400x600cms,2.5cm gauged-
5 roman pattern:edges:hand cut. 77,376.00
6 Limepink,320x140x4cm bullnose,qty:1750.
Lime green 400x600x25-35cm,qty:1000sqm. 36,744.99
Tandur yellow Natural and Vibration
7 Machine:390x590cms:190x390cm. B 1,55,753.16 6
5cm gauged-roman pattern;edges:handcut. 24,868.77
8 Cudappah Natural Surface:200x200x4cm
Edges Machine Cut,qty:600cms. 16,763.40
Cuddapah Black Limestone:half+tumbled in
9 vibration M/C;500X600X4cm,hand cut.
CLASS NO.OF.ITEMS PERCENTAGE 8,299.20
CONSUMPTION VALUE
OF ITEMS VALUE PERCENTAGE
10 Black lime hand cut:900x900.25-35mm 3150.00
Green roofing stone:50x70x8-2.cm,edges
hand
A cut,70cm side,round
4 corner on one 50 27 2,014,576.67 91%
11 cm side. 2912.00
Slate:Peacock Slate,600x600x2cm
12 Natural/Calibrated:870sqm. 945.00 C 17636.22 3
1Desert Black Limestone
600x600x2cm,Calibrated:Natural
B 4 and 27 1,55,753.16 6%
13 Vibration Surface:150sqms. 850.00
60x60x2cm ,honed,qty 700sqms.
Granite:black galaxy,800x800x2cm
Quantity:850sqm.
14 850.00
C 4 27 17,636.22 3%
Sandstone Gurden items:rainbow
sphere,50cm,40cm,30cm.teak
15 sphere:50cm,40cm,30cm,qty450.
630.02
TOTAL 21,87,966.05
ABC Classification of Items:
Graphical presentation:
5.1 Inventory, Materials, Sales and Production at a Glance.
2002- 2003- 2004- 2005- 2006- 2007- 2008-
2003 2002 2003 2004 2005 2006 2009
particulars
Raw materials 5307 4735 5630 5267 1645 1616 1616
RAW MATERIAL
No. of months
Raw material
Stock available
w.r.t. monthly 2.43 1.74 1.37 1.34 o.66 0.50 0.47
consumption(3)
=R.M/monthly
Consumption(1/2)
WORK IN PROGRESS:
INTERPRETATION ABC
The corporation held a maximum stock of Raw material in the year
2002-2003 and improved year by year and reached 0.73 months at the end of
2008-2009.
Work –in-progress:
The corporation held a peak WIP during the year 2006-2007 and
around 0.68 months on a average every year during the next 4 year
Finished goods:
The average finished goods stocks held during the period of study is
0.20 month with peak – finished goods stock of 0.30 months and lowest to
the turn of 0.16 months per month.
The ITR has increased from 6.70 in the year2003 to 2004 to 7.57 in
the year 2004 to 2005 which indicates that the inventory is managed in a
good manner.
The ITR (inventory turnover ratio) has increased from 4.09 to 6.07
from the year 2002-2003 to 2003-2004 which shows that the inventory is
efficiency managed.
In the similar ways thee ITR has increased from 7.57 in the year 2004-
2005to 8.09in the year 2004-2005 which indicates that the inventory has
been managed efficiency n the year 2006-2007 has increased from 8.9211
INTERPRETATION:
From the above calculation it is found that the inventory turnover has
gradually increased from 4.09 to 8.92 from the year 2000-2001 to 2006-2007
which is indicative of good inventory management.
Inventory conversion period
Years Days in year/ No of days
Inventory turnover ratio
2002-2003 365/4.09 14.92
2003-2004 365/4.24 15.47
2004-2005 365/6.70 24.45
2005-2006 365/7.57 27.63
2006-2007 365/8.09 29.52
2007-2008 365/8.92 32.55
2008-2009 365/10.99 33.21
CHAPTER-VI
SUGGESTIONS,
CONCLUSIONS AND
BIBILIOGRAPHY
CONCLUSIONS
BIBILIOGRAPHY
Website Referenced
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