Final project

Inventory management
Submitted by
Memoona Akhlaq SP17-BBA-145
Sahibzada Muhammad Shah Bilal Hassan SP17-BBA-129
Muhammad Siaf-ul-islam SP17-BBA-120
Muhammad Haseeb Khan SP17-BBA-119
Hamza Shahzad SP17-BBA-132

Submitted to:
Sir Yalman Ansari
Introduction
➢ We have visited alpha marketing located in islamabad. They are currently working with

Dalda foods for distribuiting their products in twin cities(Rawalpindi and Islamabad)

➢ We asked inventory related questions and its management

Inventory related questions

Q1. When this business is started?

Ans. the business was started in 2013 they were serving in rural areas. But now they have

started serving in urban ( particularly in Islamabad and Rawalpindi)

Q2. Who is the distributor audience?

Ans. The audience are “LMT” mainly cash carries including Madina & Punjab cash and carry.

Q3. What is their safety stock?

Ans. They have 35tn as safety stock.

Q4.what is their buffer stock?

Ans. The company do not keep any buffer stock.

Q4. What is their labor cost?

Ans. They have 2 drivers ( per month salary 24000) and three other employees (per month salary

17000)
Q4. What is the product line?

Ans. The total products are 43 in number

Q5. Which kind of transport is being used by company for delivering products?

Ans. They are currently using 2 vans (Suzuki and sha-zore) for delivering products.

Q6. What is the lead time?

Ans. The lead time (fulfill the demand of LMTs) is 3-4 hours minimum.(time varies according

to location).

Q7. What is reorder point?

Ans. They are using software to track inventory thus they get to know which sku is running

short, and thus they reorder accordingly.

Q8.what is the target sale?

Ans. The target sale is 400ton per month. The target service level is 100%.

Q9. What is the service level?

Ans. They deliver on same day or might take more then one day for far locations

Q10. What is the ratio of damaged products?

Ans. 8 out of 100 or 8%

Q11. How they do record keeping?

Ans. It is done through software.

Q12. Is the building owned or rented?

Ans. The building is on rent and per month rent is Rs.40000

Q13. What is their main product?

Ans. Dalda cooking oil and ghee, Tallo cooking oil, mannpasand cooking oil, olive oil

Planta oil, sunflower oil, extra version olive oil.

Q14. What is the price per box?

Ans. The price per box is 1150.

Conclusions:

Alfalah marketing is very experienced in inventory managing of dalda foods. They are managing the
inventory through software which is very advanced and easy to use. Because of their performance
DALADA foods awarded them certificates and appraisals.

Suggestions

As the demand of dalda products is very high, and this company often face stock outs. It will be

more profitable to overstock as the shelf life of products is quite long.