ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

FINANCIAL MANAGEMENT (562)

Submitted By: Husnain Khalid

Roll # AD511764

Submitted To: Mr. Asif Mehmood

An Assignment is submitted in partial fulfillment of the requirement for the degreeof MBA

ASSIGNMENT No. 2

ISSUE

CRITICALLY EVALUATE THE KEY CONCEPTS OF EFFECTIVE

INVENTORY MANAGEMENT AND CONTROL. GIVE PRACTICAL

EXAMPLE OF A PAKISTANI ORGANIZATION IN SUPPORT OF YOUR

ANSWER.

ACKNOWLEDGEMENTSFirst of all, I would like to say Alhamdulillah, for giving me the strength and

health to do this project work until it done Not forgotten to my family for

providing everything, such as money, to buy anything that are related to this

project work and their advise, which is the most needed for this project. Internet,

books, computers and all that as my source to complete this project. They also

supported me and encouraged me to complete this task so that I will not

procrastinate in doing it.

Then I would like to thank my teacher for guiding me and my friends throughout

this project. We had some difficulties in doing this task, but he taught us patiently

until we knew what to do. He tried and tried to teach us until we understand what

we supposed to do with the project work.

Last but not least, my friends who were doing this project with me and sharing

our ideas. They were helpful that when we combined and discussed together, we

had this task done.

2

ABSTRACTIn the simplest method, the purchase man periodically reviews the stock, perhaps

visually; to see what inventory items are in short supplies and places order when

he thinks a minimum level has been reached or when the inventory of a particular

item is exhausted. No inventory levels are kept on records. Obviously, such a

method is likely to incur excessive purchasing and carrying costs on the one hand

and stock out costs on the other. While excess purchase would lead to excessive

investment in obsolete or slow moving goods, shortage or inventory may disrupt

production or sales may be permanently lost.

To improve upon the visual method a re-order line may be drawn in the bin or

storage area so that when stock reaches this line, order will be placed. The re-

order line in the bin would be high enough to cover normal usage until the new

order arrives. A variation of this method is to use the two bins systems: an order is

placed when the working stock bin is empty.

Another inventory control approach is through the perpetual inventory system.

Managers are already familiar with the principles and procedures of this system.

Another method used to assist in the control of inventory is the ABC

classification. Here the inventory items are classified into groups, usually three,

according to the annual cost of the item used and ranked according to the rupee

value of the usage. It may, however , be pointed out here that ABC analysis is not

actually a control system in itself: it shows the way to decide which items are

most in need of strict control system. It is ultimately the management who decides

how best to control each class of items.

3

08

08

11

13

16

17

18

18

21

23

42

TABLE OF CONTENTS

INTRODUCTION

COST OF CARRYING

REORDER LEVEL

MINIMUM INVENTORY

FIFO vs LIFO

PRACTICAL STUDY # 1

INTRODUCTION

DIRECTOR S PROFILE‟

CLIENTELE

DISTRIBUTION AREAS

IT SYSTEMS

HR INFRASTRUCTURE

INVENTORY CONTROL SYSTEM IN UDL

APPLICATIONS

MANAGING INVENTORY

COMPANY S INVENTORY SOFTWARE FEATURES‟

EXAMPLES

PRACTICAL STUDY # 1

ASKARI BANK

SWOT ANALYSIS

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

CONCLUSION

RECOMMENDATIONS

REFERENCES

4

05

08

09

12

14

17

18

34

35

37

37

40

46

INTRODUCTIONInventory Management and Inventory Control must be designed to meet

the dictates of the marketplace and support the company's strategic

plan. The many changes in market demand, new opportunities due to

worldwide marketing, global sourcing of materials, and new manufacturing

technology, means many companies need to change their Inventory

Management approach and change the process for Inventory Control.

Despite the many changes that companies go through, the basic

principles of Inventory Management and Inventory Control remain

the same. Some of the new approaches and techniques are

wrapped in new terminology, but the underlying principles for

accomplishing good Inventory Management and Inventory

activities have not changed.The Inventory Management system

and the Inventory Control Process provides information to efficiently

manage the flow of materials, effectively utilize people and

equipment, coordinate internal activities, and communicate

with customers. Inventory Management and the activities of

Inventory Control do not make decisions or manage operations;

they provide the information to Managers who make more

accurate and timely decisions to manage their operations.The

basic building blocks for the Inventory Management system and

Inventory Control activities are:Sales Forecasting or Demand Management

Sales and Operations Planning

Production PlanningMaterial Requirements Planning

Inventory ReductionThe emphases on each area will vary depending on the company and how

it operates, and what requirements are placed on it due to market

demands. Each of the areas above will need to be addressed in some

5

form or another to have a successful program of Inventory

Management and Inventory Control.

Inventory control is concerned with minimizing the total cost of inventory. In the

U.K. the term often used is stock control. The three main factors in inventory

control decision making process are:

The cost of holding the stock (e.g., based on the interest rate).

The cost of placing an order (e.g., for row material stocks) or the set-up cost of

production.

The cost of shortage, i.e., what is lost if the stock is insufficient to meet all

demand.

The third element is the most difficult to measure and is often handled by

establishing a "service level" policy, e. g, certain percentage of demand will be

met from stock without delay.

The ABC Classification The ABC classification system is to grouping items

according to annual sales volume, in an attempt to identify the small number of

items that will account for most of the sales volume and that are the most

important ones to control for effective inventory management.

Reorder Point: The inventory level R in which an order is placed where R = D.L,

D = demand rate (demand rate period (day, week, etc), and L = lead time.

Safety Stock: Remaining inventory between the times that an order is placed and

when new stock is received. If there are not enough inventories then a shortage

may occur.

Safety stock is a hedge against running out of inventory. It is an extra inventory to

take care on unexpected events. It is often called buffer stock. The absence of

inventory is called a shortage.

Quantity Discount Model Calculation Steps:

6

Compute EOQ for each quantity discount price.

Is computed EOQ in the discount range?

If not, use lowest cost quantity in the discount range.

Compute Total Cost for EOQ or lowest cost quantity in discount range.

Select quantity with the lowest Total Cost, including the cost of the items

purchased.

Techniques of inventory control:

1. Economic purchase order quantity (How much to order)

2. Reorder level (when to order)

3. Minimum inventory or safety stock.

Economic Purchase Order Quantities: In order to control inventory a decision

model has been developed to determine the optimum quantity of materials to be

purchased on each purchase order. The model determines the optimum working

stock level to be maintained. Each time a purchase order is placed, the company

incurs certain costs. In order to minimize the costs of placing purchase orders, the

company could increase the order quantity to meet the company s entire needs for‟

the year at one time, incurring only the cost of one purchase order. However, such

a practice will lead to having a large average inventory of working stock, resulting

in increased carrying costs. The costs of ordering and costs of carrying inventory

may be summarized as follows:

Cost of Ordering:

- Preparing purchase or production orders, receiving and preparing and processing

related documents.

- Incremental costs of purchasing or transportation for frequent orders (Purchase

in small lots is often costlier and transportation costs also increase)

- Out of pocket costs of postage, telephones, telegrams, cost of stationery,

traveling etc.

7

- Extra costs of numerous small production runs, overtime, setups, training etc. In

addition- fixed costs in form of salaries, wages of employees connected with this

work in purchasing, receiving, inspection and Material handling Departments.

Costs of Carrying:

- Interest on Investment.

- Losses from obsolescence and deterioration, spoilage.

- Storage-space costs, including Rent, Rates, Taxes, Electricity, etcs.

- Insurance, in addition- fixed costs in form of salaries, wages etc of employees

connected with this work in stores and Material handling Departments.

It should be noted that in the consideration of the optimum inventory decision, the

costs of buying the inventory would usually be irrelevant, because it is assumed

that the quantity required for the year would be the same for various alternative.

The important relevant costs to be considered are the costs of ordering and the

costs of carrying.

Reorder Level:

Lead time is the time interval between placing an order and receiving delivery. If

the lead time and the quantity of demand during lead time are known with

certaininty the recorder point may be determined. If in the above example, lead

time is 2 weeks and the average usage is 18 per week, the recorder point will be

18*2=36units. The day the level of stock falls to 36 units, an order for 173 units

will be placed. By the time these are delivered, the stock would be nil and on the

day of delivery it will shoot up again to 173 units and so on.

Minimum Inventory or Safety Stock:

In our previous paragraph, we had assumed with certainity that 18 units would be

used per week. In practice, we seldom come across such a situation and demand

8

cannot be forecast accurately. Actually the demand may fluctuate from period to

period. If, therefore the usage per week at anytime goes beyond 18 units per

week, the company will be out of stock for sometime. Hence arise the need for

providing for some safety stock, i.e. some minimum or buffer as inventory as a

cushion against such stock outs. The recorder point is inter-related with the safety

stocks because as the recorder point is moved upwards, the amount of the cushion

is increased. Thus the recorder point is the resultant of the demand during lead-

time plus safety stock. By increasing the safety allowance the recorder point is

increased by the same amount. It should be noted that the economic order quantity

does not come into the picture and is independent of safety stock analysis.

There are several methods determining safety stock levels. A rough and ready

method followed by many companies is to provide a constant safety stock of say,

one or two month s usage requirements regardless of the item. Another method‟

mainly based on intuition is to have large safety stock when quantity usage is

high, lead time is long or the ordering schedule is frequent. Small safety stocks

can be maintained when there is low usage, short lead time or infrequent ordering.

Another method makes a statistical analysis of the probability of a stock out by

predicting the dispersion of usage around average usage and the dispersion of lead

times around the average lead time. The above discussions of inventory control

are based on the two bins or constant order quantity system.

FIFO vs. LIFO accounting

When a dealer buys goods from inventory, the value of the inventory is reduced

by the cost of goods sold (CoG sold). This is simple where the CoG has not varied

across those held in stock; but where it has, then an agreed method must be

derived to evaluate it. For commodity items that one cannot track individually,

accountants must choose a method that fits the nature of the sale. Two popular

methods which normally exist are: FIFO and LIFO accounting (first in - first out,

last in - first out). FIFO regards the first unit that arrived in inventory as the first

one sold. LIFO considers the last unit arriving in inventory as the first one sold.

9

Which method an accountant selects can have a significant effect on net income

and book value and, in turn, on taxation. Using LIFO accounting for inventory, a

company generally reports lower net income and lower book value, due to the

effects of inflation. This generally results in lower taxation. Due to LIFO's

potential to skew inventory value, UK GAAP and IAS have effectively banned

LIFO inventory accounting.

10

Practical Study # 1

11

&

As pioneers in distribution in the subcontinent over 100 yearsago, we gave the term „distribution„ a new meaning. Ourbusiness was established in 1887 in India for distribution ofCigarettes in India, Burma & Ceylon. The business was shiftedto Pakistan in 1947. We enjoy a rich history of nearly 125 yearsin satisfying our domestic and international clients in the field ofImport, Warehousing and Logistics, Door to Door

Distribution Marketing.

Our annual sales turnover for the year 2007-2008 was Rs. 12.81billion (US $ 168 million) with annual growth in salesexceeding 15% each year for the last 5 years. Our networkcomprises 25 branches (Sales Offices) in 16 towns of Pakistanwith 3 central warehouses located in Karachi, Lahore &Islamabad.

Keeping pace with the cutting edge of technologicaladvancement in IT, we are considered to be way ahead of ourcompetitors.

This is why companies having a long term vision, demandingreliability and quality of service, prefer to be associated withus.

12

Name:Age:

Qualification:

Experience:Strength:

Name:Age:

Qualification:Experience:

Strength:

Name:Age:

Qualification:Experience:

Strength:

Name:Age:

Qualification:Experience:

Strength:

Name:Age:

Qualification:Experience:

Strength:

Mr.TahirKhaliq60 years

BSc, MBA, former President Karachi Chamber of Commerce and Industry,former Trustee and Vice Chairman Karachi Port Trust

36 yearsSales and Marketing, Relationship Building, Distribution and Trade, Import and

Export

Mr.NasirAbdulla53years

Business.Graduate33years

Banking and Finance, HR Management, Distribution and Logistics, Import andExport

Mr.Arshad.Abdullah45

BusinessGraduate19years

Sales and Marketing, IT, Distribution

Mr.AhsanKhaliq32years

BSc,ExecutiveMBA11 years (inclusive of 5 years International Shipping Experience with 2 years

expatriation in Vietnam)IT, Administration

Shakeel-ur-Rahman51years

CharteredAccountant26years

Finance and Accounts

13

THE COMPANY ENJOYS EXCELLENT COORDINATION BETWEEN ITS HIGH PROFILE,TRULY DEDICATED AND RESULT ORIENTED PROFESSIONAL STAFF IN ALLDEPARTMENTS, INCLUDING SALES & MARKETING, ADMIN., HR, IT, LOGISTICES, ETC.,WHO INTERACT WITH EACH OTHER TO DELIVER TO THE BEST INTEREST OF OURHIGHLY ESTEEMED CLIENTS.

WE ALWAYS MAKE SURE, OUR EACH AND EVERY INITIATIVE LEADS TO THEPROSPERITY AND DEVELOPMENT OF OUR CLIENTS BECAUSE, WE FIRMLYBELIEVE THAT IT IS DIRECTLY RELATED TO OUR OWN SUCCESS.

14

15

16

Our state of the art ERP system helps us do our business efficiently by providing analytical reportsfrom data which enable our principals to understand the buying pattern, behavior of customers andmarket trends. Not only they can take operational decisions based on the reports provided, they canalso strategically manage their field force based on our extensive reporting capabilities which ensuretransparency and accountability. Our fully automated and integrated “Distribution Business System(DBS)” is a highly scalable, flexible, secure, and efficient system which can be customized to the

requirements of our clients.

We are also providing password protected access to our website so that our clients can access onlinereports, no matter whether they are in office or travelling. This helps our clients to remain updatedand always connected to the sales trends. They can also monitor their products inventories online and‟

arrange their production schedules and forecasts accordingly.

In today s world of supply chain management, data availability is critical. We always strive to provide‟optimal solutions to our clients so that they can better predict and be responsive to the toughrequirements of the market.

In this millennium the only sustainable advantage will come from people. Winning organizations willnot only have to bring the best people but also to get the best out of the people.

At present the business employs over 1000 dedicated people providing their utmost in every area ofthe distribution business. Whether it is a delivery van driver or a sales manager, a computer operatoror an accounts officer, the entire human resource strength is knitted in one “UDL Family”.

The business is managed by over 100 professional managers having support of equal number ofsupervisors. With almost 600 Sales Support staff, we ensure access to 50,000 outlets. Our fleet of150 delivery vans reaches the farthest areas of the country providing coverage in over 600 towns andvillages.

17

Inventory control system

A process for keeping track of objects or materials. In common usage, the termmay also refer to just the software components.

Modern inventory control systems rely upon barcodes, and potentially RFID tags,to provide automatic identification of inventory objects. In an academic studyperformed at Wal-Mart, RFID reduced Out of Stocks by 30 percent for productsselling between 0.1 and 15 units a day. Inventory objects could include any kindof physical asset: merchandise, consumables, fixed assets, circulating tools,library books, or capital equipment. To record an inventory transaction, thesystem uses a barcode scanner or RFID reader to automatically identify theinventory object, and then collects additional information from the operators viafixed terminals (workstations), or mobile computers.

Applications

An inventory control system may be used to automate a sales order fulfillmentprocess. Such a system contains a list of order to be filled, and then promptsworkers to pick the necessary items, and provides them with packaging andshipping information.

Real time inventory control systems use wireless, mobile terminals to recordinventory transactions at the moment they occur. A wireless LAN transmits thetransaction information to a central database.

Physical inventory counting and cycle counting are features of many inventorycontrol systems which can enhance the organization.

Inventory software are now available so that task becomes much more easier.

Managing Inventory

Devising an efficient system of counting and maintaining a stock of inventoryitems has long been an arduous task for many shop owners. But the old methodsof cataloging by part or item numbers have all but disappeared since theproliferation of electronic catalogs and the use of computer software programs totrack stock-keeping units (SKUs).

18

Inventory management is necessary for owners who want to maintain a stockingservice for quick turnaround to help ensure total customer satisfaction. The "fillrate" of an item on a managed inventory list must be maintained to avoidshortages of frequently used items. Even when utilizing an inventory managementsystem, occasional shortages will still occur.

To be successful in today's fast-paced, highly-competitive environment, shopsneed to have the necessary parts in stock or have reliable suppliers to meetcustomer demands at a moment's notice. Either way, shops must have a practical,efficient method for managing inventory in order to stay in business and satisfytheir customers.

Shops in larger cities tend to have more options for inventory stocking. Sincethere are often numerous parts suppliers nearby, there is less of a need to stockcertain parts. Shops that stock belts, hoses or other hard part items sometimes doso only to find a marketing niche in their area. Stocking inventory can sometimesyield the benefit of bulk discounts.

However, some shops refuse to stock any items at all. Frequently, the philosophyhere is that the shop does not want to "tie up" money in unused inventory thatoften depreciates while sitting on the shelf. The plus side of this philosophy is thatthe shop does not spend much time or money on an inventory system since itdepends solely on its parts suppliers to stock the items the shop moves frequently.

Profit drain, with regard to lost sales, is always one risk a shop takes when itdepends upon a parts network outside of its in-house forum to supply inventorymanagement needs. Shops that are outside of the "net" of a warehouse supplyarea, as well as those which depend upon niche markets for their success, can useautomotive computer software programs to list, count and order partsautomatically.

The benefits of keeping significant quantities of parts in stock are not alwaysclear. The financial benefit must be high enough to justify not only the cashexpenditures for the stocked items, but also the time and money spent managingthe inventory, whether it is for employee time or for computer hardware andsoftware.

One Missouri shop owner said he routinely stocks accelerator and clutch cables atthe expense of a couple thousand dollars at a time. His philosophy follows instride with the manufacturers' recommendations that these items be replaced attime/mileage intervals or whenever a clutch replacement is being handled, and hesaid his customers usually accept his suggestion that these parts be replaced. His

19

bottom line, he says, has been better since the shop started stocking its owncables.

He also reiterates the fact that he has few comebacks by following this practice.

Graham Automotive of Springfield, Mo., has been in business 27 years. OwnerDan Stomboli said that inventory management has pretty much become a thing ofthe past since parts houses have "geared up" with electronic ordering. Still, heconcedes, his shop has a limited amount of inventory that is tracked with asoftware program, and daily ordering has become the ordinary business practicethat his facility uses to keep inventory management at a relatively simple levelthat can be grasped by anyone in the organization.

Another Springfield shop owner said he carries only those items that mightotherwise hold up a job by having to be back ordered, even though his shopmoves these parts only once or twice a year. He stocks the items and sells themfor "premium" prices because he has them immediately available for installation.In addition to consumers paying these premium prices, other shops sometimesbuy these parts from him when they need them immediately.

Some shop owners think simple "garage-keeper" software programs are the bestbuys for inventory management. Some use customized programs, and others relyon integrated shop management systems or similar "do all" package systems.

Tire stores tend to use some of the best inventory systems on the market. Thereason is not surprising considering the fluid nature of the tire business and theimportance of having the right tires in stock. Custom-designed software systemsare the most often used programs for these businesses. Many tire dealers alsodepend on "corporate designed" systems for total shop management as well asinventory control when they are associated with a franchise. The biggest plus ofhaving one of these systems, according to several shop owners, is having acomprehensive, proven inventory management system that tracks problem areasand automatically makes corrections when needed.

Body shops use integrated management systems to track inventory, in addition toperforming tasks such as payroll and estimating. St. Louis Auto Body,Springfield, Mo., keeps parts on-hand only for jobs already on site. Parts arestored in a separate building until they are needed for the repair.

Inventory of paint in body shops is usually kept in stock and managed withcustomized inventory systems integrated as part of the shop's master managementprogram.

20

Shops that have been using computers for estimating and for technical programsshould look to expand those efforts toward a good inventory software program.The most important part of any inventory programming effort is finding the timeto set it up properly.

Comprehensive business software programs that incorporate inventory functionsas merely one of many features are not always the best choice for a shop. Take thetime to search out automotive-related programs, establish that the program willperform the functions you need and make sure to find out which systems havebeen working well for your fellow association members.

Take the leap into the new millennium with a well-devised management plan, andmake that plan part of your business operation. By counting on a quality inventorymanagement program to bring you into the next century, you will facilitate thesuccess that comes from good overall management techniques.

Charitable InventoryDo you have old, unused inventory that has been accumulating dust on yourshelves for years and has little or no chance of ever being used? Considerdonating the parts and supplies. Educational Assistance Ltd. (EAL) acceptsdonations of new and used excess inventory from companies and corporationsnationwide.

By exchanging these goods for scholarships within their own national network ofaccredited colleges and universities, EAL provides educational assistance formany needy persons each year. Items not appropriate for trade-off to colleges canbe sold outright to support the program and its efforts.

Inventory Software FeaturesFollowing are some standard features that adequate shop inventory managementsoftware programs should include:

Encryption: Represents a dealer code for any particular item to befollowed on inventory roles.Tax digest information: Answers whether the item taxed at the time ofsale (retail) or by the purchaser (resale).Inventory tracked: Represents the majority of items found as SKUs intypical automotive inventory. In some cases, software will trackoperations and automatically reorder parts or supplies when needed. Atypical example is a case of grease cartridges for chassis lubrication. If 12typical lube jobs deplete a cartridge, and there are 12 cartridges to a case,then after 144 lube jobs have been tracked by the inventory block,automatic reorder will take place.

21

Sales price: Items may be bumped up or down individually or as part of atrend across the inventory block. Criteria for pricing up or down may beinitiated by a single vendor code on the last reorder.Last sale date: This is important data used to measure the amount of timean item sits on a shelf, or the "movement rate" of that particular item.Costs: This refers to the standard buying prices of items stocked. Thisarea may also track trends in price increases on items.Sales traffic: Shows the total activity of a product or group of products asthey move in or out of inventory. This function is used by programs toidentify trends through a graphing format, or to alert inventory managersof changing factors that may affect gross profits or result in bottlenecks inoperations.Quantity price structuring: Used by inventory programs to track andmaintain quantity levels, and ensure adequate buying levels set in theprogram's directory. In any given program, the upgrade of an item becauseof increased upward traffic will cause the program to automatically seekout the next buying level during the automated reorder.Alternative vending: Used to store a second or third choice of a stockeditem from an on-site or off-site source. This data may be manipulated byoff-site vendors with regard to each individual shop's buying venue.Register, totalizer records: Includes the on-hand dollars, purchase units,purchase dollars, unit sales total, etc. Shipping dates may be projected, andorder confirmations will be accumulative if more than one order date hasbeen set.

22

PRACTICAL STUDY OF THE ORGANIZATION # 2

ACCORDING TO BANKING COMPANIES ORDINANCE 1962

“Banking means the accepting, for the purpose of lending, or investment, of

deposits of money from the public, repayable on demand or otherwise, and

withdraw able by cheque, draft, order or otherwise.”

“Banking companies mean companies which transact the business of banking in

Pakistan.”

COMMERCIAL BANK

“The commercial bank receives surplus money from the public and lend to others

who needs funds. Bank collects cheque, bills of exchange etc from customers. It

transfers money from one place to another. It provides agency and general utility

services. Purpose of commercial bank is to earn profit.”

HISTORY OF ASKARI COMMERCIAL BANK

The banking sector has witnessed a dramatic change during the last ten

years with the development of Askari Bank, which is not only redefining

priorities and focus of the banks, but also threatening the domination of traditional

players.The story begins with the incorporation of Askari Commercial Bank

limited in Pakistan on October 09, 1991, Askari Bank Commenced (begin) to

operations in April 1992, as a public limited company. The bank is listed on the

Karachi, Lahore and Islamabad Stock Exchanges and the initial public offering

was over subscribed by 16 times. While capturing the target market share

amongst the view banks, Askari has provided good value to its shareholders. Its

share price has remained approximately 12% higher than the average share price

of quoted banks during the last four years.Askari Bank has expanded into a nation

wide presence of 83 Branches, and an Offshore Banking Unit in Bahrain. A

shared network of over 800 online ATMs covering all major cities in Pakistan

supports the delivery channels for customer service. As on December 31, 2004,

23

the Bank had equity of Rs. 6.016 billion and total assets of Rs. 107.168 billion,

with over 475,000 banking customers, serviced by a total staff of 2,118.

Askari Bank is the only bank with its operational head office in the twin

cities of Rawalpindi-Islamabad, which have relatively limited opportunities as

compared to Karachi and Lahore. This created its own challenges and

opportunities, and forced as to evolve an outward-looking strategy in terms of

Askari market emphasis. As a result, Askari developed a geographically

diversified assets base instead of a concentration and heavy reliance on business

in the major commercial centers of Karachi and Lahore, where most other banks

have their operational Head offices.Askari Commercial Bank is the only Private Sector bank that has been approved

by the World Bank as a Participating Financial Institution for the US$ 200 million

Line of Credit sanctioned (authorized) to the Government of Pakistan for the

Financial Sector Deepening and Intermediation Project.Askari's emphasis on

further broadening its core foreign trade business translated into handling a higher

volume of Export and Import business of Rs. 36 billion registering a growth of

42% over the pervious year. This enhanced foreign trade business was secured

due to excellent customer services and efficient international settlement

arrangements with our correspondent banks.Askari Bank is operating throughout

Pakistan. Most of the branches are connected through our State of the Art, On-line

Communications Network, which gives the bank a competitive edge in providing

instant services to its clientele. We also offer direct access to the latest Foreign

Exchange Rates through our Online Communications.

CORPORATE INFORMATION

24

Board of Directors

ChairmanLt. Gen. Waseem Ahmed AshrafLt. Gen. (R) Masood Perwaiz

Mr. Kalim-ur-Rehman

Brig (R) Mohammad Shiraz Baig

Brig (R) Muhammad Bashir Baz

Brig (R) Asmat Ullah Khan Niazi

Brig (R) Mohammad Safdar Ali

Mr. Javed Ahmad Noel

Mr. Zafar Alam Khan Sumbal

Mr. Shahid Hafeez Azmi

Mr. Mohammad Afzal Munif, FCA

Mr. Tariq Iqbal Khan, FCA

Chairman Executive committee

President & Chief Executive

Director

Director

Director

Director

Director

Director/Secretary

Director

Director

Director (NIT Nominee)

Audit Committee

ChairmanMr. Muhammad Afzal Munif, FCA

MemberBrig (R) Muhammad Shiraz BaigBrig (R) Asmat Ullah Khan Niazi

Mr. Zafar Alam Khan Sumbal

Member

Secretary

FINANCIAL POLICIES

The financial policies of any bank are the most important policies through which

the whole banking activity is conducted. These policies are primarily conducted

on:

Source of funds

Use of funds

SOURCE OF FUNDS:

The bank finance policy is acquiring funds from the following sources:25

Deposits of account holders.

Interest on advances and loans granted to the borrowers.

Income and commission from the services provided by the bank.

Bank open various types of accounts for its customers Services are

provided for earning.

Interest income and commission bank providing the services to its

customer.

USE OF FUNDS:

After the acquisition of the funds their acquisition become necessary. The bank

seeks the best way for making investment to got more profit with the maximum

security. The bank has an investment portfolio in which it allocate its funds for

crediting to borrowers, investment in the stock market, investment in the real

estate property etc. for allocation of funds a bank has to follow some banking

policies and the prudential regulations of SBP these are:

A bank has to maintain a liquidity with central bank ,i.e. 25 %of its total deposits.

A bank cannot invest all of its funds otherwise it will be difficult to meet urgent

needs.

A substantial part of funds is received from interest on loans and advances. Before

granting a loan the bank analyze and observe the borrower and conduct a

complete ratio analysis. Bank prepare credit line for this purpose the major thing

is granting an advance is the security offered by the borrower and its actual

market value.

PRODUCT AND SERVICES

The product & services of askari commercial bank limited are developed

keeping in view the customers needs & wants, & the expectation that the

customer attaches with its financial institutions.A product ACBL includes all

those services which customer normally required for effectively managing his

business. ACBL offers the following financial services to its customers.

1) Deposits

2) Advances

26

3) Products

4) International banking services

5) Agency services to customers

1) DEPOSITS

One of the basic functions of commercial banking is to receive deposits.

ACBL accepts deposits in both local & foreign currency.

Local currency deposits

Current Account

PLS Saving Account

Term Deposit

Notice Deposit

Askari Faida Account

Askari Special Deposit Account

Value Plus Saving Account

Askari Advantage

Current Account

A current account is a running & active account, which may be operated upon any

number of transactions during a working day. The banker undertakes to repay

these on demand & therefore theses account are called demand deposits.

Transaction fee

The bank charges no transaction fees if the minimum balance requirement is met.

However, if the average balance falls below the min. balance then the fees is

charged at the rate of Rs. 10 per transaction.

Saving Accounts

The saving account is usually opened by lower or middle class people so that they

can meet their future contingencies, as the objective of such account is to

promoting the habit of thrift among people, the bank impose certain restrictions

on withdrawals from the saving accounts.

Transaction fees

27

Transaction fees are charged of Rs. 20 per transaction if the min balance is not

met.

2. ADVANCES

Advances are major sources of earning of income for commercial banks.

Banks attracts surplus balances from the customers at low interest rates &

makes advances at higher interest rates to the individuals or business firms.

ACBL offer these facilities in two forms:

Funded facilities

Non- Funded facilities

Funded facilities

In funded facilities the bank actually advance money against further repayment.

These facilities are known as cash credits.

Non- Funded facilitiesNon- Funded facilities are those in which bank substitutes its own credit for its

customers.

ACBL offers to its customers are large number of non-funded facilities.

These facilities includes:

1. Guarantee

2. Latter of credit

Irrevocable letter of credit

Revocable letter of credit

Sight letter of credit

Usance letter of credit

3. PRODUCTS

PERSONAL FINANCE

28

Personal Finance is a parameter driven product for catering to the needs of the

general public belonging to different segments. One can avail unlimited

opportunities through Askari Bank's Personal Finance. With unmatched finance

features in terms of loan amount, payback period and most affordable monthly

installments, Askari Bank's Personal Finance makes sure that one gets the most

out of his/her loan. Once a good credit history is established, the door to

opportunity opens much wider.

MORTGAGE FINANCE

Askari "Mortgage Finance" offers the convenience of owning a house of choice,

while living in it at its rental value. The installment plan has carefully designed to

suit both the budget & accommodation requirements. It has been designed for

enhancing financing facility initially for employees of corporate companies for

purchase/ construction/ renovation of house. The maximum financing amount is

Rs. 10 million with a repayment tenure upto 20 years.

BUSINESS FINANCE

In pursuance of the National objectives to review the economy of the country,

ACBL is providing loans to small and medium size business enterprises under

Askari Bank's Business Finance Scheme. Our goal is to offer a loan, which

enables business community to receive the financing required by them based on

their cash flows. Ore valued customers can enjoy the convenience of getting

financing on attractive terms with the minimum processing turnaround time.

ASKCAR (Car Finance)

Yet another of our products, Askar offers the most convenient and affordable

vehicle- financing scheme, which provides our valuable customers an opportunity

to own a brand new vehicle of their choice. With minimum down payment, lowest

insurance rates and widest range of available car makes and models, Askcar offers

the best value to our esteemed customers.

ASKCARD

29

ASKCARD means freedom, comfort, convenience and security, so that you can

have retail transactions with complete peace of mind. ASKCARD is your new

shopping companion which enhances your quality of life by letting you do

shopping, dine at restaurants, pay your utility bills, transfer funds, withdraw and

deposit cash through ATM anywhere, anytime.

TRAVELLER CHEQUES

The range of our products and value added services enhances with introduction of

Rupee Travellers Cheques (RTCs) launched in March 2002. In spite of our

constraint on issuing higher denomination of RTCs against restrictions imposed

by the Central Bank of Pakistan we have been striving to attain our shares with

sizeable portfolio. Total volume handled by the department during the year 2004

is Rs. 798 Million.

ASKPOWER

Askpower represents a useful tool with which to make secure payments without

the need to have any account, a debit or credit card. This card comes with a

number of unique features and diversified usage capabilities like cash withdrawal

from ATMs, payment of utility bills through ATMs and internet Banking, transfer

of balance to another card and refill option. The prepaid card is enjoying a great

success all over the country.

VALUE PLUS

The first liability product launched by this unit is showing a remarkable

acceptability in the market. The growth of this product is witnessed by its share,

which has presently reached at Rs. 1,079 Million even after lowering down the

profit rates due to sufficient liquidity in the market.

ASKARI MASTER CARD

30

NO JOINING FEE

When you successfully apply for an Askari MasterCard, we will not charge you

any Joining Fee. It s almost like you are getting it for FREE!‟

GLOBAL ACCEPTABILITY

Your card provides you with service at thousands of locations in Pakistan, and at

over 23 million establishments worldwide. As an added convenience, you will

have the benefit of receiving your monthly billing in Pak Rupees, regardless of

the currency of purchase.

24-HOUR CUSTOMER SERVICE

With Askari MasterCard, you are always a phone call away from the assistance

you need. To speak to one of our friendly Customer Service representatives,

please call our UAN 111-000-787 for Karachi, Lahore or Rawalpindi/ Islamabad.

LOW SERVICE CHARGES

Your Askari MasterCard provides you the experience of revolving your spending

at comparatively low service charges. In addition, the same rate also applies to

cash advance obtained on your Askari MasterCard.

ZERO LOSS LIABILITY

Please report loss or theft of your Askari MasterCard immediately at ourCustomer Services UAN 111-000-787 for Karachi, Lahore and

Rawalpindi/Islamabad. Once you have registered the loss of your credit card, your

liability against its fraudulent use will be limited and we will send a replacement

card within 48 hours of reporting.

SUPPLEMENTARY CARDS FOR YOUR LOVED ONES

Save yourself the inconvenience of applying for a separate Askari MasterCard for

your loved ones by requesting supplementary cards when you apply for your own

card. You will receive a consolidated monthly account statement, which covers all

the cards. This offer is available for your loved ones over 18 years of age.

CASH ADVANCE FACILITY

Cash advance facility is available for Askari MasterCard holders. You can get up

to 80% of your sanctioned credit limit as cash advance in Pakistan or anywhere

else in the world. The facility is available at all ATMs displaying the Cirrus logo

31

around the world and in Pakistan. You may also avail this facility at designated

branches of Askari Commercial Bank, during banking hours.

BALANCE TRANSFER FACILITYWith Askari MasterCard, you can avail an incredible offer of a Balance Transfer

at the exclusive rate of just 1.5%* per month.

A special privilege exclusively for Askari MasterCard members

FREE TRAVEL INSURANCEJust purchase your travel tickets on Askari MasterCard and you are automatically

covered under our Travel Insurance Plan (in case of personal accident resulting in

death or permanent disablement) for up to Rs.8,000,000/- on a Gold Card and

Rs.4,000,000/- on a Silver Card.

INVENTORY CONTROL PROCEDURE IN THE BANK

Inventory control is a delicate balancing act between how much stock you must

have on hand versus how much you can keep with the supplier and order at need.

Complete inventory control means considering every item involved in your

business from raw materials to finished goods. An effective business has a well-

oiled supply chain where capital is not tied up and production flows smoothly.

This can only be accomplished in conjunction with proper inventory control

techniques.

A Balancing Act

Your personal business needs drive the decisions you must make in terms of

space you can designate for stock, fees for storage, cost in bulk versus regular

ordering, speed of product turnover and many other factors. One must consider

speed of vendors and suppliers. How long does it take them (taking into account

possible errors and delays) to replenish your stock? Does your product have a

high risk in terms of becoming obsolete and rendering your stock on hand as

wasted capital?

Advantages/Disadvantages of High Stock

Having a great deal of stock on hand is certainly an advantage. Clients who have

to wait may very well choose a competitor who is better stocked than you.

Emergencies and unforeseen circumstances could render your competition

32

without vital resources, while you have a comfortable amount on hand. However,

one has to take into account insurance costs, goods perishing, management costs

and having capital tied up due to buying large amounts of merchandise.

Minimum Stock Level

It is important to identify a minimum stock level where you can function at

normal speed and are comfortable with the amount of time suppliers take to

restock. Regular reviews of stock allow scheduling of reordering and accurate

measurements of sales and profitability. A goal of business owners is JIT, or Just

In Time, meaning to have stock delivered and purchased by the end-user with a

minimum of wait time. Many times, JIT can only be determined by experience

and trying out diverse variables such as seasonal purchasing changes, economic

slumps and recoveries.

First In, First Out

First In, First Out, or FIFO, is especially important for perishable stock. FIFO

means that stock is arranged and identified by date received and a strict order is

followed though the production line to be sure the oldest stock is removed first. A

clear example of this is how milk at a grocery store is displayed to the consumer

with the most current date at the front (where more people will pick it up) and the

latter dates in the back, giving the newer bottles more time to leave the store

before expiration.

Security

Stock security from outside intruders as well as staff is of vital importance. Retail

stores lose many millions of dollars through shoplifting. Be sure stock is delivered

to a secure area. More valuable stock ought to have additional security. Work

with your staff to detail security procedures. Many times, thieves work in groups

and use standard techniques to distract employees and take stock. Train staff in

identifying potential issues and have a clear method of reporting.

33

SWOT ANALYSIS

An analysis indicating towards the organizations strengths, weaknesses,

opportunities and threat is termed as SWOT Analysis. Such an analysis is very

important for the management in retaining the strength, overcoming the

weaknesses, capitalizing over the emerging market opportunities, and carving

ways to successfully tackle with the threats and ultimately converting them in the

strengths for the organization.

During six weeks of my stay at Askari Commercial Bank, Shahalam Market

Lahore, I have come across the following SWOT analysis of the bank.

STRENGTHS

LEADING PRIVATE SECTOR BANK:

Askari commercial bank is the leading private sector bank in the banking network

in Pakistan with many of them online branches in major cities of the country

AUTOMATIC OPERATIONS:The operations performed by the bank are highly automated that result in

assurance for the customers that their transactions are completed reliably,

efficiently and securely.

FULL DAY BANKINGOne can avail the benefit of the services provided at the bank till 5:00 P.m. which

is highly useful for those customers who find it difficult to leave their officers in

the morning..

ATM NETWORK

The bank has the largest ATM Network cross the country. The customers of

ACBL withdraw access their funds any time at all the ATM Sites with

ASKCASH Logo.

CUSTOMIZED SOLUTIONS

The management of the bank believes in customer focused banking rather than the

product oriented banking. The products and services designed by the bank are

specifically tailored to the individual needs of its customers.

34

CUSTOMER ORIENTED BANKING

The priority banking centres of the bank offer an unmatched where the customer

receives highly privileged services in a highly elegant environment. It gives the

chance of experiencing new standards in banking. Designed specially for those

who appreciate only the finest things in life, Priority Banking offers the very

highest levels of personalized banking to match customer s unique status.‟

ELECTRONIC BANKING

The revolution in the banking in the form of electronic banking operations have

opened avenues of excellent, efficient and quick services saving the time and

costs of the customers and fortunately ACBL is among those few banks who are

already reaping the benefits of electronic transactions.

ELECTRONIC FUNDS TRANSFER

ACBL management is quite prepared to adopt the latest advancements in

technology resulting in revolution in the banking operations such as check

clearing process, computer based teller equipment, automatic teller machines, and

electronic funds transfers among the others.

PHONE BANKING

Phone banking service is very attractive for those classes of customers who don t‟

have time to personally come to the bank i.e. banking on the phone line thus

saving the precious time of the customers.

ETHICAL CONCERNS AND PUBLIC IMAGE

The organizations showing concern for the people, ethics, and environment enjoy

good public reputation and are able to reap the benefits in the long run. ACBL

management is quite sensitive to this issue.

WEAKNESSES

In my opinions these are the points that might be detrimental to the efficiency and

profitability of the bank.

35

NOT HIGHLY AUTOMATED

The bank has still some of the traditional ways of operations in this advanced

technological environment.

MANUAL BOOK-KEEPING

Although the bank has computerized accounting system but, still the bankers use

to make their entries in the accounting register.

LOW JOB SATISFACTION

Understanding and the effective management of the human resources is the most

difficult challenge faced not only by the bank but by all the organizations. Even

though the people have been sacrificed in the new organizational developments, it

is becoming clear that the true lasting competitive advantage comes through

human resources and how they are managed. ACBL seems to not focusing on this

highly critical issue as the job satisfaction level of the employees working at

ACBL, was quite low.

LACK OF SPECIALISATION

This famous and useful concept given by Adam Smith in 1776 seems to be

missing in the bank. The employees are constantly rotated from one job to another

job of totally different characteristic in the view of giving them the know-how of

the working in all the departments. But I think this is not a very good tactics used

by the management. Otherwise the situation might be like this „Jack of all and

master of none.‟

CENTRALIZATION

There is a high degree of centralisation in the bank. Almost all the decision-

making is in the hands of the upper management. But centralisation is effective up

to a certain level otherwise it becomes inefficient and at times costly too. I

personally observed that delay occurred in the operations of the employees only

due to the fact that they had not got any instructions from the head office.

36

LACK OF TRAINING FACILITIES

Presently there is no specific training program arranged for the new recruiters.

They have to learn based on their observations and also their mistakes. It takes a

bit time for the fresh one to learn the banking the result is huge amount of

blunders, mistakes etc. resulting in monetary and non-monetary losses for the

bank. There is pressure not only on the new learner but also on the person placed

upon with this responsibility.

OPPORTUNITIES

Apart from the ones discussed in External Factors Evaluation Matrix, the bank is

facing the following threats and opportunities currently:

These are positive external environmental factors effecting the organization.

It deals in bulk business.

A large amount of foreign investment is attracted.

Strong potential for growth

Steady increase in Customer Deposits

Overseas Operations

Branches In Remote Areas

Islamic Banking

Sharp increase in imports and exports

THREATS

High Employees Turnover

37

As discussed above, the job satisfaction level of the employee is very low

resulting in high turnover, which is bad for any organization as there are huge

monetary and non-monetary costs involved in the fresh recruitments.

High charges

The schedules of charges indicate that the fees charged by the bank on the various

services it provides are extremely high. It may result in decrease in the number of

its exiting customers. Further more, this could be very alarming situation for the

bank in case some of the competitors grasped the opportunity and lowered its

rates. The result would be either the lost of market share or decrease in the

charges resulting in lowering the bank s income.‟

Less attractive rate of return

Commercial banks face considerable competition in attracting deposits from

individuals or small investors. In contrast, the Govt. of Pakistan national saving

scheme offers attractive rates of return (approx. 16 to 18 percent annually) on 10-

15 year fixed accounts, which banks find difficult to match.

Stiff Competition

SCB is currently facing strict competition from the foreign banks especially the

American who banks enjoy a good market position. Collectively U.S. banks hold

approximately 9 percent of all commercial banks' assets. At present, three

American banks are operating in Pakistan: American Express Bank; Bank of

America and Citibank.

Less Experienced Staff

Owing to huge turnover of the employees, the no. of experienced and well trained

staff is very low. Majority of the staff working in the bank branches is quite

young and inexperienced. If the bank failed to bring down its high employees

turnover, then it would be lacking the most important resources of any

organization i.e. the experienced staff.

38

DATA COLLECTION METHODSThe four methods of secondary data collection are as follows:-

1) Internet search, using online resources to gather data for research purposes.

This method is not usually very reliable and requires appropriate citation and

critical analysis for findings.

2) Library search and indexing, this technique requires to go through written texts

that have already done similar work and utilizing their researches for your

dissertations.

3) Data collection organizations, for example Gallup and AC Nielsen conduct

researches on a recurrent basis ranging in a wide array of topics.

4) News Papers and Magazines, journals and other similar periodicals.

39

CONCLUSIONInventory Management and Inventory Control must be designed to meet the

dictates of the marketplace and support the company's strategic plan. The many

changes in market demand, new opportunities due to worldwide marketing, global

sourcing of materials, and new manufacturing technology, means many

companies need to change their Inventory Management approach and change the

process for Inventory Control.

Despite the many changes that companies go through, the basic principles of

Inventory Management and Inventory Control remain the same. Some of the new

approaches and techniques are wrapped in new terminology, but the underlying

principles for accomplishing good Inventory Management and Inventory activities

have not changed.

The Inventory Management system and the Inventory Control Process provides

information to efficiently manage the flow of materials, effectively utilize people

and equipment, coordinate internal activities, and communicate with customers.

Inventory Management and the activities of Inventory Control do not make

decisions or manage operations; they provide the information to Managers who

make more accurate and timely decisions to manage their operations.

The basic building blocks for the Inventory Management system and Inventory

Control activities are:

Sales Forecasting or Demand Management

Sales and Operations Planning

Production Planning

Material Requirements Planning

Inventory Reduction

40

The emphases on each area will vary depending on the company and how it

operates, and what requirements are placed on it due to market demands. Each of

the areas above will need to be addressed in some form or another to have a

successful program of Inventory Management and Inventory Control.

41

RECOMMENDATIONS

Strategic Sourcing is the systematic procurement process that continuously

improves and re-evaluates the purchasing activities of a company. It is a form of

supply chain management.

Do you have rotating equipment that sits in parts for extended periods (such

as critical spares)? Write a PM to have the shafts turned periodically. If left too

long in one position, flat spots brinelling will form on the bearings which will

start premature deterioration once installed in the machine.

When kitting materials, the time at which you perform the data entry is

critical. We all know that emergencies happen Monday through Friday 10:00 am

to 2:00 pm. But in the rare case that an emergency does occur in the off hours the

tradesman must have the ability to see where the part they need is located. If you

kit work orders weeks or days in advance and relieve the perpetual inventory, the

burden of tracking the history falls on the tradesman and their computer skills. A

better process is to relieve inventory when the part physically is removed from the

storeroom operation.

How do I store belts, electric boards, bearings, pumps, gear boxes, etc? A

very good place to start could be with your sales person, supplier or distributor.

You're paying for a service whether you realize it or not. Why not take advantage

of it? Your sales person or supplier visits dozens of other facilities and sees first

hand how someone else is storing materials as a best practice. Ask the question

"I'm having a problem with this, have you seen it stored better anywhere else?"

What are critical spares and how should we determine them? Critical spares

in stores are the security blankets we have to satisfy our need to cover our

backsides. Ask a Maintenance or Operations Manager what they want kept in

stores and they'll say they want one of everything. That's not reasonable or

42

feasible especially if the goal of the Purchasing Manager is to reduce inventories

by 10%! Determining critical spares inventory is a methodology of using

scientific analysis and making a cross-functional non-emotional business

decision. Failure Mode & Effects Analysis (FMEA) or Simplified FMEA's are a

good place to start the analysis. A cross-functional team should consist of

members from Operations, Maintenance, Purchasing, and Engineering. Only

when the proper people and tools are utilized can we then make the right choice

on what to stock and what not to.

Inventory turns is a good performance measure of how well your material is

managed, but it should not be used by itself. Service level is an important measure

as it directly relates to downtime (no parts = long repairs), and therefore revenue.

Even service level measurement accuracy can be a problem, as they are often

under-reported by inventory control and through the maintenance personnel who

order material directly thinking the parts are not likely to be available.

If Maintenance is still operating in a reactive manner, then imposing

requirements where they must forecast their requirements and ordering material

only when it is required may likely result in frequent "show stoppers". It might be

more effective to help them wherever it is possible in organization.

How much time is spent physically looking at parts to determine if the

stockroom catalog is describing the one that is really needed? Why not include

graphics with your computerized catalog description of the part. Hyperlinks can

be embedded in the catalog that could connect to an exploded view of the

machine being worked on or even the individual part itself. Scanning in graphics

or even taking pictures with the digital camera in your phone makes this easy.

Time is money. - (Joe McAfee, Marshall Institute)

Since time is money and a large number of items that we need to have on

hand cost so little (comparatively speaking) why spend money inventorying

43

quantities and tracking requisitions of penny-ante items (screws, butt-splices,

etc.)? Instead a "free issue" area in the stock room could contain the low cost

items that constitute over 50% of the line items we stock. All stock room

personnel need do is to assure that the bins don t run out and that unauthorized‟

individuals are not filling their pockets. - (Joe McAfee, Marshall Institute)

Are you keeping your printed circuit boards in their static proof sleeves?

These intricate parts must be protected at all times so they function properly when

being installed.

HVAC controlled atmosphere is critical to keeping the condition of your

parts stable. Do you have bearings rusting on the shelf? Is everything covered in

dust? A sealed, HVAC controlled room will help eliminate deterioration andcontamination of your parts. Remember, you don t want defective parts being‟

used during your repairs!

Do you have rotating equipment that sits in parts for extended periods (such

as critical spares)? Write a PM to have the shafts turned periodically. If left to

long in one position, flat spots will form on the bearings which will start

premature deterioration once installed in the machine.

Have you identified your critical spares? Critical spares = Long Lead

time (4-6 weeks) X Critical to Production Equipment X High Part Cost. These

parts are like life insurance. You hope you never need them, but they better be on

the shelf if you do.

Keep key stock in the shaft of your rotating equipment so it is already there

when the part is ordered out. This will increase the mechanics effectiveness, not

having to stop and order it and hopefully so they will not use the old key stock

which is probably worn.

44

Are your V-Belts hanging on hooks in your parts room indefinitely

before use? Over time, these belts will become warped and crack at the hang

point. Upon installation, you have just introduced a defective part into your

equipment and increased the likelihood of premature failure.

45

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

REFERENCESThe First Steps to Inventory Management

Kieso, , DE; Warfield, TD; Weygandt, JJ (2007). Intermediate Accounting

8th Canadian Edition. Canada: John Wiley & Sons. ISBN 047015313X.Professional Inventory Management

Tempelmeier, Horst, Inventory Management in Supply Networks,

Norderstedt (Books on Demand) 2006, ISBN 3-8334-5373-7Extending the Pareto Principle to MRP Controlled Parts and Regaining

MRP Control

Business Inventories monthly report

Inventory Optimisation

A very basic guide to setting up an inventory system.

Optimizing Retail Inventory Service Level & Turnover in Excel

Cannella S., Ciancimino E. (2010) Up-to-date Supply Chain Management:

the Coordinated (S,R). In "Advanced Manufacturing and Sustainable Logistics".

Dangelmaier W. et al. (Eds.) 175-185. Springer-Verlag Berlin Heidelberg,

Germany.

46