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PRESENTED BY

NITIN ARORA

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Introduction of inventory Introduction of company Objective of the study Dairy products

Structure of Anchal diary Inventory cycle A B C Classification Inventory turnover of Anchal Turnover of Anchal industries Research methodology Finding Recommendation and Suggestion Conclusion

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Inventory is the aggregate of those item oftangible personal property which are held for salein the ordinary course of business or in the processof production for such sale or currently consumein the production of goods and services to beavailable for sale there are various form in whichinventories exists in a manufacturing companylike raw material ,finished good, semi finishedgood ,store and spare etc

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The milk revolution started in India in 1946 in asmall town called Anand (Gujarat), has made a

big contribution to the socio-economicdevelopment of rural milk producers. It hasalso established an effective partnership

between farmers and professionals in the dairyindustry.

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There is about 75,000 dairy cooperative societies,spread all over the country with a membershipof 10 million. There are nearly 70 million

households engaged in milk production, ofwhich more than 10 million are in the co-operative sector. However, except for the brandname Amul,most of the state federation

brands are regional. These include Verka inPunjab, Nandini in Karnataka, Vijaya inAndhra Pradesh, Saras inRajasthan,

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1. Non fat dry Milk

2. Cheese powder

3. Butter salted

4. Butter unsalted

5. Cream

6. Ghee

7. Cheese sauces

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STORES/WORKER/USER

PURCHASE DEPARTMENT(P.O)

SUPPLIRES

MATERIAL RECEIVEDREJECTED

MIN PREPARED

GRN PREPARED

STORES REQUISITION SLIP)

STORES

USERS

VICE VERSA

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Material Planning

Material Purchasing

and Receving

Material Storing

Material issuing

Material Accounting

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Centralized purchasing or decentralizedpurchasing

Classification and codification

Standerdisation and simplification Types of stores i.e., centralized store or

decentralized store

Fixation of levels (reorder,minimum,maximum,danger,EOQ)

Selective controls through ABC analysis, VEDanalysis

Perpetual inventory system

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Exploring of supply

Calling quotations

Preparing comparative statement of quotation

Select one of them

Receiving and inspecting materials

Checking and passing of bills for payments

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Location and layout of stores

Maintainers of stores records, bin cards andstore ledger

Perpetual inventory systems Calculation of inventory turnover ratio

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Materials requisition

Bills of materials

Material returned to stores

loss/surplus of materials

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Receipts of materials

Issues of materials

losses/surplus of materials

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Class A 5 15 % of unit

70 80 % of value Class B

30 % of units

15 % of value

Class C 50 60 % of units

5 10 % of value

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Practically, every household in the rural and semi-urban areas own livestock, a mixture of cows andbuffaloes.

Most of the households own more than one cattle

head, so milching is available throughout the yearby rotation. The analysis of inventories according to the data

available in the company. The data used in theanalysis are secondary arranged:

By report of company By internet By supervisors

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If we see from the above table ( Data of theCompany ) that the days of inventory holdingin the year 2009-10 has come down to 19 days

from 22 days in the year 2005-06. In spite ofincrease in turnover i.e. 596.36 cr in 2009-10from 523.36 in the year 2008-09 the days ofinventory holding decreases. This indicates

that the company is using effective strategy tobring down its inventory level. This makesvery less investment in inventory.

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More man power is required. At least 2-3 people must be there forthe distribution of material.

The time to updating of issuing and receiving is to be done.

The materials are to be stored in the particular racks.

The inventories should not be mixed or scattered.

The employees or the workers are not to be allowed to collect thematerial by themselves.

The space in the stores should be properly utilized.

The BIN must be allotted to each and every item, so as to keep therecord of each and every item and also increases the assets of thecompany in the books of account

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Investment on inventories to the minimum.

Idle time is minimized by avoiding stock outs andshortages.

Carrying cost is reduced.

Quality is being improved.

Profit is being improved as compared with thecarrying cost.