| Zeus V Paranjape
| MBATech [Manufacturing]
| Bosch India Ltd.
The inventory stocks in Bosch India Ltd.’s [Bangalore] manufacturing plant of Fuel Injection Pumps for Diesel Systems have been increasing at an alarming rate and the discrepancies between the system and actual stocks over the last year. This is the causing a lot of loss to the company including the Inventory Carrying Costs. Goals:
We as a team aim at reducing the stock levels to an ideal scenario and sustaining the same level so that the stocks don’t rise again or fall to an undesired level and put a trigger which will tell us when the levels are too low or too high With this we hope to save the Inventory Carrying Costs as well as improve the profitability of the company as a whole. Methodology:
Various Methods were proposed to accomplish the required results. Some of the inventory control methods proposed are given below: The eyeball system:
This is the standard inventory control system for the vast majority of small retail and many small manufacturing operations and is very simple in application. The key manager stands in the middle of the store or manufacturing area and looks around. If he or she happens to notice that some items are out of stock, they are reordered. In retailing, the difficulty with the eyeball system is that a particularly good item may be out of stock for some time before anyone notices. Throughout the time it is out of stock, sales are being lost on it. Similarly, in a small manufacturing operation, low stocks of some particularly critical item may not be noticed until there are none left. Then production suffers until the supply of that part can be replenished. Such unsystematic but simple retailers and manufacturers to their inherent disadvantage. Reserve stock system:
Reserve stock system is another inventory control system which keeps a set of parts as reserve usually in a...
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