A Study to Redefine the Buying Mix to Improve the Gross Margin of Bangles in Reliance Gems and Jewels Limited

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  • Topic: The Band, The Last Waltz, Levon Helm
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  • Published : January 28, 2013
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* A STUDY TO REDEFINE THE BUYING MIX TO IMPROVE THE GROSS MARGIN OF BANGLES IN RELIANCE GEMS AND JEWELS LIMITED * Submitted by
* Aswathy Nair MS
* Objectives
* To identify the average monthly sales of Bangles for the financial year 2010-2011.

* To define ideal stock quantity on the basis of current stock quantity and stock cover.

* To propose a buying mix on the basis of cost supplied by vendors.

* To analyze the improvement of gross margin on the basis of revised buying mix.

* Research Methodology
* Research Design : Descriptive Research

* Data Collection Method: Secondary Source

* Data Analysis: Microsoft Excel
* Sales analysis
* Sales analysis is done on three levels:

* Product level

* Weight band level

* Product class level

* Product Contribution
* Bangles – Product Level
* Bangles – Weight band Level
* Bangles – Product Class level
* IDEAL STOCK QUANTITY
* Ideal stock quantity – Kolkata Filigree
* Analysis
* For bangles having weight band of 20-30 the stock cover is 23 months, which means there is less progress in sales. So the ideal stock quantity has been revised from 12 to 6 units. * For bangles having weight band of 30-40 the AMS is 0 units and the current stock quantity is 3 units, nevertheless, the revised ideal stock quantity remains at 3 units as to provide choice for the customers. * For bangles having weight band of 15-20gms the AMS is 1 unit and it takes 9 months to clear 12units. So the ideal stock quantity has been revised from 30 to 20 units. * For bangles under the weight band category of 10-15gms, the AMS is 6 units and it takes 8 months to clear 50 units. Thus this particular product has good sales movement with an ideal stock quantity of 80 units.

* Ideal stock quantity – Mumbai Dubai Hollow
* Analysis
* For bangles having weight band of 20-30gms, the current stock, AMS and the stock cover are nil,...
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