Project Report on Inventory Control Techniques

Topics: Inventory, Inventory control system, Supply chain management terms Pages: 31 (9363 words) Published: April 19, 2013
A study of inventory management at SARK CABLES LTD is undertaken inorder to know the inventory performance and position of the company and to know the strength and weakness and to assess the profitability of the company. Inventories constitute most significant part of assets of large majority of the companies in India. Inventory a double edged sword is usually an asset of an organization, if not used properly it will become liability. It is therefore absolutely important to manage inventories efficiently and effectively in order to overcome unnecessary investment. Improper inventory management affects long term profitability and may fail ultimately. 10 to 20% of inventory can be reduced without any adverse effect on production and sales by using simple inventory planning and control techniques The scope of inventory management concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods, and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. Inventory management involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. It also involves systems and processes that identify inventory requirements, set targets, provide replenishment techniques, report actual and projected inventory status and handle all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. It also may include ABC analysis, lot tracking, cycle counting support, etc. Management of the inventories, with the primary objective of determining/controlling stock levels within the physical distribution system, functions to balance the need for product availability against the need for minimizing stock holding and handling costs.

SARK CABLES PVT.LTD. the only one company of its kind in Kerala promoted over a decade ago in manufacturing various cables as per Indian/International specifications. They commenced its production in 1996, December at new industrial development area (NIDA), Kanjikode , Palakkad District, Kerala as a small scale industrial unit with permanent SSI registration number 090711939, they are also registered with NSIC vide registration number, NSIC/KER/UP/RS/8-53/99. As well as SISI vide KSX registration number KSX/1357/G9 date 5/4/1999.c The company is catering to the needs of public sector undertaking OEMS in INDIA and also executed import substitute requirement as well as very stringent applications like cable for the rocket launching purposes under water communications etc The company is managed by a board of directors consisting of 6 persons out of whom Mr. K Sajeev Kumar is the Managing Director and Mr. Sunil Joseph, Director (Technical Services) take care of the day today management of the company. the company has a prestigious ISI certificate it has got ISO 9001-2000 certification on 2004. The company has started second unit in Coimbatore which went into production from 1st October 2008. The company has another associate unit in Thodupuzha , namely COCHIN POWER CABLES PVT.LTD, which also produces power cable SARK CABLES is mainly producing the wires and cables for industrial purpose like heavy duty power cables, control cables, telephone cables, switch board cables, co-axial cables as per the requirement of the customers. The company has won many laurels, best entrepreneur by the department of industries and commerce (1998 and 1999) and best entrepreneur by the...

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