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