Inventory Management at Iocl
INVENTORY MANAGEMENT- PURCHASE AND PROCUREMENT
Page 1
A
PROJECT REPORT
ON
INVENTORY MANAGEMENT-PURCHASE AND
PROCUREMENT PROCEDURES
AT
IOCL (BARAUNI REFINERY)
EXECUTIVE SUMMARY
Petroleum oil is the lifeline of modern civilization. It is needed equally for both domestic andindustrial purposes. Its demand has increased multiple-folds and yet to increase on war scale dueto rapid industrialization and fast urbanization. Both developed and developing countries areutilizing oil resources continuously for their progress and prosperity. In such a situation, oil products management becomes very important because oil resources are non renewable or conventional sources of energy. Oil companies employ many techniques to minimize purchaseand inventory costs to enhance profits.Inventory management is vital in an oil plant. This project ”INVENTORY MANAGEMENT-PURCHASE AND PROCUREMENT PROCEDURES AT IOCL BARAUNI” has beencompleted in IOCL, Barauni. It deals with proper purchase operation, handling of materials andoil management processes. Purchase procedures play a very important part in inventorymanagement. Cost reduction measures can be taken right from the purchase process. Variousmethods involved in purchase procedures have been studied. Thousands of spares and parts arestored by material management department. Their proper upkeep and maintenance are importantfor the refinery. Here the materials are classified on the basis of ABC analysis based onmonetary values. This method is applied because materials are quite large. They are more than30,000 in number. Other basic concepts of inventory have also been studied and explained. The project is also related to oil management in the last chapter. Efficient purchase of crude oil and proper management of finished products can add to the profitability of the company. Thecompany maintains the storage of several finished products for further distribution.Indian Oil Corporation Ltd. (Indian Oil) is India's largest
Page 1
A
PROJECT REPORT
ON
INVENTORY MANAGEMENT-PURCHASE AND
PROCUREMENT PROCEDURES
AT
IOCL (BARAUNI REFINERY)
EXECUTIVE SUMMARY
Petroleum oil is the lifeline of modern civilization. It is needed equally for both domestic andindustrial purposes. Its demand has increased multiple-folds and yet to increase on war scale dueto rapid industrialization and fast urbanization. Both developed and developing countries areutilizing oil resources continuously for their progress and prosperity. In such a situation, oil products management becomes very important because oil resources are non renewable or conventional sources of energy. Oil companies employ many techniques to minimize purchaseand inventory costs to enhance profits.Inventory management is vital in an oil plant. This project ”INVENTORY MANAGEMENT-PURCHASE AND PROCUREMENT PROCEDURES AT IOCL BARAUNI” has beencompleted in IOCL, Barauni. It deals with proper purchase operation, handling of materials andoil management processes. Purchase procedures play a very important part in inventorymanagement. Cost reduction measures can be taken right from the purchase process. Variousmethods involved in purchase procedures have been studied. Thousands of spares and parts arestored by material management department. Their proper upkeep and maintenance are importantfor the refinery. Here the materials are classified on the basis of ABC analysis based onmonetary values. This method is applied because materials are quite large. They are more than30,000 in number. Other basic concepts of inventory have also been studied and explained. The project is also related to oil management in the last chapter. Efficient purchase of crude oil and proper management of finished products can add to the profitability of the company. Thecompany maintains the storage of several finished products for further distribution.Indian Oil Corporation Ltd. (Indian Oil) is India's largest