A Project Report on Inventory Control at Big Bazaar

1926 Words Aug 22nd, 2013 8 Pages
A
Project Report
On
INVENTORY CONTROL AT

Submitted to: DR. HITESH PARMAR

Submitted By:

SAINIL SHAH 31 JAYESH WAGHWANI 54
RAHUL TRIPATHI 46 VISHAL SHINDE 59

MBA, Sem- 2, (Sec- B)
Academic year: - 2012-2013

CONTENT

1) Introduction to Inventory control
2) Inventory investment control
3) Inventory replenishment
4) How to Achieve Inventory Control?
5) Inventory costs
6) Introduction to Big Bazaar
7) Types of inventories maintained at Big Bazaar
8) Decision of how inventories are maintained
9) Software used for inventory control in Big Bazaar
10) Reorder points of inventories
11) Supply chain of perishable and imperishable goods
12) Conclusion
13) Reference
…show more content…
Ordering Cost
Cost of procurement and inbound logistics costs form a part of Ordering Cost. Ordering Cost is dependant and varies based on two factors - The cost of ordering excess and the Cost of ordering too less.
Both these factors move in opposite directions to each other. Ordering excess quantity will result in carrying cost of inventory. Where as ordering less will result in increase of replenishment cost and ordering costs.
These two above costs together are called Total Stocking Cost. If you plot the order quantity vs the TSC, you will see the graph declining gradually until a certain point after which with every increase in quantity the TSC will proportionately show an increase.
This functional analysis and cost implications form the basis of determining the Inventory Procurement decision by answering the two basic fundamental questions - How Much to Order and When to Order.
How much to order is determined by arriving at the Economic Order Quantity or EOQ.

2. Carrying Cost
Inventory storage and maintenance involves various types of costs namely:
• Inventory Storage Cost
• Cost of Capital
Inventory carrying involves Inventory storage and management either using in house facilities or external warehouses owned and managed by third party vendors. In both cases, inventory management and process involves extensive use of Building, Material Handling Equipments, IT Software applications and Hardware Equipments coupled managed by Operations and Management Staff