Summer Training Project on “INVENTORY MANAGEMENT PROCESS AND ITS ANALYSIS AT PANASONIC” Submitted in Partial Fulfillment for the Award of the Diploma of Post Graduate Diploma in Management (Session 2010-12) Submitted to: Submitted By: MR. RAJIV BAJAJ ANUBHAV TIWARI (Internal Guide) Roll No : PGD 10021 PGDM – IV Trimester DEPARTMENT OF MANAGEMENT
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Summer Training Project
on
“INVENTORY MANAGEMENT PROCESS AND ITS ANALYSIS AT PANASONIC”
Submitted in Partial Fulfillment for the Award of the Diploma of
Post Graduate Diploma in Management
(Session 2010-12)
Submitted to: Submitted By:
MR. RAJIV BAJAJ ANUBHAV TIWARI
(Internal Guide) Roll No : PGD 10021
PGDM – IV Trimester
DEPARTMENT OF MANAGEMENT
INSTITUTE OF MANAGEMENT STUDIES, NOIDA
A UGC Recognized Institute
A-8B, Plot –C, Sector-62, Noida
INSTITUTE OF MANAGEMENT STUDIES, NOIDA
A UGC Recognized Institute
A-8B, Plot –C, Sector-62, Noida
DECLARATION
I ANUBHAV TIWARI bearing Roll No PGD10021 Class PGDM 4 TRIMESTER of the Institute of
Management Studies, Noida hereby declare that the Project Report-408 entitled INVENTORY
MANAGEMENT PROCESS AND ITS ANALYSIS AT PANASONIC is an original work and the same
has not been submitted to any other Institute for the award of any other diploma. The suggestions as
approved by the faculty were duly incorporated.
Signature of Student
Countersigned
Signature of Faculty Guide
INSTITUTE OF MANAGEMENT STUDIES, NOIDA
A UGC Recognized Institute
A-8B, Plot –C, Sector-62, Noida
A CKNOWLEDGEMENT
While presenting this project we express our sincere gratitude to Almighty God. For his grace and blessing that helps us to complete this project synopsis successfully.
As with any project this one would not have been possible without the contribution of
many people. First of all I would like to express our sincere gratitude to are Project
Guide Mr. RAJIV BAJAJ who provides us all the necessary information for the
successful completion of this synopsis. We would also like to thank our Class
Coordinator MS MAHUA DUTTA for their great support and providing co-operative
healthy environment.
We shall be failing if we are not thanking Program coordinator MR.H.N. SINGH and all
concern faculties for their moral support and guidance time to time. We would like to
thanks to our entire supporter for their encouragement and moral boost up.
ANUBHAV TIWARI
PGDM-II YEAR
EXECUTIVE SUMMARY
Companies hold inventories in the form of raw materials, work-in process and finished goods. In
most of the companies specially manufacturing companies, a very significant part of working
capital is invested in inventory therefore the management of inventory becomes very important.
Inventories are assets of the firm and require investment and hense involved the commitment of
firm resources. If the inventories are too big they become a strain on the resources, however, if
the inventories are too small the firm may loose the sale therefore the firm must have an
optimum level of inventories.the basic financial problem is to determine the proper level of
investment in the inventories and to decide how much inventory must be acquired during each
period to maintain that level
Therefore there is a greater need to have a scientific inventory management policy and its
effective implementation. Business firms keep inventories for different purposes. Every firm, big
or small, trading or manufacturing has to maintain some minimum level of inventories . there are
different motives for manufacturing inventories and these are more or less the same as the
motives for holding cash. The motive to hold inventory can be broadly classified in to the
following category:-
Transaction Motive to Hold Inventory for facilitating smooth production and sales operation.
Precautionary Motive to Hold Inventory the guard against the risk of unpredictable changes–
in usage rate and delivery time.
Speculative Motive to Hold Inventory to take advantage of price fluctuations.
So, the trade-off on inventory is fairly clear. On the one hand, having too high an investment in
inventory results in large carring costs which, will drag down the value of the firm. On the other
hand, having too small an inventory results in either lost sale or higher ordering cost for the firm.
The whole theory of inventory management can be summarized as follows:
Maintaining sufficient stock of raw material ensuring continuous supply to production
process for uninterrupted production schedule.
Maintaining sufficient supply of finished goods for achieving smooth sales operations.
Minimizing the total annual cost for maintaining inventories.