ABSTRACT

Inventory management is the key selection in the companys point of view. Inventory means the
stockpile of the product; a firm is offering the sale and the components that make up the products
The main objective of this study is to manage the inventory well and to analyze the production
level with change in the production levels well and to analyze how the companys profit is increased as
the changes in the production.
A company product is cement product. While produces the cement product performance had
been outstanding achieving over 100 per cent capacity utilization although despite many goods like
power cuts and which most 40% was waste due to wagon shortage.
The company being a continuous process industry works round the clock and has on excellent
record of performance achieving over 100% capacity utilization. zuari has always combined technical
progress with industrial performance. The company had a glorious track record for the last 27 year in
the industry
The company follows the ABC analysis, EOQ, Inventory turnover ratio, FIFO and LIFO is
ranking the products The information given by me do of 45 days I collect i.e., The information while I
have done my project work








INTRODUCTION
Inventory management is primarily about specifying the shape and percentage of stocked
goods. It is required at different locations within a facility or within many locations of a supply
network to precede the regular and planned course of production and stock of materials.
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.
Business inventory
There are three basic reasons for keeping an inventory:
Time - The time lags present in the supply chain, from supplier to user at every stage,
requires that you maintain certain amounts of inventory to use in this lead time. However,
in practice, inventory is to be maintained for consumption during 'variations in lead time'.
Lead time itself can be addressed by ordering that many days in advance.
Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand,
supply and movements of goods.
Economies of scale - Ideal condition of "one unit at a time at a place where a user
needs it, when he needs it" principle tends to incur lots of costs in terms of logistics. So
bulk buying, movement and storing brings in economies of scale, thus inventory.
Stock Keeping Unit (SKU) is a unique combination of all the components that are assembled
into the purchasable item. Therefore, any change in the packaging or product is a new SKU. This
level of detailed specification assists in managing inventory.
Stockout means running out of the inventory of an SKU.
"New old stock" (sometimes abbreviated NOS) is a term used in business to refer to
merchandise being offered for sale that was manufactured long ago but that has never
been used. Such merchandise may not be produced anymore, and the new old stock may
represent the only market source of a particular item at the present time.
Buffer/safety stock
Cycle stock (Used in batch processes, it is the available inventory, excluding buffer
stock)
De-coupling (Buffer stock held between the machines in a single process which serves as
a buffer for the next one allowing smooth flow of work instead of waiting the previous or
next machine in the same process)
Anticipation stock (Building up extra stock for periods of increased demand - e.g. ice
cream for summer)
Pipeline stock (Goods still in transit or in the process of distribution - have left the factory
but not arrived at the customer yet)
Inventory examples
While accountants often discuss inventory in terms of goods for sale, organizations -
manufacturers, service-providers and not-for-profits - also have inventories (fixtures, furniture,
supplies, etc.) that they do not intend to sell. Manufacturers', distributors, and wholesalers'
inventory tends to cluster in warehouses. Retailers' inventory may exist in a warehouse or in a
shop or store accessible to customers. Inventories not intended for sale to customers or to clients
may be held in any premises an organization uses. Stock ties up cash and, if uncontrolled, it will
be impossible to know the actual level of stocks and therefore impossible to control them.
While the reasons for holding stock were covered earlier, most manufacturing organizations
usually divide their "goods for sale" inventory into:
Raw materials - materials and components scheduled for use in making a product.
Work in process, WIP - materials and components that have begun their transformation
to finished goods.
Finished goods - goods ready for sale to customers.
Goods for resale - returned goods that are salable.
For example:
Manufacturing
A canned food manufacturer's materials inventory includes the ingredients to form the foods to
be canned, empty cans and their lids (or coils of steel or aluminum for constructing those
components), labels, and anything else (solder, glue, etc.) that will form part of a finished can.
The firm's work in process includes those materials from the time of release to the work floor
until they become complete and ready for sale to wholesale or retail customers. This may be vats
of prepared food, filled cans not yet labeled or sub-assemblies of food components. It may also
include finished cans that are not yet packaged into cartons or pallets. Its finished good inventory
consists of all the filled and labeled cans of food in its warehouse that it has manufactured and
wishes to sell to food distributors (wholesalers), to grocery stores (retailers), and even perhaps to
consumers through arrangements like factory stores and outlet centers.


















NEED FOR THE STUDY
Inventory management can be a monster, and gets out of control quickly. Most small
business owners feel tracking inventory is more work to set up and manage than it is worth.
However, there are significant benefits to tracking inventory that will improve your business.
Read on to find out the top five reasons why you need to start managing inventory right now.
Save Time: Save yourself time in the long run by managing your inventory.
Save Money: Spend less money on materials and shipping because you know exactly
how much inventory is in stock, and what is selling.
Gain Useful Data: Learn how your business is really working. By tracking inventory,
you gain useful data about your business.
Make Better Decisions: Be sure that the choices you are making are the best ones for
growing your business. Once you have gathered data by tracking inventory, you can then
analyze it and make decisions.















SCOPE OF THE STUDY
.The study mainly deals with the techniques of inventory control adopted, systematized in the
ZUARI CEMENTS PVT LTD. The effort of this study would be to understand the systems in
the ZUARI CEMENTS LTD, while dealing with the theoretical concepts in the inventory
management field.


OBJECTIVES OF THE STUDY
To examine the organization structure of inventory management in the stores of Zuari
Cements.
To understand the various inventory control techniques followed by studied by zuari
Cements.
To find out the impact of inventory on working capital.
To determine the ways how to minimize the carrying cost of inventory.





RESEARCH METHODOLOGY
Research is an important pre-requisite for a dynamic organization to be precised. Research is
more systematic activity directed towards the discovery and development of organized body of
knowledge. Some of the characteristics of research methodology are as follows:
Research is directed towards a solution of problem. It may attempt to answer a question
or determine the relation between two or more variables.
Research involves gathering new data for primary of first hand sources or using existing
data for new purposes.
Research is based on observable experience or empirical evidence.
Research strives to be objective and logical applying every possible test to validate the
proceed are employed the data collection and conclusion research.
SOURCES OF DATA
The data for the present study is collected through primary and secondary sources.
Secondary data is obtained from the annual report of Zuari Cements and also from internal
reports of the company from time to time and primary data collected by interacting financial
executives of the company.
PRIMARY DATA
The primary data of this study was collected by consulting account officer of that
company through oral interviews and queries.
SECONDARY DATA
The study was carried on by collecting data from web site of company which is a
secondary source of data. The data were collected from leading web sites which are meant
exclusively for tracking market data. The secondary data for this study was collected from the
published sources i.e., annual reports, records of Zuari Cements. The theoretical part explained in
this project was collected from text books written by famous authors who are well known for
their writing skills and who have an ocean of experience in the teaching field.


LIMITATIONS OF THE STUDY
Although every effort have been made to collect the relevant information through the source
available, still some relevant information could not be gathered.
The time duration could not provide ample opportunity to study every detail of
management in the company.
There are restrictions not to visit some specific areas in the finance department.
The concerned executives were having very busy schedule. So they may or may not
spend more time with me for the guidance.
The company on account of confidential reports has not disclosed some figures.