A Study on

inventory
management
Presented by:
Sanju . C
1cd14mba46

Objectives
To analyze the inventory management

methods with the help of Inventory

techniques.
To study the movement of different stock
levels of inventory.
To study the effectiveness Economic ordering
quantity of inventory management at
celebration apparel ltd.
To evaluate and suggest better inventory
management practices at celebration apparel
ltd.

NEED AND SCOPE FOR THE STUDY

Inventory is a necessary evil that every organisation

would have to maintain for various purposes. Optimum

inventory management is the goal of every inventory
planner. Over inventory or under inventory both cause
financial impact and health of the business as well as
effect business opportunities.
Inventory holding is resorted to by organisations as
hedge against various external and internal factors, as
precaution, as opportunity, as a need and for
speculative purpose.

Research methodology
Research design
Analytical research- Analytical research is a type
of research that utilises critical thinking to find out
facts about a given topic and from answers
obtained developed new and useful way of doing
things.
Sources of data

Secondary data:
website
Annual reports
Journals

LIMITATIONS OF
STUDY:
To collect all information of the company is

not possible.
The study is based on the financial data of the
company for five years only.
Time constraint.

Tools and techniques used for

the study:
Fixation of stock level
Maximum level
Reorder level
Minimum level
Danger level
Economic order level
ABC analysis
Just in time

Chapter-II
Industry profile
Textile industry in India is a traditional one.
It provide employment opportunities to over

35 million
in the country. India is popular for jute production and
shares 63% of global textile and garment market.
Some of the foreign textile are rieter, trutzschler, soktas,
bilsar these companies are working in India.
History
According to survey they found that the people of
harrapan civilization. The weaving and spinning of cotton
4000 year ago. In the year 17th and 18th century and
more export from India .

Production
India has ranked 2nd place for producing cotton
and cotton like jute , silk, wool and man made
fibers. India project for more production textile
industry (325 lakh in year 2010 2011).
Man made fibers
Woolen sector
Jute sector

COMPANY PROFILE

Celebration Apparel Ltd it started in the year

july 2005.
It is located in the industrial area in hosakote.
It is a garment textile which manufactures
formal shirts.
The company have now total strength of the
worker 1200 and machines 63 (and also 443
sewing and non sewing).
80% of orders domestic in house order that is
Raymond and park avenue.

Vision
Company supplying high quality products &

services to the customer.

The princiles & objectives are creates the
image and success to the product.

Mission
To excel in all areas of operations through rapid
continues improvement, creating an environment
that ensure enduring relationship with all stake
holders include customers, suppliers, employees,
business partners, shareholders, society and
nature.

Brands of celebration apparel Ltd

Manzoni
Park avenue
Color plus
Parx
Makers
Notting Hill
Raymond
Raymond Premium Apparel

SWOT ANALYSIS
STRENGTHS
Strong brand image
Quality products
Excellent distribution network
Motivated employees
Location facilities
WEAKNESS
Global penetration is limited as compare to a few others
international brands.
Presence of india and international brands offers more
offering to customers therefore high brand switching.

OPPORTUNITIES
Export incentives
Growth of consumerism
Large growing market.

THREATS
Change in customers habit weekly
All the major players in the industry acompeting with each
other not only on low price but also better quality.

INTRODUTION ON INVENTORY

The term inventory refers to the goods or

materials used by a firm for the purpose of

production and sale. It also includes the items,
which are used as supportive materials to
facilitate production.
Definition
Inventory Management is defined as
Activities employed in maintaining the
optimum number or amount of each inventory
item.
MEANING OF INVENTORY

Inventory or stock refers to the goods and

materials that a business holds for the

ultimate purpose of resale (or repair).

Types of inventory :
Raw materials
Work in progress
Consumables
spares