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: MR. RAJIV BAJAJ (Internal Guide)

Submitted By: ANUBHAV TIWARI 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

ACKNOWLEDGEMENT
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. following category:y y 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. y Speculative Motive to Hold Inventory to take advantage of price fluctuations. The motive to hold inventory can be broadly classified in to the

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: y Maintaining sufficient stock of raw material ensuring continuous supply to production process for uninterrupted production schedule.

y y

Maintaining sufficient supply of finished goods for achieving smooth sales operations. Minimizing the total annual cost for maintaining inventories.

INDEX TABLE
SERIAL.NO 1. 2. 3. 4. 5. 6. 7. PARTICULARS OBJECTIVES RESEARCH METHODOLOGY INDUSTRY DETAIL COMPANY PROFILE VISION AND MISSION INTRO:INVENTORY MANAGEMENT INVENTORY CONTROL AND ITS BENEFIT 8. FACTOR AFFECTING INVENTORY DECISION 9. 10. UNCERTAINATIES PANASONIC VENDOR SELECTION PROCESS 11. MODERN TECHNIQUE FOR INVENTORY CONTROL :PANASONIC 12. AUTOMATION:REQUIREMENT OF STOCK CONTROL SYSTEM 13. 14. 15. 16. 17. ANALYSIS FINDINGS CONCLUSION SUGGESTIONS BIBLIOGRAPHY 52-58 59 60 61 62 45-51 30-44 22-27 28-29 17-21 PAGE NO 7 8 9-10 11-12 13 14-15 16