 The requirement of components and requirement for each components.

 Based on requirement classify components using ABC analysis and related raw
materials using ABC analysis.
 Consideration to be given for imported raw material components.
 Based on the classification finalize an optimum inventory for various FG & RM.
 Calculation on improvement on inventory turnover by reducing the inventory space
modification of stores and rearranging.

 Pareto analysis for the RM and WIP materials to find out the most critical 10-15
materials to be attacked.
 Analysis on the selected components for identifying the stock details at various levels
and identify the fluctuation in stock for each components.
 Study the procurement process for each component and identify the optimum order
quantity for the components and frequency of purchase which can help in reducing
the inventory.
