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About Inventory
The management and control of inventory is a problem common to all organizations in any sector of the economy. The problems of inventory do not confine themselves to profit making business firms. The same types of problems are encountered by social and non-profit organizations too. Inventories are common to besides industries viz., agriculture, wholesalers, retailers, hospitals, temples, churches, prisons, zoo, universities and national, State and local governments. Inventory problems have been encountered by every society but it was not until the 20th century that analytical techniques were developed to study them. The initial impetus for analysis expectedly came from the manufacturing sector. Meaning and definitions Inventories are the assets: Which are field for sale in the ordinary course of business. In the process of the production for such sale. In the form of materials or supplies to the consumed in the production process or in the rendering of the services. Inventories encompass goods purchase and held for resale, for ex: Merchandise purchased by retailer and held for resale. Inventories also encompass finished goods produced, or work-in-progress being produced by the enterprise and include materials, maintenance, Suppliers, consumables and loose tools awaiting use in the production process. The inventories of trading concern primarily consists of the finished goods purchased for resale whereas the inventories of a manufacturing concern consists of raw materials, work-in-progress, finished goods, stores and spares. The significance of valuation of inventory arises mainly because it serves two purposes. 1. To determine true income 2. To determine true financial position The term inventory has been defined by several authors. The most popular of them are: The term inventory includes materials raw, in process, finished
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packaging, spares and others stocked in order to meet an unexpected demand or distribution in the future. It can be used to refer to the stock on hand at a particular time of raw materials, goods-in-process of manufacture, finished products, merchandise purchased for resale and the like, tangible assets which can be seen, measured and counted .. In connection with the financial statements and accounting records, the reference may be to the amount assigned to the stock of goods owned by an enterprise at a particular time. OBJECTIVES OF THE INVENTORY CONTROL The inventory control involves some of the main objectives to move forward they are as follows: Effective use of the financial resources available to business i.e., to maintain the investment in the inventory at a lowest level consistent with inventory cost. Avoidance of out of stock danger i.e., to provide a supply of required materials without any delay for efficient and uninterrupted operations. Reduction of risk minimization through obsolescence. Economy in purchasing as affected by quality buying and favourable raw materials market. Storage of inventory with minimum of handling time and cost and to protect them from loss by fire, theft, and damages. Service to customers i.e., to maintain sufficient stocks of finished goods to meet reasonable expectations at customers for prompt delivery for their orders. NEED FOR STUDY The study of inventory land its control is necessary for every organization. Inventories constitute very important part of current assets in majorities of Indian companies and organizations. In an approximate calculation, inventories are averagely about 60% of current assets in public limited companies are taken part in India. Due to large size of inventories maintenance by the firms and industries, majority of
amount of funds is required to main them so, inventory management has been acquired a major part of recognition in the field of financial management of Indian corporate sector in order to avoid unnecessary wastage of investment. If company neglects in inventory issues it may lead to sudden losses and also loose its long term profitability and may fail ultimately. The reduction in excess maintenance of inventory from higher degree to lower carries a favourable impact as companys profitability. To reach the objective the firm must and should determine the optimum level of inventory. The basic problem is to maintain the stock level between over stocking and under stocking. It may leads to efficient running of business and its activities. ESSENTIALS OF INVENTORY CONTROL 1. There should be proper cooperation and coordination between various departments viz., purchasing, inspection, storage, costs department etc. 2. Purchasing of stocks or other materials should be centralized under the control of a competent manager. 3. There must be adequate planning of materials requirements and also the classification of materials with their appropriate codes. 4. There should be effective planning control on stock in terms of physical storage through satisfaction control procedures. Maximum, minimum and reorder levels of stocks should be fixed. 5. There must be a system of regular reporting regarding purchasing of materials, issuing and storage to the management. 6. The system of internal audit and internal check and maintenance must be very effective and efficient. TECHNIQUES OF INVENTORY CONTROL Inventory control techniques are mainly followed by inventory control organizations within the framework of one of the basic inventory models like. Fixed order quantity system or Q system. Fixed order period system or P system. These techniques represent the
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operational
aspect
of
inventory
management and help realize the objectives of inventory control and inventory management. Several techniques are there which is used according to convenience of the firm to adopt any of the technique. What should be stressed however is the need to cover all the items of inventory and all stages that means from the point of receipt from supplier to the point of use. The techniques in inventory control are as following. ABC (Always better control) Classification. HML (high, medium, low) Classification. VED (vital, desirable, essential) technique. SDE (scarce, desirable, easy) technique. FSN (fast, medium, non-moving) technique. EOQ (economic order quantity) analysis. Maximum and minimum system. Two-Bin system. JIT (Just-in-time) technique. MRP (materials requirement planning). ABC ANALYSIS: One of the widely used techniques for control of inventory is the ABC Analysis. The objectives of ABC analysis or control is to vary the expenses associated with maintaining appropriate control according to the potential savings associated with a proper level of such control. The ABC approach is a means of categorizing inventory into 3 classes A, B, & C. according to the potential amount to be controlled. It is for the selection approach that ABC analysis is often called the selective inventory control method (SIM). The inspiration behind the ABC analysis has been drawn from VILFERDO PARETO, an Italian Economist & Sociologist (1842-1923) who generated some highly debatable concepts of economics and sociology. The principle of Pareto was extended to inventory management by H.FORD DICKIE and developed general concept of ABC analysis.
Procedure for developing an ABC Analysis List each item carried in inventory by number or some other designation. Determine the annual volume of usage and rupee value of each item. Multiply each item annual volume of usage by its rupee value. Compute each item percentage of the total inventory in terms of annual usage in rupees. Select the top 10% of all items which have the highest rupee percentages and classify them as A items. Select the next 20% of all items with the next highest rupee percentages and designate them as B items. The next 70% of all items with the lowest rupee percentages are C items. HML Classification The inventory control has been done with several techniques in inventory control techniques. The HML classification is one of the inventory control techniques which can be followed to classify the materials in a HIGH, MEDIUM & LOW classification. The HML classification follows the same procedure as adopted in ABC classification, the only difference and deviation is that in the HML, the classification unit value is the criterion and not the annual consumption value. The items of inventory should be listed in the descending order of unit value and it is up to the management to fix limits for three categories. The HML analysis is useful for keeping control over consumption at department levels, for deciding the frequency at physical verification and for controlling purchases. For example: the unit cost is Rs.1000 and above those items are H classification and similarly between Rs.500 and Rs.1000 are classified into M category and Below Rs.500 are L category. So, it is classified like the above example. It is fixed by the company or organization
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management or higher authorities.
ECONOMIC ORDER QUANTITY: Economic Order Quantity is the technique which solves the problem of the materials manager. EOQ is the order size at which the total cost, comprising ordering cost plus carrying cost is the least. Graphing the two costs i.e., holding cost & ordering cost show exactly, where the total cost curve is at its lowest point. An examination of the two curves reveals that the carrying cost curve is linear i.e., the more the inventory held in any period. Greater will be the cost of holding it. Ordering cost curve on the other hand is different. Ordering in small quantities means more acquisition and higher ordering costs. The ordering cost decrease with increase in order size. Points where the holding cost curve and ordering cost curve meet represent the least total cost which incidentally is the EOQ. 2xYO -------- C EOQ technique is highly useful in as much as it answers the question of EOQ = how much to order and in so doing, establishes the frequency with which, orders are placed. EOQ is applicable for both single items and group stock items. Although the EOQ model can be modified to take account of increasing and decreasing usage over time, we shall not get into this added degree of complexities. STOCK LEVELS: In control of inventory and to avoid overstocking & under stocking of stocks, various levels of materials have to adopt in maintenance of stocks. Those are the maximum, minimum and re-order levels. On the basis of these levels the utilization and ordering of stocks must be done automatically without
any preview. These levels are not rigid but a proper review has to be taken according to changes in factors which determine them, the factors are as following: Consumption rate of materials, Lead time, Storage capacity, Availability of funds, Storage cost, Risk of loss of uncertainty, Seasonal factors, Changes in price(market), Insurance pays.
MAXIMUM LEVEL: The maximum point level is the line which quantity of materials does not allow going up this level of point may exceeds in some situations. It is fixed based on some factors. Consumption rate, Capital cost and availability, Storage space, Storage cost for above normal stock, Risk of obsolescence & deterioration, Re-order quantity level. The formula is: Max level = Re-order level + Re-order quantity (Min consumption * Min Re-order period) MINIMUM LEVEL: The minimum stock level is the level which does not allow the stock to fall below this point. It is also called safety stock when stock reaches to this point it is an indicative of danger level which may shows effect on production to stop it is fixed with some factors. They are Consumption rate, the time of top priority to acquire enough suppliers to avoid stopping of production. The formula is: Min level = Re-order level (Normal consumption * Normal re-order period) RE-ORDER LEVEL: This level of line is appointed at which a new order has to be placed. In other words which stock reaches to this point it indicates to order the stock immediately. It is point fixed between min level and max level. When this point is continued there will be not over risk in stock deficiency. It is pointed with considering of some factors. Consumption rate, Minimum level, Delivery time, time difference in deliveries. The formula is: Re-order level = (Max Consumption * Max re-order period.) AVERAGE STOCK LEVEL:
The average stock level is a point in which a separate point is fixed between the max level point and min level point to check out the consumption of materials which we are averagely using. It is calculated as: Avg stock level = min level + Max level/2 (Or) = Min level +1/2(re-order quantity) METHODS FOR VALUATIONS OF INVENTORY: There are certain methods which are adopted for valuations of inventory stocks. They are described below. FIFO method. Average cost method. LIFO method. Base stock method. Specific identification method. Standard cost method. Retail inventory method. Latest purchased price. NIFO method. HIFO method.
FIFO METHOD: FIFO is the short form of First In First Out method. It is based on the assumption that the goods which are received first after issued first. This assumption is made for the purpose of assigning costs and not for the purpose of the physical flow of goods therefore, need not necessarily coincide with the pattern of cost flow assumption. The goods sold, therefore consist of the earliest lots and are valued at the price paid for such lots. The ending inventory consists of the latest lots and is valued at the price paid for such lots. The ending inventory consists of the latest lots and is valued at the price paid for such lots. The ending inventory is stated in the balance sheet at a value nearer the current market price. LIFO METHOD: THE Last In First Out method is based on the assumption that the goods which are received last one issue issued first. The assumption is made for the purposes of the physical flow of goods. The physical flow of goods therefore,
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need not necessarily coincide with the pattern of cost flow assumption. The goods sold, consist of the latest lots and are valued at the price paid for such lots. The ending inventory is understood in the balance sheet at old costs. IMPORTANCE OF INVENTORY TURNOVER RATIO The inventory turnover ratio tells us the rapidity with which the inventory is termed over into receivables through sales. This ratio is judged in relation to past and expected future ratios of the firm and in relation to ratios of similar firms, the industry average or both. In general the higher the inventory turnover, the more efficient the inventory management of affirm sometimes a relatively high inventory turnover ratio may be the result of too many low a level at inventory and frequent stock levels. It might also be the result of too many small orders for inventory replacement. When the inventory turnover ratio is relatively low, it indicates slow-moving inventory or obsolescence of some of the stock. The turnover ratio sis somewhat crude measure to investigate any perceived inefficiency in inventory management. In this regard it is helpful to compute the turnover of the major categories of inventory to see if there are imbalances which may indicate excessive inventory. Once we have a hint of a problem we can investigate it more specifically to determinate its cause the inventory turnover ratio is calculated with the formula. Inventory turnover ratio =Annual consumption / Average Inventory Average inventory = Opening stock + Closing stock/2 Material consumed = Opening stock + Purchases closing stock Inventory turnover ratio is calculated on the basis of Annual sales. It is calculated as: Inventory turnover ratio = Sales/Inventory Days of inventory holding (DIH) is calculated as the basis of following formula: DIH = 365/Inventory turnover ratio
PROFILE OF INDUSTRY
The word confectionary is derived from Latin word CONNECTION which means preparation. And this is derived from CONFICERE, which means to make up. CONFECTIONERY is of two types: 1. Sugar confectionery 2. Flavour confectionery Sugar confectionery Sugar confectionery means sweets, which sugar is the main ingredient. Either they consist in very CRYSTAL from dispersed in a sugar solution and flavour, such as chocolate creams or fondants or there may sugar maintained in a solution of careful blend of the different types as sugar boiled sweets, toffee or caramels. Fats, buts are employed to obtain a variety of flavours and textures before the 19th century, sweets, candies were the monopoly of the apothecaries who made them to hide the taste of the drugs. Flavour confectionery Flavour confectionery consists of pastries and fancy cakes having flavoured as their basis sweetened and mixed with various dairy products such as butter and eggs. CONFECTIONERY INDUSTRIES IN INDIA The industry may be broadly into two sectors viz., organized sector and unorganized sector. There are six main forms producing confectionery in organized sector. They are as follows: 1. Nutrine confectionery confectionery 3. Cadburys 5. National product Each company having its own 4. Parle 6. Ravalgom specialization in their respective 2. Parry
fields.Nutrine confectionery co.ltd, is the single largest and an organized sector in manufacturing confectionery and chocolates in India. Nutrine is on the shopping list of almost multinational confectionery markets. For confectionery
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products rewires lot of servicing, in the distributors hold key to success in this investment.
PROFILE OF NUTRINE CONFETIONERY COMPANY

Nutrine confectionery company limited unit of Nutrine group of companies, spanning diversified products like confectionery, chewing gum, granites, hire purchasing, leasing and transportation etc. The NCCL was established in the year 1952 as a small unit manufacturing different types of candies. The management has gained in valuation insight into the confectionery unit, with a vision and ethics. The organization has grown as small scale manufacturer in the 1960s to become the single largest manufacturer of confectionery and toffees in India a distinction it has claimed since 1980. With more than 45 varieties of candies, toffees, fruit bars and lozenges, nutrine sells one of very third ton of confectionery sold in the organized sector in India. Important strengths are its distribution, this being an oral gratification at the retail outlays. Nutrine reaches some 4,25,000 retailers across in India through of 2500 stockiest, who are supplied by its 36 war-house in the south and chain of carrying and forwarding (c&f) agents in the rest of the country. Nutrine advertising budget for 2004-05 is 9 crores with another 3.5 crores earmarked for sundry promotions and events. LOCATION FACTORS NCCL is situated in the border town of Chittoor town on national highway4 in Andhra Pradesh. The company is located in an area where basic raw materials like milk, sugar etc., are available in plenty and easily procurable. Chittoor also called as mango city lies in an advantageous horticultural belt where tropical fruits like mango, banana & papaya are frown in abundance very good crops of lime, tomato and other vegetables are the compelling in the region and nutrine has always been in forefront of this agro industry activity. In 1980s nutrine faced competition against parrys and Ravalogon. In recent years domestic rivalry has grown with Joy Company entering the
market. In the year 1990, the company embarked on a massive modernization drive to upgrade it plant.
GROWTH & DEVELOPMENT In the initial stages, NCC L manufacturing only candies, later NCCL has grown multitude to become a multi-store, multi-products national giant. Nutrine Confectionery Company limited is the single largest manufacturing company of confectionery I India since 1982. the productive strength and quality assurance given to the market by company particularly of the chairman. The management added a number of sophisticated machinery imported from different countries like United Kingdom, United States and Germany apart from the indigenous machinery equipments. This makes product quality of nutrine the most acceptable to the consumer and a number of existing new ranges of confectionery products are being manufactured in India for the past several years. Nutrine possess the most equipped research and development laboratory when continuous R & D and product innovation is carried out to give newer dimensions to business philosophy. Today, nutrine has abnormal manpower comprising 1400 employees all over the country. Nutrine Confectionery Company limited built of an excellent employee-employer relationship continuously being reinforced by generous benefits offered which includes free uniform, shoes, washing and medical allowances, subsidized tiffen and meals, free tea, dressed on the eve of festival to family, school uniforms and stationary for children etc. The growth of nutrine confectionery company limited has been one of sure and steady progress with the luckiest mascot BUNNY designed in 1968 and with its present caption terrific treat in every sweet it is emerging as a confectionery having high market share in the organized sector. CURRENT OPERATION AND FUTURE OUTLOOK
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Nutrine confectionery limited exports confectionery products to various international markets viz. Australia, middle-east south Africa New Zealand and Sri Lanka. Every effort is being made to establish nutrine as a household name in international market. PRODUCTIVE SETUP NCCL produces its confectioneries at the factory situated in chittoor and with franchise unit arrangements located at Hyderabad. EMPLOYEE RELATIONSHIP NCCL has built up a reputation of excellent relationship reinforced by generous benefits like free education benefits to the employees; free clothing on the eve of festivals. There is only one recognized workers union out of two registered unions, and the industrial relations are maintained peacefully. COMPETITORS In the confectionery field the major competitors of nutrine are parrys, Parle, Ravalgon, Cadbury, nestle, perfect I van melle. SOCIAL OBLIGATIONS The social services of nutrine are: 1. Conducting under -13 superstar cricket tournaments to latent cricketing talent in younger generation of our country. 2. Setting up schools for children. 3. Financial assistance to association of blind people. 4. Setting up of traffic dividers and traffic islands in chittoor town. 5. Setting up of a childrens park at B.V. Reddy colony, chittoor. 6. A planned Nutrine nagger near the Bangalore highway at iruvarm, a company quarters for the employees of nutrine. SPONSORING FOR GAMES AND SPORTS Nutrine sponsors many games and sports. It conducted inter college hockey tournaments in Kerala recently Nutrine conducted the national womens hockey tournament at Tirupati. VARIOUS DEPARTMENTS IN THE CONFECTIONERY
NCCL has 6 various departments they are MATERIAL DEPARTMENT, PRODUCTION DEPARTMENT, QUALITY CONTROL DEPARTMENT, FINANCE DEPARTMENT, MARKETING DEPARTMENT and PERSONNEL DEPARTMENT. ABOUT PROMOTERS, BOARD OF DIRECTORS AND MANAGERIAL
PERSONNEL NCCL has always believed in high levels of conservatism. It was set up as small unit with a capital of RS 5 lakhs to manufacture various types of candies. After the demise of Sri.B.V. Reddy in 1964, the business was taken over by his son sri. V.Dwarakanath Reddy (M.Cheml.Eng) from Louisiana who is the chairman of the Nutrine group of companies. He also had a short stint at additions under the leadership of sri.Anantharama Krishnan. Nevertheless expertise gained by him in the field of confectionery manufacture at nutrine between 1956 and 1989, has helped to guide the company to its present position of market leader. At present, Mr.V.Vikram Reddy nephew of Sri. Dwarakanath Reddy looks after the day- to- day management of company. Mr.Vikram Reddy holds a post graduate degree in management from U.S.A he has groomed under. V.Madhusudhan Reddy and Mr.V.Dinesh Reddy. Mr.K.Siva Mohan Reddy, executive director, is in charge of operations of all the departments other than finance under his control. The finance department is lead by Mr.S.Vasudevan, a chartered accountant, who is with the company since 25years. He has joined the company as management trainer and has risen to the position of executive vice-president. He has support of a good team of professionals and senior executives who are in the service of the company since three decades. The marketing team is headed by Mr.S.Gopalakrishnan vice president (sales & market and ably supported by area sales managers, zonal sales managers and others. Senior vice-president (production) Mr.H.Anathapadbhanabhan, graduate in chemistry, passes long experience in the production management and senior Mr. Dwarakanath Reddy has the admirable support of other directors, Mr,
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vice-president (research & products), Mr.G.Lakshminarayana again a chemistry graduate with a lot of exposure in the sugar industry, has been specializing in development of various products for nutrine today. Mr.S.R Raju, P.G. diploma holder in material management, is in charge of materials department and Mr.B.Giassuddin, a law graduate and a diploma holder in personnel management is heading the personnel departments. NCCL has around 1400 employees under its direct employment and over 50,000 families directly or indirectly growing with it in the country. From a small unit manufacturing only candies, nutrine has grown to be a multiproduct, multi-market giant and has reached the position of single largest manufacture of confectionery and toffees in India. Nutrine has wide range of more than 45 varieties of candies, toffees, lozenges etc., being the leader in the industry for more than a decade, nutrine has always endeavored to satisfy the customers changing wants and desires with its own emphasis on quality, range and cost effectiveness. The company has centralized manufacturing unit are chittoor and also utilizes the services of job workers. NCCL enjoys a high market share of 35% to 40% in confectionery in the organized sector in India. The strength of nutrine lies in its manufacturing capabilities and also to a large extent to its marketing skills. Nutrine product range distributors and stockiest and 1,50,000 dealers. The company has modernized its plant by importing sophisticated candy manufacturing machinery from Robert Bosch of Germany for making hygienic confectionery. The machines imported are five or six machines of its kind in the world. The company also imported automatic weighing and packing machine. With the use of these machines, nutrine is able to produce good quality confectionery with exacting standards. With sustained supported from the valued stockiest. Nutrine is growing stronger in the market and retaining its number one position.
SCOPE & IMPORTANCE OF THE STUDY This study has been conducted in Nutrine Confectionery Company (p) Ltd, Chittoor. The study seeks to find out the factors used in inventory control. To conduct this research the researcher has analyzed the statements, ledgers and other books of accounts of the concern. The data collected has been analyzed and the researcher has arrives on findings which have proved it worth to know about the areas of inventory control. As the study focuses an identifying the present potential of the companys inventory methods and aims at identifying the best set of inventory methods to be carried to improve the companys policy in determining their inventory levels. OBJECTIVES OF THE STUDY The objectives of the study are summarized as follows: To study about the inventory levels of different raw materials used in the company. To study the effective utilization of different raw materials used in the company. To find the economic order quantities of different raw materials. To study about the different levels of stock. To calculate the inventory turnover ratios for different years. Methods used in research Research methodology is a way to systematically solve the research problem by applying various research techniques along with the logic behind the problem. RESEARCH DESIGN Research design is the specification of methods and procedures for acquiring the information needed. It is the conceptual structure with in which
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the research is conducted. SOURCES OF DATA Primary data: Primary data has been the data originated by the research for the specific purpose of addressing the research problem. Personal interview was the technique used in collecting primary data from higher authorities. Secondary data: Secondary data regarding the unit was collected from the records and documents of the company. Information about NCC (P) Ltd was obtained from newspapers, Websites related to the topic, ledgers and other books of records. TOOLS USED IN THE STUDY: The following are the tools that are used in the study: ABC ANALYSIS HML CLASSIFICATION ECONOMIC ORDER QUANTITY TABLES AND CHARTS INVENTORY TURNOVER RATIO PRODUCT AND THEIR CODES Nutrine has developed wide range of products. The course few they are listed below. CODE ASY CHE CML DHT GKD NGL HEB PRODUCT Aasay Chocolate clairs Caramilk Double Gulkhand Hit Nutrine Gold Honey Fab CODE NCKS MCC WK ORC NUP DSM CBB PRODUCT Nutrine Cookies Mango creamer candy Wild koffy Orange candy Nutrine Lollypop Dishum Coconut Bon Bon
LIMITATIONS OF THE STUDY The study on inventory control has the following limitations: The company produces a wide range of products (more than 45 products), it uses more than 300 varieties of raw materials. But the study is restricted to 10 most important raw materials which constitute 80% of total raw materials cost. The research is restricted to Chittoor town only; the company operates at different areas of the country The quality and price of inventory is not compares in the analysis. The analysis is carried out on the basis of the figures present in the internet records only. LIST OF RAW MATERIALS UNDER STUDY Butter Cocoa powder Condensed milk flavour D.C. powder Dry cocoa beans Glucose Ghee Gulkhand Honey Lecithin Lactic acid Malt extract Milk cream condensed Raw milk Sugar Sorbitol Skimmed milk powder Table salt Vanaspati Vanilla FL NCL 2X
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Statement of stock level and consumption levels of Butter for the period of 2006-07
Opening stock ------------------------------------------------------------------------------------------------------------Closing stock -------------------------------------------------------------------------------------------------------------
Month APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
Consumption 150 475 100 130 40 160 506 100 140 200 144 100
Maximum, Minimum and Average stock levels of Butter

Average Particulars Opening stock Consumption Closing stock Max. level ---------506 ---------Min. level ---------40 ---------level ---------187 ----------
ANALYSIS OF BUTTER STOCK LEVELS

In the Nutrine Confectionery Butter is one of the major raw materials which has been used to every product in the sense. The stock levels have been to normal stock maintenance. In this butter stocks they are not used to maintain the closing stocks and opening stocks because it is perishable raw materials. So it cannot be stored to longer period of time. In the Butter stock levels the consumption in the month of April is 150 Kgs and it has been raised to 475 Kgs as the May and in June it is declined to 100 and again increased to 130 Kgs and in month of August it was declined to depression and fall to 40 Kgs due to the low consumption of that following particular products. So it is increases as September upto 160 Kgs and in October has the highest consumption level of 560 Kgs and in next month i.e., in November it showed to decrease of 100 Kgs and 140 Kgs on decreased to 100 Kgs on March month. So in this consumption levels we saw that the raising and decreasing maintenance and has no minimum fixed level of stock and reorder point also. The minimum level is 40 Kgs and the maximum is 506 Kgs on October. So this type of maintenance is very poor maintenance. December and similarly 200 Kgs in January month. It was declined to 144 Kgs on next month and again it,
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600
Statement of stock level and consumption levels of Cocoa Powder for the period of 2006-07
Opening stock 3475 ---------2475 6000 4175 4175 5250 2325 549.44 1375 1124.5 1825
Closing Consumption 3475 3500 2725 3825 2500 1425 2925 2775 3174.44 3250 3297.5 2575 stock ---------3475 6000 4175 4175 5250 2325 549.44 1375 1124.5 1825 2250
Maximum, Minimum and Average stock levels of Cocoa Powder

Average Particulars Opening stock Consumption Closing stock Max. level 6000 3825 6000 Min. level 549.44 1425 549.44 level 2977 2954 2866
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ANALYSIS OF COCOA POWDER

In the listing catalogue of raw material the next item is cocoa powder. It is also one of the basic ingredients. But the cocoa powder is partial secondary raw material. So, in this analysis the cocoa powder is used mainly to crunchy product i.e., chocolates. In the sense of stock levels we can see that as April month the opening stock is to 3475 Kgs and the total stock is there. Similarly in the next month i.e., May the consumption used is 3500 Kgs with some purchase quantity and the closing level is 2475 Kgs and same remained as opening to the June month and stock was used to 2725 Kgs on the same month we can see that the consumption has at a equalizing level. The next month i.e., as June the consumption is 2725 Kgs i.e., slightly decreased and closing stock levels remained at 6000 Kgs. The next is on July month the opening remains same and consumption has been increased to 3825 Kgs and closing at 4175 Kgs because of purchases is done on that month. On August the opening is at 4175 Kgs, the consumption is 2500 Kgs it is decreased compared to previous month. The closing balance is at 4175 Kgs. The September consumption has been decreased to 1425 Kgs and closing is increased to 5250 Kgs. The next month that is on October and November the Issued stocks are 2925 Kgs and 2775 Kgs respectively and closing are also at 2325 and 549.44 Kgs so this shows a major decrease of closing on November. The level of consumption on December is increased again to 3177.44 Kgs and closing is at 1375 Kgs. The opening is same to the 1375 Kgs level only and issues has been increased this month i.e., January to 3250 Kgs and closing at point of 1124.5 Kgs. The next last two month that is an February and March the consumption is 2575 Kgs and 2500 Kgs and closing are 2250 Kgs and 4175 kgs. So, this segment of all stocks of openings, closings and consumptions are very decreasing and increasing at nearest level.
7000
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Statement of stock level and consumption levels of Condensed Milk Flavour for the period of 2006-07
Opening stock 175 280 670 985 375 345 840 60 280 ---------420 ---------Closing stock 280 670 985 375 345 840 60 280 ---------420 -------------------
Consumption 1755 2340 2285 1870 1710 765 1620 1457 2110 1890 1050 ----------
Maximum, Minimum and Average stock levels of Condensed Milk Flavour

Average Particulars Opening stock Consumption Closing stock Max. level 985 2340 985 Min. level 60 765 60 level 402.73 1713.82 1233.33
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ANALYSIS OF CONDENSED MILK FLAVOUR

It is one of the secondary converted raw materials in which the per Kg cost is highest among all raw materials. This milk flavour is used in chocolates for getting the taste of different flavours. The stocks and consumption levels are described in the below description part. In the month of April the opening stock stood at175Kgs and consumption laid at 1755 Kgs .the closing is at280 Kg. the same is forwarded as opening stock for the stock for the month of May and usage stock for this month is 2340 Kgs and closing balance is 670Kgs. similarly for the next month i.e. on June the opening is same at670 Kgs and utilization is 2285Kgs , closing remained at 985Kgs respectively. In the month of July and also August the consumption level are decreased one by one at 1870 Kgs and 1710Kgs. For the month of July the opening is 995 Kgs and closing is 375 Kgs. Which is opening balance for August and closing for this month is 345 Kgs. For September period consumption level decreased to 765 Kgs and closing remained at 840 Kgs. The next month is same at 840Kgs only. And consumed quantity 1620Kgs and closing stock is 60Kgs. In the November month the used for quantity for production purpose is 1457 Kgs and closing stock point is 280 Kgs. In December the usage level is again increased to 2110 Kgs. Closing stock is nil and same forwarded to next month i.e. January as opening balance as nil point. The consumed quantity is1890 Kgs and closing is 420Kgs. The last month i.e. on February the consumer stock is 1050Kgs and closing is nil. On march there is no consumption and closing levels also.
2500
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Statement of stock level and consumption levels of D.C.Powder for the period of 2006-07
Opening stock 825 1375 1125 700 1975 3025 2075 1125 875 750 650 775 Closing stock 1375 1125 700 1975 3025 2075 1125 875 750 650 775 350
Consumption 1550 2250 2650 1725 950 1075 950 1250 1650 1600 1375 1425
Maximum, Minimum and Average stock levels of D.C.Powder

ANALYSIS OF D.C.POWDER:
The analysis of D.C. Powder is very separative because D.C.powder is most required material to the every product in manufacturing chocolates. The D.C.powder material has been transported from different places around A.P. the stocks of openings and consumption are as following in the month of April the opening has been at the point of 825 Kgs and consumption is at 1550 Kgs then closing balance is 1375 Kgs respectively. The next coming month the consumption is 2250 Kgs and closing is 1125 Kgs consumption has been changing. In this issue the consumption of D.C.powder for the month of June is 2650 Kgs, similarly the closing level is 700 Kgs. The another month the usage is 1725 Kgs i.e., on July and closing stood at 1975 Kgs and it has been standard and brought down as opening for the August month and consumed 950 Kgs only. It shows a decline in the usage and closing balance is 3025 Kgs. In forward coming months the September and October months the consumption is 1075 Kgs and again 950 Kgs. The closing levels for those months are 2075 Kgs & 1125 Kgs respectively. The openings stocks are alternatives brought down to coming months the next month November is having opening of 1125 Kgs and consumed at 1250 Kgs and remaining closing is 875 Kgs. Here the closing is poor, to raise the stock large stock has to be ordered so next is December the consumption is used at 1650 Kgs and closing 750 Kgs. In the month of January the previous closing balance is brought down as opening and usage is 1600 Kgs, closing stood at 650 Kgs and on February month the usage is 1375 Kgs and closing level is 775 Kgs. The next is last month of the particular financial year i.e., the March the opening is brought at 1425 Kgs and the closing balance is catch up at the point of 350 Kgs. This is the minimum stock in the entire financial year.
31
3500
Statement of stock level and consumption levels of Dry Cocoa Beans for the period of 2006-07
Opening stock 1812.5 1125 7037.5 3420 5280 1680 4937.5 5687.5 1500 6125 10437.5 6062.5 Closing Consumption 4687.5 5187.5 3617.5 5140 3600 1742.5 4250 4187.5 4375 4687.5 4375 3312.5 stock 1125 7037.5 3420 5280 1680 4937.5 5687.5 1500 6125 10437.5 6062.5 2750
Maximum, Minimum and Average stock levels of Dry Cocoa Beans

Average Particulars Opening stock Consumption Closing stock Max. level 10437.5 5187.5 10437.5 Min. level 1125 1742.5 1125 level 4592.08 4096.88 4670.21
ANALYSIS OF DRY COCOA BEANS

33
In manufacturing sector other important raw materials dry cocoa beans. Stock levels and consumption levels are as following. In the April month the opening balance is 1812.5Kgs and consumption level is4687.5 Kgs the closing level is 1125 Kgs. In the month of May the opening is 1125 Kgs and consumed is 5187.5 Kgs and closing stood at 7037.5 Kgs. For the month of June the opening is same as closing in May and consumed at 3617.5 Kgs and remained balance at 3420 Kgs . in July the usage level is 5140 Kgs and 5280 Kgs is the closing stock. In August the consumed level is 3600 Kgs and closing level is 1680 Kgs. For September the opening is same at 1680 Kgs and consumption level 1742.5 Kgs and closing point is 4937.5 Kgs. In both of the months of October and November the utilization of stock is increased and declined in another month. The stocks are 4250 Kgs and 4187.5 Kgs. In December the opening is 1500 Kgs and consumed level is 4325 Kgs and closing stock is 6125 Kgs. For January month the opening is same as in closing of December. The usage level is4687.5 Kgs and closing stock is 10437.5 Kgs. In February the consumer stock is at 4375 Kgs used level of stock is 6062.5 Kgs and in March the consumed quantity is 3312.5 Kgs and remaining stock is 2720 Kgs. In this month consumption increased again.
12000
35
Opening stoc
Statement of stock level and consumption levels of Glucose for the period of 2006-07
Opening stock 222853 8950 9500 8964 3494 8652 16634 12016 ----------------13651 19600 Closing stock 8950 9500 8964 3494 8652 16634 12016 - - - -------------13651 19600 8390
Consumption 548506.8 648760 724963 524887.65 788865 317540 601340 51330 794055 665215 613280 518395
Maximum, Minimum and Average stock levels of Glucose

37
ANALYSIS OF GLUCOSE:
In the raw material description another liquid product is glucose. It is brought very accurately for a limited period .the raw material is transported from out of states like Maharastra and other nearby states. These raw materials are transported with care and concern. The opening and closing stocks are very because of limited transportation and climatic conditional changes. The stock levels are described as. For the month of April the opening is at maximum level of 222853Kgs and consumption is 548506.8Kgs and closing is climbed at 8950Kgs. In May and June months the consumption increased very rapidly. The opening balance of May is8950 Kgs and consumption is 648760Kgs and closing is 9500Kgs the same is forwarded to June as opening and consumption is at 724963 Kgs similarly closing is8964 Kgs. For the next month the consumption decreased to 524887.65Kgs and closing to 3495 Kgs for decline for the July month. Next is August and September, the consumed levels are 788865 Kgs and 317540 Kgs and closing stock is 8652Kgs and 16634 Kgs. In the month of October the balance is brought down as opening for this month and consumed quantity increased at 601340 Kgs and ending balance at 12016 Kgs. For November and December the closing stocks are nil because total stock has been used with some deficiency in stocks. So their usage level is 51330Kgs and 794055kgs. Similarly for January the opening level is nil and consumption level is 665215 Kgs. The closing is 19600 Kgs which is the highest closing stock in this year for Glucose stocks. The last month i.e., March the consumption is 518395 Kgs and closing level is 8390Kgs decreased.
900000
39
Statement of stock level and consumption levels of Ghee for the period of 2006-07
Opening stock 14925 975 25893 16585.3 14505 3869 12975 5385 5444.3 25170 31886.5 36885
Consumption 29970 37963 40968 34570.3 32023.8 23272 24600 27975 31394 30900 29381 29170
Closing stock 975 25893 16585.3 14505 3869 12975 5385 5444.3 25170 31886.5 36885 29735
Maximum, Minimum and Average stock levels of Ghee

41
ANALYSIS OF GHEE:
In company is using one of he homely products also in this
manufacturing confectionaries, among them one is Ghee. It is the product using very regularly at homes. This product is one of high cost products. So here, the opening stock and closing stocks are analyzed below. The opening stock for April is 14925 Kgs and usage is 29970 Kgs and the next closing is 9875 Kgs which is carried down to next month that is May. For this month the consumption level is 37963 Kgs and closing level is 25893 Kgs. The same brought sown to June month and consumed at 40968 Kgs and closing balance is 16585.3 Kgs the next are is July month here the decline of the stock has been seen that is to 34570 Kgs and closing is 14505 Kgs. The next coming month that is on August the consumption is again decreased to 32023.8 Kgs and closing stood at 3669 Kgs and the same carry forward to next month. The next month is September. In this period of month the consumption level is again declined in thousand and fall as to 23272 Kgs. It is the least consumption in which year. So in this the closing stock level is also 12975 Kgs. The level of consumption in every month is fluctuating with rapid changes. It may due to financial depressions or sales. This total occurrence may be find in personal. The next is the October month the consumption is 24600 kgs and opening is similarly brought down from previous month. The closing is focused at 5385 Kgs. It is the second least closing stock point in whole year. So, the next is November in this month the usage level is slightly increased and come to 27975 Kgs and closing is 5444.3 Kgs on Decembers the opening has brought down and closing is 25170 Kgs and usage is 31394 kgs. In the next month it is decreased to 30900 Kgs as January and closing stock is increased to 31886.5 Kgs In February the consumed quantity is 29381 Kgs and closing level is 36885 Kgs which is increased compared to previous month. The above balance is carried down March and usage is 29170 Kgs and closing decreased to 29735 kgs.
45000
43
Statement of stock level and consumption levels of Gulkhand for the period of 2006-07
Opening stock -------1200 ---300 1060 1120 1720 700 1240 560 420 500 Closing stock 1200 -----300 1060 1120 720 700 1240 560 420 500 620
Consumption 1289 1200 1200 1240 940 400 1020 460 680 1140 920 880
Maximum, Minimum and Average stock levels of Gulkhand

Average Particulars Opening stock Consumption Closing stock Max. level 1720 1289 1720 Min. level 300 400 300 level 735 947.42 786.67
ANALYSIS OF GULKHAND
It is separate category which the product manufactures with this category is also Gulkhand hit. So this material is very different from other materials. The opening balance of this raw material is nil and user stock is1289Kgs with purchasing level of above 2000 Kgs and closing for this material is 1200 Kgs for April month. In May and June the consumption level is stood stable at 1200 Kgs and closing for May is nil because the total stock has been used and for the June 300 Kgs is the closing level. In the month of July the utility of the stock is increased to 1240 Kgs and closing to 1060 Kgs. So this month is increased very excessively in the closing levels. On august the consumption decreased to 940 Kgs and closing increased to 1120 Kgs. The September stock of opening is increased to 1120 Kgs and consumed quantity decreased to very low at 400 Kgs. It is the lowest level of consumption in this year. The closing stock remained at 1720 Kgs. In October the user stock is 1020 Kgs and closing is 700 Kgs. In November the consumed stock decreased to 460 Kgs. It is because of the low stock in stock maintenance and closing is 1240 Kgs. In December the consumed level of quantity is 650 Kgs and remained stock in December is carried forwarded to January opening stock at 560 Kgs. The consumption point is 1140 Kgs and 420Kgs as closing stock. In February the stock decreased rapidly to 920 Kgs and closing to 500 Kgs. In March the consumption is 880 Kgs and 620 Kgs is the closing stock.
45
2000
Statement of stock level and consumption levels of Honey for the period of 2006-07
Consumption 540 1025 1010 875 650 665 695 775 675 650 1065 560
Maximum, Minimum and Average stock levels of Honey

47
ANALYSIS OF HONEY:
This material is also one of the homely materials Honey. The Honey is used to minimum quantities because it is a hard solid material in character. The stock levels are maintained as this. The April month opening is 925 Kgs. Where 540 Kgs. the next month are May and June in this month openings are brought down in alternatives with closing stocks. The consumption for these months is 1025 Kgs, and 1010 Kgs. So almost nearby consumed and closing levels are 1060 Kgs and 1275 Kgs for June month. The same farwarded to next month as opening, the next month is July. The consumption is 875 Kgs and closing balance is 1600 Kgs. It is highest closing balance in the whole year. The next is the August the closing is 950 Kgs and same carried to next that is September the usage is fixed at 665 Kgs and ended balance is 900 Kgs the next one is October month is Which is closing is 925 Kgs & usage is 695 Kgs. The closing of this month is forwarded to November and usage quantity is 775 Kgs and closing quantities level is 925 Kgs. The same is carried forwarded and the next coming months is December and January in this two months the consumptions are very nearby i.e., 675 Kgs and 650 Kgs respectively. The closing quantities are 475 Kgs and 525 Kgs different the next is the February is this month the opening quantity is 525 Kgs and usage is 1065 Kgs and last month is March which has a usage quantity of 560 Kgs and closing of 1400 Kgs.
1800
49
Statement of stock level and consumption levels of Lecithin for the period of 2006-07
Consumption 4570 6400 5800 6434 5200 3800 4600 5200 5800 6200 5200 5000
Maximum, Minimum and Average stock levels of Lecithin

51
ANALYSIS OF LECITHIN
It is a different raw material which is used only to same products. This material is also transported from other states. In this category the stocks are described. For April month the beginning opening is 1540 kgs. the consumed quantity is 4570 Kgs and closing level is 3000 Kgs and next month is May, which the stock is brought down and usage is 6400 Kgs in which is staked at 5600 Kgs. The coming month next is June the consumption stock is 5800 Kgs and ending balance is 5000 Kgs which is carried to next month. In the month of July the usage is increased to 6434 Kgs and closing decreased to 2600 Kgs. The next month is August which the consumption is stood at 5200 Kgs and closing at increased nearby quantity of 15200 Kgs so here this month closing is the maximum level closing balance in entire years. The next is September the consumption is 3800 Kgs and closing is 11400 Kgs. Similarly for October the consumption quantity is 4600 Kgs and closing level is 6800 Kgs. The next coming month is November the consumption is 5200 Kgs and closing balance is 1600 Kgs. This month closing is forwarded to December month as opening balance. The usage level is 5800 Kgs and closing quantity is 4800 Kgs. In January the consumed quantity is 6200 Kgs and closing is 8600 Kgs. The next period of month is February which the consumption and closing is like this the usage is 5200 Kgs. And ended balance is 3400 Kgs and final are 1400 and consumption quantity is 5000 Kgs.
16000
53
Statement of stock level and consumption levels of Lactic Acid for the period of 2006-07
Opening stock 40 280 320 120 120 200 40 30 ---40 120 40 Closing stock 280 320 120 120 200 40 30 --------40 120 40 ------
Consumption 320 280 200 200 320 160 170 190 280 240 240 280
Maximum, Minimum and Average stock levels of Lactic Acid

Average Particulars Opening stock Consumption Closing stock Max. level 320 320 320 Min. level 30 160 30 level 112.50 240 109.17
55
ANALYSIS OF LACTIC ACID

The most important raw material which is used for change of color and flavour is Lactic Acid. It is flavour based raw material so ordered very low and limited compare to other utilization levels are explained as in the month this material is opening raw materials. The stocks and of April the
beginswith40Kgsand usage is 320 Kgs. Then the closing stock laid at 280 Kgs, the same is carried down to next month. In next month, May the usage stock is 280 Kgs and closing stock is320Kgs. On June the opening stock is 320 Kgs and consumed level is 200 Kgs where the closing stock stood at120 Kgs . For the month of July the consumption quantity is 200 Kgs and closing is 120 Kgs. The next month the consumption increased to 320 Kgs and closing stock at 200 kgs. In August the consumption is the highest quantity. On September the opening is 200 Kgs and usage of stock is 160Kgs and in this month the closing is very low compared to remaining months in this year. The figure of closing is 40 Kgs and for next month i.e., October the consumption is 170 Kgs and closing is 30 Kgs. November has the least opening balance of 30 Kgs and consumed quantity is 190 Kgs. The closing quantity is nil here because the total stock has been used. The same is forwarded December as opening stock. In the month of December the usage is 280 Kgs and closing is40Kgs. In January and February the consumption used is 240 Kgs for both months, the two stock are same here their closing stock are 120 Kgs and 40 Kgs respectively. On March the usage is 280 Kgs and closing is nil. to next month,
350
57
Statement of stock level and consumption levels of Malt Extract for the period of 2006-07
Month APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH Opening stock 8410 8927 9570 16137.2 17587.2 6670 15080 12137 3480 26390 28704.5 580 Consumption 38860 53870 53650 43790 45129.7 33350 38280 44617 50460 51040 45478.5 47560 9570 16137.2 17587.2 6670 15080 12137 3480 26390 28704.5 580 4640 Closing stock 8927
Maximum, Minimum and Average stock levels of Malt Extract

Average Particulars Opening stock Consumption Closing stock Max. level 28704.5 53870 28704.5 Min. level 580 33350 580 level 12806.08 41798.73 12491.91
ANALYSIS OF MALT EXTRACT:

The company has been using the primary raw materials at the same time secondary materials also. In such category Malt extract is one of the converted secondary materials. This Malt extract is used for every product in the company. The stock levels are moving like as for the April the opening stock begins at 28410 Kgs and issue made at quantity of 38860 Kgs and closing level at 8927 Kgs. The same is transferred to next month as opening stock that to May and consumption is sticked to 53870 Kgs which is the maximum consumption level is entire current financial year and closing balance is 9570 Kgs. The next month is June, the usage is figured at 53650 Kgs and closing at 16137.2 Kgs. So for the next coming month the consumption is reduced slowly july month usage is 43790 Kgs and closing stock 17587.2 Kgs. August month usage is 45129.7 Kgs and closing balance is 6670 Kgs . These balances are forwarded to next month that is to September. In this month the consumption is 33350 Kgs which is minimum level in current year and closing is normal of 15080 Kgs, then the next month October the consumption level again increases to 38280 Kgs and closing stock reduced to 12137 Kgs now coming month is November with of 12137 Kgs and usage of 44617 Kgs and closing point of 3480 Kgs normally. For the December month the stock is usage is raised to 50460 Kgs and closing stock also increased to 26390 Kgs due to ordering quantity increase. The next level of month is January the opening is 26390 Kgs and consumption quantity is 28704.5 Kgs. For the last coming two months February and March the closing stocks are low to 580 Kgs and 4640 Kgs similarly consumption are 45478.5 Kgs and 47560 Kgs respectively.
59
60000
Statement of stock level and consumption levels of Milk Cream Condensed for the period of 2006-07
Consumption 55 105 105 35 50 40 15 50 70 80 45 80
Maximum, Minimum and Average stock levels of Milk Cream Condensed Average Particulars Opening stock Consumption Closing stock Max. level 120 105 120 Min. level 60 15 35 level 91.67 57.50 88.75
61
ANALYSIS OF MILK CREAM CONDENSED:

The most important raw material in converted secondary raw material is milk cream condensed; it is used for creamy products in confectionary. The stock point of this material is explained rigidly. The opening balance for the year is 70 Kgs. For April month the consumption is 55 Kgs and closing stock is 115 Kgs. In May and June consumption used is constant at 105 Kgs only. But closing balance is different at 110 Kgs and 105 Kgs. So for the next month, July the opening stock is 105 Kgs and consumed is 85 Kgs. The stock of closing is 120 Kgs and it is the stock which is highest closing stock in this month. In august the consumed level of quantity of production is 50 Kgs and closing stock is 70 Kgs. The same balance is converted to opening for September. Consumed quantity for this month is 40 Kgs and remaining stock is 90 Kgs. In October the consumption level is very least and low compared to remaining months in the year. So it is the minimum consumption point in this year. The usage is 15 Kgs and closing is 75 Kgs. The next period of month is November, in this month the usage is again increased to 50Kgs and closing to 70 Kgs. In December the opening stock is the same of 70 Kgs and 80Kgs. The closing stocks are 60 Kgs and 100 Kgs. In February the consumption is declined to 45 Kgs because of production is decreased due to stock of finished goofs of creamy products is remained unmoved at godown. So the closing increased to 115 Kgs. March month is the last month for measuring stock levels. The consumed level is 80 Kgs and remaining stock is 35 Kgs. It is the least point of closing stock in this year.
140
63
Statement of stock level and consumption levels of Raw Milk for the period of 2006-07
Month APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH Opening stock 11670 1284 1200 1280 1320 1112 1240 1460 4620 980 1820 1560 Consumption 423031.9 431561.2 596208.3 599391 512559.3 49974.3 441337 499643.5 523411.3 422480.4 515153.3 536050.1 1200 1280 1320 1112 1240 1460 1620 980 1820 1560 527 Closing stock 1284
Maximum, Minimum and Average stock levels of Raw Milk

Average Particulars Opening stock Consumption Closing stock Max. level 11670 599391 1820 Min. level 980 422480.4 527 level 2212.17 500066.80 1283.58
ANALYSIS OF RAW MILK

The major material in which the company using to produce a chocolate in tasteful manner is the homely product that is raw milk. Here raw milk used as a direct material and also converted as secondary goods to some products. The stock level and consumption can be seen as in the month of April the opening begins with 11670 Ltr and consumption is 423031.9 Ltr and closing at 1284 Ltr. So for next month that is on May the opening balance is brought down and consumed is43156.2 Ltr for next month the consumption is increased tpo 59620 Ltr and closing is weighted as1200 Ltrs. In July and August the consumptions are stood at 599391 Ltr and 512559.3 Ltr and their closing are 1320 Ltr and 112 Ltr with the same 49974.3 Ltr closing stock is 1240 Ltr, Now the month of October the opening stock is 1240 Ltr only and consumption is at 441337Ltr and closing at 1460 Ltr in the month of November the consumption increased to 499643.5Ltr and closing increased to1620 Ltr. For the coming month the brought down is made for opening balance and quantity used is 523411.3 Ltr and closing is least level of 980Ltr. it is the minimum level in closing as well as for opening stock also. So for next month i.e., January the consumption is 422480.4 Ltr compared to last month the usage is declined and closing increases at 1870 Lts. In February and March consumptions are again inclines to 515153.4 Ltrs and 536050.1 Ltrs. The closing balance are decreased to 1560 Ltr and 527 Ltrs respectively. balance of August closing the September month opens as opening balance and consumption made at
65
700000
Statement of stock level and consumption levels of Sugar for the period of 2006-07
Month APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH Opening stock 459902 238500 744250 340400 213100 249100 240500 90500 3000 475450 225400 92670 Consumption 756078.5 1010903.7 953850 867300 854000 608600 760000 824500 986483 1000050 891537 893340 Closing stock 238500 744250 340400 213100 249100 240500 90500 3000 475450 225400 92670 79830
Maximum, Minimum and Average stock levels of Sugar

Average Particulars Opening stock Consumption Closing stock Max. level 744250 1010903.7 744250 Min. level 3000 608600 3000 level 281064.33 867220.19 249391.67
67
ANALYSIS OF SUGAR:
From the raw materials in the company the major and foremost raw material is the sugar. With out sugar the total production is stopped. So it is the all over major commodity for the manufacturing unit. The consumptions and opening and closing can be explained systematically as the opening level started at 459902 Kgs in month of April and consumption at 756078.5 Kgs and closing at 238500 Kgs. the next one is the May the opening is brought down and consumption level at 1010903.7 Kgs and closing the stock at 744250 Kgs. Here the consumptions is very and it is the maximum level of consumption. The next period is March for June the closing is 744250 Kgs and consumption quantity is 953850 Kgs as well as closing at 340400 Kgs. Instantly the next month that is on July the consumption has decreased to 867300 Kgs and closing stock also decreased to 213100 Kgs. the next month, August is also fall in decrease mode of 854000 Kgs of usage quantity and closing of 249100 Kgs for the month of September the August closing is brought as opening for this month and consumption at 608600 Kgs and final closing is 240500 Kgs and carried to next month. The minimum level of usage is used in this September only. It is due to scarcity of the sugar in the market. The next month is the October for this month the usage stock is pointed at 760000 Kgs and closing stock at 90500 Kgs the coming month that is November the consumption at 824500 Kgs & closing at 3000 Kgs. It is the only month which is the least closing stock point in this year of sugar closings. The next is December and January months the usage stock is 986483 Kgs and 1000050 Kgs and closing stock at 225400 Kgs and 92670 Kgs. It is forwarded to next month as that is on February which has consumption point at 891537 Kgs and closing point at 92670 Kgs. the last month has consumed 893340 Kgs as usage stock and closing remained at 79830 Kgs this all for the month of march.
1200000
69
Statement of stock level and consumption levels of Sorbitol for the period of 2006-07
Opening stock -------1800 --------2700 -------3000 3900 4500 300 6600 7200 2700 Closing stock 1800 -------2700 ------3000 3900 4500 300 6600 7200 2700 900
Consumption 3415 5381 4500 5161 5100 3740 3900 4200 4564 5400 4580 4200
Maximum, Minimum and Average stock levels of Sorbitol

Average Particulars Opening stock Consumption Closing stock Max. level 7200 5400 7200 Min. level 300 3415 300 level 2725 4511.75 2800
ANALYSIS OF SORBITOL:
The another type of limited moving of raw materials in confectionary industry is Sorbital this raw materials is used very low in quantity in chocolates the following are the stocks and consumption level of sorbital materials. In the month of April the opening stock seems to nil balance and consumption has been pointed to 3415 Kegs and closing stock remains at 1800 Kgs and same is forwarded to next point of month that is May. The usage stock is 5381 Kgs and closing balance is nil because of total stock has been used for consumptions. Now for the next month, i.e., June the consumption is decreased and showed 4500 kgs and closing stock is 2700 kgs. In July the opening is 2700 kgs and after purchasing the total stock has been used for consumption as 5161 kgs and closing placed at nil point. So for next month that is on august opening balance is nill and consumption level is 5100 kgs and closing stock pointed at 3000 kgs. Now the same balance carried down to September. Here the usage stock is decrease to 3740 kgs and closing balance increased to 3900 kgs. In the month of October the materials consumed is 3900 kgs and closing sock again increased to 4500kgs. Now these balance forwarded to next month. In the month 4200 kgs showed as consumption point and 300 kgs as closing stock that is on November month. This month is the minimum closing stock point level month in the entire year. For the month of December the stock used is 4564 kgs & remaining closing stock is 6600 kgs. Now for next month that is January the consumed level is 5400 kgs similarly the closing is also at 7200 kgs. So both of them are higher levels in whole year. In the month of February and march two months the consumptions are4580kgs and 4200 kgs respectively with closings of 2700 kgs and 900 kgs.
71
8000
Statement of stock level and consumption levels of Skimmed Milk Powder for the period of 2006-07
Consumption 8375 11250 6750 8550 5875 3375 6350 6500 7500 7225 7150 5675
Maximum, Minimum and Average stock levels of Skimmed Milk Powder

Average Particulars Opening stock Consumption Closing stock Max. level 19025 11250 19025 Min. level 1100 3375 1100 level 8964.58 7047.92 8275
73
ANALYSIS OF SKIMMED MILK POWDER:

The product which is converted from primary material is known as secondary raw material. In those category are of the material is this skimmed milk powder. These type of raw material are the converted raw materials so in this category the stocks and utilizations are maintained like as followings. In the April month the beginning of stock is 14,325 kgs and consumed is 8375 kgs and closing balance at 14,950 kgs. For next month thats a may the opening sock is at same of 14,950 kgs and utilization increased at 11,250 kgs and closing stock also increased at 19025 kgs. This month consumption is the highest consumed month in this year of skimmed milk powder category. So for the next month the consumption depressed to 6750 kgs and closing increased to 12,275 kgs. The same forwarded to next month. The July month stock of consumption is 8550 kgs and opening is brought down from June months closing stock. This month closing is stocked at4225 kgs. In the month of august the month level has been declared low because of decrease in production. The stock is 5875kgs and closing is 13,350 kgs. This month closing is the maximum level in the whole year in this category. Similarly for next month that is September also the usage is decrease again to3375 kgs and closing stock is 9975 kgs. The lowest consumed stock is figured in these months only, for the month of October the opening is 9975 kgs and utilization of S.M powder is 6350 and remaining closing balance is 3625 kgs. In the months of November and December the consumptions are 6500 kgs and 7500 kgs and their openings are alternatively converted from closings and these closings are pointed to 2125 kgs and 1100 kgs .Here the December closing stock is the let and minimum milk powder in this year. In the next month that is in January the consumed stock has been little down to 7225 kgs. and closing at 9875 kgs. The same forwards to February as opening stock. The issue of material is 7150 kgs and closing stock is 2725 kgs. For the March that is the final month for this year consumed material is depressed to 5675 kgs and final closing stock level at 6050 kgs only. Therefore these total stocks of usage and closings and their openings levels are changed rapidly at same stages and are same at same points.
75
20000
Statement of stock level and consumption levels of Table Salt for the period of 2006-07
Consumption 3550 5148 5100 4800 3850 3200 3900 4250 5000 4800 4350 4250
Maximum, Minimum and Average stock levels of Table Salt Average Particulars Opening stock Consumption Closing stock Max. level 13100 5148 13100 Min. level 1300 3200 1750 level 4345.83 4349.83 4704.17
77
ANALYSIS OF TABLE SALT:

In the general category of home need the basic material which is used for every preparation is the table salt. This table salt is also are of the raw material for our company is manufacturing products .Now we can see their stocks and closings. In the April months the opening stock is 1300kgs and consumed is 3550 kgs and closing stock is 1750 kgs. It is the minimum closing level in table salt category in this year. The same is carried down to next month. These stocks is least in opening stock levels also. The consumed level for this month is 5148 kgs and closing is closing stock and maximum point is opening stocks also. For June month the same to carried as opening stock and consumption stock is 5100 kgs and closing material level is 8000kgs In the month of July the consumption is 4800kgs and remained stock is 3200 kgs. August is the month of again decrease is consumption upto a range of thousand that is 3850kgs and closing stock at 2350 kgs. For next month that is September the opening is same of 2350kgs and this month consumption minimum in entire year with 3200kgs usage. The closing is at 2150kg. For coming next two months October &November the closings are near by changed with 3250 kgs and 4000kgs and consumed at 3900 kgs and 4250 kgs and consumed at 3900 kgs and 4250 kgs. For next two months, December and January the consumption are closely at 5000 kgs and 4800 kgs and also closing stocks at 4000kgs and 4200 kgs. The month of February the opening is brought down and consumed is 4350kgs and closing is 4850 kgs. The last month of this year March is another point of low consumption of 4250kgs and closing their stock of table salt for this year sis 5600kgs. In the entire stock levels of the table salt we analyzed that the used stock is increasingly high than unused stock i.e. closing stock.
14000
79
Statement of stock level and consumption levels of Vanaspati for the period of 2006-07
Opening stock 6555 6720 -------7965 11100 13140 11520 8760 6075 6900 3675 16920 Closing stock 6720 --------7965 11100 13140 11520 8760 6075 6900 3675 16920 17070
Consumption 37635 52920 46035 54480 45690 30690 41160 41085 47175 52725 43815 41850
Maximum, Minimum and Average stock levels of Vanaspati

Average Particulars Opening stock Consumption Closing stock Max. level 16920 54480 17070 Min. level 3675 30690 3675 level 8277.50 44605 9153.75
ANALYSIS OF VANASPATI:
This vanaspati is another item which we can see rarely in market. It is one of the sweet forming items in chocolates vanaspati is a rare moving item in home needs so it is called rare material. The usage and closing point are as perceived in the April month the opening starts with 6555 Kgs and used at 37635 Kgs and closing stock is 6720 Kgs the next month as May the opening is same of 6720 Kgs and utilization is 52920Kgs and closing is nil because of the total stock has been used. The July month opening is also nil after purchase the consumption is 46035 Kgs and 7965 Kgs is the closing levels The next month is the highest consumed level that is an July the stocks is 54480 Kgs used for manufacturing and closing is 11100 Kgs. On August it is decrease to 45690 Kgs and closing is maximum at 13140Kgs. It is the highest level is closing stock category, in September the consumed level again fall down to 30690Kgs and respective closing is11520 Kgs the same opened as opening stock for October and consumed is 41160 Kgs and remaining is for closing stock with 8760 Kgs from now the remaining month consumption has been heavily decreased to depression because the sales and finished goods stock is remained stable in godowns. So for control of manufacturing without over output. This month i.e. November consumption is 4250 Kgs and closing 4000 Kgs. Since in December again the usage is 5000 Kgs and closing is 4000 Kgs the remained stock to brought down to January and consumed is 4800 Kgs and closing is at 4200 Kgs the next months that is on February the opening is 4200 Kgs and consumed is 4350 Kgs and closing stock is 4650Kgs . in March consumed and closing stock are 4250 Kgs and5600 Kgs. So a two stage levels occurred for vanaspati in this year.
81
60000
Statement of stock level and consumption levels of Vanilla FL NCL 2X for the period of 2006-07
Opening stock 120 150 210 120 330 180 150 120 120 -------300 420 Closing stock 150 210 120 330 180 140 120 120 --------300 420 30
Consumption 370 540 630 390 300 330 330 300 420 330 300 390
Maximum, Minimum and Average stock levels of Vanilla FL NCL 2X

83
ANALYSIS F VANILLA FL NCL 2X:

This raw material is a flavour which is used for the chocolates on the taste of the customers. So for this means the flavour based chocolates increased from past 2 years. So to overcome from outer competition the confectionary was changed with different flavoured items. The opening balance for April is120 Kgs and consumption is 370 Kgs, closing is 150 Kgs. For may the consumption increases to 540 Kgs and closing to 210 Kgs respectively. In July and June the consumed levels are 630 Kgs and 390 Kgs. In closing stock there is lot of variation that is 120 Kgs and 330Kgs. In august the consumption is 300 Kgs and 180 Kgs is closing stock. September and October is constant at consumption level of 330 Kgs. The closing stock is different at 150 Kgs and 120 Kgs. In November the consumption is 300 Kgs because of stock decline. The closing stock level is 120 Kgs and same quantity is forwarded as opening for December. Consumption for this month is 420 Kgs and closing stock is at nil point. On month of January the usage level is 330Kgs and closing is 300 Kgs. Now in February the stocks of usage is decreased to 300 Kgs and remaining stock is 420 Kgs. This is the maximum level of point in closing stock for March the closing is 30 Kgs which is least for this year and 390Kgs is the consumption of stock.
700
85
ABC ANALYSIS
S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M.Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Annual usage 2,89,023.26 25,50,761.80 58,14,710.88 9,35,046.00 4,34,490.13 11,15,77,050.30 4.94,00,855.40 3,95,527.51 8,94,710.85 15,68,343.21 3,04,766.21 1,29,96,059.58 3,07,614.14 5,88,67,863.70 16,90,30,927.40 15,82,314.04 81,92,780.25 2,92,246.16 2,42,16,768.18 7,52,045.34 % on total annual usage 0.0642 0.5663 1.2910 0.2076 0.0965 24.7727 10.9681 0.0878 0.1986 0.3482 0.0677 2.8854 0.0683 13.0700 37.5287 0.3513 1.8190 0.0649 5.3767 0.1670 C C C C A B C C C C C C B A C C C A C categor y C
M.C.condensed = milk cream condensed, S.M. Powder= skimmed milk powder C.M. flavour = condensed milk flavour For category A =3, B=2, C=15 and value is A=304824746, B=108268719,C= 37310440
No. of Items
No. of Items
A, 3 B, 2
A, 3 B, 2
C, 15
C, 15
Statement showing stock levels for the month of April 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 Item Name Butter Cocoa Powder C.M. flavour D.C. Powder Dry Cocoa beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Openin g stock ------3475 175 825 1812.5 222853 14925 ------925 1540 40 8410 70 11670 459902 -------14325 1300 Purchase s 150 ------1860 2100 4000 334603.8 16020 2489 200 6030 560 39377 100 142645.9 534676.5 5215 9000 4000
87
Issue 150 3475 1755 1550 4687.5 548506. 8 29970 1289 540 4570 320 38860 55 423031. 9 756078. 5 3415 8375 3550
Per kg/rat e 117.72 71.96 308.45 50.68 88.36 16.42 136.15 34.79 97.42 24.43 105.82 25.91 445.81 9.81 16.24 29.23 96.87 5.59
Closin g stock ---------------------1375 1125 8950 975 1200 585 3000 280 8927 115 1284 238500 1800 14950 1750
119 120
Vanaspati Vanilla FL NCL 2X WHERE,
6555 120
37800 400
37635 370
45.24 162.43
6720 150
M.C.condensed = milk cream condensed S.M. Powder = skimmed milk powder C.M. flavour = condensed milk flavour
Statement showing stock levels for the month of May 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M.powder Table salt Vanaspati Vanilla FL NCL 2x Openin g stock --------------280 1375 1125 8950 975 1200 585 3000 280 8927 115 1284 238500 1800 14950 1750 6720 150 Purchase s 475 5975 2730 2000 11100 649310 62881 --------1500 9000 320 54513 100 431477.2 1516653. 7 3581 15325 16498 46200 600 Issue 475 3500 2340 2250 5187.5 648760 37963 1200 1025 6400 280 53870 105 431561. 2 1010903 .7 5381 11250 5148 52920 540 Per kg/rat e 117.50 70.26 Closin g stock -----2475
308.45 670 50.21 87.50 15.87 1125 7037.5 9500
135.15 25893 34.12 96.72 24.77 ------1060 5600
105.11 320 24.65 9570 428.16 110 9.60 16.06 27.15 96.19 5.15 44.96 1200 744250 -------19025 13100 --------
162.09 210
WHERE, M.C.condensed = milk cream condensed S.M. Powder = skimmed milk powder
89
C.M. flavour
= condensed milk flavour
Statement showing stock levels for the month of June 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C.condensed Raw Milk Sugar Sorbitol S.M.powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock -------2475 670 1125 7037.5 9500 25893 --------1060 5600 320 9570 110 1200 744250 --------19025 13100 --------210 Purchase s 100 6250 2600 2225 -------724427 31660.3 1500 1255 5200 -------60217 100 596288.3 550000 7200 ---------------54000 540 Issue 100 2725 2285 2650 3617.5 724963 40968 1200 1010 5800 200 53650 105 596208 .3 953850 4500 6750 5100 46035 630 Per kg/rat e 115.21 68.61 Closin g stock -------6000
301.40 985 51.98 88.16 16.05 700 3420 8964
16585. 139.91 3 33.55 97.14 22.61 300 1275 5000
102.14 120 26.65 16137. 2
432.81 105 10.50 15.81 26.00 95.88 5.20 46.72 1280 340400 2700 12275 8000 7965
161.16 120
WHERE, M.C.condensed = milk cream condensed

91
S.M. Powder C.M. flavour
= skimmed milk powder = condensed milk flavour
Statement showing stock levels for the month of July 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock ------6000 985 700 3420 8964 16585.3 300 1275 5000 120 16137.2 105 1280 340400 2700 12275 8000 7965 120 Purchase s 130 2000 1260 3000 7000 519417.6 5 32490 2000 1200 4034 200 45240 100 599431 740000 2461 500 --------57615 600 Issue 130 3825 1870 1725 5140 524887. 65 34570.3 1240 875 6434 200 43790 85 599391 867300 5161 8550 4800 54480 390 Per kg/rat e 121.06 71.61 Closin g stock -----4175
305.64 375 53.11 86.50 18.65 1975 5280 3494
131.66 14505 30.50 95.68 22.17 1060 1600 2600
108.66 120 24.16 17587. 2
442.60 120 9.85 16.00 26.81 95.42 5.26 46035 1320 213100 --------4225 3200 11100
163.45 330
93
C.M. flavour
Statement showing stock levels for the month of August 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M.Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock -------4175 375 1975 5280 3494 14505 1060 1600 2600 120 17587.2 120 1320 213100 -------4225 3200 11100 330 Purchase s 40 2500 1680 2000 ---------794023 21387 1000 ---------17800 400 34212.5 ---------512351.3 890000 8100 15000 3000 48000 150 Issue 40 2500 1710 950 3600 788865 32023.8 940 650 5200 320 45129.7 50 512559. 3 854000 5100 5875 3850 45690 300 Per kg/rat e 118.09 69.92 Closin g stock -------4175
307.61 345 49.51 86.62 15.85 3025 1680 8652
134.50 3869 33.69 96.65 23.51 1120 950 15200
101.23 200 24.26 6670 432.16 70 10.30 14.15 31.90 94.29 5.10 43.96 1112 249100 3000 13350 2350 13410
163.09 180
95
C.M. flavour
Statement showing stock levels for the month of September 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock -------4175 345 3025 1680 8652 3869 1120 950 15200 200 6670 70 1112 249100 3000 13350 2350 13410 180 Purchase s 160 2500 1260 125 5000 325522 32378 1000 615 ------------------41760 60 50102.3 600000 4640 ---------3000 28800 300 Issue 160 1425 765 1075 1742.5 317540 23272 400 665 3800 160 33350 40 499974. 3 608600 3740 3375 3200 30690 330 Per kg/rat e 116.98 71.25 304.98 49.16 87.15 15.66 136.61 34.14 96.00 24.62 101.54 23.60 440.16 9.98 15.61 29.79 95.66 5.85 45.75 160.50 Closing stock ------5250 840 2075 4937.5 16634 12975 1720 900 11400 40 15080 90 1240 240500 3900 9975 2150 11520 150
97
C.M. flavour
Statement showing stock levels for the month of October 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock -------5250 840 2075 4397.5 16634 12975 1720 900 11400 40 15080 90 1240 240500 3900 9975 2150 11520 150 Purchase s 506 -------840 ---------5000 596722 17010 ---------720 ---------160 35337 ---------441557 610000 4500 ---------5000 38400 300 Issue 506 2925 1620 950 4250 601340 24600 1020 695 4600 170 38280 15 441337 760000 3900 6350 3900 41160 330 Per kg/rat e 118.82 64.42 Closing stock -------325
312.10 60 52.00 90.48 15.81 1125 5687.5 12016
148.18 5385 35.88 700 104.09 925 24.02 6800 122.46 30 24.56 12137 515.35 75 9.39 15.61 40.42 1460 90500 4800
107.50 3625 5.80 45.74 3250 8760
162.21 120
WHERE, M.C.condensed = milk cream condensed S.M. Powder = skimmed milk powder C.M. flavour = condensed milk flavour
99
Statement showing stock levels for the month of November 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M.Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock --------2325 60 1125 5687.5 12016 5385 700 925 6800 30 12137 75 1460 90500 4500 3625 3250 8760 120 Purchase s 100 999.44 1677 1000 ---------39314 28034.3 1000 1000 ---------160 35960 45 499803.5 737000 ---------5000 5000 38400 300 Issue 100 2775 1457 1250 4187.5 51330 27975 460 775 5200 190 44617 50 499643. 5 824500 4200 6500 4250 41085 300 Per kg/rat e 126.00 64.89 312.03 52.00 90.48 17.15 157.39 35.88 100.02 24.02 89.61 25.00 376.28 9.11 15.90 40.42 108.00 5.80 45.99 162.21 Closin g stock -------549.44 280 875 1500 --------5444.3 1240 1150 1600 --------3480 70 1620 3000 300 2125 4000 6075 120
C.M. flavour
101
Statement showing stock levels for the month of December 2006

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock --------549.44 280 875 1500 --------5444.3 1240 1150 1600 --------3480 70 1620 3000 300 2125 4000 6075 120 Purchase s 140 4000 1830 1525 9000 794055 51120 ----------------9000 320 73370 60 522771.3 1458933 10864 6475 5000 48000 300 Issue 140 3174.44 2110 1650 4375 794055 31394 680 675 5800 280 50460 70 523411. 3 986483 4564 7500 5000 47175 420 Per kg/rat e 125.98 76.47 309.63 52.00 91.50 19.36 135.20 35.88 100.02 24.20 105.27 25.80 515.35 9.26 15.11 35.76 96.00 5.80 47.67 162.21 Closing stock --------1375 --------750 6125 --------25170 560 475 4800 40 26390 60 980 475450 6600 1100 4000 6900 ---------
C.M. flavour
103
Statement showing stock levels for the month of January 2007

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock --------1375 -------750 6125 -------35170 560 475 4800 40 26390 60 980 475450 6600 1100 4000 6900 --------Purchase s 200 2999.5 2310 1500 9000 678866 37616.5 10000 700 10000 320 53354.5 120 423320.4 750000 6000 16000 5000 49500 630 Issue 200 3250 1890 1600 4687.5 665215 30900 1140 650 6200 240 51040 80 422480. 4 100005 0 5400 7225 4800 52725 330 Per kg/rat e 138.65 62.25 Closing stock --------1124.5
312.05 420 52.00 91.50 14.37 650 10437.5 13651
134.37 31886.5 35.68 420 101.75 525 24.56 8600 105.90 120 24.24 28704.5 411.05 100 10.94 14.37 35.45 1820 225400 7200
109.00 9875 5.80 48.51 4200 3675
162.28 300
C.M. flavour
105
Statement showing stock levels for the month of February 2007

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock -------1124.5 420 650 10437.5 13651 31886.5 420 525 8600 120 28704..5 100 1820 225400 7200 9875 4200 3675 300 Purchase s 144 3998 630 15001375 -------619229 34379.5 1000 1500 --------160 17354 60 514893.3 758807 80 --------5000 57060 420 Issue 144 3297.5 1050 1375 4375 613280 29381 920 1065 5200 240 45478.5 45 515153. 3 891537 4580 7150 4350 43815 300 Per kg/rat e 137.44 71.46 314.87 54.08 92.04 20.42 139.59 34.99 105.03 24.56 105.90 25.84 445.81 10.67 15.00 35.45 108.44 5.47 47.18 161.58 Closing stock --------1825 --------775 6062.5 19600 36885 500 960 3400 40 580 115 1560 92670 2700 2725 4850 16920 420
C.M. flavour
107
Statement showing stock levels for the month of March 2007

S.N o 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Item Name Butter Cocoa Powder C.M. Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract M.C. condensed Raw Milk Sugar Sorbitol S.M. powder Table salt Vanaspati Vanilla FL NCL 2X Openin g stock -------1825 -------775 6062.5 19600 36885 500 960 3400 40 580 115 1560 92670 2700 2725 4850 16920 420 Purchase s 100 3000 -------1000 -------507185 22020 1000 1000 3000 240 51620 -------535017.1 880500 2400 9000 5000 420000 -------Issue 100 2575 ------1425 3312.5 518395 29170 880 560 5000 280 47560 80 536050. 1 893340 4200 5675 4250 41850 390 Per kg/rat e 141.00 70.57 ------54..08 92.04 19.69 151.87 35.72 103.17 26.05 105.49 24.72 445.35 11.07 15.86 34.17 100.47 5.80 47.50 160.40 Closing stock -------2250 --------350 2750 8390 29735 620 1400 1400 --------4640 35 527 79830 900 6050 5600 17070 30
C.M. flavour
109
Statement of Economic Order Quantity and number of order

Item name Butter Cocoa Powder Condensed Milk Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract Milk Cream condensed Raw Milk Sugar Sorbitol Skimmed Milk powder Table salt Vanaspati Vanilla FL NCL 2X 2094 8912 375949 36049 1190 916 9154 328 34364 ---------535024 3143 ------3056 36453 -------E.O.Q 694 5158 ----
Statement showing inventory turnover ratio for 2006-2007
Raw material Butter Cocoa Powder Condensed Milk .Flavour D.C. Powder Dry Cocoa Beans Glucose Ghee Gulkhand Honey Lecithin Lactic Acid Malt Extract Milk Cream Condensed Raw Milk Sugar Sorbitol Skimmed Milk powder Table salt Vanaspati Vanilla FL NCL 2X
Ratio ---------1.09 4.34 1.23 0.88 3131 1.83 1.25 0.79 0.92 2.17 3.30 0.64 286.10 3.27 1.63 0.82 0.96 5.12 2.13
HML CLASSIFICATION
p H category er g
111
M Per k category kg
L category
Per kg
Condensed milk flavour Milk cream condensed Vanilla FL NCL 2X -------------------------------------------
308.4 5 445.8 2 162.4 3 -----------------------------
Butter Cocoa powder Dry cocoa beans Ghee Honey Lactic Acid Skimmed milk powder -------------------
117.7 71.96 88.37 136.1 5 97.42 105.8 2 96.87 -------------
D.C. Powder Glucose Gulkhand Lecithin Malt extract Raw milk Sugar Sorbitol Table salt Vanaspati
50.6 8 16.4 2 34.7 9 24.4 3 25.9 1 9.81 16.2 4 29.2 3 5.60 45.2 4
Statement showing inventory turnover ratio from 2002-2003 to 2006-2007

Year 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 51.46 53.95 56.81 41.16 45.39 Ratio
Statement showing overall days of inventory holdings (DIH) from 2002-2003 to 2006-2007
Year Ratio
2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
7.09 6.77 6.42 8.87 8.04
113
FINDINGS
The inventory turnover ratio was increased by 4.23 times in the year 2006-
07(45.39) when compared to 2005-06(20.69). It means that the NCCL is maintaining the control of inventory level compared to previous year.
The inventory holding period was also decreased by 1 day in the year 200607( 8 days) when compared to 2005-06( 9 days). The turning of inventory into receivables through sales is nearly faster. From the statement showing the EOQ, it is found that the EOQ of all items except Sugar, sorbitol and table salt is more than minimum consumption level. It is found that A BC categories the A category items are Glucose, Sugar and vanaspati and in B category Ghee and Raw milk and remaining items comes under C category.
SUGGESTIONS
In the inventory turnover ratio to improve the inventory controls on Sugar and Raw Milk and Glucose and increase the sales.
In inventory holding the holding areas have to be reduced and finished goods of stock in storing in ware houses have to be reduced. It is suggested that the to EOQ points are very abnormal in ordering. Therefore to reduce ordering points levels and maintaining constant stock levels.
In the analysis of categorizing of items to maintain strict control on B category items and also C category items too. In B category to fallow moderate value analysis and monthly control on it. The remaining items of C category they have to maintain high safety stocks and minimum value of analysis.
BIBLIOGRAPHY
Production and Operations management Financial management and policy Financial management Financial accounting K.Aswathappa & K.Sridharara bhat James C. Van Horne I.M.Pandey
P.C.Tulsian
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PROFILE OF NUTRINE CONFETIONERY COMPANY

Maximum, Minimum and Average stock levels of Butter

ANALYSIS OF BUTTER STOCK LEVELS

Maximum, Minimum and Average stock levels of Cocoa Powder

ANALYSIS OF COCOA POWDER

Maximum, Minimum and Average stock levels of Condensed Milk Flavour

ANALYSIS OF CONDENSED MILK FLAVOUR

Maximum, Minimum and Average stock levels of D.C.Powder

Maximum, Minimum and Average stock levels of Dry Cocoa Beans

ANALYSIS OF DRY COCOA BEANS

Maximum, Minimum and Average stock levels of Glucose

Maximum, Minimum and Average stock levels of Ghee

Maximum, Minimum and Average stock levels of Gulkhand

Maximum, Minimum and Average stock levels of Honey

Maximum, Minimum and Average stock levels of Lecithin

Maximum, Minimum and Average stock levels of Lactic Acid

ANALYSIS OF LACTIC ACID

Maximum, Minimum and Average stock levels of Malt Extract

ANALYSIS OF MALT EXTRACT:

Consumption 55 105 105 35 50 40 15 50 70 80 45 80

ANALYSIS OF MILK CREAM CONDENSED:

Maximum, Minimum and Average stock levels of Raw Milk

ANALYSIS OF RAW MILK

Maximum, Minimum and Average stock levels of Sugar

Maximum, Minimum and Average stock levels of Sorbitol

Maximum, Minimum and Average stock levels of Skimmed Milk Powder

ANALYSIS OF SKIMMED MILK POWDER:

ANALYSIS OF TABLE SALT:

Maximum, Minimum and Average stock levels of Vanaspati

Maximum, Minimum and Average stock levels of Vanilla FL NCL 2X

ANALYSIS F VANILLA FL NCL 2X:

Statement showing stock levels for the month of April 2006

Vanaspati Vanilla FL NCL 2X WHERE,

Statement showing stock levels for the month of May 2006

308.45 670 50.21 87.50 15.87 1125 7037.5 9500

135.15 25893 34.12 96.72 24.77 ------1060 5600

= condensed milk flavour

Statement showing stock levels for the month of June 2006

301.40 985 51.98 88.16 16.05 700 3420 8964

16585. 139.91 3 33.55 97.14 22.61 300 1275 5000

102.14 120 26.65 16137. 2

WHERE, M.C.condensed = milk cream condensed

S.M. Powder C.M. flavour

= skimmed milk powder = condensed milk flavour

Statement showing stock levels for the month of July 2006

305.64 375 53.11 86.50 18.65 1975 5280 3494

131.66 14505 30.50 95.68 22.17 1060 1600 2600

108.66 120 24.16 17587. 2

= condensed milk flavour

Statement showing stock levels for the month of August 2006

307.61 345 49.51 86.62 15.85 3025 1680 8652

134.50 3869 33.69 96.65 23.51 1120 950 15200

= condensed milk flavour

Statement showing stock levels for the month of September 2006

= condensed milk flavour

Statement showing stock levels for the month of October 2006

312.10 60 52.00 90.48 15.81 1125 5687.5 12016

107.50 3625 5.80 45.74 3250 8760

Statement showing stock levels for the month of November 2006

= condensed milk flavour

Statement showing stock levels for the month of December 2006