International Journal of Pure and Applied Mathematics

Volume 118 No. 18 2018, 635-643

ISSN: 1311-8080 (printed version); ISSN: 1314-3395 (on-line version)
url: http://www.ijpam.eu
Special Issue
ijpam.eu

INVENTORY MANAGEMENT IN AUTOMOBILE INDUSTRY

1
R. Ramamoorthy, Assistant Professor Department of Management Studies, BIST, BIHER, Bharath University
2
M.Ramamurthi, Assistant Professor,Dept of Tourism Hospitality Management,

BIST, BIHER, Bharath University

1
Ramamoorth.mba@bharathuniv.ac.in
2
Ramamurthi.thm@bharathuniv.ac.in

ABSTRACT

Inventory management has emerged as most of the important tools to improve operational
efficiency over the last 30-40 years across the globe. The automobile industry uplift it for profit
it solve unemployment problem, it shows new technologies through this save time money and
manpower. Inventory is individual of the major and most significant resources a developed
commerce possesses, and the earnings of stock is one of the major source of proceeds
production for a company The aim of inventory administration is to hold inventory at the lowest
potential charge, given the objectives to guarantee continual provisions for continuing
operations. while creation decisions on inventory management has to find a compromise between
different cost components. Such as the costs of supplying inventory inventory–holding costs and
costs resulting from insufficient inventories.

INVENTORY MANAGEMENT

Inventory management is mainly about that identifying what the industry. Inventory management
is momentous as it helps to shelter the intended way of production contrary the random of
running out of considerable materials or goods inventory management also includes making
essential connections between the refill lead time of goods, asset management, the conveyance
cost of inventory, future inventory price forecasting, physical inventory available space for
inventory, demand forecasting and much more[1-5].

Inventories are stock of a company is manufacturing the product for sale components and sale
that make up the product. The diverse forms in which inventories process and finished goods.

Raw materials are basic inputs that are change into finished product through the manufacturing
process. Raw materials inventories are those units purchased and stored for future production.

Work-in-process inventories are semi-manufactured products. They represent products the need
more work before they become finished products for sale[6-9].

635
International Journal of Pure and Applied Mathematics Special Issue

Finished goods Inventories are fully manufactured products whichever ready for sale. Stocks of
raw materials and work-in-process alleviate production, when stock of finished goods is so link
between the production and consumption of goods[10-15].

Objective of inventory management

The main goal of inventory management is prepared and economic. The equipped entity means
accessibility of resources and spare in adequate quantities for without interruption flow of
making[16-20]. The economic point means stash in inventory should not continue idle and
smallest amount functioning assets should be protected in it.

The other objectives

To ensure continues supply of inventories to the production.

To avoid over store and underneath stocking.
To keep material cost under control, to keep low cost of production.
To eliminate duplication in ordering or replacing stocks.
To minimize losses through, deterioration, pilferage, wastage and damages.
Designing structures for good inventory management.
Perpetual inventory control of materials.
To facilitate data for short and long term planning and control of inventory.

Need for inventory control:

A cost secretarial scheme is to be successful there should be a correct control of

account and equipment form the time information are positioned with supplier until
they have been successfully make use of in manufactur[21-26].

Resources are correspondent to money and they create up an significant part of the sum
cost. It is essential that materials should be properly safeguarded and correctly
accounted.

636
International Journal of Pure and Applied Mathematics Special Issue

In a automobile industry planning and routing department is accountable for positioning

how and anywhere the job is to be completed and issue instructions.

AUTOMOBILE INDUSTRY

The automobile industry invented in 1769. Nicolas Joseph Caugnot created a steam built
the first self propelled road vehicle , later Gasoline automobile powered by internal combustion
engine Created by Karl friedrich Benz. There are different types of automobile sector in the
world( Steam, electric and gasoline etc.). The automobile industry is manufacturing the largest
purchase of many industrial products such as steel[27-29]. The automobile industry using new
technology plug-in hybrids, gasoline, hydrogen cars, and alternative fuel. New material replace
the car , bus bodies, fiberglass, carbon annotates and carbon fiber. Communication also
connected with car, bus and train with the large number of people working in the automobile
industry. The automobile industry is a primary mode of transportation for many developed
economies. Around the world developed country earning high profit by automobile.

The automotive industry manufacturer designs market and sells the world in motor and car.
About 906 million car and light truck on the road in 2010. The vehicle are increasing rapidly
especially in china and India in 2007 with rapidly rising oil prices as the automotive industry the
combination of pricing pressure from raw material cost and changes in consumer buying habit.
China is becoming a largest automobile producer in the world. China 2009 sales have 13.6
increasing form one million of domestic car sales. The automobile industry manufactures
product supply to the automotive industry. The roles of each contribution to the supply chain are
discussed below. Third Tier supplier[30-33]: These Company are provide for a basic products
like rubber, glass, plastic, and steel. Second tier supplier: These companies are vehicles design
system or bodies for first tier suppliers and OEMs. First tier suppliers are responsible not simply
for the gathering of division into total entity but also for the management of second-tier
suppliers.

The automakers & vehicle manufactures original equipment manufacturers: After analyze the
customer’s needs and wants automakers begin designing models which are tailored to consumers
demand. The design process normally taking the automaker five years. These companies having
manufacturing units where engine are manufactured and parts are assembled. Automakers
industry is the supply chain of the automotive industry. Examples of these companies are Toyota,
Tata motors, and Honda. Innovation, design and branding focus these companies[33-36].

The Challenge

The recent trend in automobile industries has been to outsource of inventory management
function to third party service providers. Many companies outsource both raw material inventory
as well as completed supplies to the service contributor.

637
International Journal of Pure and Applied Mathematics Special Issue

In casing of completed goods inventory, depends upon the supply chain design her may be
multiple stocking points at national regional and state levels. In each of the ware house a
different service provider may manage operations as one may not be able to find a supplier
having conduct all over the country.

Therefore the account in such a circumstances will be handled in the corporation system as well
as in the service provider system. account administration and control develop into a significant
meaning particularly in such situations where various service providers at various stations are
involved.

To ensure Inventory control is maintained over all locations, following critical points if
focused upon will help:

1. Establish and outline Operations Process for Service furnishers: Draw Standard
Operating procedure detailing warehouse inventory system process, warehouse
operations process, as well as documentation process.

Especially in a third Party Service furnisher’s facility, it is important to have process

adherence as well as define administration, approval and appreciation construction for
function fading which inventory operations will not be under control.

2. Establish inventory visibility at every location through MIS Reports: Initiate daily
merchandise count procedure to be carried out at all of the locations and reported return
to the inventory desk. Daily merchandise count should be able to reflect location
accuracy, stock accuracy as well as transaction summary for the day.
3. Monthly audits and archive count should be implemented at all locations without fail and
insist on one hundred percent adherence.
4. Central archive team to be responsible for ensuring review of all reports and controlling
inventories at all locations.
5. Visiting major sites and being present during physical stock audits on periodical or semi
annual base is extremely significant.
6. finally maintain reviewing processes and ensure training and re training is carried out
frequently in addition to at all period at location so that a process oriented culture is
imbibed and a ll operating staff understand the importance of maintaining processes as
well as archieve health.

Findings

638
International Journal of Pure and Applied Mathematics Special Issue

When maintained. Without archieve control procedure in place the store are department can
become out stocked or under stocked.

Merchandise control systems also buyers to recognize most excellent sellers early on sufficient
in the period so that reorders can be placed to increase total sale for the store.

Merchandise shortages and shrinkage can be identified using inventory control system.
Excessive shrinkage will indicate that more effective merchandising control need to the
implemented to reduce employee shoplifting.

But the size and complexity of the network inventory management challenge these days means
so as to new technology apparatus, such as circulated arrange management or inventory
optimization software, may need to be a large part of the answer.

New technology will bring its own process (and people) challenges, but we believe for most the
benefit will be well worth the efforts and investments, through again caution that experienced
hands will often need to be part of the team to ensure success.

Conclusion:

In any business, make it big or small, we must understand that taking good concern of our record
is very essential. We seeing that managers do not understand the concept of good inventory
management, we must learn to be familiar with it and its applications. One or the reasons for the
failure of a commerce is its inventory organization. In attendance are a lot of traditions to fight
failure, and we can start from here. There are new technologies that can help us maintain and
supervise out inventory. What we can do is learn, implement and evaluate our business.

Reference

1. Hameed Hussain J., Anbazhgan G., Improve of the cop of vapour compression refrigeration
system by using thermoelectric cooler, International Journal of Pure and Applied Mathematics,
V-116, I-14 Special Issue, PP-585-589, 2017
2. Nakkeeran S., Hussain J.H., Innovative technique for running a petrol engine with diesel as a
fuel, International Journal of Pure and Applied Mathematics, V-116, I-18 Special Issue, PP-41-44,
2017
3. Naveenchandran P., Vijayaragavan S.P., A sensor less control of SPM using fuzzy and ANFIS
technique, International Journal of Pure and Applied Mathematics, V-116, I-13 Special Issue, PP-
43-50, 2017
4. Hameed Hussain J., Nakkeeran S., Design and development of pepper plucking equipment,
International Journal of Pure and Applied Mathematics, V-116, I-14 Special Issue, PP-573-576,
2017
5. Naveenchandran P., Vijayaragavan S.P., A high performance inverter fed energy efficient cum
compact microcontroller based power conditioned distributed photo voltaic system,

639
International Journal of Pure and Applied Mathematics Special Issue

International Journal of Pure and Applied Mathematics, V-116, I-13 Special Issue, PP-165-169,
2017
6. Golden RenjithNimal R.J., Hussain J.H., Stress analysis of gear tooth using metal, International
Journal of Pure and Applied Mathematics, V-116, I-17 Special Issue, PP-317-322, 2017
7. Hameed Hussain J., Hariharan R., Development of temperature-time and pressure-time
diagrams for diffusion bonding ti-aa7075 dissimilar materials, International Journal of Pure and
Applied Mathematics, V-116, I-14 Special Issue, PP-493-499, 2017
8. Udayakumar R., Khanaa V., Saravanan T., Saritha G., Cross layer optimization for wireless
network (WIMAX), Middle - East Journal of Scientific Research, V-16, I-12, PP-1786-1789, 2013
9. Khanaa V., Thooyamani K.P., Udayakumar R., Cognitive radio based network for ISM band real
time embedded system, Middle - East Journal of Scientific Research, V-16, I-12, PP-1798-1800,
2013
10. Khanaa V., Mohanta K., Saravanan T., Comparative study of uwb communications over fiber
using direct and external modulations, Indian Journal of Science and Technology, V-6, I-SUPPL.6,
PP-4845-4847, 2013
11. Kumarave A., Udayakumar R., Web portal visits patterns predicted by intuitionistic fuzzy
approach, Indian Journal of Science and Technology, V-6, I-SUPPL5, PP-4549-4553, 2013
12. Thooyamani K.P., Khanaa V., Udayakumar R., An integrated agent system for e-mail
coordination using jade, Indian Journal of Science and Technology, V-6, I-SUPPL.6, PP-4758-
4761, 2013
13. Sengottuvel P., Satishkumar S., Dinakaran D., Optimization of multiple characteristics of EDM
parameters based on desirability approach and fuzzy modeling, Procedia Engineering, V-64, PP-
1069-1078, 2013
14. Udayakumar R., Khanaa V., Saravanan T., Synthesis and structural characterization of thin films
of sno2 prepared by spray pyrolysis technique, Indian Journal of Science and Technology, V-6, I-
SUPPL.6, PP-4754-4757, 2013
15. Udayakumar R., Kumarave A., Rangarajan K., Introducing an efficient programming paradigm for
object-oriented distributed systems, Indian Journal of Science and Technology, V-6, I-SUPPL5,
PP-4596-4603, 2013
16. KeranaHanirex D., Kaliyamurthie K.P., Multi-classification approach for detecting thyroid attacks,
International Journal of Pharma and Bio Sciences, V-4, I-3, PP-B1246-B1251, 2013
17. Udayakumar R., Khanaa V., Kaliyamurthie K.P., Performance analysis of resilient ftth architecture
with protection mechanism, Indian Journal of Science and Technology, V-6, I-SUPPL.6, PP-4737-
4741, 2013
18. Udayakumar R., Khanaa V., Kaliyamurthie K.P., Optical ring architecture performance evaluation
using ordinary receiver, Indian Journal of Science and Technology, V-6, I-SUPPL.6, PP-4742-4747,
2013
19. Udayakumar R., Khanaa V., Saravanan T., Chromatic dispersion compensation in optical fiber
communication system and its simulation, Indian Journal of Science and Technology, V-6, I-
SUPPL.6, PP-4762-4766, 2013
20. Sundarraj M., Study of compact ventilator, Middle - East Journal of Scientific Research, V-16, I-
12, PP-1741-1743, 2013

640
International Journal of Pure and Applied Mathematics Special Issue

21. Udayakumar R., Khanaa V., Saravanan T., Analysis of polarization mode dispersion in fibers and
its mitigation using an optical compensation technique, Indian Journal of Science and
Technology, V-6, I-SUPPL.6, PP-4767-4771, 2013
22. Gopalakrishnan K., PremJeya Kumar M., SundeepAanand J., Udayakumar R., Thermal properties
of doped azopolyester and its application, Indian Journal of Science and Technology, V-6, I-
SUPPL.6, PP-4722-4725, 2013
23. Udayakumar R., Khanaa V., Kaliyamurthie K.P., High data rate for coherent optical wired
communication using DSP, Indian Journal of Science and Technology, V-6, I-SUPPL.6, PP-4772-
4776, 2013
24. KeranaHanirex D., Kaliyamurthie K.P., Kumaravel A., Analysis of improved tdtr algorithm for
mining frequent itemsets using dengue virus type 1 dataset: A combined approach,
International Journal of Pharma and Bio Sciences, V-6, I-2, PP-B288-B295, 2015
25. Thooyamani K.P., Khanaa V., Udayakumar R., Using integrated circuits with low power multi bit
flip-flops in different approch, Middle - East Journal of Scientific Research, V-20, I-12, PP-2586-
2593, 2014
26. Gopalakrishnan K., SundeepAanand J., Udayakumar R., Electrical properties of doped
azopolyester, Middle - East Journal of Scientific Research, V-20, I-11, PP-1402-1412, 2014
27. Thooyamani K.P., Khanaa V., Udayakumar R., Partial encryption and partial inference control
based disclosure in effective cost cloud, Middle - East Journal of Scientific Research, V-20, I-12,
PP-2456-2459, 2014
28. Sundar Raj M., Saravanan T., Srinivasan V., Design of silicon-carbide based cascaded multilevel
inverter, Middle - East Journal of Scientific Research, V-20, I-12, PP-1785-1791, 2014
29. Thooyamani K.P., Khanaa V., Udayakumar R., Wide area wireless networks-IETF, Middle - East
Journal of Scientific Research, V-20, I-12, PP-2042-2046, 2014
30. Kanniga E., Srikanth S.M.K., Sundhararajan M., Optimization solution of equal dimension boxes
in container loading problem using a permutation block algorithm, Indian Journal of Science and
Technology, V-7, PP-22-26, 2014
31. Arulselvi S., Sundararajan M., Smart control system in traffic analysis using RTK-GPS standards,
International Journal of Pure and Applied Mathematics, V-116, I-15 Special Issue, PP-349-352,
2017
32. Arulselvi S., Karthik B., Sundararajan M., A frame work for road network extraction from
remotely sensed high resolution images, International Journal of Pure and Applied Mathematics,
V-116, I-15 Special Issue, PP-355-360, 2017
33. Arulselvi S., Karthik B., Sundararajan M., Super resolution method for Thumbnail Web image,
International Journal of Pure and Applied Mathematics, V-116, I-15 Special Issue, PP-369-373,
2017
34. Arulselvi S., Karthik B., Sundararajan M., Linear framework free rewriting systems, International
Journal of Pure and Applied Mathematics, V-116, I-15 Special Issue, PP-363-367, 2017
35. Kanniga E., Selvaramarathnam K., Sundararajan M., Kandigital bike operating system, Middle -
East Journal of Scientific Research, V-20, I-6, PP-685-688, 2014
36. Lakshmi C., Ponnavaikko M., Sundararajan M., Improved kernel common vector method for face
recognition varying in background conditions, Lecture Notes in Computer Science (including
subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), V-6026
LNCS, PP-175-186, 2010

641
International Journal of Pure and Applied Mathematics Special Issue

37. M. Rajesh, K.Sathesh Kumar, K.Shankar, M. Ilayaraja., SENSITIVE DATA SECURITY IN CLOUD
COMPUTING AID OF DIFFERENT ENCRYPTION TECHNIQUES, Journal of Advanced Research in
Dynamical and Control Systems, Volume 18, PP-2888-2899, 2017
38. M. Rajesh, A signature based information security system for vitality proficient information
accumulation in wireless sensor systems, International Journal of Pure and Applied
Mathematics, Volume 118, Issue 9, Pages 367-387
39. M. Rajesh, A Review on Excellence Analysis of Relationship Spur Advance in Wireless Ad Hoc
Networks, International Journal of Pure and Applied Mathematics, Volume 118, Issue 9, Pages
407-412
40. Rajesh, M., and J. M. Gnanasekar. "Path Observation Based Physical Routing Protocol for
Wireless Ad Hoc Networks." Wireless Personal Communications 97.1 (2017): 1267-1289.
41. Rajesh, M., and J. M. Gnanasekar. "Congestion Control Scheme for Heterogeneous Wireless Ad
Hoc Networks Using Self-Adjust Hybrid Model." International Journal of Pure and Applied
Mathematics 116 (2017): 537-547.
42. Rajesh, M., and J. M. Gnanasekar. "Get-Up-And-Go Efficientmemetic Algorithm Based Amalgam
Routing Protocol." International Journal of Pure and Applied Mathematics 116 (2017): 537-547.

642
643
644