Inventory Management Plan for Hazzzir Online

Project Proposal
BBA (Spring-2021)

Submitted by
Areeba Nawaz Malik Reg No: 170155
Kinza Zaheer Reg No: 170146

Faulty of Management Sciences

Air University School of Management (AUSOM)
Air University, Islamabad.

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 Project Proposal
BBA (Spring-2021)
Inventory Management Plan for Hazzzir Online

Submitted By: Areeba Nawaz Malik

(170155)
Kinza Zaheer (170146)

Supervisor: Sir Abdul Rafay

AIR UNIVERSITY SCHOOL OF MANAGEMENT,

ISLAMABAD.

*This project is submitted to the Air University, Islamabad, as a pre-requisite for the degree of BBA.

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Project idea:
Hazzzir online is an online grocery store and their office is located at G/9 Markaz. It
was started in august 2020. It is owned by Haris and his brother. The aim behind the
business was to sell grocery at cheapest price with good quality. The project idea is
that Hazzzir online want to increase their efficiency in their operations and they
discuss issues with us. As they have faced problem of overstock and out of stock so
we have planned to make inventory management system. In this system, we explain
how they manage inventory.

Objective:
We aim to provide set of computerized procedures to optimize the cost of ordering and
carrying inventory and efficiently utilizing the space in warehouse.

Problem Description:
Firm is using manual system. There is no proper method being used by the firm for
inventory due to which they have to face issues like overstock and out of stock and
they are randomly placing their inventory in warehouse which have created cluttered
and make it difficult to effectively work with in. To cater this problem, we will be
doing inventory management by using some techniques like
1. Economic Order Quantity (EOQ)
2. Lead time
3. Safety stock inventory
4. Forecast inventory accurately

And after analysis we will be redesigning the layout of warehouse. Inefficient

management of inventory will affect the profit of the firm.
Following are the benefits that firm will have after this projects:
i. It lower costs.
ii. It increased employee efficiency.
Good inventory management solutions save time. Less time spent on managing
inventory increase the productivity.

Methodology:
The project will involve collection of data and information to facilitate the design, this
will be done through:
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  Direct visual observation (phenomenon will be observed from factory)
 Face to face interview from employees
 Desk research

both primary and secondary data will be used primary data will be generated by using
methods like direct observations and face to face interviews and secondary data source
would be inventory procurement, store, sales records.

Project Scope:
This project is conducted only in the premises of hazzzir online. It has nothing to do
with other online grocery stores.
This project aims to provide only the stock optimization and layout designing for
hazzzir online.so the scope of this project will be “complete warehouse redesign of
hazzzir online”. This study will not be applicable to any other firm.

Feasibility Study:
In warehouse redesigning one of the main challenge is that errors are only identified
after the process has started but with the knowledge about potential challenges that
may arises during warehouse operations, we can predict them and stop the damage
before it started other risk involved is the resistance for the implementation of a
change in the system.
To cater such a risk, the role of leadership of top level managers.
Resources required for our project will includes financial resources as well as the man
power.

Solution Application Areas:

The project will add value to operations of the Hazzzir online.
In addition to this, project improve the accuracy of inventory order, meet growing
customer’s needs lead to more organized warehouse and increase efficiency and
productivity.

Tools/ Technology:

1. Economic Order Quantity (EOQ) ideal order quantity a firm should purchase
to minimize inventory costs such as holding costs, storage costs.
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 With this model, it’s assumed that a customer’s demand is constant and as such
inventory will deplete at a fixed rate until it finally reaches zero. The
management strategy times reorders in a way that avoids shortages of products.
2. Lead time (time taken between start and completion of the operation.
It assists the firm in predicting sales, making operations efficient and improves
customer satisfaction.
3. Safety stock inventory
Safety stock is additional quantity of an item held in inventory to reduce the
risk that item will be out of stock. With this strategy, a business owner makes
sure that a small but surplus amount of goods are kept on hand. This way, they
are able to guard against any unexpected surge in demand that could their
existing product stock.
4. Forecast inventory accurately
This technique is one of the most important when it comes to proper inventory
management. Ith accurate forecasting business owners are able to make
informed decisions and predictions on order placement from customers.

Milestones:

Id Task name Time frame

Research on 4th April 2021
inventory
Designing 9th April 2021
questionnaires
Collect 9th-19th April 2021
primary data
Collect 9th-19th April 2021
secondary
data
Obtained data 19th April 2021
Data analysis 20th April 2021
Classify 22th April 2021
material
Determine 24th April 2021
economic
order QTY
Determine 24th April 2021
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 safety stock
Determine 24th April 2021
reorder level
Determine 26th April 2021
replenishment
system
Restructure 26th April 2021
store layout
Report 7th May 2021
writing
Report 14th May 2021
submission

References:
 https://www.easyship.com/blog/inventory-management-strategies
 https://www.scribd.com/doc/69179496/Inventory-Management-Proposal
 https://www.bigcommerce.com/blog/inventory-management/#inventory-
management-techniques
 https://clearspider.net/blog/top-ten-benefits-inventory-management/

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