Section-2

Local NWC Management System

‘’Mayer Doya Varieties Store’’ is grocery store located in Hazi Sayed Ali Super market,
Bashundhara Road, Vatara, Dhaka-1229, Bangladesh. They offer all kinds of grocery products to
the customers at wholesale & retail price. Most of the time a large amount of products the agents
deliver them to their store, and for some products they have to go to another whole sellers or
suppliers to buy. The store's daily sale is approximately 16000-20000 BDT. They pursue a
moderate liquidity procedure. They regularly hold 5000 BDT daily. If needed or any kind of
issues appear they increase the amount of money or cash holding, because they want to manage
a proper transaction system. Their investment in the inventory is 40000 BDT. The store keeps
some safety stock worth of 5000-7000 BDT. To keep their stock they rented a little room close to
their shop which cost 5000 BDT per month. Sometimes, they also offer credit to their customers.
It depends on trust. Credit deals sum depends from individual to individual. Normally, they offer
credit to their wholesale customers, most of the time it is a large amount approximately 5000-
12000 BDT. They offer credit month or regular basis. Moreover, they offer 20-40 BDT discount
if the sum is in excess of 500-1000 BDT on regular basis and 100-300 BDT discount on 5000-
12000 BDT on month or regular basis.

Sometimes, they also get trade credit from the suppliers or providers. They have a decent relation
with their suppliers and they need to pay their supplier within 10-20 days depends on the item. If
they pay quickly or instantly, they get discount from the suppliers. They try their best to get
discount as much possible from their suppliers. So, they try to pay their credit amount as quickly
as possible because the more they will get discount the more they can gain profit per products.
Whereas, the store has a constant sale, they do not face any problems to pay their credit to their
suppliers. It is because they provide good quality products to their customers, which they have
been received from their suppliers. Sometimes, agents approach them to keep their items in the
store. The store gets some discount if they can sell the agents’ products and they also get longer
trade credit from the agents if they buy product from them. The store's initial investment was
1000000 BDT. From benefit, they make, they keep a portion in bank and rest of the benefit they
re-invest in their store, for example, re-purchase items, shop maintenance and to pay others bills.

We figure out that they should extend their store. They are kind of good local shop in our place.
If they can open new shops in another appropriate spot, there is a high scope they can attract and
grab more customers’ attention. For doing these, maintaining great administrations is an
obligatory thing. Additionally, they need to give a wide range of items for giving variety
products to their customers. At present, their rivals have a greater store and they can keep wide
range of items. ‘’Mayer Doya Varieties Store’’ has a consistent sale but since of their shorter
space, they couldn't keep wide range of items as like their rivals can. Thus, they lose their sale
sometimes. Also by investing more capital, they can keep more inventories in their store.
Appendix for local business-

Figure: Business card of ‘’Mayer Doya Varieties Store’’

Figure: Business card of ‘’Mayer Doya Varieties Store’’