“Narsee Monjee Institute of Management Studies” (NMIMS)

A PROJECT REPORT

ON

“Comparative study of Inventory Management at Pantaloons”

Name SURAJ ARUN PATIL
SAP ID- 77221681784
Course PGDBM-OM
Submission Date 19/11/2023
Under Supervision of Prof. Swapnil Fadanis

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 CERTIFICATE

I, Suraj Arun Patil certify that the Project Report entitled “Comparative study of
Inventory Management at Pantaloons” is an Original one and has not been submitted
earlier either to NMIMS University, Mumbai or to any other institution for fulfilment of the
requirement of a course of PGDBM-OM.

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Comparative study
of
Inventory
Management
at
Pantaloons

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 ACKNOWLEDGEMENT

One of the most wonderful pieces of composing a report is that, it offers the chance to
thank every one of the people who have added to it. In doing likewise I might want to
communicate my earnest gratitude for offering me this great chance to examine the viable
universe of living.

I'm particularly appreciative to my aide MR. SWAPNIL FADANIS and MR.

ABHISHEK SHIROMANI who generally urged and enlivened to work on the work at
different stages. Last yet not the least, I offer significant thanks toward every one
individual who have straightforwardly or in a roundabout way contributes culmination of
the task work. I additionally thank every one of my seniors and companions for directing
me quietly. I therefore announce that this is my unique piece of work.

I take the opportunity to express my gratitude and thanks to our university all Professors
and Student Support staff for providing me opportunity to utilize their resources for the
completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment which enhanced my knowledge.

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 TABLE OF CONTENTS

Chapter I: Plan of the Study

1.1 Introduction to topic

1.2 Objective of the study
1.3 Literature review and/or Theoretical Background

Chapter II: Company Profile / Industry profile or details

Chapter III: Research Methodology

3.1 Purpose of the study

3.2 Research Objectives of the study

3.3 Research Methodology of the study

3. 3.1 Research Design

3.3.2 Data Collection Techniques

3.3.3 Sample design

3.3.4 Method of data collection

3.3.5 Limitations

Chapter IV: Data Analysis and Interpretation

Chapter V: Findings & Conclusions

Chapter VI: Suggestion/ Recommendation

Chapter VII: BIBLIOGRAPHY/ ANNEXURES

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Chapter: I
Introduction

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 INTRODUCTION TO INVENTORY MANAGEMENT

INVENTORY

Inventory means a list compiled for some formal purpose, such as the details of an estate
going to probate, or the contents of a house let furnished. This remains the prime meaning in
British English. In the USA and Canada the term has developed from a list of good
and materials to the goods and material available in stock by a business; and this has become
the primary meaning of the term in North American English, equivalent to the term "stock"
in British English. In accounting, inventory or stock is considered an asset.

INVENTORY MANAGEMENT

Inventory Management is principally about indicating the shape and level of supplied
products. It is expected at various areas inside an office or inside numerous areas of an
inventory organization to go before the customary and arranged course of creation and load
of materials.

The extent of stock administration concerns the barely recognizable differences between
recharging lead time, conveying expenses of stock, resource the board, stock estimating,
stock valuation, stock perceivability, future stock cost gauging, actual stock, accessible actual
space for stock, quality administration, renewal, returns and flawed products, and request
anticipating. Adjusting these contending prerequisites prompts ideal stock levels, which is an
on-going cycle as the business needs shift and respond to the more extensive climate.

Stock administration includes a retailer trying to obtain and keep a legitimate product variety
while requesting, delivery, dealing with, and related costs are held in line. It additionally
includes frameworks and cycles that distinguish stock necessities, set targets, give renewal
strategies, report genuine and projected stock status and handle all capabilities connected
with the following and the executives of material. This would incorporate the checking of
material moved into and out of stockroom areas and the accommodating of the stock adjusts.
It additionally may incorporate ABC examination, part following, cycle counting support,

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and so forth. The executives of the inventories, with the essential target of
deciding/controlling stock levels inside the actual conveyance framework, capabilities to
adjust the requirement for item accessibility against the requirement for limiting stock
holding and taking care of expenses.

DEFINITION OF INVENTORY MANAGEMENT

Inventory management is principally about indicating the size and arrangement of supplied
products. Inventory management is expected at various areas inside an office or inside
numerous areas of a stock organization to safeguard the standard and arranged course of
creation against the irregular unsettling influence of running out of materials or products. The
extent of inventory management additionally concerns the scarcely discernible differences
between renewal lead time, conveying expenses of inventory, resource management,
inventory gauging, inventory valuation, inventory perceivability, future inventory cost
determining, actual inventory, accessible actual space for inventory, quality management,
recharging, returns and flawed merchandise and request estimating.

The reasons for keeping stock

There are three basic reasons for keeping an inventory:

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 1. Time - The time lags present in the supply chain, from supplier to user at every stage,
requires that you maintain certain amounts of inventory to use in this lead time.
However, in practice, inventory is to be maintained for consumption during
'variations in lead time'. Lead time itself can be addressed by ordering that many days
in advance.
2. Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand,
supply and movements of goods.
3. Economies of scale - Ideal condition of "one unit at a time at a place where a user
needs it, when he needs it" principle tends to incur lots of costs in terms of logistics.
So bulk buying, movement and storing brings in economies of scale, thus inventory.

All these stock reasons can apply to any owner or product

Special terms used in dealing with inventory

 Stock Keeping Unit (SKU) is a unique combination of all the components that are
assembled into the purchasable item. Therefore, any change in the packaging or product
is a new SKU. This level of detailed specification assists in managing inventory.
 Stock out means running out of the inventory of an SKU.
 "New old stock" (sometimes abbreviated NOS) is a term used in business to refer to
merchandise being offered for sale that was manufactured long ago but that has never
been used. Such merchandise may not be produced anymore, and the new old stock may
represent the only market source of a particular item at the present time.

Typology

1. Buffer/safety stock
2. Cycle stock (Used in batch processes, it is the available inventory, excluding buffer
stock)

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 3. De-coupling (Buffer stock held between the machines in a single process which
serves as a buffer for the next one allowing smooth flow of work instead of waiting
the previous or next machine in the same process)
4. Anticipation stock (Building up extra stock for periods of increased demand - e.g. ice
cream for summer)
5. Pipeline stock (Goods still in transit or in the process of distribution - have left the
factory but not arrived at the customer yet)

Inventory examples

While bookkeepers frequently examine inventory with regards to merchandise available

to be purchased, associations - makers, specialist organizations and not-for-benefits
additionally have inventories (installations, furniture, supplies, and so on) that they don't
mean to sell. Producers', merchants', and wholesalers' inventory will in general group in
distribution centers. Retailers' inventory might exist in a stockroom or in a shop or store
open to clients. Inventories not planned available to be purchased to clients or to clients
might be held in any premises an association utilizes. Stock ties up cash and, if
uncontrolled, it will be difficult to know the genuine degree of stocks and subsequently
difficult to control them.

While the purposes behind holding stock were covered before, most assembling
associations normally partition their "merchandise available to be purchased" inventory
into:

 Raw materials - materials and components scheduled for use in making a product.
 Work in process, WIP - materials and components that have begun their transformation
to finished goods.
 Finished goods - goods ready for sale to customers.
 Goods for resale - returned goods that are salable.

For example:

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Manufacturing

A canned food producer's materials inventory incorporates the fixings to frame the food
varieties to be canned, void jars and their covers (or curls of steel or aluminum for
developing those parts), names, and whatever else (patch, stick, and so on) that will shape
part of a completed can. The company's work in process incorporates those materials from
the hour of delivery to the work floor until they become total and prepared available to be
purchased to discount or retail clients. This might be tanks of arranged food, filled jars not
yet marked or sub-gatherings of food parts. It might likewise incorporate completed jars that
are not yet bundled into containers or beds. Its done great inventory comprises of the
multitude of filled and marked jars of food in its stockroom that it has produced and wishes
to offer to food merchants (wholesalers), to supermarkets (retailers), and even maybe to
buyers through game plans like production line stores and outlet focuses.

PURPOSE
Inventory proportionality is the objective of interest driven inventory management. The
essential ideal result is to have similar number of days' (or hours', and so on) worth of
inventory close by across all items so the hour of run out of all items would be synchronous.
In such a case, there is no "abundance inventory," that is, inventory that would be left over of
one more item when the main item runs out. Overabundance inventory is sub-par on the
grounds that the cash spent to acquire it might have been used better somewhere else, for
example to the item that just ran out.

The optional objective of inventory proportionality is inventory minimization. By

coordinating precise interest estimating with inventory management, renewal inventories can
be booked to show up with perfect timing to recharge the item bound to run out first, while
simultaneously offsetting the inventory supply, all things considered, to make their
inventories more relative, and in this way closer to accomplishing the essential objective.
Precise interest gauging likewise permits the ideal inventory extents to be dynamic by
deciding expected deals out into the future; this considers inventory to be in relation to
expected transient deals or utilization as opposed to past midpoints, a substantially more
exact and ideal result.

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Coordinating interest estimating into inventory management in this manner likewise
considers the expectation of the "can fit" moment that inventory capacity is restricted on a for
every item premise.

Applications
The strategy of inventory proportionality is generally proper for inventories that stay
concealed by the customer, rather than "keep full" frameworks where a retail buyer might
want to see full retires of the item they are purchasing so as not to naturally suspect they are
purchasing something old, undesirable or old; and separated from the "trigger point"
frameworks where item is reordered when it hits a specific level; inventory proportionality is
utilized successfully by in the nick of time fabricating cycles and retail applications where
the item is stowed away from view.

One early illustration of inventory proportionality utilized in a retail application in the US

was for engine fuel. Engine fuel (for example gas) is by and large put away in underground
capacity tanks. The drivers don't know whether they are paying fuel off the top or lower part
of the tank, nor need they give it a second thought. Furthermore, these capacity tanks have a
greatest limit and can't be overloaded. At last, the item is costly. Inventory proportionality is
utilized to adjust the inventories of the various grades of engine fuel, each put away in
devoted tanks, in relation to the deals of each grade. Abundance inventory isn't seen or
esteemed by the shopper, so it is just money sunk (in a real sense) into the ground. Inventory
proportionality limits how much overabundance inventory conveyed in underground capacity
tanks. This application for engine fuel was first evolved and executed by Petroleum delicate
Partnership in 1990 for Chevron Items Organization. Most significant oil organizations
utilize such frameworks today.

Roots

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The use of inventory proportionality in the United States is thought to have been inspired by
Japanese just-in-time parts inventory management made famous by Toyota Motors in the
1980s.

High Level Inventory Management

It appears to be that around 1880 there was an adjustment of assembling practice from
organizations with somewhat homogeneous lines of items to on a level plane coordinated
organizations with remarkable variety in cycles and items. Those organizations (particularly
in metalworking) endeavored to make progress through economies of extension - the
additions of mutually creating at least two items in a single office. The chiefs currently
required data on the impact of item blend choices on generally speaking benefits and thusly
required precise item cost data. Various endeavors to accomplish this were fruitless because
of the gigantic above of the data handling of the time. Nonetheless, the thriving requirement
for monetary announcing after 1900 made undeniable tension for monetary bookkeeping of
stock and the management need to cost oversee items became eclipsed. Specifically, it was
the requirement for examined accounts that fixed the destiny of administrative expense
bookkeeping. The predominance of monetary revealing bookkeeping over management
bookkeeping stays right up to the present day with few exemptions, and the monetary
detailing meanings of 'cost' have contorted successful management 'cost' bookkeeping since
that time. This is especially valid for inventory.

Hence, high-level financial inventory has these two basic formulas, which relate to the
accounting period:

1. Cost of Beginning Inventory at the start of the period + inventory purchases within
the period + cost of production within the period = cost of goods available
2. Cost of goods available − cost of ending inventory at the end of the period = cost of
goods sold

The benefit of this formula is that the first absorbs all overheads of production and raw
material costs into a value of inventory for reporting. The second formula then creates the

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new start point for the next period and gives a figure to be subtracted from the sales price to
determine some form of sales-margin figure.

Manufacturing management is more interested in inventory turnover ratio or average days to

sell inventory since it tells them something about relative inventory levels.

Inventory turnover ratio (also known as inventory turns) = cost of goods sold / Average
Inventory = Cost of Goods Sold / ((Beginning Inventory + Ending Inventory) / 2) and its
inverse
Average Days to Sell Inventory = Number of Days a Year / Inventory Turnover Ratio = 365
days a year / Inventory Turnover Ratio

This proportion gauges how often the inventory turns more than a year. This number tells
how much money/merchandise are tied up hanging tight for the cycle and is a basic
proportion of interaction dependability and viability. So, a manufacturing plant with two
inventory turns has a half year stock close by, which is by and large not a decent figure
(contingent on the business), while a production line that moves from six goes to twelve turns
has presumably further developed viability by 100 percent. This improvement will have a
few adverse outcomes in the monetary detailing, since the 'esteem' now put away in the plant
as inventory is diminished.

While these bookkeeping proportions of inventory are exceptionally valuable as a result of

their straightforwardness, they are likewise loaded with the risk of their own suppositions.
There are, as a matter of fact, so many things that can shift concealed under this appearance
of straightforwardness that an assortment of 'changing' suppositions might be utilized. These
include:

 Specific Identification
 Weighted Average Cost
 Moving-Average Cost
 FIFO and LIFO.

Inventory Turn is a financial accounting tool for evaluating inventory and it is not necessarily
a management tool. Inventory management should be forward looking. The methodology

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applied is based on historical cost of goods sold. The ratio may not be able to reflect the
usability of future production demand, as well as customer demand.

Business models, including Just in Time (JIT) Inventory, Vendor Managed Inventory (VMI)
and Customer Managed Inventory (CMI), attempt to minimize on-hand inventory and
increase inventory turns. VMI and CMI have gained considerable attention due to the success
of third-party vendors who offer added expertise and knowledge that organizations may not
possess.

Accounting for inventory

Each country has its own rules about accounting for inventory that fit with their financial-
reporting rules.

For example, organizations in the U.S. define inventory to suit their needs within US
Generally Accepted Accounting Practices (GAAP), the rules defined by the Financial
Accounting Standards Board (FASB) (and others) and enforced by the U.S. Securities and
Exchange Commission (SEC) and other federal and state agencies. Other countries often
have similar arrangements but with their own accounting standards and national agencies
instead.

It is intentional that financial accounting uses standards that allow the public to compare
firms' performance, cost accounting functions internally to an organization and potentially
with much greater flexibility. A discussion of inventory from standard and Theory of
Constraints-based (throughput) cost accounting perspective follows some examples and a
discussion of inventory from a financial accounting perspective.

The internal costing/valuation of inventory can be complex. Whereas in the past most
enterprises ran simple, one-process factories, such enterprises are quite probably in the
minority in the 21st century. Where 'one process' factories exist, there is a market for the
goods created, which establishes an independent market value for the good. Today, with
multistage-process companies, there is much inventory that would once have been finished
goods which is now held as 'work in process' (WIP). This needs to be valued in the accounts,
but the valuation is a management decision since there is no market for the partially finished
product.

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Financial accounting
An association's inventory can seem a blended gift, since it considers a resource on the
monetary record, yet it likewise ties up cash that could fill for different needs and requires
extra cost for its security. Inventory may likewise cause critical duty costs, contingent upon
specific nations' regulations in regards to deterioration of inventory, as in Thor Power
Apparatus Organization v. Official.

Inventory shows up as an ongoing resource on an association's monetary record on the

grounds that the association would be able, on a basic level, transform it into cash by selling
it. A few associations hold bigger inventories than their tasks expect all together blowing up
their clear resource esteem and their apparent productivity.

Notwithstanding the cash restricted by getting inventory, inventory additionally brings

related costs for stockroom space, for utilities, and for protection to cover staff to deal with
and safeguard it from fire and different debacles, oldness, shrinkage (robbery and mistakes),
and others. Such holding expenses can mount up: between a third and a portion of its
securing esteem each year.

Organizations that stock too little inventory can't exploit huge orders from clients in the event
that they can't convey. The clashing goals of cost control and client assistance frequently set
an association's monetary and working chiefs in opposition to its deals and promoting
divisions. Sales reps, specifically, frequently get deals commission installments, so
inaccessible products might lessen their likely private pay. This contention can be limited by
diminishing creation time to being close or not as much as clients' normal conveyance time.
This work, known as "Lean creation" will essentially decrease working capital restricted in
inventory and lessen fabricating costs (See the Toyota Creation Framework).

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Role of inventory accounting

By assisting the association with pursuing better choices, the bookkeepers can assist the
public area with changing in an exceptionally certain manner that conveys expanded
incentive for the citizen's speculation. It can likewise serve to boost progress and to guarantee
that changes are practical and compelling in the long haul, by guaranteeing that achievement
is properly perceived in both the formal and casual prize frameworks of the association.

To say that they play a critical part to play is putting it mildly. Finance is associated with the
vast majority of the key business processes inside the association. It ought to control the
stewardship and responsibility frameworks that guarantee that the association is leading its
business in a fitting, moral way. It is important that these establishments are immovably laid.
So frequently they are the litmus test by which public trust in the establishment is either won
or lost.

Money ought to likewise be giving the data, examination and exhortation to empower the
associations' administration directors to successfully work. This goes past the conventional
distraction with financial plans - how much have we spent up until this point, what amount
do we have left to spend? It is tied in with assisting the association with bettering grasp its
own presentation. That implies making the associations and grasping the connections
between given inputs - the assets brought to bear - and the results and results that they
accomplish. It is additionally about understanding and effectively overseeing takes a chance
inside the association and its exercises.

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FIFO vs. LIFO accounting
When a merchant buys goods from inventory, the value of the inventory account is reduced
by the cost of goods sold (COGS). This is simple where the COGS has not varied across
those held in stock; but where it has, then an agreed method must be derived to evaluate it.
For commodity items that one cannot track individually, accountants must choose a method
that fits the nature of the sale. Two popular methods that normally exist are: FIFO and LIFO
accounting (first in - first out, last in - first out). FIFO regards the first unit that arrived in
inventory as the first one sold. LIFO considers the last unit arriving in inventory as the first
one sold. Which method an accountant selects can have a significant effect on net income
and book value and, in turn, on taxation. Using LIFO accounting for inventory, a company
generally reports lower net income and lower book value, due to the effects of inflation. This
generally results in lower taxation. Due to LIFO's potential to skew inventory value, UK
GAAP and IAS have effectively banned LIFO inventory accounting.

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Standard cost accounting

Standard expense bookkeeping utilizes proportions called efficiencies that look at the work
and materials really used to create a decent with those that similar merchandise would have
expected under "standard" conditions. However long real and standard circumstances are
comparative, scarcely any issues emerge. Sadly, standard expense bookkeeping techniques
created around a long time back, when work contained the main expense in fabricated
merchandise. Standard strategies keep on stressing work effectiveness despite the fact that
that asset currently comprises a (tiny) part of cost generally speaking.

Standard expense bookkeeping can hurt administrators, laborers, and firms in more ways
than one. For instance, a strategy choice to build inventory can hurt an assembling director's
exhibition assessment. Expanding inventory requires expanded creation, and that implies that
cycles should work at higher rates. When (not if) something turns out badly, the interaction
takes more time and uses more than the standard work time. The administrator seems
answerable for the abundance, despite the fact that s/he has zero command over the creation
necessity or the issue.

In unfriendly financial times, firms utilize similar efficiencies to scale back, right size, or in
any case diminish their workforce. Laborers laid off under those conditions have even less
command over abundance inventory and cost efficiencies than their supervisors.

Numerous monetary and cost bookkeepers have concurred for a long time on the allure of
supplanting standard expense bookkeeping. They have not, nonetheless, tracked down a
replacement.

Theory of constraints cost accounting

Eliyahu M. Goldratt fostered the Hypothesis of Limitations to some degree to address the
expense bookkeeping issues in what he calls the "cost world." He offers a substitute, called
throughput bookkeeping, that utilizes throughput (cash for merchandise offered to clients)
instead of result (products created that might sell or may support inventory) and considers

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work as a fixed as opposed to as a variable expense. He characterizes inventory essentially as
all that the association possesses that it intends to sell, including structures, apparatus, and
numerous different things notwithstanding the classes recorded here. Throughput
bookkeeping perceives just a single class of variable expenses: the genuinely factor costs,
similar to materials and parts, which change straightforwardly with the amount created

Completed merchandise inventories remain monetary record resources, yet work productivity
proportions never again assess administrators and laborers. Rather than a motivator to
diminish work cost, throughput bookkeeping centers consideration around the connections
between throughput (income or pay) on one hand and controllable working costs and changes
in inventory on the other. Those connections focus on the limitations or bottlenecks that keep
the framework from delivering more throughput, as opposed to individuals - who have next
to zero command over their circumstances.

National Accounts
Inventories also play an important role in national accounts and the analysis of the business
cycle. Some short-term macroeconomic fluctuations are attributed to the inventory cycle.

Distressed Inventory
Also known as distressed or expired stock, distressed inventory is inventory who’s potential
to be sold at a normal cost has passed or will soon pass. In certain industries it could also
mean that the stock is or will soon be impossible to sell. Examples of distressed inventory
include products that have reached their expiry date, or have reached a date in advance of
expiry at which the planned market will no longer purchase them (e.g., 3 months left to
expiry), clothing that is defective or out of fashion, music that is no longer popular and old
newspapers or magazines. It also includes computer or consumer-electronic equipment that is
obsolete or discontinued and whose manufacturer is unable to support it. One current
example of distressed inventory is the VHS format.

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In 2001, Cisco wrote off inventory worth US $2.25 billion due to duplicate orders. This is
one of the biggest inventory write-offs in business history.

Inventory Credit
Inventory credit refers to the use of stock, or inventory, as collateral to raise finance. Where
banks may be reluctant to accept traditional collateral, for example in developing
countries where land title may be lacking, inventory credit is a potentially important way of
overcoming financing constraints. This is not a new concept; archaeological evidence
suggests that it was practiced in Ancient Rome. Obtaining finance against stocks of a wide
range of products held in a bonded warehouse is common in much of the world. It is, for
example, used with Parmesan cheese in Italy. Inventory credit on the basis of stored
agricultural produce is widely used in Latin American countries and in some Asian
countries. A precondition for such credit is that banks must be confident that the stored
product will be available if they need to call on the collateral; this implies the existence of a
reliable network of certified warehouses. Banks also face problems in valuing the inventory.
The possibility of sudden falls in commodity prices means that they are usually reluctant to
lend more than about 60% of the value of the inventory at the time of the loan.

The Importance of Inventory Management

The inventory management is required just like a part of inventory network organization to
monitor the assembling program towards an unsettling influence. Additionally, it likewise
keeps the framework from working unavailable, parts and items. Fundamentally, inventory
dealing with centers around resource management, renewal lead time, inventory anticipating,
inventory valuation, inventory conveying value, gauge of potential resource management
rates, inventory perceivability, actual inventory and the space accessible for its convenience,
want estimating likewise as return of faulty items.

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The main objective of inventory overseeing is consistently to find some kind of harmony
among the fighting particulars for achieving ideal inventory ranges. Since the cycle is
nonstop, it requests a shift from business needs. This likewise helps with obliging the needs
of greater climate. Inventory dealing with attempts to deal with an impressive assortment of
product. Moreover, inventory management additionally helps with controlling difficulties
like delivery, requesting and managing supplies. Furthermore, the material management and
following areas of inventory overseeing additionally incorporate element like oversight of
parts which are moved in or out of distribution centers and compromise of inventory adjusts.
Different areas of inventory management incorporate incredible arrangement checking and
cycle counting help. Notwithstanding what is the nature or estimation of your separate
venture, inventory management frequently conveys a forceful edge. Considering that the
training guarantees objective satisfaction, perceivability and effective management, it permits
near valuing on a client to-client premise. Also, inventory management helps business
owners in making vital choices concerning the type of inventory that should be conveyed for
obliging inventory management methods. Not just does inventory management work on how
much fulfilled clients for a business, yet likewise targets limiting the functioning charges.
Besides, inventory taking care of works with the management of your venture with inventory
norms as well as expenses. Associations working in handling and assembling enterprises
need mind boggling as well as improved on cycles of management control. Inventory
management helps in smoothing out such issues via compelling dissemination
simultaneously as consistence for advancement of programming and different strategies.

Absolute last yet not the base, inventory managing likewise will help in laying out a renewal
technique for different items current in distribution centers. Besides, furthermore, it frames
indicated suggestions by controlling continuous inert stock and overabundance inventory.
Inside a nutshell, it couldn't be uncalled for to express that inventory management gives a
vital forceful advantage to associations by conveying an easy-to-use stock assessment
instrument that gives brief information.

OBJECTIVE OF INVENTORY MANAGEMENT IN

PANTALOONS

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The main objective to study inventory management is

1. To keep inventory at adequately undeniable level to flawlessly perform creation and deals
exercises.

2. To limit interest in inventory at least level to expand productivity.

Through the proficient Management of Inventory of the abundance of proprietors will be

augmented. To lessen the prerequisite of money in business, inventory turnover ought to be
augmented and management ought to save itself from loss of creation and deals, emerging
from its being unavailable. Then again, management ought to boost stock turnover with the
goal that interest in inventory could be limited and then again, it ought to keep sufficient
inventory to work the creation and deals exercises productively. The fundamental goal of
inventory management is to keep up with inventory at fitting level so it is neither
unnecessary nor shy of necessity Hence, management is confronted with 2 clashing targets.

(1) To keep inventory at adequately significant level to flawlessly perform creation and deals
exercises.

(2) To limit interest in inventory at least level to boost benefit.

Both in satisfactory and unnecessary amounts of inventory are unfortunate for business.
These commonly clashing targets of inventory management can be made sense of is from of
expenses related with inventory and benefits building from it low quantum of inventory
diminishes expenses and elevated degree of inventory saves business from being unavailable
and helps in running creation and deals exercises without a hitch.

The goals of inventory management can be made sense of exhaustively as under: -

(I) To guarantee that the stockpile of natural substance and completed merchandise will stay
persistent so creation process isn't ended and requests of clients are properly met.

(ii) To limit conveying cost of inventory.

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(iii) To keep interest in inventory at ideal level.

(iv) To diminish the misfortunes of robbery, oldness and wastage and so on.

(v) To make plan available to be purchased of slow m-moving things.

(vi) To limit inventory requesting costs.

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 LITERATURE REVIEW

There is need for establishment of a legitimate inventory control procedure in any business
association in creating like Nigeria.
As per Kotler (2000), inventory management alludes to every one of the exercises engaged
with creating and dealing with the inventory levels of natural substances, semi-completed
materials (working-progress) and completed great so sufficient supplies are accessible and
the expenses of over or under stocks are low.
Rosenblatt (1977) says: "The expense of keeping up with inventory is remembered for the
last cost paid by the buyer. Great in inventory addresses an expense for their proprietor. The
producer has the cost of materials and work. The distributer likewise has reserves restricted".
In this manner, the fundamental objective of the scientists is to keep a degree of inventory
that will give ideal stock at most minimal expense.
Morris (1995) focused on that inventory management in its broadest viewpoint is to keep the
most prudent measure of one sort of resource to work with an expansion in the complete
worth of all resources of the association - human and material assets.
Keth et al. (1994) in their text likewise expressed that the significant target of inventory
management and control is to illuminate supervisors how much regarding a decent to re-
request, when to re-request the upside, how habitually orders ought to be put and what the
suitable security stock is, for limiting stock outs. Consequently, the general objective of
inventory is to have what is required, and to limit the times one is unavailable.
Drury (1996) characterized inventory as a supply of products that is kept up with by a
business fully expecting some future interest. This definition was likewise upheld by
Schroeder (2000) who focused on that inventory management affects all business
capabilities, especially activities, promoting, bookkeeping, and money. He laid out that there
are three thought processes in holding inventories, which are exchange, preparatory and
theoretical intentions. The exchange rationale happens when there is a need to hold stock to
meet creation and deals prerequisites. A firm could likewise choose to hold extra measures of
stock to cover the likelihood that it might have under assessed its future creation and deals
necessities. This addresses a prudent thought process, which applies just when future interest
is unsure. The speculative rationale in holding inventory could tempt a firm to buy a bigger
amount of materials than typical fully expecting creating unusual gains. Advance acquisition
of natural substances in inflationary times is one type of theoretical way of behaving.

25
 Chapter: II
Company Profile

26
 OVERVIEW

As India’s leading retailer, Pantaloon Retail inspires trust through innovative offerings,
quality products and affordable prices that help customers achieve a better quality of
life every day. We serve customers in 85 cities and 60 rural locations across the country
through over 15 million square feet of retail space.

Pantaloon Retail India Limited (PRIL) was incorporated on October 12,1987 as ‘Manz Wear’
Private Limited under the stewardship of Mr. Kishore Biyani. Pantaloons ranks amongst the
top five retailers in India. The Company was converted into a Public Limited Company on
September 20,1991 and on September 25,1992 the name was changed to Pantaloon Fashions
(India) Limited and the same time it went public. Today it has approximately 14,000
shareholders. It changed its name to Pantaloon Retail (India) Limited on 7th July 1999.

From a humble beginning in 1987, Pantaloon has today evolved as a leading manufacturer-
retailer in the country with 13 departmental stores and 5 hypermarkets operating across the
country. It has been a remarkable journey for PRIL as it evolved from a manufacturing to a
completely integrated player controlling the entire value chain. It has been a pioneer in
introducing the concept of Mega Retail Stores in India called 'Pantaloons' for the entire
family. It has diversified, and has come up with its new concept with Big Bazaar and Food
Bazaar. In an extremely price-sensitive market like India, the Pantaloons chain of stores has
been successful in maintaining the equilibrium between quality and price.

The company has aggressive growth plans to achieve scale of economy and take leadership
position in this evolving industry. PRIL's ability to evolve from smaller format into large
format retail stores is well proven. With aggressive growth plans the company has identified
many locations across the company to roll out stores in the future. The company plans to
increase the retail space under control from 2 lakhs in 02 to more than 1 million square feet
over the next 3 years to emerge as a 'Godzilla' of the Indian Retail Industry.

27
 BASIC INFORMATION

Corporate Mission
"We share the vision and belief that by improving our performance through innovative spirit
and dedication, we shall serve our customers and stakeholders satisfactorily."

Major Milestones

During its evolution, the company achieved various milestones and demonstrated
innovativeness and leadership by pioneering concepts that has now become industry
standards. Some of the major milestones achieved by the company in its life span of 14 years
are enumerated below:

S. No. Brand Name Year Product

1 The Pantaloon 1987-88 Trousers
2 Bare 1989-90 Indian Jean brand
3 John Miller 1993-94 Shirt inspired by America -
Formal shirt
4 The Pantaloon Shoppee 1993-94 Exclusive menswear store
in franchisee format
launched across nation
5 Pantaloons 1997-98 India's Family Store
launched

28
 BRANDS UNDER PANTALOONS

John Miller Shirts - The shirt inspired by America

Pantaloon - India's No.1 trousers

Annabelle -Western wear for the contemporary modern woman

Ajile - More than Sportswear

29
 Honey - T-2000 best trousers of the country

Bare Kids - For children from age group of 3-14 age group

Disney - Kids wear

Popeye Kids clothing - Priced very reasonably

30
 AWARDS

CISO Award 2012

 Future Group was felicitated for using Information security technology in the most
effective and innovative manner.

Golden Spoon Awards 2012

 Most Admired Food and Grocery Retailer of the Year for its Private Labels in Big
Bazaar – Future Group.
 Retail Professional of the Year for innovation in Private Brands- Mr. Devendra
Chawla, President – Food & FMCG Category.

Images Fashion Awards (IFA) 2012

 Most Admired Private Label Retailer - Pantaloons.

ET Retail Awards 2012

 FedEx Most Trusted Retailer of the Year Award – Big Bazaar.

 TRRAIN Retail Employee of the Year Award – Mr. Jitendra Kalyani, Big Bazaar.

Recognition by CMO Council, USA and CMO Asia

 Master Brand Award - Future Supply Chains.

 Retail Icon of the Year- Mr. Anshuman Singh, MD & CEO, Future Supply Chains.

Bloomberg UTV B-School Excellence Award

 Best educational institute in Retail- Future University.

31
 LEADERSHIP

KISHORE BIYANI – MANAGING DIRECTOR

Kishore Biyani is the Overseeing Overseer of Pantaloon Retail (India) Ltd and the Gathering
CEO of Future Gathering. Considered a trailblazer of present day retail in India, Kishore's
authority has driven Pantaloon Retail's development as India's driving retailer working
various retail designs that take care of the whole bin of Indian purchasers.

Kishore Biyani drove the organization's introduction to coordinated retail with the launch of
the Pantaloons family store in 1997. This was continued in 2001 with the send off of
Enormous Market, an exceptionally Indian hypermarket design that democratized shopping
in India. It mixes the look and feel of the Indian marketplace with parts of current retail like
decision, accommodation and quality. This was trailed by various different configurations
including Food Market, Focal and Old neighborhood.

2006 denoted the development of Future Gathering that united the various drives taken by
bunch organizations in the space of Retail, Brands, Space, Capital, Planned operations and
Media.

32
Kishore Biyani advocates 'Indianness' as the fundamental belief driving the gathering and the
corporate philosophy 'Revise Rules, Hold Values.'

Routinely positioned among India's most respected Chiefs, he is the writer of the book It
Occurred in India. He has won various honors from government bodies and the confidential
area in India and abroad and is on the leading group of various bodies, remembering the
Public Advancement Starting point for India and the New York Design Board.

SHAILESH HARIBHAKTI - CHAIRMAN

Shailesh Haribhakti is the Administrator and Non-Chief Free Overseer of the Organization.
He is the Overseeing Accomplice of Haribhakti and Co., Sanctioned Bookkeepers and the
Administrator of BDO Counseling. He is the Administrator of the Banking, Money and
Protection Panel of the Indian Vendor's Chamber and Individual from the Adhoc Warning
Board for Graduate degree in Management Studies, College of Mumbai. He is on the
Leading body of a few public restricted organizations, including ACC Ltd., Mahindra Life
space Engineers Ltd. furthermore, Raymond Ltd.

He is a Contracted Bookkeeper, Cost Bookkeeper, and a Confirmed Inside Evaluator.

RAKESH BIYANI – EXCECUTIVE DIRECTOR

Rakesh Biyani is an Executive Director of the Company. He is actively involved in category

management, retail stores operations, information technology and exports.

VIJAY BIYANI - EXCECUTIVE DIRECTOR

Vijay Biyani is an Executive Director of the Company. He brings more than 25 years of
experience in textile, yarn and ready-made apparels business. He is actively involved in the
financial and administrative functions of the Company.

33
KAILASH BHATIA – EXCECUTIVE DIRECTOR

Co-founder of the ColorPlus brand, Kailash has over three decades of experience in the
fashion business and is considered a stalwart in the Indian fashion industry. Before joining
Pantaloon Retail, he was associated with Weekender, Arvind Mills and Mafatlal Industries,
among other companies

GOPIKISHAN BIYANI – NON-EXCECUTIVE DIRECTOR

Gopikishan Biyani is a Non- Executive Director of the company and looks after the
manufacturing operations, He has more than two decades of experience in the textile business

V.K CHOPRA – NON-EXCECUTIVE INDEPENDENT DIRECTOR

Vijay Kumar Chopra is a Non-executive Independent Director of the Company. He has over
31 years of experience in the banking industry. He was Chairman and Managing Director of
SIDBI and Corporation Bank. His last assignment was with SEBI as Whole-time Member.
He is on the Board of a number of public limited companies like Rolta India Ltd. and Havells
India Ltd. among others.

He is a fellow member of the Institute of Chartered Accountants of India (ICAI) by

profession and is a Certified Associate of Indian Institute of Bankers (CAIIB).

BALA DESHPANDE – NON-EXCECUTIVE INDEPENDENT DIRECTOR

BalaDeshpande is a Non-executive Independent Director of the Company. She has multi-

industry exposure and has worked with FMCG companies like Bestfoods, Cadburys Ltd. and
ICI. She was also nominated to the Women Leadership forum held in Bestfoods, New York.
She is on the Board of Info Edge (India) Ltd.

She holds a Masters degree in Economics and Masters in Management Studies from the
Jamnalal Bajaj Institute of Management, Mumbai.

34
ANIL HARISH – NON-EXCECUTIVE INDEPENDENT DIRECTOR

Anil Harish is a Non-executive Independent Director of the Company. He is a partner at

D.M. Harish & Co., Advocates & Solicitors. He specialises in Income Tax, FEMA and
property matters. He is on the Board of a number of public limited companies like Hotel
Leela Ventures Ltd. and Mahindra Lifespace Developers Ltd. among others.

He holds an LLM degree from the University of Miami, USA.

S DORESWANY- NON-EXCECUTIVE INDEPENDENT DIRECTOR

S Doreswamy is a Non-executive Independent Director of the Company. He has vast

experience in banking and finance. He retired as Chairman and Managing Director of Central
Bank of India. He is Chairman of CanFin Homes Ltd. and is also on the Board of Ceat Ltd.,
Rama Newsprint & Paper Ltd. and Hexaware Technologies Ltd.

He holds a Bachelors degree in Science and Law.

Dr. DARLIE KOSHY- NON-EXCECUTIVE INDEPNDENT DIRECTOR

Dr.DarlieKoshy is a Non-executive Independent Director of the Company. He has served the

National Institute of Design (Ministry of Commerce, Govt. Of India) as Director for two
terms. Prior to this, he was the founding Chairperson of Fashion Management at the National
Institute of Fashion Technology (Ministry of Textiles, Govt. Of India). He is currently
Director General and CEO of ATDC Network of 58 Institutes / Centres and two premier
campuses of Institute of Apparel Management under the aegis of AEPC (Sponsored by
Ministry of Textiles, GOI). Dr.Koshy received the Delhi IIT Alumni Award for his

35
contributions to National Development in 2008. Dr.Koshy has also been conferred with the
‘Star of Italian Solidarity’, one of the highest civilian awards bestowed by the Government of
Italy. Dr.Koshy is the author of three pioneering books, including the much acclaimed Indian
Design Edge.

He holds a PhD from IIT Delhi, besides an MBA degree.

36
 MEDIA RELATIONS

PRESS RELEASE

Launches its first high end Concept Store

Ludhiana, January 11, 2012: Pantaloons, India's driving design retailer, a piece of Future
Gathering, today sent off its most memorable store in Ludhiana at 108, Surya Pinnacle,
Shopping center Street. This denotes the coming of Pantaloons "Cutting edge" Excursion in
Ludhiana. As of now, Pantaloons gloats of 65 stores across India including the two metros
and level II and level III urban communities.

Spread across an area of 14,970 sq. ft, this store has been interestingly intended to make a
global shopping experience for clients. The stylish, imaginative and esteemed vibe allows its
supporters an opportunity to cooperate with the product through touch and feel.

The store offers far reaching way of life experience with the best and popular style stock.
Pantaloons highlights prepared to wear assortments for men, ladies and children, a full scope
of people's frill which incorporates a determination of women sacks, belts, watches, shades
separated from beauty care products and fragrances.

Talking on this event, Mr.Kailash Bhatia,CEO and Chief Pantaloons said,"Ludhiana is the
quickest arising city of Punjab and is developing to become one of the super city of Northern
India. We are more than happy to send off our most memorable store in this promising city
and trust that Pantaloons with its imaginative contributions, global experience and selective
'new style' stock turns into the design objective in Ludhiana."

Pantaloons attire requests to each person and is well-suited for various events. In western
wear, the brands for Men incorporate John Mill operator, Lombard, Urbana, Scullers, Indigo
Country, Apparatus, UMM, Uncovered Denim, Exposed Relaxation, and JM Game. Ladies

37
can take their pick from Annabelle, Honey, Apparatus, UMM, Ajile and Chalk, Exposed,
Apparatus and Lee Cooper Junior for Youngsters. In Ethnic wear clients can decide on in-
house brands like Rangmanch, Trishaa and Akkritti alongside giving hands a shot brands like
Biba.

Also, Pantaloons selective devotion program guarantees clients a matchless shopping

experience. Situated at emphasizing and reinforcing Pantaloons organization with its clients,
Pantaloons Green Card - My Card My Direction offers a scope of extraordinary honors and
worth added administrations to its individuals. The participation to this program is available
to all the shopping aficionados at no additional expense. Through this participation, clients
not just approach selective deal see days yet in addition can get moment limits on each buy,
loosened up merchandise exchange, free home conveyance and a plenty of energizing
advantages.

The store offers an extraordinary shopping experience. The inside walls are comprised of dim
wood and tiles giving it a contemporary look. The lighting assumes a significant part in the
display area, climatically expanding its magnificence with vital complemented features while
the variety plot utilized in the store is brilliant. The floor has been finished in present day
Italian tiles to give a perfect proportion of sheen to the store. Show of product has been
scattered consistently giving its clients space to stroll around at their relaxation and partake
as far as they can tell.

With a large group of selective contributions combined with extraordinary client support and
an enticing environment, Pantaloons vows to be the paradise for all shopaholics in Ludhiana.

38
Pantaloons celebrates its foray in Visakhapatnam in style

With a power packed evening

Visakhapatnam, January 9, 2012: Pantaloons, India’s leading fashion retailer, a part of

Future Group celebrated the launch of its first store in T Subbarami Reddy Plaza with a lot of
fanfare in the presence of some of the most reputed and admired faces of Vizag.

The high voltage evening saw Hon Dr T Subbarami Reddy, Member of Parliament;
actors GauriMunjal& Sonia; Hon P JanardhanRao, Mayor, Visakhapatnam &Mr. P
Sampath Kumar, CEO Park Hyatt Hotel, Hyderabad under one roof.

They waved out at their admirers who had gathered at the store as they walked across its five
levels. They were all praise for the aesthetic ambience of the store and the unique layout of
merchandise. The distinguished guests were glad that the residents of Vizag would now be
exposed to an international shopping experience.

The customers at the store were delighted to see their favorite personalities walk across the
store. They felt humbled when their beloved stars willingly signed autographs and posed with
their fans.

It was an evening that the people of Vizag will remember for a lifetime.

39
 Milestones

2009

 Pantaloon Retail celebrates its first Shopping Festival across all retail formats in key
Indian cities.

2008

 Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the
hypermarket format anywhere in the world.

2007

 Pantaloon Retail wins the International Retailer of the Year award at US-based
National Retail Federation convention in New York, and Emerging Retailer of the
Year award at the World Retail Congress held in Barcelona.

2006

 Home Town, the home building and improvement products retail chain, is launched
along with consumer durables format Ezone and furniture chain Furniture Bazaar.

2004

 Pantaloon Retail launches India’s first seamless mall, Central, in Bangalore.

2002

 Food Bazaar, the supermarket chain is launched.

40
2001

 Pantaloon Retail launches three Big Bazaar stores within a span of 22 days in
Kolkata, Bangalore and Hyderabad.

1997

 Pantaloon Retail enters modern retail with the launch of the first 8000-sq. ft. store
Pantaloons in Kolkata.

1994

 The Pantaloon Shoppe, our exclusive menswear store in a franchisee format is

launched across the nation. The company starts distribution of branded garments
through multi-brand retail outlets across the nation.

1992

 Pantaloon Retail India Ltd. makes an Initial public offer (IPO).

1991

 BARE, an Indian denim brand is launched.

1987

 The company is incorporated under the name of Manz Wear Private Ltd.
 Pantaloons, one of India’s first formal trouser brands, is launched.

41
 ACHIVEMENTS

2012
CISO Award 2012
 Future Group was felicitated for using Information security technology in the most effective
and innovative manner
Golden Spoon Awards 2012
 Most Admired Food and Grocery Retailer of the Year for its Private Labels in Big Bazaar –
Future Group
 Retail Professional of the Year for innovation in Private Brands- Mr. Devendra Chawla,
President – Food & FMCG Category
Images Fashion Awards (IFA) 2012
 Most Admired Private Label Retailer - Pantaloons

ET Retail Awards 2012

 FedEx Most Trusted Retailer of the Year Award – Big Bazaar
 TRRAIN Retail Employee of the Year Award – Mr. Jitendra Kalyani, Big Bazaar

Recognition by CMO Council, USA and CMO Asia

 Master Brand Award - Future Supply Chains
 Retail Icon of the Year- Mr. Anshuman Singh, MD & CEO, Future Supply Chains

Bloomberg UTV B-School Excellence Award

 Best educational institute in Retail- Future Innoversity

2011
Designomics Awards 2011 - Recognising Businesses that build value through Design
 Winning Designomist at the World Brand Congress 2011 - Future Group

CNBC AWAAZ Consumer Awards 2011

 Most Recommended Modern Retail Brand of the Year in the Popular Choice category- Big
Bazaar
Brand Equity’s Most Trusted Brands 2011 awards
 Most Trusted Retailer - Big Bazaar

42
 Images Retail Awards 2011
 Most Admired Retailer of the year 2011 in the Home Products Category-HomeTown

Excellence Awards & Recognition – 2011 for Finance & Accounting Transformation
through Shared Services
 Best Shared Service Centre (SSC) for the category of Shared Service Centre Servicing
Clients in an Indian Sub-Continent- nuFuture Digital India Ltd. (NDIL)
Golden Spoon Awards 2011
 Most Admired Food & Grocery Retailer of the Year: Private Labels – Food Bazaar
 Most Admired Retail Professional in Food & Grocery category – Mr. Damodar Mall, Head,
Integrated Food Strategy.
Marketing Excellence Awards 2011 held by Indira Group Of Institutes
 Best Employer Of The Year - Future Supply Chains

DNA and Stars of the Industry Group Innovative B-school Awards

 Star News National B-School Award for being an outstanding B School with an Industry
Related Curriculum – Future Innoversity
ACE (Awards for Customer Excellence) 2011
 2011 SAP ACE award in the Best-Run Business in Mobility Adoption - Pantaloon Retail

Franchise India Expo 2011

 Best Food And Grocery Chain Of 2011 - Food Bazaar
 Best Value Retailer of 2011 - Big Bazaar
 Best Brand Licensee In FMCG - Walt Disney Brands By Future Consumer Enterprises

Industry Institute Partnership Symposium

 Appreciation for contribution to placement of over 75 rural Below Poverty Line youth at
McDonalds – Mr. Ayan Thankur, Future Learning
Star News Brand Excellence (B.E.) Awards
 Brand Excellence (B.E.) Awards in the Retail Sector - Future Group

ICAI Awards 2011

 CFO - Service Sector category – Mr. C.P.Toshniwal

Food Retail & SCM and Agro Logistics: Summit & Awards 2011
 Food Supply Chain Company Of The Year In Retail Category - Food Bazaar

43
ADVERTISING CAMPAIGNS

44
 Chapter: III
Research Methodology

45
 Research Methodology

Research is a coherent and orderly quest for new and valuable data on a specific subject. It is
an examination of finding answers for scientific and social issues through level headed and
orderly investigation. It's a quest for information, that is to say, a revelation of stowed away
bits of insight. Here information implies data about issues. The data may be gathered from
various sources like insight, people, books, diaries, nature, and so forth. An examination can
prompt new commitments to the current information. Just through research is it conceivable
to gain ground in a field. Research is finished with the assistance of study, explore,
perception, examination, correlation and thinking. Research is truth be told pervasive.
Research technique is a deliberate method for taking care of an issue. It is a study of
concentrating on how exploration is to be completed. Basically, the strategies by which
scientists approach their work of depicting, making sense of and anticipating peculiarities are
called research system. It is likewise defined as the investigation of strategies by which
information is acquired. Its point is to give the work plan of examination.

Purpose of studying Research Methodology

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Though each research study has its own specific
purpose, we may think of research objectives as falling into a number of following broad
groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this
object in view are termed as exploratory or formulative research studies);

2. To portray accurately the characteristics of a particular individual, situation or a group

(studies with this object in view are known as descriptive research studies);

3. To determine the frequency with which something occurs or with which it is associated
with something else (studies with this object in view are known as diagnostic research
studies);

4. To test a hypothesis of a causal relationship between variables (such studies are known as
hypothesis-testing research studies).

46
RESEARCH OBJECTIVE:

Any errand without sound goals id like trees without roots. Also in the event of any
examination concentrate on attempted, at first the targets of the not entirely set in stone and
as needs be the further advances are taken on. An Exploration study might have numerous
targets yet this large number of goals are rotated around one significant objective which is
the focal point of the review. In this review, the emphasis is on the development of the rustic
business sectors as the most happening market on which each advertiser has an eye. Thus this
study will be founded on concentrating on the development of country markets in different
setting.
The principal objective of the review is-
 This task was attempted to have a knowledge into the inventory management of
Pantloons.
 The concentrate additionally intends to examine the moment subtleties of the
inventory management. An investigation of the different statistical data points has been
finished to show up at coherent proposals.
 To concentrate on the technique for inventory management and control in Pantaloons.
 To concentrate on the issues in inventory management and control in Pantaloons.

RESEARCH METHODOLOGY

3.3 METHODOLOGY OF STUDY

Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. Therefore, research methodology is the way to systematically solve the research
problem. Research methodology not only talks of the methods but also logic behind the
methods used in the context of a research study and it explains why a particular method has
been used in the preference of the other methods

47
3. 3.1 Research design:

Research design is thought of as a "plan" for research, managing something like four issues:
which inquiries to study, which information are pertinent, what information to gather, and
how to break down the outcomes. The best plan relies upon the examination question as well
as the direction of the analyst. Research configuration is significant basically due to the
expanded intricacy in the market as well as promoting approaches accessible to the scientists.
As a matter of fact, it is the way in to the development of effective promoting techniques and
software engineers. It is a significant apparatus to concentrate on purchaser's way of
behaving, utilization design, brand reliability, and center market changes. An exploration
configuration indicates the strategies and methodology for directing a specific report. As
indicated by Kerlinger, "Exploration Configuration is an arrangement, theoretical design, and
technique of examination considered as to get replies to investigate questions and to control
difference.

Types and Techniques for Exploration

Research is a course of gathering, examining and deciphering data to respond to questions.

Yet, to qualify as examination, the cycle should have specific qualities: it must, quite far, be
controlled, thorough, methodical, legitimate and evident, exact and basic. Each Exploration
needs bunches of devotion from the specialist's part how much commitment mostly relies
upon the topic of the examination. Prior to undertaking any exploration in any branches of
knowledge, one should make certain about the planned reason for the examination this reason
figures out what sort of examination one will embrace. Any logical examination might fall
into the accompanying three extensively classes:

Distinct versus Logical: Engaging examination incorporates reviews and truth tracking
down enquiries of various types. The significant motivation behind graphic exploration is
portrayal of the situation as it exists as of now. In sociology and business research we
regularly utilize the term Ex post facto research for graphic exploration studies. The
fundamental attributes of this strategy are that the specialist has zero power over the factors;
he can report what has occurred or what's going on. Most ex post facto research projects are

48
utilized for engaging investigations in which the specialist looks to gauge such things as, for
instance, recurrence of shopping, inclinations of individuals, or comparable information

Applied versus Principal: Exploration can either be applied (or activity) examination or
essential (to fundamental or unadulterated) research. Applied research targets finding an
answer for a quick issue confronting a general public or a modern/business association,
though crucial examination is essentially worried about speculations and with the detailing of
a theory."Gathering information for the wellbeing of information is named 'unadulterated' or
'fundamental' research. "Research concerning some regular peculiarity or connecting with
unadulterated math are instances of central exploration.

Quantitative versus Subjective: Quantitative exploration depends on the estimation of

amount or sum. It is relevant to peculiarities that can be communicated with regards to
amount. Subjective examination, then again, is worried about subjective peculiarity, i.e.,
peculiarities connecting with or including quality or kind. For example, when we are keen on
exploring the explanations behind human way of behaving (i.e., why individuals think or do
specific things), we frequently discuss 'Inspiration Exploration', a significant sort of
subjective examination. This sort of examination targets finding the fundamental thought
processes and wants, involving inside and out interviews for the reason.

Applied versus Exact: Calculated research is that connected with a few unique thoughts or
hypothesis. It is for the most part utilized by savants and masterminds to foster new ideas or
to reevaluate existing ones. Then again, experimental exploration depends on experience or
perception alone, frequently without due respect for framework and hypothesis. It is
information based research, thinking of ends which are fit for being checked by perception or
trial. We can likewise call it as trial kind of exploration. In such an exploration it is important
to get at realities firsthand, at their source, and effectively to approach doing specific things
to invigorate the development of wanted data. In such an examination, the specialist should
initially furnish himself with a functioning speculation or surmise regarding the likely
outcomes.

49
3.3.2 Data collection and Techniques

Data Collection

Data collection is a term used to depict a course of getting ready and gathering data, for
instance, as a feature of a cycle improvement or comparative undertaking. The reason for
data collection is to acquire data to keep on record, to settle on conclusions about
significant issues, or to give data to other people. Data are principally gathered to give
data with respect to a particular point. Data collection for the most part happens from the
beginning in an improvement project, and is many times formalized through a data
collection plan which frequently contains the accompanying movement.

1. Pre collection activity — agree on goals, target data, definitions, methods

2. Collection — data collection
3. Present Findings — usually involves some form of sorting analysis and/or
presentation.

Techniques of Data Collection-

Primary data is the data that you gather yourself utilizing direct perception, studies,
interviews and so forth. The data has been gathered from direct insight. Primary data has not
been distributed at this point and is more dependable, legitimate and objective. Primary data
has not been changed or adjusted by individuals; subsequently, its legitimacy is more
prominent than secondary data.

Secondary data will be data gathered by somebody other than the client. Normal wellsprings
of secondary data for sociology incorporate censuses, overviews, hierarchical records and
data gathered through subjective philosophies or subjective exploration. It is gathered from
outer sources, for example, television, radio, web, magazines, papers, articles, audits and so
on.

3.3.3 Sample design

The data used here by me is collected by primary and secondary sources. Primary data: it will
be collected with the help of a self-administered questionnaire. This questionnaire aims to
gather information related to various Branded products. Secondary data: it will be collected
with the help of books, research papers, magazines, newspapers, journals, Internet, etc.

50
Questionnaire design:

As the questionnaire is self-administrated one, the survey is kept simple and user friendly.
Words Used in questionnaire are readily understandable to all respondent. Also, technical
jargons are avoided to ensure that there is no confusion for respondents.

In addition to that, analysts of social and economic change consider secondary data essential,
since it is impossible to conduct a new survey that can adequately capture past change and/or
developments.

In this project -

RESEARCH DESIGN:
Exploratory research design

SAMPLE DESIGN:
Sample size
30 employees
15 suppliers
9 distributors
6 visiting parties

SAMPLING TECHNIQUE:
Interview and Questionnaire

SOURCE OF DATA:
PRIMARY SOURCE:
HINDALCOINDUSTRIESL4
Personal interview
Employees

51
Distributors
Questionnaire
Employees of pantaloons

SECONDARY DATA:
 Annual report of Pantaloons Fy2014-15, 2015-16.
 Internet.
 Induction guide.
 Inventory Management Books

LIMITATIONS OF THE STUDY:

1- Some of the respondents refused to fill questionnaire during the research work.

2- Some of the lower-level store department employees were not well educated.

52
 Chapter 4
Data Collection &
Analysis

53
SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective. The technique is
credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and
1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning has been
the subject of much research.

1- Strengths: characteristics of the business or team that give it an advantage over others
in the industry.
2- Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
3- Opportunities: external chances to make greater sales or profits in the environment.
4- Threats: external elements in the environment that could cause trouble for the
business.

54
Strengths:

1- Pioneer in the business, biggest piece of the pie and capitalization.

2- Reputation for an incentive for money (Competitive valuing), comfort and many
items across the board store.
3- Presence in significant urban communities.
4- Exceptionally Essential human asset management and advancement. It puts time and
cash in preparing individuals, and holding them.
5- Most trusted and regarded brand by the purchasers.
6- Being areas of strength for monetarily pantaloons retail India manage any issues, ride
any dunk in benefits and out play out their adversaries.
7- Advancement and Development are high at Pantaloons India concerning it items and
purchaser inclinations and way of life changes which keep its in front of its rivals.

Weaknesses:

1- Pantaloons doesn't work universally, which significantly affects achievement, as they

don't arrive at buyers in abroad business sectors.
2- PRIL is the World's biggest staple retailer and control of its domain, in spite of its IT
benefits, could pass on it frail in an area because of the tremendous range of control.
3- Since Pantaloons Retail India Ltd sell items across numerous areas, it might not have
the adaptability of a portion of its more engaged rivals.
4- Every business line faces rivalry from specialty organizations. Style section,
Customers Stop, Trent, Way of life. In hypermarket-RPG (Spencer's),Trent (Star India
Market) In Food business, Dependence New, Spinach, Food World.

55
Opportunities:

1- Huge undiscovered market (The Indian working class is as of now 30 Crore and is
projected to develop to north of 60 Crore by 2010 making India one of the biggest buyer
markets of the world).
2- Organized retail is just 3% of the complete retailing market in India. It is assessed to
develop at the pace of 25-30% p.a. what's more, arrive at INR 1, 00, 000 Crore by 2010.
3- To dominate, converge with, or structure key unions with other worldwide retailers,
zeroing in on unambiguous business sectors
4- New areas and store types offer PRIL valuable chances to take advantage of market
development. (Diversification into protection, property, and assortment of items and
stores)
5- Opportunities exist for PRIL to go on with its ongoing system of huge, super focuses.

Threats:

1- Being number one implies that you are the objective of competition.(Extra rivalry and
new contenders entering the market might insecure pantaloons at some point retail India).
2- A slow economy or monetary log jam could significantly affect pantaloons retail
India business and benefits.
3- Consumer way of life changes could prompt to a lesser degree an interest for
pantaloons retail India items/administrations.
4- Price battles between contenders, cost cuts, etc could harm benefits for pantaloons
retail India.
5- The activities of a contender could be a significant danger against pantaloons retail
India, for example, in the event that they get new innovation or increment their labor force to
fulfill need

56
IMPORTANT FACTORS:

1- Product categories in Pantaloons.

2- Location of Pantaloons.
3- Types of inventories maintained.
4- Decision of how inventories are maintained.
5- Reorder points of inventories.
6- Uncertain demands of customers.
7- Area of Maintenance.

57
NOTATIONS:

Some general notations used in inventory models:

1- r = Demand rate.

2- K = Production rate.

3- C = Average total cost per unit time.

4- t = Time interval between two consecutive replenishments of

inventory.

5- z = Order level or stock level use the following general notations in

inventory models:

6- I = the cost of carrying one rupee in inventory for a unit time.

7- C1 = Holding cost per unit time.

8- C2 = Storage cost per unit time.

9- C3 = Set up cost per production run.

10- q = Lot size per production run. (I.e. The quantity produced per pro

11- L = lead time.

12- q*, t*, z* = Optimal values of q, t, z respectively for which the cost C is minimum.

58
After cooperating with the respondents, we found the following
average results:

Q1- What is the store capacity of your warehouse?

A- 45000 units

Q2-What is the annual demand?

A- 400000 unit

Q3- What is the average carrying cost to carry the inventory?

A- 10%

Q4- What is the setup cost of the inventory?

A- Rs.4000

Q5- What is the average lead time?

A- 3days

Q6- What is the ordering cost to place an order of 1 unit?

A- Rs.4

59
Some important formulas to solve

1- Optimal Lot Size, Q* =

√ 2 D C0
Ch

¿
Q
2- The Optimal Order cycle time, t* =
D

3- The Minimum yearly variable inventory cost, TVC = √ 2 D C 0 C h

4- The Minimum yearly total inventory cost, TC* = TVC* + DC

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Solution:

1- Optimal Lot Size, Q* =

√ 2 D C0
Ch
=
√ 2 400000∗4
10 % of 200
=
√ 2 400000∗4
20
= 400 Units/

year

¿
Q 400
2- The Optimal Order cycle time, t* = = = 0.001 year
D 400000

3- The Minimum yearly variable inventory cost, TVC = √ 2 D C 0 C h = √ 2∗400000∗20

= Rs. 4000/year

4- The Minimum yearly total inventory cost, TC* = TVC* + DC = 4000+ 400000*200 =
Rs. 8 Cr 4 thousand/ year.

61
 Chapter 5
Findings & Conclusions

62
Finding The Study:

1- There is a lot of old stock which has not any use.

2- At the time of issue they have to do many entries as they have computerized system
in store.

3- One the time of issue store-keeper issues some quantity from old stock & some from
new stock. In this way they use the old stock.

4- No exact idea that how much quantity of yarn is required.

5- There is a lot of wastage. Store-keeper said that after the completion of production the
excess material which is remained unused that is not returned to the store-keeper.

6- If there is any defected piece, then they have to find again the matching yarn.

7- Workers don’t use material properly; there is a lot of wastage. The reels, lace couldn’t
be used again due to that.

8- For valuation of the stock they use Average method.

9- They resale the waste material in the market.

10- They purchase the material from their own subsidiaries & from local market.

63
 11- The main motive behind inventory management system is smoothen operation of
factory.

Benefits of Inventory Management to Pantaloons

1. Inventory Balance. Good inventory management helps you figure out exactly how

much inventory you need. This makes it easier to prevent product shortages and keep just

enough inventory on hand without having too much.

2. Inventory Turnover. You need to keep a high inventory turnover ratio to ensure your products
aren’t spoiling, becoming obsolete or sucking up your working capital. Calculate how many times
your inventory sells in a year and see where you can make better use of your resources.

3. Repeat Customers. Good inventory management leads to what every business owner

wants – repeat customers. You want your hard-earned customers to keep coming back to

your business to meet their needs. One way to do this is to make sure you have what they’re

looking for every time they come.

4. Accurate Planning. Using smart inventory management, you can stay ahead of the

demand curve, keep the right number of products on hand and plan ahead for seasonal

changes. This goes back to keeping your customers happy all year long.

5. Warehouse Organization. If you know which products are your top sellers and what

combinations of products your customers often order together, you can optimize your

warehouse setup by putting those products close together and in easily accessible places.

These speeds up the picking, packing and shipping processes.

6. Employee Efficiency. You can empower your employees to help you manage inventory.
Training employees to use barcode scanners, software and other tools helps them make better

64
use of their time, and it helps your business make better use of its resources, both human and
technological.

Chapter 6
Suggestions &
Recommendations

65
Suggestions:
1- No question lead time is significant however other variable like accessibility is
additionally significant. So they ought to likewise give legitimate thought to this.

2- They follow wellbeing and mass buys for cost decreasing. However, they ought to
follow the JIT framework. As they are in style industry so this is the best technique. As they
will buy the merchandise as indicated by the request, so there will no stock oldness.

3- According to the vendor there is absence of room. The crates of yarn and other
material are not as expected put away. So there ought to be legitimate racks for the
containers.

4- The store division ought to be electronic so the recording can be simple. The giving
of yarn is recorded physically.

5- Wastage ought to be controlled. The excess material, after the culmination of

creation, ought to got back to the yarn store. Creation chief ought to deal with this.

66
Conclusions:
1- It has been a great experience focussing on the live project of Management Science
Decision Making (MSDM). Our place of interest was the retail giant Pantaloons. We
found great support in the shop in Rajouri Garden. We have found that Pantaloon’s
inventory is well equipped and their cost is under their control due to the short cycle
time of ordering and buffering. Their inventory cost is very high because of their
stocking of various products. Their product range varying from mere Rs.5 to Rs.50,
000. Hence their range satisfies one and all.

2- In future their inventory is well equipped if it sees any fundamental changes on the
demand of the products, be it desired or undesired. Their inventory is quickly refilled
which is one of their strengths and also, they take less than a day to fully make their
inventory a wide spectrum.

3- In conclusion, effective inventory management is crucial for optimizing business

operations and ensuring sustainable growth. By maintaining an optimal balance
between supply and demand, businesses can minimize carrying costs, reduce the risk
of stockouts, and enhance overall efficiency. The implementation of advanced
technologies, such as inventory management software and data analytics, can further
streamline processes and provide valuable insights for informed decision-making.
Moreover, adopting a systematic approach to inventory control enables businesses to
meet customer demands promptly, improve cash flow, and ultimately contribute to
long-term success in a dynamic and competitive marketplace. Regular evaluation and
adjustment of inventory strategies in response to market changes and business
dynamics are essential for staying adaptable and resilient in the ever-evolving
business landscape.

67
4- effective inventory management is not merely a logistical necessity but a strategic
imperative for businesses aiming to thrive in a fast-paced and demanding market
environment. The careful orchestration of procurement, storage, and distribution
processes allows companies to strike a delicate balance between meeting customer
demands and minimizing the costs associated with excess inventory. Additionally,
embracing technological solutions and data-driven insights empowers organizations
to make informed decisions, anticipate market trends, and respond swiftly to changes.
A well-executed inventory management system not only enhances operational
efficiency but also contributes significantly to customer satisfaction, financial
stability, and overall competitiveness. As businesses continue to navigate challenges
and opportunities, maintaining a proactive and adaptive approach to inventory
management remains a cornerstone for sustained growth and resilience.

68
 BIBLIOGRAPHY
Internet: Websites

1- www.google.com

2- www.wikipedia.org/

3- http://wiki.answers.com

4- http://www.slideshare.net

5- www.futurebazaar.futuregroup.com

6- www.wikipedia.org/inventory

7- www.pdfsearchengine.com/inventory

8- www.scribd.com

Books:

1- Introduction to operation Research By Hamdy A.Taha

69
2- Introduction of operation Research By J.K.Sharma

3- Learning operation Research By S.K Jaiswal

Annexure
(Questionnaire)

70
 PANTALOONS RETAIL LIMITED

__________________________________________________________________

__________________________________________________________________

PERSONAL DETAILS
(these details are required for communication purposes only and will not be disclosed)

NAME:

POSITION:

BUSINESS UNIT/DIVISION:

CONTACT DETAILS

TELEPHONE:

EMAIL:

71
Q1) What is the store capacity of your warehouse?

i) >20000 units ii) >30000 units iii) >40000 units iv) >45000 units

Q2) What is the annual demand?

i) >200000 units ii) >300000 units iii) >400000 units iv) >500000 units

Q3) What is the average carrying cost to carry the inventory?

i) >10% ii) >20% iii) >30% iv) >40%

Q4) What is the setup cost of the inventory?

i) > Rs1000 ii) > Rs2000 iii) > Rs3000 iv) > Rs4000

Q5) What is the average lead time?

i) >3 days ii) >5days iii) >7days iv) >9days

Q6) What is the ordering cost to place an order of 1 unit?

i) > Rs2 ii) > Rs3 iii) > Rs4 iii) > Rs5

72