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The Company manufactures in 13 countries :

1. Canada 10. Italy


2. United States 11. South Africa
3. Mexico 12. China and
4. Argentina 13. India
5. Brazil
6. Slovakia
7. Germany
8. Sweden
9. France
Every Home… Every where. With Pride, Passion, Performance
Their goal is a Whirlpool product in every home, everywhere.
They will achieve this by creating :-
Pride in their work and each other
Passion for creating unmatched customer loyalty for their brands
Performance results that excite & reward global investors with
superior returns
They will bring this dream to life through the power of unique
global & their Outstanding people… working together…
everywhere.
They will be
Demanding of their selves, so as to care for their consumers, Like no
other brand does.

They will
Serve with pride in every Indian home and bring prosperity to their
investors.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE :
To analyse the efficiency of Inventory Management of Whirlpool
of India limited.
SECONDARY OBJECTIVE :

1. To identify optimum level of inventory which minimizes the


cost.
2. To identify the safety stock level for various components.
3. To classify the various components based on its value and
movements.
4. To identity inventory requirement of the company for the next
year.
5. To understand the efficiency of inventory management.
RESEARCH METHODOLOGY
Research is a process in which the researcher wish to find out
the end result for a given problem and thus the solution helps in future
course of action.
RESEARCH DESIGN
The research design used in this project is
Analytical in nature.
TOOLS USED IN THE ANALYSIS

1. Economic Order Quantity


2. Safety Stock
3. ABC Analysis
4. FSN Analysis
5. Linear Regression Method
6. Inventory Turnover Ratio
1. FINDINGS FOR ECONOMIC ORDER QUANTITY

Variation in the EOQ & no. of unit purchased. Not


following EOQ.

SUGGESTIONS & RECOMMENDATIONS

If they follow according to EOQ, it will reduce the cost


& help to enhance the profit.
2. FINDINGS FOR SAFETY STOCK

We can able to determine how much the company can


hold the inventory in reserve stock per annum.

SUGGESTIONS & RECOMMENDATIONS

The company must maintains safety stock in order to


avoid stock-out (no inventory) conditions & helps in continuous
flow.
3. FINDINGS FOR ABC ANALYSIS

A Classes - unit value > Rs.100, constitutes 45% of total items.


B Classes - unit value Rs. 25-100, constitutes 35% of total
items.
C Classes - unit value < Rs.25, constitutes 30% of total items.

SUGGESTIONS & RECOMMENDATIONS

Since A classes constitutes more % than B & C. There


should be tight control in inventories- done through continuous
check, order frequently, to avoid over investment of Working
Capital.
4. FINDINGS FOR FSN ANALYSIS
F items are those which moves fastly - constitutes 43% of total
items.
S items are those which moves slowly - constitutes 57% of total
items.
N items are those Non moving- according to the given data there
is no Non moving. It is not good the co. maintains low % in fast
moving items compared to slow items.

SUGGESTIONS & RECOMMENDATIONS

The company must not go to the Non-moving items as


far as possible- unnecessary blockage of WC.
5. FINDINGS FOR TREND ANALYSIS

Inventory shows increasing trend from 9.65 to 18.10 in


the year 2003 to 2007, the inventory for the year 2008 is
expected to be 23.20. This indicates efficiency of management.

SUGGESTIONS & RECOMMENDATIONS

The company is expecting more inventories for future


i.e., 2008. The management is required to maintain the same
inventory trend in the forth coming year also.
6. FINDINGS FOR INVENTORY TURNOVER RATIO
The ratio shows increasing trend from 1.46 to 4.5 in the
year 2003 to 2007 except in the year 2005 which shows only
0.80 times.
Whereas velocity shows less in 2007 as compared to the
year 2003 which is 81 days and 250 days respectively.
This shows that the inventory are easily converted into
sales within the shortest period.

SUGGESTIONS & RECOMMENDATIONS

It requires to maintain high turnover ratio than the lower


ratio. A high ratio implies good and efficient business activities.
Can follow EOQ to optimize inventory with minimum cost.

Tight control exercised on stock levels on ABC & high


percentage in Fast moving items on FSN.
1. The entire analysis applies only to Whirlpool India Ltd, Puducherry.

2. The study takes into account only the quantitative data and the
qualitative aspects were not taken into account.

3. The assumption made in the EOQ and Safety stock formulas restrict
the use of the formula. In practice, unit cost, lead time, requirements
of inventory items are not accurately predictable.

4. ABC analysis is not one time exercise and items are to be reviewed
and recategorised periodically.
SCOPE OF THE STUDY

• It is useful for deciding operating policy & volume of inventory.

2. It helps to develop the policies for the executives in inventory.

3. To give plan to the company what to order, when to order and how
much to order.

4. It helps the company what items goods are categorized.

5. Project helps to deal with forecasting in inventory.