ANALYZE THE INVENTORY POLICY

AND MANAGEMENT : KARTIK WEAR

PVT LTD, HATHRAS, U.P.
GULSHAN MAHESHWARI – PGP
21058
DINKY SINGHAL – PGP 21050
DEEPALI SAINI – PGP 21046
HARSHVARDHAN – PGP 21067
AYUSH RATHI – PGP 21037
JAISHREE ANAND - PGP 21073
JASPREET SINGH – PGP 21075
 MEANING OF INVENTORY & OBJECTIVE OF INVENTORY MANAGEMENT:

Inventory is the physical stock of goods maintained in an organization for its smooth running: Raw
material, work in progress, finished goods, spare parts.
Ensuring availability of materials, avoidance of abnormal wastage, avoidance of out of stock
danger, economy in purchasing optimum investing and efficient use of capital.

Risk and cost associated with inventories:

Price decline, product determination, obsolescence, cost of material, ordering, carrying.

Essentials of inventory control systems:

Classification and identification of inventories, adequate storage facilities & reports and records,
coordination.

Techniques of inventory control:

Safety or buffer stock, economic order quantity technique, VED analysis, ABC analysis, just in time.
 INVENTORY MANAGEMENT IN KARTIK WEAR PVT LTD :
• RAW MATERIAL CONSISTS : yarn, accessories like buttons, zips, tags, patches
etc.
• WORK IN PROGRESS: Garments which are in manufacturing process.
• FINISHED GOODS: Garments which are ready to sale in the market.
• SPARE PARTS: Needle, Screw
NEED OF INVENTORY SYSTEM PROBLEMS IN INVENTORY FACTORS EFFECTING FACTOR
EFFECTING THE

MANAGEMENT INVENTORY POLICIES PURCHSE ORDER

 ISSUES
There is a lot of old stock which has not any use./ At the time
of issue they have to do many entries as they have not
computerized systems in store./ one the time of issue store-
keeper issues some quantity from old stock & some from new
stock. In this way use the old stock/ No exact idea that how
much quantity of yarn is required.
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./ if
there is any defected piece, then they have to find again the
matching yarn./ workers don’t use material properly; there is
a lot of wastage. the reels, lace could not be used again due to
that.
For valuation of the stock they use average method./ they
resale the waste material in the market./they purchase the
material from their own subsidiaries & from local market./
the main motive behind inventory management system is
smoothen operation of factory.
SUGGESTIONS
No doubt lead time is important but other factor like
availability is also important. So they should also give
proper consideration to this.
They follow safety and bulk purchase for cost reducing. But
they should follow the JIT system. As they are in fashion
industry so this is the best method. As they will purchase the
goods according to the order, so there will no stock
obsolescence.
According to the store-keeper there is a lack of space the
boxes of yarn & other material are not properly stored. So
there should be proper racks for the boxes.
The store department should be computerized so that the
recording can be easy. The issuing of yarn is recorded
manually.
Wastage should be controlled. The remaining material, after
the completion of production, should returned to the yarn
store. Production manger should take care of this.