Summer Training Project

on

“INVENTORY MANAGEMENT PROCESS AND ITS ANALYSIS AT PANASONIC”

Submitted in Partial Fulfillment for the Award of the Diploma of

Post Graduate Diploma in Management

(Session 2010-12)

Submitted to: Submitted By:

MR. RAJIV BAJAJ ANUBHAV TIWARI

(Internal Guide) Roll No : PGD 10021

PGDM – IV Trimester

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

DECLARATION

I ANUBHAV TIWARI bearing Roll No PGD10021 Class PGDM 4 TRIMESTER of the Institute of

Management Studies, Noida hereby declare that the Project Report-408 entitled INVENTORY

MANAGEMENT PROCESS AND ITS ANALYSIS AT PANASONIC is an original work and the same

has not been submitted to any other Institute for the award of any other diploma. The suggestions as

approved by the faculty were duly incorporated.

Signature of Student

Countersigned

Signature of Faculty Guide

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

A CKNOWLEDGEMENT

While presenting this project we express our sincere gratitude to Almighty God. For his grace and blessing that helps us to complete this project synopsis successfully.

As with any project this one would not have been possible without the contribution of

many people. First of all I would like to express our sincere gratitude to are Project

Guide Mr. RAJIV BAJAJ who provides us all the necessary information for the

successful completion of this synopsis. We would also like to thank our Class

Coordinator MS MAHUA DUTTA for their great support and providing co-operative

healthy environment.

We shall be failing if we are not thanking Program coordinator MR.H.N. SINGH and all

concern faculties for their moral support and guidance time to time. We would like to

thanks to our entire supporter for their encouragement and moral boost up.

ANUBHAV TIWARI

PGDM-II YEAR

EXECUTIVE SUMMARY

Companies hold inventories in the form of raw materials, work-in process and finished goods. In

most of the companies specially manufacturing companies, a very significant part of working

capital is invested in inventory therefore the management of inventory becomes very important.

Inventories are assets of the firm and require investment and hense involved the commitment of

firm resources. If the inventories are too big they become a strain on the resources, however, if

the inventories are too small the firm may loose the sale therefore the firm must have an

optimum level of inventories.the basic financial problem is to determine the proper level of

investment in the inventories and to decide how much inventory must be acquired during each

period to maintain that level

Therefore there is a greater need to have a scientific inventory management policy and its

effective implementation. Business firms keep inventories for different purposes. Every firm, big

or small, trading or manufacturing has to maintain some minimum level of inventories . there are

different motives for manufacturing inventories and these are more or less the same as the

motives for holding cash. The motive to hold inventory can be broadly classified in to the

following category:-

Transaction Motive to Hold Inventory for facilitating smooth production and sales operation.

Precautionary Motive to Hold Inventory the guard against the risk of unpredictable changes–

in usage rate and delivery time.

Speculative Motive to Hold Inventory to take advantage of price fluctuations.

So, the trade-off on inventory is fairly clear. On the one hand, having too high an investment in

inventory results in large carring costs which, will drag down the value of the firm. On the other

hand, having too small an inventory results in either lost sale or higher ordering cost for the firm.

The whole theory of inventory management can be summarized as follows:

Maintaining sufficient stock of raw material ensuring continuous supply to production

process for uninterrupted production schedule.

Maintaining sufficient supply of finished goods for achieving smooth sales operations.

Minimizing the total annual cost for maintaining inventories.

INDEX TABLE

SERIAL.NO PARTICULARS PAGE NO

1. OBJECTIVES 7

2. RESEARCH METHODOLOGY 8

3. INDUSTRY DETAIL 9-10

4. COMPANY PROFILE 11-12

5. VISION AND MISSION 13

6. INTRO:INVENTORY MANAGEMENT 14-15

7. INVENTORY CONTROL AND ITS

BENEFIT

16

8. FACTOR AFFECTING INVENTORY

DECISION

17-21

9. UNCERTAINATIES 22-27

10. PANASONIC VENDOR SELECTION

PROCESS

28-29

11. MODERN TECHNIQUE FOR

INVENTORY CONTROL :PANASONIC

30-44

12. AUTOMATION:REQUIREMENT OF

STOCK CONTROL SYSTEM

45-51

13. ANALYSIS 52-58

14. FINDINGS 59

15. CONCLUSION 60

16. SUGGESTIONS 61

17. BIBLIOGRAPHY 62