prabhu project

8/18/2019 Prabhu Project

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Abstract:

In the present era, where there is a competitive world in the area of business it is very

important to control various costs to sustain in the market. And the most importantly

customer is to be considered as the most important part of any business. In such fast

moving and rapid environment, inventory management plays an important role to

make a control over the financial statement of the organization. Inventory involves in

the whole process cycle of the organization as it starts with the shop floor to the top

level management commitment. In this paper, we will discuss and analyse some of the

parameters which directly show the impact of inventory management to the financial

statement of the form. This paper also consists of different parts where the inventory

management concepts are discussed, different inventory control techniques are

discussed, and their interrelationship with the financial statement of the firm. This

paper also introduces the various costs incurred due to the storage inventory,

economic order quantities, reorder level, shortage costs, inventory methods.


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INTRODUCTION

.1. I!"T#$%

Inventory can be defined in several ways as follows as given below&

' Inventory is the stock of physical items such as materials, components, work(in(

progress, finished goods, etc., held at a specific location at a specific time.

' Inventory is the merchandise that is purchased and)or produced and stored for

eventual sale.

' Inventory is a list of what you have. In company accounts, inventory usually refersto the value of stocks, as distinct from fi*ed assets. An inventory would include items

which are held for sale in the ordinary course of business or which are in the process

of production for the purpose of sale, or which are to be used in the production of

goods or services which will be for sale.

' Inventory is a list of names, quantities and)or monitory values of all or any group of

items.

' Any quantifiable item that you can handle, buy, sell, store, consume, produce, or

track can be considered inventory. This covers everything from office and

maintenance supplies, to raw material used for manufacturing, to semi(finished and

finished goods, to fuel used to power equipment used in the business

Inventories are the current assets which are e*pected to be converted within a year in

the form ofcashor accounts receivables. Thus, it is a significant part of the assets for

the business firms. Actually, inventories are the goods that are stocked and have a

resale value in order to gain some profit. It shows the largest costs for the trading

firms, wholesalers and retailers. ormally, it consists of +(- of the investment of

the total investment of the firm. Thus, it should be managed in order to avail the

inventories at right time in right quantity. Inventory refers to the stock of the resources


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which are held to sales and)or future production. It can be also viewed as an idle

resource which has an economic value. /o, better management of the inventories

would release capital productively. Inventory control implies the coordination of

materials controlling, utilization and purchasing. It has also the purpose of getting the

right inventory at the right place in the right time with right quantity because it is

directly connected with the production. This implies that the profitability of the firm is

directly or indirectly affected by the inventory management. There is need for

controlling the inventories for any firm in developing countries like India. A firm must

install some better inventory control techniques to improve their financial condition.

According to 0otler, inventory management is the technique of managing, controlling

and developing the inventory levels at different stages i.e. raw materials, semi(

finished goods and finished goods so that there is regular supply of resources at

minimum costs. According to oyle, inventory management is the management of the

materials in motion andat rest. According to $osenblatt, the inventory management

costs are the price which is paid by the customer but it is the cost to the owner.

2ifferent authors defined inventory management in different way. /ometimes,

inventory and stock are considered as the same thing. 3ut there is a slight difference

between them. /tock is the storage of material kept in specified place only. Inventory

management involves all activities which are done for the continuous supply of

materials with optimal costs. 3asically, inventory management has two goals. 4irst

goal is to avail the goods at right place in right time. 3ecause it is very important to

keep operations running to give specific service. /econd goal is to achieve the service

level against optimal cost. It is very difficult to achieve goal against optimal cost. All

items cannot be stocked, so there is need to specify the important goods to be stocked.

The supplies inventories involves the materials required for the maintenance, repair

and operating that do not go to the final product. 3ut it is also considered as the types

of inventories. Thus, inventory management is also defined as it is the science and art

of managing the level of stock of group of items which incurred least costs and also

reach the ob5ectives set by the top management. /o, on the final note the primary

ob5ective of inventory management is to improve the customer satisfaction level. 4or

this one has to keep adequate amount of inventory for demand fluctuations and


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variability. The secondary ob5ective is to increase the production efficiency.

Increasing production efficiency means that the production control, maintaining the

level of inventory for efficient materials management.

+.+. T%6"/ #4 I!"T#$I"/

2epending up on the type of organization the inventory can be classified into two

basic types. They are as follows&

1. 7anufacturing Inventory& It is the inventory maintained by a manufacturing

organization. 7anufacturing Inventory consists of following three parts& a. $aw

7aterials 8$79 which are processed to manufacture the final product. b. :ork In

6rogress 8:I69 which refers to the intermediate product which is obtained by

processing the raw material but is not fully converted into final product. c. 4inish

;oods 84;9 that are the fully processed final products that are being manufactured

and are ready to be dispatched.

+. Trading Inventory& It is the inventory maintained by a trading organization with a

purchase and sale business. Trading Inventory consists of goods that are purchased

from a supplier or manufacturer and sold to customers with a certain margin of profit.

In this case, the purchased goods do not undergo any further processing and are sold

directly without any change of form. The Trading Inventory is also referred as the

term


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in production and sales with the minimum investment in inventory. Inventory ontrol

is achieved by&

• 6urchasing items at proper time and price, and in right quantity.

• 6rovision of suitable storage locations with sufficient space

• 7aintaining proper level of stocks.

• Adequate inventory identification system.

• @p(to(date and accurate record keeping.

• Appropriate requisition procedures.


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OVERVIEW OF INVENTORY

Inventory management is pivotal in effective and efficient organization. It is also vital

in the control of materials and goods that have to be held 8or stored9 for later use in

the case of production or later e*change activities in the case of services. The

principal goal of inventory management involves having to balance the conflicting

economics of not wanting to hold too much stock. Inventory problems of too great or

too small quantities on hand can cause business failures. If a manufacturer

e*periences stock(out of a critical inventory item, production halts could result.

7oreover, a shopper e*pects the retailer to carry the item wanted. If an item is notstocked when the customer thinks it should be, the retailer loses a customer not only

on that item but also on many other items in the future. The conclusion one might

draw is that effective inventory management can make a significant contribution to

company=s profit as well as increase its return on total assets. It is thus the

management of this economics of stockholding, that is appropriately being refers to as

inventory management. The reason for greater attention to inventory management is

that this figure, for many firms, is the largest item appearing on the asset side of the

balance sheet. %ang et al 1B has argued that supply chains have evolved from

traditional forecast(driven push to demanddriven pull systems over time, and that

postponement is playing an increasingly important role in a supply chain. :anke +B

states that inventory management approaches are a Cfunction of product, operational

and demand related variables such as delivery time, obsolescence, coefficient of

variation of sales and inventory turnoverC and that logistics managers are more likely

to decentralise inventory in order to stock product close to the customerDs facility if

the customers demand a reduced delivery time. ;raman -B argued that today, the cost

of holding inventory, e*tensive product proliferation and the risk of obsolescence,

especially in rapidly changing markets, make the e*pense of holding large inventories

of finished goods e*cessive and that high demand items naturally have safety stock

assigned to them but in many organisations there are so many very(lowdemand items


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that keeping any stock of these items is unreasonably e*pensive, so they argue that

companies must now provide good service while maintaining minimal inventories.

Therefore, inventory management approaches are essential aspects of any

organisation.

$ich >avely 81EEF9 asserts that inventory means G6iles of 7oneyH on the shelf and

the profit for the firm. ?owever, he notices that - of the inventory of most retail

shops is dead. Therefore, he argues that the inventory control is facilitate the shop

operations by reducing rack time and thus increases profit. ?e also elaborates the two

types of inventory calculations that determine the inventory level required for

profitability. The two calculations are Gcost to orderH and Gcost to keepH. 4inally, he

proposes seven steps to inventory control. The limitation of this literature is that he

does not outline the calculation method that actually evaluates the inventory level and

cost of handling it

ames ?ealy 81EEF9 highlights that the distributors carry 1(- of additional

inventory that is unnecessary. These inventories unnecessarily increase costs and loss

of customers, lost of sales and lost profit due to inefficient inventory management. ?e

points out there is a need to set out procedures to find out physical inventories to

determine the true cost of handling cost of the inventory. ?e further points out some

misconceptions of the inventory management such as adequacy of "nterprise

$esource 6lanning /ystem in handling the inventory, the importance of turns in

measuring the success of the inventory system and confidence on profitability of

using the inventory optimization method. The limitation of this literature is that it

does not give reasons for the causes of the unnecessary inventory

2ave 6iasecki 8+19 presents an inventory model for calculating the optimal order

quantity that used the "conomic #rder Juantity method. ?e points out that many

companies are not using "#J model because of poor results resulted from inaccurate

data input. ?e says that "#J is an accounting formula that determines the point at

which the combination of order costs and inventory costs are the least. ?e highlights

that "#J method would not conflict with the IT approach. ?e further elaborates the


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"#J formula that includes the parameters such as annual usage in unit, order cost and

carrying cost. 4inally, he proposes several steps to follow in implementing the "#J

model. The limitation of this literature is that it does not elaborate further relationship

between "#J and IT. It does not associate the inventory turns with the "#J formula

and fails to mention the profit gain with the quantity is calculated

4arzaneh 81EEK9 presents a mathematical model to assist the companies in their

decision to switch from "#J to IT purchasing policy. ?e defines IT as Gto produce

and deliver finished goods 5ust in time to be sold, sub(assemblies 5ust in time to be

assembled in goods and purchased material 5ust in time to be transformed into

fabricated partsH. ?e highlights that the "#J model focuses on minimizing the

inventory costs rather than minimizing the inventory. @nder the ideal condition where

all the conditions meet, it is economically better off to choose the IT over the "#J

because it results in purchase price, ordering cost. The limitation of this literature is

that he only compares the cost saving and required quantities of choosing the system

7orris 81EEL9 stressed that inventory management in its broadest perspective is to

keep the most economical amount of one kind of asset in order to facilitate an

increase in total value of assets of the organization.

$osenblatt 81EKK9 says that the cost of maintaining inventory is included in the final

price paid by the consumer. ;ood in inventory represents a cost to their owner. The

manufacturer has the e*pense of material and labour. The wholesaler also has funds

tied up.

hristopher 3en5amin and 0amalavalli 8+E9 investigated the influence management

of the working capital on the profitability of Indian hospitals by taking 1M out of L1listed hospitals in India. The result of their analysis depicted that the inventory

turnover ratio, debtor turnover ratio and working capital turnover ratio were positively

related with the return on investment, a variable used for the measurement of the

firm=s profitability


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;hosh and 0umar 8+K9 defined inventory as a stock of goods that is maintained by

a business in anticipation of some future demand. The definition was also supported

by 3rag 8+L9 who stressed that the inventory management has an impact on all

business functions, particularly operations, marketing, accounting and finance. ?e

established that there are three motives for holding inventories, which are transaction,

precautionary and speculative motives.

Agus and oor 8+N9 e*amined the relationship between the inventory management

and financial performance of the firm. The study measured the manager=s perceptions

of the inventory management practices ad financial performance of the firm.

0oumanakos 8+F9 studied the effect of inventory management on firm performances. 1-LF manufacturing firms operating in three industrial sectors of

;reece, food, te*tiles and chemicals were used in the study covering period of +(

++. The hypothesis that lean inventory management leads to an improvement in a

firm=s financial performance was tested. The findings suggests that the higher the

level of inventories preserved by a firm, the lower the rate of return.

$oumiantsev and etessine 8+L9 investigated the association between inventory

management policies and the financial performance of a firm. The purpose of the

study was to assess the impact of inventory management practice on financial

performances across the period 1EE+(+.


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2. REVIEW OF LITREATURE

There are some factors listed below which are essential to be discused for

understanding the concept of inventory management. These activities are associated

with inventory management and to be considered to achieve its ob5ectives. These

factors are&

1. osts related to inventory.

+. Inventory costing methods.

-. Inventory models.

M. Inventory control techniques

1. osts related to inventory&There are various costs which are related to the

inventories. These costs are incurred due to the inventories. These costs are

1.16urchase cost&( 6urchase cost is the cost of purchasing the inventory items and it

depends upon the quantity of the items to be purchased

1.+ #rdering ost&( It is the cost related to the bringing the inventory to the

production system. It includes all costs which are directly or indirectly involved in

bringing the inventory to the production system. osts included in ordering costs are

tendering cost, quality inspection cost, transportation cost etc

1.- arrying cost&( It is the cost which is associated with costs which are spent to the

storage of the inventory items in the store. It depends upon the quantity and period of

time till when the inventory is to be stored. It includes storage cost, damage cost,

depreciation, handling cost, insurance cost etc

1.M /hortage cost&( /hortage cost simply means the cost due to the absence of

inventory items in the store. It is associated with the lost sales. ;enerally, shortage


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costs incurred for those items which is more costly and which incurs more handling

costs.

+. Inventory osting methods&( These are the methods which are used for give the

values to the inventories. These valuation methods can be e*plained as

+.1 4irst In 4irst #ut&( In this method, the materials coming first will be considered

first and then ne*t consignment will be taken. This method is useful when the price of

material is falling because material charge to production will be high while the

replacement cost will be low.

+.+ >ast In 4irst #ut&( It is the method in which materials coming latest will be

considered first. The last consignment is taken first and when it is e*hausted then

second last consignment is taken. This method is more useful when the rice is rising

and show a charge to production which is closely related to current price.

+.- :eighted Average ost method&( In this method, material issued price is based

upon the calculation of weighted average cost of the material. It is calculated with

using formula&( :A O !alue of material in stock) Juantity in stock

+.M /tandard 6rice method&( In this method, a standard price is predetermined. The

price is predetermined for the stated period of time taken in the account all the factors

affecting price such as anticipated market trends, transportation charges etc. standard

prices are predetermined irrespective of purchase price. Any difference between the

predetermined price and actual price is the material price variance.

+.L urrent 6rice&( In this method, material issued is priced at the replacement or

realizable price at the time of issue. /o , the cost at which material could be purchased

should be ascertained.

-. Inventory models&( Among different inventory models "#J model is most popular

and commonly used inventory model. These models are used to determine the

economic order quantity of the materials to be stored


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-.1 "#J 7odel&( As inventory is determined as the most important factor which

affects the operations, then a mathematical model was developed to control the

inventory levels. The most widely used model is "#J model. It was first developed

by 4.:. ?aris in 1E1- but still $.?. :ilson is given credit for this model due to his

early in(depth analysis. This model is also known as :ilson "#J model. According

to this model, some costs like ordering costs are declined with inventory holdings

while some costs like holding costs rise and thus total inventory cost curve has a

minimum point where inventory costs can be minimized. The economic quantity is

the level for inventory which minimizes the total inventory costs. It is the optimal

level of inventories which satisfies the demand constraints and cost constraints.

There are some assumptions on which "#J is calculated. These assumptions are&(i.

There is known and constant holding cost. ii. There is a known and constant ordering

cost. iii. The rates of demand are known. iv. There is known constant price per unit. v.

o stock(outs are allowed. vi. $eplenishment is made instantaneously.

M. Inventory control techniques&( There are various techniques used by a firm to

control the inventories. /ome of these techniques can be e*plained as

M.1. A3 Analysis&( A3 analysis of inventories represent that the small portion of

material contains bulk amount of money value while a relatively large portion of

material consists less amount of money value. The money value is ascertained by

multiplying the quantity by unit price. According to this approach, inventory control

of high value items are closely controlled than low value items. "ach item is

categorized as A, 3 and categories depending upon the amount spent for the

particular item

M.+. 7inimum level&( The minimum level of inventories kept on the different bases

like consumption during the lead time, stock(out costs, customer irritation and loss of

goodwill etc. To continue production it is very essential to maintain optimal amount

of inventories. The stock which takes care for the fluctuation in demand is known as

safety stock. It also governs the ordering point.


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M.-. 7a*imum level&( The ma*imum limit beyond which the quantity of any item is

not normally allowed to rise is known as ma*imum level. It is the sum of minimum

level and "#J. The amounts to be fi*ed in ma*imum level depend upon the factors

like space available, nature of material etc.

M.M. $eorder level&( It is the level of the stock at which a purchase requisition is

initiated by the storekeeper for replenishing the stock. This level is set between the

ma*imum and minimum level in a such way that before material ordered for are

received into the stores. Its fi*ation depends upon ma*imum delivery period and

ma*imum consumption.

M.L. ust In Time system&( apanese firms popularized this technique in order toreduce the inventory level up to zero to eliminate the inventory costs. According to

this system, the materials arrive at the manufacturing sites 5ust few hours before they

are going to use. This system also eliminates the necessity of carrying large

inventories.

M.N. #utsourcing&( "arlier there was tendency of manufacturing companies to

manufacture all parts in(house. ow, more companies are adopting outsourcing

techniques. #utsourcing is a system of buying parts and components from other

companies rather than manufacturing in house.

M.K. omputerized Inventory ontrol /ystem&( It is the modern technique used for

controlling the inventories. It enables a company to track large items of inventories

easily. It is an automatic system of counting inventories, recording withdrawals and

balances. There is an in(built system of placing order as the computer notices that the

reorder point has been reached. The information system of the buyers and suppliersare linked to each other.

John A. BuzacottSchulich School of Business, York University,

Toronto, Ontario, Canada MJ !", #achel $. %han&, 'e(art)ent of

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*ndustrial +n&ineerin& and +n&ineerin& Mana&e)ent, on& -on&

University of Science and Technolo&y, Clear ater Bay, -o/loon,

on& -on&,Se(te)0er !, 1223. *nventory Mana&e)ent /ith Asset4

Based 5inancin&. Most of the traditional )odels in (roduction andinventory control i&nore the 6nancial states of an or&anization and

can lead to infeasi0le (ractices in real syste)s. This (a(er is the

6rst atte)(t to incor(orate asset40ased 6nancin& into (roduction

decisions. *nstead of settin& a kno/n, e7o&enously deter)ined

0ud&etary constraint as )ost e7istin& )odels su&&est, /e )odel

the availa0le cash in each (eriod as a function of assets and

lia0ilities that )ay 0eupdated (eriodically accordin& to the

dyna)ics of the (roduction activities. 5urther)ore, our )odels allo/

di8erent interest rates on cash 0alance and outstandin& loans,

/hich are an enhance)ent over )ost traditional )odels in that

inventory 6nanced 0y a loan, )ay 0e )ore e7(ensive than that 0y

out4of4(ocket cash. e de)onstrate the i)(ortance of 9oint

consideration of (roduction and 6nancin& decisions in a start4u(

settin& in /hich the a0ility to &ro/ the 6r) is )ainly constrained 0y

its li)ited ca(ital and de(endence on 0ank 6nancin&. e then

e7(lain the )otivation for asset40ased 6nancin& 0y e7a)inin& the

decision )akin& at a 0ank and a set of retailers in a ne/svendor

settin&.

Edward A. Silvr! U"ivrsit# $% Cal&ar#! Cal&ar#! Albrta!A'&'st (!

()*(O+rati$"s Rsarc, i" I"v"t$r# -a"a&"t: A $eview and ritique.Theob5ectives of inventory management, including the relevant related costs, are

e*amined in this paper. A brief review of standard problems, that have been

effectively solved, is presented. ?owever, we point out that a serious gap e*ists

between theory and practice in many organizations. /uggestions are made for

bridging this gap. 4inally, a list is provided of a number of research problems

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whose implementable solution would have a ma5or beneficial impact on the practice

of inventory management.

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I"v"t$r# -a"a&"t: T, R$l $% 7ist$rical C$st

This paper e*amines inventory management from an incentive perspective. :e show

that when a manager has private information about future attainable revenues, the

residual income performance measure based on historical cost can achieve optimal

8second(best9 incentives with regard to managerial effort as well as production and

sales decisions. The >I4# 8last(inPfirst(out9 inventory flow rule is shown to be

preferable to the 4I4# 8first(inPfirst(out9 rule for the purpose of aligning incentives.

#ur analysis also finds support for the lower(of(cost(or(marketinventory(valuation

rule in situations where the manager receives new information after the initial

contracting stage.

David 8. 7rr$"F-C C$r+$rati$"! Sa"ta Clara! Cali%$r"ia! Dcbr (! ()93

#ne of the most popular types of inventory management is the 8Q, r 9 system, in which

a quantity Q of an item is reordered whenever the inventory position reaches the

reorder point r . A number of packaged computer programs are available for this

system. ?owever, these programs seldom give the minimum(cost values of Q and r ,

since they usually employ the :ilson "conomic #rder Juantity. @se of the :ilson

"#J may result in substantial e*cess costs, particularly for items of high annual cash

flow. This article describes graphical and algebraic methods suitable for computer

application to determine accurately the minimum(cost values of Q and r , employing

either dollar stockout penalties or specified service levels. 3oth the single(item and

aggregate inventory cases are included. The methods described can readily be implied

on most computers and can result in significant cost savings.

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profits. :e prove that strategic inventories play a pivotal role under arbitrary

contractual structures, general 8arbitrary9 demand functions and general 8finite or

infinite9 horizon lengths. As one e*ample, two(part tariff contracts do not lead to

optimal channel performance, nor can the supplier e*tract away all of the channel

profits, in our dynamic model. #ur results imply that firms can and must

carry inventories strategically, and that optimal vertical contracts must take the

possibility of inventories into account.

Tava :ennon Olsen Olin Business School, ashin&ton University in

St. :ouis, St. :ouis, Missouri ;!2.#odney ". "arker The University

of Chica&o , 122>*nventory Mana&e)ent Under Market Size

'yna)ics e investi&ate the situation /here a custo)er

e7(eriencin& an inventory stock out at a retailer (otentially leaves

the 6r)?s )arket. *n classical inventory theory, a unit stock out

(enalty cost has 0een used as a surro&ate to )i)ic the econo)ic

e8ect of such a de(arture@ in this study, /e e7(licitly re(resent this

as(ect of consu)er 0ehavior, incor(oratin& the di)inishin& e8ect of

the consu)ers leavin& the )arket u(on the stochastic de)and

distri0ution in a ti)e4dyna)ic conte7t. The initial )odel considers a

sin&le 6r). e allo/ for consu)er for&iveness /here custo)ers

)ay o/ 0ack to the co))itted (urchasin& )arket fro) a non4

(urchasin& latent )arket. The (er4(eriod decisions include a

)arketin& )i7 to attract latent and ne/ consu)ers to the

co))itted )arket and the settin& of inventory levels. e esta0lish

conditions under /hich the 6r) o(ti)ally o(erates a 0ase4

stock inventory (olicy. The su0seDuent t/o )odels consider a

duo(oly /here the (otential )arket for a 6r) is no/ the co))itted

)arket of the other 6r)@ each 6r) decides its o/n inventory level.

*n the 6rst )odel, the only decisions are the stockin& decisions and

in the second )odel, a 6r) )ay also advertise to attract dissatis6ed

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custo)ers fro) its co)(etitor?s )arket. *n 0oth cases, /e esta0lish

conditions for a 0ase4stock eDuili0riu) (olicy. e de)onstrate

co)(arative statics in all )odels.

Ton& an& 'ecision Sciences Area, *ES+A', ==2F 5ontaine0leau,

5rance, A(ril !, 122>*nventory Mana&e)ent /ith Advance 'e)and

*nfor)ation and 5le7i0le 'elivery

This paper considers inventory models with advance demand information and fle*ible

delivery. ustomers place their orders in advance, and delivery is fle*ible in the sense

that early shipment is allowed. /pecifically, an order placed at time t by a customer

with demand lead time T should be fulfilled by period t R T S failure to fulfill it within

the time window t, t R T B is penalized. :e consider two situations& 819 ustomer

demand lead times are homogeneous and demand arriving in period t is a scalar d t to

be satisfied within T periods. :e show that state(dependent 8 s, S 9 policies are optimal,

where the state represents advance demands outside the supply lead(time horizon. :e

find that increasing the demand lead time is more beneficial than decreasing the

supply lead time. 8+9 ustomers are heterogeneous in their demand lead times. In this

case, demands are vectors and may e*hibit crossover, necessitating an allocation

decision in addition to the ordering decision. :e develop a lower(bound

appro*imation based on an allocation assumption, and propose protection(level

heuristics that yield upper bounds on the optimal cost. umerical analysis quantifies

the optimality gaps of the heuristics 8+ on average for the best heuristic9 and the

benefit of delivery fle*ibility 81M on average using the best heuristic9, and provides

insights into when the heuristics perform the best and when fle*ibility is most

beneficial.

=ara" -$i">ad, Sc,$$l $% /'si"ss! U"ivrsit# $% Was,i"&t$"! Sattl!

Was,i"&t$" )*()6C,arls I"&" Sc,$$l $% /'si"ss! U"ivrsit# $% Was,i"&t$"!

Sattl! Was,i"&t$" )*()6. -a# (! ())5! A" I"v"t$r# -$dl $% Idiat a"d

Dla#d Dlivr#! This paper considers the long run, profit ma*imizing strategy of a

distributor that holds a good 8good 19 in inventory for immediate delivery and that

offers a second good 8good +9 for delayed delivery. :hen the two goods are

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19/39

substitutes, an out(of(stock situation for good 1 will cause some consumers

8GwalkersH9 to seek the good elsewhere, other consumers 8GwaitersH9 to accept a rain

check for later delivery of good 1, and others still 8GswitchersH9 to place an order for

good +. It is shown that a profit ma*imizing strategy may entail setting a price for the

delayed delivery item so as to encourage switching behaviour. The rationale is that the

distributor can hold a smaller inventory, thereby incurring lower holding costs,

because out(of(stock situations are less costly than they would be without some

consumers being willing to switch.

Cyrus 'er)an Colu)0ia University, Morton -lein Colu)0ia

University, July !, !GF>*nventory 'e(letion Mana&e)entConsideration is &iven to (ro0le)s of choosin& the order of issue of

ite)s fro) a stock(ile of )aterial /hose utility characteristics are

chan&in& /ith ti)e. Conditions are &iven under /hich either :*5O

Hlast in, 6rst outI or 5*5O H6rst in, 6rst outI is an o(ti)al issue (olicy.

Sa)(ath #a9a&o(alan Marshall School of Business, University of

Southern California, :os An&eles, California G22>G Jayashankar M.

S/a)inathan The -enan45la&ler Business School, University of

Eorth Carolina, Cha(el ill, Eorth Carolina 1=FGG January 13, 1222A

Coordinated "roduction "lannin& Model /ith Ca(acity +7(ansion and

*nventory Mana&e)entMotivated 0y a (ro0le) faced 0y a lar&e

)anufacturer of a consu)er (roduct, /e e7(lore the interaction

0et/een (roduction (lannin& and ca(acity acDuisition decisions in

environ)ents /ith de)and &ro/th. e study a 6r) (roducin&

)ulti(le ite)s in a )ulti (eriod environ)ent /here de)and for

ite)s is kno/n 0ut varies over ti)e /ith a lon&4ter) &ro/th and

(ossi0le short4ter) uctuations. The (roduction eDui()ent is

characterized 0y si&ni6cant chan&eover ti)e 0et/een the

(roduction of di8erent ite)s. hile de)and &ro/th is &radual,

ca(acity additions are discrete. Therefore, (eriods i))ediately

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20/39

follo/in& a )achine (urchase are characterized 0y e7cess )achine

ca(acity. e develo( a )athe)atical (ro&ra))in& )odel and an

e8ective solution a((roach to deter)ine the o(ti)al ca(acity

acDuisition, (roduction and inventory decisions over ti)e. Throu&h aco)(utational study, /e sho/ the e8ectiveness of the solution

a((roach in ter)s of solution Duality and investi&ate the i)(act of

(roduct variety, cost of ca(ital, and other i)(ortant (ara)eters on

the ca(acity and inventory decisions. The co)(utational results

0rin& out so)e key insi&htsincreasin& (roduct variety )ay not

result in e7cessive inventory and even a su0stantial increase in set4

u( ti)es or holdin& costs )ay not increase the total cost over the

horizon in a si&ni6cant )anner due to the a0ility to acDuire

additional ca(acity. e also (rovide solutions and insi&hts to the

real (ro0le) that )otivated this /ork.

Brian 'o/ns Su((ly Chain 'ivision, As(en Technolo&y, *nc., !1G

+ldrid&e "ark/ay, ouston, Te7as ==2==Au&ust !, !GG>Mana&in&

*nventory /ith Multi(le "roducts, :a&s in 'elivery, #esource

Constraints, and :ost SalesK A Mathe)atical "ro&ra))in& A((roach This (a(er develo(s an order4u(4to S inventory )odel that is

desi&ned to handle )ulti(le ite)s, resource constraints, la&s in

delivery, and lost sales /ithout sacri6cin& co)(utational si)(licity.

Mild conditions are sho/n to ensure that the e7(ected avera&e

holdin& cost and the e7(ected avera&e shorta&e cost are se(ara0le

conve7 functions of the order4u(4to levels. e develo(

non(ara)etric esti)ates of these costs and use the) in con9unction/ith linear (ro&ra))in& to (roduce /hat is ter)ed the :" (olicy.

The :" (olicy has t/o )a9or advanta&es over traditional )ethodsK

6rst, it can 0e co)(uted in co)(le7 environ)ents such as the one

descri0ed a0ove@ and second, it does not reDuire an e7(licit

functional for) of de)and, so)ethin& that is diLcult to s(ecify

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21/39

accurately in (ractice. *n t/o nu)erical e7(eri)ents desi&ned so

that o(ti)al (olicies could 0e co)(uted, the :" (olicy fared /ell,

di8erin& fro) the o(ti)al (ro6t 0y an avera&e of 1.12 and !.>3,

res(ectively. These results co)(are Duite favora0ly /ith the errorsincurred in traditional )ethods /hen a correctly s(eci6ed

distri0ution uses esti)ated (ara)eters. Our 6ndin&s su((ort the

e8ectiveness of this )athe)atical (ro&ra))in& techniDue for

a((ro7i)atin& co)(le7, real4/orld inventory control (ro0le)s.

W$$"&, Ti 7', D+art"t $% I"d'strial E"&i"ri"& a"d O+rati$"s

Rsarc,! C$l'bia U"ivrsit#! Nw Y$r1! Nw Y$r1 (230a"s,


22/39

tied up in inventory and physical stock holding. The net present value 86!9 principle

is applied. "*plicit e*pressions for the development of the optimal order quantities

over time are presented. It is shown that three cases may be distinguished& 8i9 when

the price change is very small, 8ii9 when an essential price increase occurs, and 8iii9

when there is an essential price decrease. Although the optimal last(order quantity

before a price increase is similar in magnitude to what has been presented in other

articles applying average cost approaches, in certain respects, this paper offers novel

results contradictory to those suggested by other authors. Analysis shows that the

average(cost model solutions are first(order appro*imations in the discount rate.

umerical evaluations of a range of price increases and times to the price increase

suggest that, with certain important caveats, the average(cost formulae are likely to be

acceptable for most practical situations for the infinite horizon situation.

Steven Eah)ias University of "itts0ur&h May !, !G=3*nventory

'e(letion Mana&e)ent hen the 5ield :ife is #ando) This (a(er

considers the (ro0le) of descri0in& o(ti)al issuin& (olicies /hen

the 6eld life , X HsI, is a nonne&ative rando) varia0le. A ne/

o(ti)ality criterion involvin& stochastic orderin& is introduced and

suLcient conditions &iven for the o(ti)ality of 5*5O and :*5O. T/os(eci6c )odels of (erisha0le inventory are then considered@ Model *

allo/s for the (erishin& of ite)s in the stock(ile and Model ** does

not. *t is de)onstrated that 0oth :*5O and 5*5O are o(ti)al for

Model * /hen the ite)s a&e at the sa)e rate in the stock(ile as in

the 6eld. Under the assu)(tion that X HsI is unifor)ly distri0uted the

o(ti)ality of 5*5O is esta0lished for Model **

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23/39

-. I2@/T$% 6$#4I>"&

A -i"ral is a naturally occurring substance that is solid and inorganic representable

by a chemical formula, usually a biogenic, and has an ordered atomic structure. It is

different from a rock , which can be an aggregate of minerals or non(minerals and

does not have a specific chemical composition. The e*act definition of a mineral is

under debate, especially with respect to the requirement a valid species be a biogenic,

and to a lesser e*tent with regard to it having an ordered atomic structure. The study

of minerals is called mineralogy.

There are over M,E known mineral speciesS over M,NN of these have been approved

by the International 7ineralogical Association 8I7A9. The silicate minerals composeover E of the "arthDs crust. The diversity and abundance of mineral species is

controlled by the "arthDs chemistry. /ilicon and o*ygen constitute appro*imately KL

of the "arthDs crust, which translates directly into the predominance of silicate

minerals. 7inerals are distinguished by various chemical and physical properties.

2ifferences in chemical composition and crystal structure distinguish various species,

https://en.wikipedia.org/wiki/Abiogenichttps://en.wikipedia.org/wiki/Atomic_structurehttps://en.wikipedia.org/wiki/Rock_(geology)https://en.wikipedia.org/wiki/Rock_(geology)https://en.wikipedia.org/wiki/Mineralogyhttps://en.wikipedia.org/wiki/List_of_minerals_(complete)https://en.wikipedia.org/wiki/International_Mineralogical_Associationhttps://en.wikipedia.org/wiki/Silicate_mineralshttps://en.wikipedia.org/wiki/Earth's_crusthttps://en.wikipedia.org/wiki/Chemical_propertyhttps://en.wikipedia.org/wiki/Chemical_propertyhttps://en.wikipedia.org/wiki/Physical_propertyhttps://en.wikipedia.org/wiki/Chemical_compositionhttps://en.wikipedia.org/wiki/Crystal_structurehttps://en.wikipedia.org/wiki/Abiogenichttps://en.wikipedia.org/wiki/Atomic_structurehttps://en.wikipedia.org/wiki/Rock_(geology)https://en.wikipedia.org/wiki/Mineralogyhttps://en.wikipedia.org/wiki/List_of_minerals_(complete)https://en.wikipedia.org/wiki/International_Mineralogical_Associationhttps://en.wikipedia.org/wiki/Silicate_mineralshttps://en.wikipedia.org/wiki/Earth's_crusthttps://en.wikipedia.org/wiki/Chemical_propertyhttps://en.wikipedia.org/wiki/Physical_propertyhttps://en.wikipedia.org/wiki/Chemical_compositionhttps://en.wikipedia.org/wiki/Crystal_structure


24/39

and these properties in turn are influenced by the mineralDs geological environment of

formation. hanges in the temperature, pressure, and bulk composition of a rock mass

cause changes in its mineralogyS however, a rock can maintain its bulk composition,

but as long as temperature and pressure change, its mineralogy can change as well.

7inerals can be described by various physical properties which relate to their

chemical structure and composition. ommon distinguishing characteristics include

crystal structure and habit, hardness, lustre, diaphaneity, colour, streak , tenacity,

cleavage, fracture, parting, and specific gravity. 7ore specific tests for minerals

include reaction to acid, magnetism, taste or smell, and radioactivity.

7inerals are classified by key chemical constituentsS the two dominant systems are

the 2ana classification and the /trunz classification. The silicate class of minerals is

subdivided into si* subclasses by the degree of polymerization in the chemical

structure. All silicate minerals have a base unit of a /i#MBM silica tetrahedraUthat is,

a silicon cation coordinated by four o*ygen anions, which gives the shape of

a tetrahedron. These tetrahedra can be polymerized to give the subclasses&

orthosilicates 8no polymerization, thus single tetrahedra9, disilicates 8two tetrahedra

bonded together9, cyclosilicates 8rings of tetrahedra9, inosilicates 8chains of

tetrahedra9, phyllosilicates 8sheets of tetrahedra9, and tectosilicates 8three(dimensional

network of tetrahedra9. #ther important mineral groups include the native

elements, sulfides, o*ides, halides, carbonates,sulfates, and phosphates.

INDIAN -INERALS:

The tradition of mining in the region is ancient and underwent modernization

alongside the rest of the world as India has gained independence in1EMK. The economic reforms of 1EE1 and the 1EE- ational 7ining 6olicy further

helped the growth of the mining sector. IndiaDs minerals range from

both metallic and non(metallic types. The metallic minerals comprise ferrous and non(

ferrous minerals, while the nonmetallic minerals comprise mineral fuels, precious

stones, among others.

https://en.wikipedia.org/wiki/Crystal_habithttps://en.wikipedia.org/wiki/Mohs_scale_of_mineral_hardnesshttps://en.wikipedia.org/wiki/Diaphaneityhttps://en.wikipedia.org/wiki/Diaphaneityhttps://en.wikipedia.org/wiki/Streak_(mineralogy)https://en.wikipedia.org/wiki/Streak_(mineralogy)https://en.wikipedia.org/wiki/Streak_(mineralogy)https://en.wikipedia.org/wiki/Cleavage_(crystal)https://en.wikipedia.org/wiki/Specific_gravityhttps://en.wikipedia.org/wiki/Polymorphism_(materials_science)https://en.wikipedia.org/wiki/Tetrahedronhttps://en.wikipedia.org/wiki/Tetrahedronhttps://en.wikipedia.org/wiki/Native_element_mineralshttps://en.wikipedia.org/wiki/Native_element_mineralshttps://en.wikipedia.org/wiki/Sulfide_mineralshttps://en.wikipedia.org/wiki/Oxide_mineralshttps://en.wikipedia.org/wiki/Halide_mineralshttps://en.wikipedia.org/wiki/Halide_mineralshttps://en.wikipedia.org/wiki/Sulfate_mineralshttps://en.wikipedia.org/wiki/Sulfate_mineralshttps://en.wikipedia.org/wiki/Phosphate_mineralshttps://en.wikipedia.org/wiki/Narasimha_Raohttps://en.wikipedia.org/wiki/Metalhttps://en.wikipedia.org/wiki/Metalhttps://en.wikipedia.org/wiki/Nonmetalhttps://en.wikipedia.org/wiki/Nonmetalhttps://en.wikipedia.org/wiki/Ferroushttps://en.wikipedia.org/wiki/Non-ferroushttps://en.wikipedia.org/wiki/Non-ferroushttps://en.wikipedia.org/wiki/Fuelhttps://en.wikipedia.org/wiki/Fuelhttps://en.wikipedia.org/wiki/Precious_stonehttps://en.wikipedia.org/wiki/Precious_stonehttps://en.wikipedia.org/wiki/Crystal_habithttps://en.wikipedia.org/wiki/Mohs_scale_of_mineral_hardnesshttps://en.wikipedia.org/wiki/Diaphaneityhttps://en.wikipedia.org/wiki/Streak_(mineralogy)https://en.wikipedia.org/wiki/Cleavage_(crystal)https://en.wikipedia.org/wiki/Specific_gravityhttps://en.wikipedia.org/wiki/Polymorphism_(materials_science)https://en.wikipedia.org/wiki/Tetrahedronhttps://en.wikipedia.org/wiki/Native_element_mineralshttps://en.wikipedia.org/wiki/Native_element_mineralshttps://en.wikipedia.org/wiki/Sulfide_mineralshttps://en.wikipedia.org/wiki/Oxide_mineralshttps://en.wikipedia.org/wiki/Halide_mineralshttps://en.wikipedia.org/wiki/Sulfate_mineralshttps://en.wikipedia.org/wiki/Phosphate_mineralshttps://en.wikipedia.org/wiki/Narasimha_Raohttps://en.wikipedia.org/wiki/Metalhttps://en.wikipedia.org/wiki/Nonmetalhttps://en.wikipedia.org/wiki/Ferroushttps://en.wikipedia.org/wiki/Non-ferroushttps://en.wikipedia.org/wiki/Non-ferroushttps://en.wikipedia.org/wiki/Fuelhttps://en.wikipedia.org/wiki/Precious_stonehttps://en.wikipedia.org/wiki/Precious_stone


25/39

2.$. 0hullar holds that mining in India depends on over -,1 mines, out of which

over LL are fuel mines, over LN are mines for metals, and over 1EK are mines for

e*traction of nonmetals. The figure given by /.. 6adhi is& about N coal mines, -L

oil pro5ects and N, metalliferous mines of different sizes employing over one

million persons on a daily average basis. 3oth open cast mining and underground

mining operations are carried out and drilling) pumping is undertaken for e*tracting

liquid or gaseous fuels. ational 7ining 6olicy further helped the growth of the

mining sector. IndiaDs minerals range from both metallic and non(metallic types. The

metallic minerals comprise ferrous and non(ferrous minerals, while the nonmetallic

minerals comprise mineral fuels, precious stones, among others.

The country produces and works with roughly 1 minerals, which are an importantsource for earning foreign e*change as well as satisfying domestic needs. India also

e*ports iron ore, titanium, manganese, bau*ite, granite, and

imports cobalt, mercury, graphite etc.

@nless controlled by other departments of the ;overnment of India mineral resources

of the country are surveyed by the Indian 7inistry of 7ines, which also regulates the

manner in which these resources are used. The ministry oversees the various aspects

of industrial mining in the country. 3oth the ;eological /urvey of India and

the Indian 3ureau of 7ines are also controlled by the ministry. atural

gas, petroleum and atomic minerals are e*empt from the various activities of the

Indian 7inistry of 7ines.

0EO0RA87ICAL DISTRI/UTION

-i"r

al /ltL$cati$" -i"rals %$'"d

https://en.wikipedia.org/wiki/Mininghttps://en.wikipedia.org/wiki/Open_cast_mininghttps://en.wikipedia.org/wiki/Underground_mininghttps://en.wikipedia.org/wiki/Underground_mininghttps://en.wikipedia.org/wiki/Drillinghttps://en.wikipedia.org/wiki/Pumpinghttps://en.wikipedia.org/wiki/Metalhttps://en.wikipedia.org/wiki/Metalhttps://en.wikipedia.org/wiki/Nonmetalhttps://en.wikipedia.org/wiki/Nonmetalhttps://en.wikipedia.org/wiki/Ferroushttps://en.wikipedia.org/wiki/Non-ferroushttps://en.wikipedia.org/wiki/Non-ferroushttps://en.wikipedia.org/wiki/Fuelhttps://en.wikipedia.org/wiki/Fuelhttps://en.wikipedia.org/wiki/Precious_stonehttps://en.wikipedia.org/wiki/Iron_orehttps://en.wikipedia.org/wiki/Iron_orehttps://en.wikipedia.org/wiki/Titaniumhttps://en.wikipedia.org/wiki/Manganesehttps://en.wikipedia.org/wiki/Bauxitehttps://en.wikipedia.org/wiki/Bauxitehttps://en.wikipedia.org/wiki/Granitehttps://en.wikipedia.org/wiki/Cobalthttps://en.wikipedia.org/wiki/Mercury_(element)https://en.wikipedia.org/wiki/Graphitehttps://en.wikipedia.org/wiki/Graphitehttps://en.wikipedia.org/wiki/Government_of_Indiahttps://en.wikipedia.org/wiki/Geological_Survey_of_Indiahttps://en.wikipedia.org/w/index.php?title=Indian_Bureau_of_Mines&action=edit&redlink=1https://en.wikipedia.org/wiki/Natural_gashttps://en.wikipedia.org/wiki/Natural_gashttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Mininghttps://en.wikipedia.org/wiki/Open_cast_mininghttps://en.wikipedia.org/wiki/Underground_mininghttps://en.wikipedia.org/wiki/Underground_mininghttps://en.wikipedia.org/wiki/Drillinghttps://en.wikipedia.org/wiki/Pumpinghttps://en.wikipedia.org/wiki/Metalhttps://en.wikipedia.org/wiki/Nonmetalhttps://en.wikipedia.org/wiki/Ferroushttps://en.wikipedia.org/wiki/Non-ferroushttps://en.wikipedia.org/wiki/Fuelhttps://en.wikipedia.org/wiki/Precious_stonehttps://en.wikipedia.org/wiki/Iron_orehttps://en.wikipedia.org/wiki/Titaniumhttps://en.wikipedia.org/wiki/Manganesehttps://en.wikipedia.org/wiki/Bauxitehttps://en.wikipedia.org/wiki/Granitehttps://en.wikipedia.org/wiki/Cobalthttps://en.wikipedia.org/wiki/Mercury_(element)https://en.wikipedia.org/wiki/Graphitehttps://en.wikipedia.org/wiki/Government_of_Indiahttps://en.wikipedia.org/wiki/Geological_Survey_of_Indiahttps://en.wikipedia.org/w/index.php?title=Indian_Bureau_of_Mines&action=edit&redlink=1https://en.wikipedia.org/wiki/Natural_gashttps://en.wikipedia.org/wiki/Natural_gashttps://en.wikipedia.org/wiki/Petroleum


26/39

orth

"aster

n

6enins

ular

3elt

hota?%6"$>I0

Chttps&))en.wikipedia.org)wiki)hotaVagpur

VplateauC agpur plateau and the

#rissa plateau covering the states

of harkhand, :est 3engal and #rissa.

oal, iron ore, manganese, mica,

bau*ite,

copper, kyanite, chromite, beryl, apatit

e etc. 0hullar calls this region

the mineral heartland of India and

further cites studies to state that& Dthis

region possesses IndiaDs 1 percent

0yanite, E- percent iron ore, FM

percent coal, K percent chromite, K

percent mica, L percent fire clay, ML

percent as?%6"$>I0

Chttps&))en.wikipedia.org)wiki)Asbesto

sC ?%6"$>I0


sCbest?%6"$>I0


sC ?%6"$>I0


sCos, ML percent china clay, +

percent limestone and 1 percent

manganese.D

https://en.wikipedia.org/wiki/Chota_Nagpur_plateauhttps://en.wikipedia.org/wiki/Chota_Nagpur_plateauhttps://en.wikipedia.org/wiki/Chota_Nagpur_plateauhttps://en.wikipedia.org/wiki/Orissahttps://en.wikipedia.org/wiki/Jharkhandhttps://en.wikipedia.org/wiki/West_Bengalhttps://en.wikipedia.org/wiki/West_Bengalhttps://en.wikipedia.org/wiki/Orissahttps://en.wikipedia.org/wiki/Orissahttps://en.wikipedia.org/wiki/Coalhttps://en.wikipedia.org/wiki/Micahttps://en.wikipedia.org/wiki/Micahttps://en.wikipedia.org/wiki/Berylhttps://en.wikipedia.org/wiki/Apatitehttps://en.wikipedia.org/wiki/Apatitehttps://en.wikipedia.org/wiki/Apatitehttps://en.wikipedia.org/wiki/Fire_clayhttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/China_clayhttps://en.wikipedia.org/wiki/Limestonehttps://en.wikipedia.org/wiki/Chota_Nagpur_plateauhttps://en.wikipedia.org/wiki/Chota_Nagpur_plateauhttps://en.wikipedia.org/wiki/Chota_Nagpur_plateauhttps://en.wikipedia.org/wiki/Orissahttps://en.wikipedia.org/wiki/Jharkhandhttps://en.wikipedia.org/wiki/West_Bengalhttps://en.wikipedia.org/wiki/Orissahttps://en.wikipedia.org/wiki/Coalhttps://en.wikipedia.org/wiki/Micahttps://en.wikipedia.org/wiki/Berylhttps://en.wikipedia.org/wiki/Apatitehttps://en.wikipedia.org/wiki/Apatitehttps://en.wikipedia.org/wiki/Fire_clayhttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/Asbestoshttps://en.wikipedia.org/wiki/China_clayhttps://en.wikipedia.org/wiki/Limestone


27/39

entra

l 3elt

hhattisgarh,Andhra6radesh,7adhya?%6"$>I0

Chttps&))en.wikipedia.org)wiki)7adhyaV6rade

shC ?%6"$>I0

Chttps&))en.wikipedia.org)wiki)7adhyaV6rade

shC6radeshand 7aharastra.

7anganese, bau*ite, uranium,

limestone, marble, coal, gems,

mica, graphite etc. e*ist in large

quantities and the net e*tent of the

minerals of the region is yet to be

assessed. This is the second largest belt

of minerals in the country.

/outh

ern

3elt

0arnataka plateau and Tamil adu.4errous minerals and bau*ite. >ow

diversity.

/outh

:ester

n 3elt

0arnataka and ;oa. Iron ore, garnet and clay.

orth

:ester

n 3elt

$a5asthan and ;u5arat along the

Aravali?%6"$>I0

Chttps&))en.wikipedia.org)wiki)AravaliV$ange

C $ange.

on(ferrous minerals, uranium,

mica, beryllium, aquamarine, petroleu

m, gypsum andemerald.

https://en.wikipedia.org/wiki/Chhattisgarhhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Uraniumhttps://en.wikipedia.org/wiki/Uraniumhttps://en.wikipedia.org/wiki/Marblehttps://en.wikipedia.org/wiki/Marblehttps://en.wikipedia.org/wiki/Gemstonehttps://en.wikipedia.org/wiki/Gemstonehttps://en.wikipedia.org/wiki/Graphitehttps://en.wikipedia.org/wiki/Karnatakahttps://en.wikipedia.org/wiki/Tamil_Naduhttps://en.wikipedia.org/wiki/Tamil_Naduhttps://en.wikipedia.org/wiki/Tamil_Naduhttps://en.wikipedia.org/wiki/Goahttps://en.wikipedia.org/wiki/Garnethttps://en.wikipedia.org/wiki/Clayhttps://en.wikipedia.org/wiki/Clayhttps://en.wikipedia.org/wiki/Rajasthanhttps://en.wikipedia.org/wiki/Gujarathttps://en.wikipedia.org/wiki/Aravali_Rangehttps://en.wikipedia.org/wiki/Aravali_Rangehttps://en.wikipedia.org/wiki/Aravali_Rangehttps://en.wikipedia.org/wiki/Uraniumhttps://en.wikipedia.org/wiki/Uraniumhttps://en.wikipedia.org/wiki/Berylliumhttps://en.wikipedia.org/wiki/Aquamarineshttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Gypsumhttps://en.wikipedia.org/wiki/Emeraldhttps://en.wikipedia.org/wiki/Chhattisgarhhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Madhya_Pradeshhttps://en.wikipedia.org/wiki/Uraniumhttps://en.wikipedia.org/wiki/Marblehttps://en.wikipedia.org/wiki/Gemstonehttps://en.wikipedia.org/wiki/Graphitehttps://en.wikipedia.org/wiki/Karnatakahttps://en.wikipedia.org/wiki/Tamil_Naduhttps://en.wikipedia.org/wiki/Goahttps://en.wikipedia.org/wiki/Garnethttps://en.wikipedia.org/wiki/Clayhttps://en.wikipedia.org/wiki/Rajasthanhttps://en.wikipedia.org/wiki/Gujarathttps://en.wikipedia.org/wiki/Aravali_Rangehttps://en.wikipedia.org/wiki/Aravali_Rangehttps://en.wikipedia.org/wiki/Aravali_Rangehttps://en.wikipedia.org/wiki/Uraniumhttps://en.wikipedia.org/wiki/Berylliumhttps://en.wikipedia.org/wiki/Aquamarineshttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Gypsumhttps://en.wikipedia.org/wiki/Emerald


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5. (. CO-8ANY 8ROFILE:

ES.ES.-INERALS was established in the year 1EEM with a vision to provide its

quality product in large volume to the valued clients. /ince then we have targeted to

produce our product industry specific. #btaining a good quality of minerals from

mines is not only important. ;rinding the mined out product with e*act specifications

of the customer is important in this venture. It has whole department dedicated to this

led by the owner himself to cater the customer needs.

:e have kept our concentration in producing customized products to fulfill the needs

of iron W steel, welding rod, earth solutions, poultry feed, phile foundation, tiles,

sanitary wares, glass, paints, rubbers, detergents, insulators, frits, medicines and

construction companies. :e understood the consumption of our product in large

volume by these industries specially "$A7I and ;>A// category and we are

proud to say we have fulfilled our heavy demand of our customer 8around 1, 7T

in a month9 with the consideration in quality and with timely deliveries.

@nless controlled by other departments of the ;overnment of India mineral resources

of the country are surveyed by the Indian 7inistry of 7ines, which also regulates the

manner in which these resources are used. The ministry oversees the various aspects

https://en.wikipedia.org/wiki/Government_of_Indiahttps://en.wikipedia.org/wiki/Government_of_India


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of industrial mining in the country. 3oth the ;eological /urvey of India and

the Indian 3ureau of 7ines are also controlled by the ministry.

atural gas, petroleum and atomic minerals are e*empt from the various activities of

the Indian 7inistry of 7inesTo attach the task, we are enough equipped with our

plants and latest technologies, we obtained roller mill and pulverizer mill which

produce the material in large volume.

ES.ES.-INERALS based in India believes in countries ideology of

CUSTO-ER IS 0OD

T7E -ISSION:

To approach the new height of trustworthy organization and to provide of best to our

customers.

T7E VISION:

"/."/.7I"$A>/ aims to become one of the top calls 7anufacturer W "*porter of

on 7etallic 7inerals in India providing best services to its customers across the

globe.

Aiming to provide best services P "/."/.7I"$A>/ has set up its state of art

$esearch W 2evelopment >abs W has set up one of the best processing facilities in

India.

#@$ 7AA;"7"T 6?I>#/#6?%&

https://en.wikipedia.org/wiki/Geological_Survey_of_Indiahttps://en.wikipedia.org/w/index.php?title=Indian_Bureau_of_Mines&action=edit&redlink=1https://en.wikipedia.org/wiki/Natural_gashttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Geological_Survey_of_Indiahttps://en.wikipedia.org/w/index.php?title=Indian_Bureau_of_Mines&action=edit&redlink=1https://en.wikipedia.org/wiki/Natural_gashttps://en.wikipedia.org/wiki/Petroleum


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#ur management philosophy represents our strong determination to contribute

directly to the prosperity of the people all over the country. The 7anaging director

T.7A#?A$A of "/."/.7I"$A>/ has a vast e*perience of + years.

:e have served in all the areas right form manufacturing activity to

marketing and e*porting and good understanding of quality of product W do proper

$W2 to develop needed products. :e are mainly interested in e*porting the goods as

per the customer requirement and satisfaction.

#@$ AI7&

"/."/.7I"$A>/ aims at e*porting good quality of products either self manufactured or selected quality product from the market. ompany is interested in

having good and long term relationship with the clients within the country and also

abroad. lient satisfaction is highest concern of the company.

1.- #@$ $A;" #4 6$#2@T >I"/ &

:e are the hennai=s leading manufacturers and e*porters of diversified range of

industrial minerals and are committed to maintain that position.

3"T#IT"

/"t$"it is an absorbent aluminium phyllosilicate, essentially impure clay consisting

mostly of montmorillonite. The absorbent clay was given the name bentonite by

:ilbur . 0night in 1FEF, after the retaceous 3enton /hale near $ock $iver,

:yoming.

http://en.wikipedia.org/wiki/Absorption_(chemistry)http://en.wikipedia.org/wiki/Cretaceoushttp://en.wikipedia.org/wiki/Rock_River,_Wyominghttp://en.wikipedia.org/wiki/Rock_River,_Wyominghttp://en.wikipedia.org/wiki/Rock_River,_Wyominghttp://en.wikipedia.org/wiki/Rock_River,_Wyominghttp://en.wikipedia.org/wiki/Absorption_(chemistry)http://en.wikipedia.org/wiki/Cretaceoushttp://en.wikipedia.org/wiki/Rock_River,_Wyominghttp://en.wikipedia.org/wiki/Rock_River,_Wyoming


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There are different types of bentonite, each named after the respective

dominant element, such as potassium809, sodium 8a9,calcium 8a9,

and aluminium 8Al9. "*perts debate a number of nomenclatorial problems with the

classification of bentonite clays. 3entonite usually forms from weathering of volcanic

ash, most often in the presence of water. ?owever, the term bentonite, as well as a

similar clay called tonstein, has been used to describe clay beds of uncertain origin.

4or industrial purposes, two main classes of bentonite e*ist& sodium and calcium

bentonite. In stratigraphy and tephrochronology, completely devitrified 8weathered

volcanic glass9 ash(fall beds are commonly referred to as 0(bentonites when the

dominant clay species is illite. #ther common clay species, and sometimes dominant,

are montmorillonite and kaolinite. 0aolinite(dominated clays are commonly referred

to as tonsteins and are typically associated with coal.

A++licati$" $% b"t$"it

2rilling mud

3inder

6urification

Absorbent

;round water barriers

7edical

6oultry feed manufacturing

Iron W /teel foundry and casting

http://en.wikipedia.org/wiki/Chemical_elementhttp://en.wikipedia.org/wiki/Chemical_elementhttp://en.wikipedia.org/wiki/Sodiumhttp://en.wikipedia.org/wiki/Sodiumhttp://en.wikipedia.org/wiki/Calciumhttp://en.wikipedia.org/wiki/Volcanic_ashhttp://en.wikipedia.org/wiki/Volcanic_ashhttp://en.wikipedia.org/wiki/Devitrificationhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Chemical_elementhttp://en.wikipedia.org/wiki/Sodiumhttp://en.wikipedia.org/wiki/Calciumhttp://en.wikipedia.org/wiki/Volcanic_ashhttp://en.wikipedia.org/wiki/Volcanic_ashhttp://en.wikipedia.org/wiki/Devitrificationhttp://en.wikipedia.org/wiki/Coal


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LI-ESTONE

List$" is a sedimentary rock composed largely of

the minerals calcite and aragonite, which are different crystal forms of calciumcarbonate 8a#-9. 7any limestones are composed from skeletal fragments of marine

organisms such as coral or foraminifera.

>imestone makes up about 1 of the total volume of all sedimentary rocks.

Thesolubility of limestone in water and weak acid solutions leads to karst landscapes,

in which water erodes the limestone over thousands to millions of years.

7ost cave systems are through limestone bedrock.

>imestone has numerous uses& as a building material, as aggregate for the base of

roads, as white pigment or filler in products such as toothpaste or paints, and as a

chemicalfeedstock .

The first geologist to distinguish limestone from dolomite was 3elsazar ?acquet in

1KKF.

A++licati$" $% list$"

' Iron W steel industries

' 6oultry feed

' 4ace powder

' ement

http://en.wikipedia.org/wiki/Sedimentary_rockhttp://en.wikipedia.org/wiki/Mineralshttp://en.wikipedia.org/wiki/Calcitehttp://en.wikipedia.org/wiki/Calcitehttp://en.wikipedia.org/wiki/Aragonitehttp://en.wikipedia.org/wiki/Aragonitehttp://en.wikipedia.org/wiki/Aragonitehttp://en.wikipedia.org/wiki/Polymorphism_(materials_science)http://en.wikipedia.org/wiki/Calcium_carbonatehttp://en.wikipedia.org/wiki/Calcium_carbonatehttp://en.wikipedia.org/wiki/Calcium_carbonatehttp://en.wikipedia.org/wiki/Coralhttp://en.wikipedia.org/wiki/Foraminiferahttp://en.wikipedia.org/wiki/Solubilityhttp://en.wikipedia.org/wiki/Cavehttp://en.wikipedia.org/wiki/Building_materialhttp://en.wikipedia.org/wiki/Building_materialhttp://en.wikipedia.org/wiki/Toothpastehttp://en.wikipedia.org/wiki/Feedstockhttp://en.wikipedia.org/wiki/Feedstockhttp://en.wikipedia.org/wiki/Dolomitehttp://en.wikipedia.org/wiki/Sedimentary_rockhttp://en.wikipedia.org/wiki/Mineralshttp://en.wikipedia.org/wiki/Calcitehttp://en.wikipedia.org/wiki/Aragonitehttp://en.wikipedia.org/wiki/Polymorphism_(materials_science)http://en.wikipedia.org/wiki/Calcium_carbonatehttp://en.wikipedia.org/wiki/Calcium_carbonatehttp://en.wikipedia.org/wiki/Coralhttp://en.wikipedia.org/wiki/Foraminiferahttp://en.wikipedia.org/wiki/Solubilityhttp://en.wikipedia.org/wiki/Cavehttp://en.wikipedia.org/wiki/Building_materialhttp://en.wikipedia.org/wiki/Toothpastehttp://en.wikipedia.org/wiki/Feedstockhttp://en.wikipedia.org/wiki/Dolomite


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' ;lass making

6igment

7agnetic recording

' 6hoto catalysts

$"2#XI2"

Ir$"?III@ $id or %rric $id is the inorganic compound with the formula 4e+#-. It

is one of the three main o*ides of iron, the other two being iron8II9 o*ide 84e#9,

which is rare, and iron8II,III9 o*ide 84e-#M9, which also occurs naturally as the

mineral magnetite. As the mineral known as hematite, 4e+#- is the main source of the

iron for the steel industry. 4e+#- is ferromagnetic, dark red, and readily attacked by

acids. Iron8III9 o*ide is often called rust, and to some e*tent this label is useful,

because rust shares several properties and has a similar composition. To a chemist,

rust is considered an ill(defined material, described as hydrated ferric o*ide

A++licati$" $% rd $id

Iron industry

6olishing

6igment

7agnetic recording

6hoto catalysts

http://en.wikipedia.org/wiki/Inorganic_compoundhttp://en.wikipedia.org/wiki/Inorganic_compoundhttp://en.wikipedia.org/wiki/Oxidehttp://en.wikipedia.org/wiki/Oxidehttp://en.wikipedia.org/wiki/Ironhttp://en.wikipedia.org/wiki/Iron(II)_oxidehttp://en.wikipedia.org/wiki/Iron(II)_oxidehttp://en.wikipedia.org/wiki/Iron(II,III)_oxidehttp://en.wikipedia.org/wiki/Iron(II,III)_oxidehttp://en.wikipedia.org/wiki/Magnetitehttp://en.wikipedia.org/wiki/Hematitehttp://en.wikipedia.org/wiki/Hematitehttp://en.wikipedia.org/wiki/Ferromagnetismhttp://en.wikipedia.org/wiki/Rusthttp://en.wikipedia.org/wiki/Inorganic_compoundhttp://en.wikipedia.org/wiki/Oxidehttp://en.wikipedia.org/wiki/Ironhttp://en.wikipedia.org/wiki/Iron(II)_oxidehttp://en.wikipedia.org/wiki/Iron(II,III)_oxidehttp://en.wikipedia.org/wiki/Magnetitehttp://en.wikipedia.org/wiki/Hematitehttp://en.wikipedia.org/wiki/Ferromagnetismhttp://en.wikipedia.org/wiki/Rust


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$#0 6?#/6?AT"

6hosphorite, phosphate rock or rock phosphate is a non(detrital sedimentary

?%6"$>I0 Chttp&))en.wikipedia.org)wiki)/edimentaryVrockCrock which contains

high amounts of phosphate bearing minerals. The phosphate content of phosphorite is

at least 1L to +, which is a large enrichment over the typical sedimentary rock content of less than .+. The phosphate is present as fluorapatite aL86#M9-4 84A9

typically in cryptocrystalline masses

8grain sizes Y 1 Zm9 referred to ascollophane. It is also present as hydro*yapatite

aL86#M9-#?, which is often dissolved from vertebrate bones and teeth, whereas

fluorapatite can originate from hydrothermal veins. #ther sources also include

chemically dissolved phosphate minerals from igneous .6hosphorite deposits often

occur in e*tensive layers, which cumulatively cover tens of thousands of square

kilometres of the "arthDs crust.

Application of rock phosphate

' 4ertilizer

' 6oultry feed

#@$ @/T#7"$/

http://en.wikipedia.org/wiki/Sedimentary_rockhttp://en.wikipedia.org/wiki/Sedimentary_rockhttp://en.wikipedia.org/wiki/Phosphatehttp://en.wikipedia.org/wiki/Cryptocrystallinehttp://en.wikipedia.org/wiki/Collophanehttp://en.wikipedia.org/wiki/Hydrothermal_veinhttp://en.wikipedia.org/wiki/Phosphate_mineralhttp://en.wikipedia.org/wiki/Phosphate_mineralhttp://en.wikipedia.org/wiki/Igneoushttp://en.wikipedia.org/wiki/Igneoushttp://en.wikipedia.org/wiki/Sedimentary_rockhttp://en.wikipedia.org/wiki/Sedimentary_rockhttp://en.wikipedia.org/wiki/Phosphatehttp://en.wikipedia.org/wiki/Cryptocrystallinehttp://en.wikipedia.org/wiki/Collophanehttp://en.wikipedia.org/wiki/Hydrothermal_veinhttp://en.wikipedia.org/wiki/Phosphate_mineralhttp://en.wikipedia.org/wiki/Igneous


35/39


36/39

(.4 CO-8ETITORS

1. 3"A? 7I"$A>/

+. A/?#0 7I"$A>/ "T"$6$I/"/

-. /@6"$4I" 7I"$A>/ W?"7IA>/

M. /$I 7A$@T?I 7I"$A>/L. ! !. 7I"$A>/

N. /A$A I2@/T$IA>/ 7I"$A>/

K. 7A?A!""$ 7"TA>/ W 7I"$A>/

F. / /. IT"$ATI#A> 7I"$A>/

E. 3 / ! . T$A2I; 7I"$A>/ #76A%

1. A W A. IT"$ATI#A> T$A2I; 7I"$A>/

11. /I3"># I2IA 7I"$A>/ 6!T. >T2

(.6 ObGctivs $% t, $r&a"i>ati$"

1. To carry on the business of buying, selling, reselling, importing, e*porting, all

type of goods on retail as well as on wholesale basis in India or elsewhere.


37/39

+. To carry on the business as e*hibitors of various goods, services and

merchandise and to undertake the necessary activities to promote sales of goods,

services and merchandise manufactured)dealt with)provided by the ompany.

-. To act as broker, trader, agent, W 4 agent, shipper, commission agent,

distributor, representative, franchiser, consultant,

M. To reduce the number of defects in manufacturing

(.2O/


38/39

SCO8E OF T7E STUDY

a9 It develops policies for both the continuous review and periodic review of

inventory control system.

b9 It distinguishes the different type of inventory an knows how to manage their

quantities.

c9 /aving can be increased which is used for satisfaction of working capital

needs.


39/39

LI-ITATIONS OF T7E STUDY

a9 The study is based on the secondary data collected from annual report of

the company. ?ence the reliability of the may not be accurate.

b9 The study is limited to ES.ES.-INERALS and other concerns are not

considered.

cI 2ue to time constraints the study is limited to selected spares only.

prabhu project

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