project

1.1 INTRODUCTION

Inventory represents the second largest asset category for manufacturing companies,

next only to plant and equipment.Given substantial investment in inventories, the importance

of inventory management cannot be overemphasized.

Primary executives in production, purchasing and marketing departments, take decisions

relating to inventories. Usually, purchasing raw material policies and production executives

and production and marketing executives evolve finished goods inventory policy. inventory

management has important operational implications, the operation manager has the

responsibility to ensure that inventories are properly monitored and controlled. He has to

emphasize the operational point of view and initiate programmers with the participation and

involveinvolvement of others for effective management of inventories

Definition of 'Inventory

The raw materials, work-in-process goods and completely finished goods that are considered

to be the portion of a business's assets thatare ready or will be ready for sale. Inventory

represents one of the most important assets that most businesses possess, because the

turnover of inventory represents one of the primary sources of revenue generation and

subsequent earnings for the company's shareholders/owners.

The main functions of inventory are summarized below

Smoothing out irregularities in supply

Minimizing the production cost

Allowing organization to cope with perishable material

Need to hold inventories

Maintaining inventories involves trying up of the company’s funds and incurrence of storage

and handling costs.

1

Inventory analysis

Careful inventory management is critical to the financial health of businesses whose primary

venture is manufacturing or retailing. In retail and manufacturing companies, huge amounts

of time and money are pended in keeping and managing inventory. The assumption of basic

inventory model.

Only one item is considered.

An entire order arrives at once.

No shortages are allowed.

The demand is known and constant over time.

The time value of money is zero.

Price for items is not a function of order quantity.

Lead-time is known and constant.

Types of inventory:

There are three basic types of inventory - raw materials, work-in-process, finished good.

based on their uses, inventory can be classified as - cycle inventory, safety stock, anticipation

inventory, and in-transit inventory.

You may have also heard about independent and dependent demand inventories. We will

work with independent demand in our analysis. Independent demand is most frequently

associated with finished goods where the demand is more or less unknown. Dependent

demand inventory is associated with MRP systems and bills of materials.

Cost involved in inventory analysis:

Ordering cost:

Ordering cost is referred to as the cost of placing an order and securing the supplies. It varies

from time to time and also from industry to industry.

2

Carrying cost:

Carrying cost refers to the cost of keeping the materials in the storehouse which include (1)

capital cost, (2) cost of storage and handling, (3) cost of deterioration and obsolescence, and

(4) other kinds of expenses and losses during storage.

Definition of Supply Chain Management

SCM is the management of a network of all business processes and activities involving

procurement of raw materials, manufacturing and distribution management of Finished

Goods. SCM is also called the art of management of providing the Right Product, At the

Right Time, Right Place and at the Right Cost to the Customer.

Why SCM strategy is important for an Organization

Inventory control and inventory visibility are two very critical elements in any operations for

these are the cost drivers and directly impact the bottom lines in the balance sheet. Inventory

means value and is an asset of the company. Every business has a standard for inventory

turnaround that is optimum for the business. Inventory turnaround refers to the number of

times the inventory is sold and replaced in a period of twelve months. The health of the

inventory turn relates to the health of business.

In a global scenario, the finished goods inventory is held at many locations and distribution

centres, managed by third parties. A lot of inventory would also be in the pipeline in

transportation, besides the inventory with distributors and retail stocking points. Since any

loss of inventory anywhere in the supply chain would result in loss of value, effective control

of inventory and visibility of inventory gains importance as a key factor of Supply Chain

Management function.

3

1.2 INDUSTRY PROFILE

Although pottery and ceramic industry is of prehistoric origin in India, the HT insulator

industry has a recent origin. The first unit was set up in the fifties at Bangalore. Some units

were set up in the sixties but the main expansion of the industry took place in the seventies

are used in electrical transmission lines, substations and electrical equipment. Different types

of industry are used for each application.

There has been up gradation of transmission voltage and plans are afoot to install 765 KV AC

transmission lines. The industry would need to develop and produce HT insulators of higher

ratings for transmission lines, substations and equipment.

There are 14 units manufacturing electro porcelain high tension insulators. Two of these units

are in small scale sector. These have installed capacity of 85,050 tonnes per annum one small

scale and one organized sector unit have stopped production of insulators. The capacity of

these two units is 5000 tonne per annum.

The demand and average production of the HT Insulators during the last nine year have been

around 31,000 tonne per annum.

More than 60% of the installed capacity is lying idle with the industry due to lack of domestic

demand. With the implementation of the approved projects, the unutilized capacity would

increase from 60,000 tonne to 1,00,000 tonne approximately. Since the domestic is not likely

to increase proportionately at least for the next five years, the only possible way for

improving the efficiency of the industry is to enter the world export market.

All the units in the organized sector have been set up with foreign technology through foreign

collaborations were entered into initially to set up the projects and number of 1 unit

subsequently had entered into supplementary collaborations to upgrade and enhance the

product range. Each unit in the industry has been acting as a sealed compartment and centre

of an exclusive secret technology. There has been very little exchange of technological

information amongst the units of the industry.

The industry has done well to adapt the foreign technology. Over the past decade, it has

produced major equipment and testing equipment on their, own. Porcelain insulator industry

4

in India has substantially matured and even is in a position to pass on technology to any third

country who may want to set up such a plant in association with them.

Electro porcelain and toughened glass are the two types of insulators that are being used for

high tension transmission lines and equipment throughout the world. The world market

comprises of the power project being set up mainly in the under developed and developing

countries using electro porcelain and toughened glass insulators.

In India also toughened glass insulators are being used in transmission lines. However, it may

be noted that this comparison is not exhaustive, as complete data on properties and

performance of glass insulators is not available due to its limited use so far. Toughened glass

insulator technology acquisition and adaptation has not received sufficient attention so far in

the country. The only unit which has been given the license for manufacture of toughened

glass insulator has set up an assembly line. Production of glass shell which indeed is the real

technology is yet to start.

Generally glass tends to deteriorate in outdoor application as it is not crystalline. It is

amorphous and also in a Metastable state. Also surface damage in glass insulators leads to

shattering, while porcelain insulators can withstand reasonable degree of surface demand.

Performance of glass is yet to be proved in EHV system trial in tropical countries. Long rod

porcelain insulators have been developed and are being used along with disc insulator strings.

5

1.3 COMPANY PROFILE

Vision:

WSI was established in 1961 with a vision of creating an enduring benchmark in India for

strategic excellence in electro-porcelains.

Goal:

The continuing drive to synthesize material technology with manufacturing competence to

develop innovative product solutions.

A period of expansion:

The foundation of product and process technology from international leaders coupled With

continuing emphasize on in-house development and adaptation to market requirements,

helped WSI to introduce many new product styles for the domestic and export markets as

well as improve manufacturing efficiency.

The company today has an installed capacity of 12,800 CMT on a built-up area of 67,237

square meters and manufactures all types of high voltage porcelain insulators.

Continuing improvement:

The plant is with comprehensive facilities to ensure production consistency and flexibility.

An integrated approach to quality management through comprehensive training at all levels

supported by full-fledged test facilities ensures superior product performance and reliability.

All products are rigorously tested to ensure compliance with not only all international

standards but also stringent customer specific standards. This is supported by periodic testing

at reputed international laboratories.

Extensive usage of information technology for production planning, scheduling and control

creates the ability to track each order through the production process, respond quickly to

customer requirements and maintain minimum throughput time.

6

Quality A company Wide commitment:

The quality system, certified for compliance to ISO 9001(achieved in 1991) is used as the

primary tier of product and process control. This is supplemented by comprehensive usage of

other techniques including SQC, SPC, PDCA and continuous improvement project in all

areas of operations.

An international outlook:

WSI believes in serving global market while retaining a strong domestic presence. Today,

WSI products are in service in many countries in severe operating environments. WSI has put

in place an extensive network of sales agent and distributors supplementing direct marketing

efforts to provide comprehensive service to its customer.

All our product have been tested extensively at various international laboratories in

accordance with the international standards.

Since its inception WSI has won numerous awards for its export performance from the

Government of India.

An On-going saga:

WSI continues to enhance its competence in design and manufacturing expertise in the

electro-porcelain industry in its mission to provide increasing value to the customers.

7

1.4 PRODUCT PROFILE

A true insulator is a material that does not respond to an electric field and completely resists

the flow of electric charge. In practice, however, perfect insulators do not exist. Therefore,

dielectric materials with high dielectric constants are considered do not exist. Therefore,

dielectric materials with high dielectric constant are considered insulators. In insulating

materials valence electrons are tightly bonded to their atoms. These materials are used in

electrical equipment as insulators or insulation. Their function is to support or separate

electrical conductors without allowing current through themselves. The term also refers to

insulating supports that attach electric power transmission wires to utility poles or pylons.

Some materials such as glass, paper or Teflon are very good electrical insulators. Even

though they may have lower bulk resistivity, a much larger class of materials are still ”good

enough” to insulate electrical wiring and cables. Examples include rubber-link polymers and

most plastics. Such materials can serve as practical and safe insulators for low to moderate

voltages (hundreds, or even thousands, of volts).

Insulators are commonly used as a flexible coating on electric wire and cable. Since air is an

insulators, in principle no other substance is needed to keep power where it should be. High

voltage power line commonly use just air, since a solid(e.g., plastic) coating is impractical.

However, wires which touch each other will produce cross connection, short circuits, and fire

hazards.

In coaxial cable the center conductor must be supported exactly in the middle of the hollow

shield in order to prevent EM wave reflection. Finally, wires which expose voltages higher

then 60V can cause human shock and electrocution hazards. Insulating coatings help to

prevent all of these problems

Every insulator manufactured is subjected to an array of thermal, electrical and mechanical

tests. Apart from the routine tests, samples from each lot are subjected to acceptance tests in

line with the relevant standards

Suspension Insulators

Service environments necessitate the use of the proper profile of the insulator, to ensure

hassle-free operation under severe site conditions. To cater to the needs of the customers WSI

8

manufactures three different profiles catering to site conditions ranging from lighting /

moderate pollution to severe sand pollution.

Every insulator manufactured is subjected to an array of thermal, electrical and mechanical

tests. Apart from the routine tests, samples from each lot are subjected to acceptance tests in

line with the relevant standards.

Insulators for substations and apparatus require a high degree of safety and service reliability.

These insulators may be subjected to high degree of static and dynamic loading, severe

climatic conditions and very heavy levels of pollution.

"Suspension" and "Strain" insulators are the same thing; when used in the vertical position

(with the conductor hanging below) they are called "suspension"; when used in the

horizontal, to dead-end a conductor, they are called "strain".

There are two basic types of suspension insulators: Unipart and multipart.

Multiparts are no longer produced, and original units are rare today. There are only two

known styles: Cochrane and Byllesby, both dating from the late 1910s.

Unipart’s (see left and right) were first developed in the 1910s and are the common style still

in production today. Each unit has a single glass shell bonded to a steel cap (above) and a

steel pin (below). The modular units connect with each other cap-to-pin, forming a chain or

"string".

The mechanical strength of a string is determined by the rating of the metal parts of a single

unit, but the electrical rating can be increased by simply adding more units. This system

allows for much higher insulation value than any pin-type insulator: the largest one-piece pin-

type power insulator ever made in the U.S. was the Corning Pyrex No. 701, which is rated at

only 70,000 volts, while a string a suspension insulators could be assembled that stands off

1,000,000 volts or more.

There are three basic styles of Unipart suspension insulator shells: (1) "sombrero" (so-called

by collectors), which is flat, with multiple ridges or "skirts" on the under-side which increase

the leakage distance; (2) fog or "bell", in which the disk is curved into a bell or nearly

hemispheric shape, the indent being to keep the ridge less underside from being wetted as

9

easily; and (3) aero(dynamic) style, a wide flat disc (also with no ridges) which presents little

cross-section and so is least affected by high winds.

Ceramic Disc Suspension Insulator/Porcelain Suspension Insulator/Suspension

Insulator

Ceramic Disc Suspension Insulator/Porcelain Suspension Insulator/Suspension Insulator

Disc Suspension Porcelain Insulator is used for insulation and supporting in high voltage

overhead transmission and distribution lines. They are usually connected and assembled into

insulator string and used on different levels of line voltage.

Connected fitting type: ball & socket type; clevis & tongue type

Strength can be 40 KN, 45KN, 60KN, 70KN, 80KN, 100KN, 110KN, 120 KN,

125KN,160KN, 210KN, 300KN

According to different use environment and region, the insulator can be divided into standard

type and anti-pollution type.

Standard suspension insulator:

10

ANSI type:

52-1, 52-2, 52-3, 52-4, 52-5, 52-6, 52-8, 52-9 according to ANSI C29.2

EC type:

U70BL, U70BS, U100B, U120B, U160B, U210B, U300B according to IEC383, BS137

The fog type has big creep age distance. According to the shed shape and structure, the fog

type disc suspension insulator can be divided into double-shed anti-pollution insulator, tri-

shed anti-pollution insulator, aerodynamic suspension porcelain insulator and bell-type anti-

pollution suspension insulator

Fog type anti-pollution ceramic disc suspension

The fog type has big creepage distance. According to the shed shape and structure, the fog

type disc suspension insulator can be divided into double-shed anti-pollution insulator, tri-

shed anti-pollution insulator, aerodynamic suspension porcelain insulator and bell-type anti-

pollution suspension insulator.

Double shed suspension insulator

11

Three shed suspension insulator

According to connected way, the suspension insulator can be divided into ball and socket

type & clevis and tongue type. The surface of the cap and pin ball of insulator should be hot

dip galvanized. If the area is highly polluted, the pin ball can be added the zinc sleeve. The

locking device of W and R spring split is made of bronze or stainless steel. They have good

flexibility and anti-corrosion nature.

Aerodynamic suspension insulator

12

Bell-type anti-pollution suspension insulator

Insulators for substations and apparatus require a high degree of safety and service reliability.

These insulators may be subjected to high degree of static and dynamic loading, severe

climatic conditions and very heavy levels of pollution.

Color: Brown, Grey, White, Blue

Type: standard type, Orient design, customer requirement and drawings

Ceramic / Porcelain Solid Core Station Post Insulator:

This electrical insulator is an insulator of generally columnar shape, and it consists of one

post insulator unit or an assembly of such units and is intended to give rigid support to a live

13

part which is insulated from earth or from another live part.

Solid-core station post insulator may be manufactured according to IEC, ANSI, BS and other

standards, with cantilever strength from 4kN to 18kN, which is used on 15kV to 750kV

station and substation.

There are two types for this series, normal type and anti-pollution type.

Station Post Insulators including:

Solid-Core Station Post Insulators to meet ANSI C29.9:

TR-202, TR-205, TR-208, TR-210, TR-214, TR-216, TR-286, TR-287, TR-288, TR-289,

TR-291, TR-304, TR-312, TR-362, TR-369, TR391

Station Post Insulators to meet IEC 273:

C4-125, C4-150, C4-170, C4-200, C4-250, C6-325, C6-450, C6-550, C6-650, C8-750, C10-

950, C10-1050, C12.5-1550, C10-1675C C10-1800, C10-2100, C10-2550.

Cut-out Insulator:

Porcelain or polymer drop out fuse cut outs and load switching fuse cut outs are for outdoor

use. They mainly protect transformer or lines from short circuit and overload, and on/off

14

loading current to be connected with in coming feeder of distributing transformer or

distribution lines.

Porcelain drop out fuse cut-out is composed of insulator supports and fuse tube, static

contacts is fixed on two sides of insulator support and moving contact is insulated on two

ends of fuse tube. Fuse tube is composed of inside arc-extinguishing tube, outer phenolic

compound paper tube or epoxy glass tube. Load switch

fuse cut-out provides enforces elastic auxiliary

contacts and arc- extinguishing enclosure for

switching on/off loading current.

Hollow insulators:

Hollow porcelain housings are used in various applications like

1. Transformer bushings

2. Condenser bushings

3. Lightning arresters

4. Instrument transformers

5. SF6 breakers

6. Wall through bushings and

7. Other applications

To meet the creep age requirements and climatic conditions in service the hollow porcelain

housings can be manufactured with different shed profiles namely

1. Plain sheds without droplet rims

15

2. Plain sheds with droplet rims

3. Alternate sheds without droplet rims

4. Alternate shed with droplet rims and

5. Anti-fog sheds

Each and every porcelain housing manufactured is subjected to ultrasonic, temperature cycle

and routine electrical tests. Routine mechanical tests like hydraulic inner pressure, cantilever

bending and beam test as per customers’ requirements are carried out. The critical dimensions

and surface roughness are also verified to check conformance to requirement. Acceptance

and type tests are carried out in line with standards and / or customers’ requirements

The solid core insulators have the following distinct advantages:

1. Reliability of service

2. Absolutely puncture proof

3. Very high mechanical strength

4. Very low deflection at bending loads

5. Free from internal partial discharges

Every insulator manufactured is subjected to an array of tests. Apart from the routine tests,

samples from each lot are subjected to acceptance tests in line with the relevant standards.

Insulators comply with relevant IEC / ANSI standards.

Porcelain Bushing/ Hollow Insulator/ Ceramic Bushing

Porcelain bushing and big hollow insulators:

16

Color: Brown, Grey, White, Blue glaze

Type: IEC, ANSI, DIN, BS AS standard type, Orient design, customer requirement and

drawings.

The hollow insulator, porcelain bushings are used extensively in electrical apparatus.

Porcelain bushing is the device that enables one or several conductors to pass through a

partition such as a wall or tank and insulates the conductors from it. The means of

attachment to the partition, such as flange or other fixing device, forms part of the bushing.

17

Big porcelain bushing, hollow insulator up to 1000KV:

Upside down transformer bushing

Capacity voltage transformer bushing

SF6 current transformer bushing

Outdoor cable end bushing

Voltage transformer bushing

Current transformer bushing

Circuit breaker post bushing

SF6 transformer bushing

Oil immersed voltage transformer bushing

SF6 circuit breaker bushing

electrostatic precipitator bushing

Small porcelain bushings:

Small porcelain bushing, hollow insulators are used

as the insulating elements such as the transformer

bushings and wall bushings .They are designed to

18

perform under outdoor and indoor conditions for voltage up to 36KV.

DIN transformer bushing:

AB250, AB630, AB1000, AB2000, AB3150, 10Nf250, 10Nf630, 10Nf1000, 10Nf3150,

20Nf250, 20Nf630, 20Ni630, 20Nf1000, 20Nf3150, 30Nf250, 30Nf630, 30Ni630,

30Nf1000, 30Nf3150

19

2.1NEED FOR THE STUDY

Insulator industry is efficiently utilizing in the electricity& Atomic energy system.

Since the demand for power in accelerating the demand for insulators will go shout up.

Therefore to meet tough competition, any between organizations tend to reduce the cost being

locked up in inventory.

Inventory control and inventory visibility are two very critical elements in any operations for

these are the cost drivers and directly impact the bottom lines in the balance sheet. Inventory

means value and is an asset of the company. Every business has a standard for inventory

turnaround that is optimum for the business. Inventory turnaround refers to the number of

times the inventory is sold and replaced in a period of twelve months. The health of the

inventory turn relates to the health of business.

In a global scenario, the finished goods inventory is held at many locations and distribution

centres, managed by third parties. A lot of inventory would also be in the pipeline in

transportation, besides the inventory with distributors and retail stocking points. Since any

loss of inventory anywhere in the supply chain would result in loss of value, effective control

of inventory and visibility of inventory gains importance as a key factor of Supply Chain

Management function.

20

2.2 OBJECTIVES OF THE STUDY

Primary objective

To study the inventory analysis and supply chain management in WS industries.

Secondary objective

To classify insulators using ABC analysis.

To find out maximum inventory level of raw material using P system.

To suggest appropriate review period.

21

2.3 SCOPE OF THE PROJECT

The study of the project is the inventory flow procedure prevailing in a insulators company

mainly in WS industries. It will help the company to know about the various level of supply

chain management that the company has to concentrate

The study seeks to find out the factors used in inventory analysis. The research was analysed

from the statements, purchase order of raw material data, finishing goods data and other

books of operation management of the concern. The data collect has been analysis and

arrived on findings which have proved it worth to know about the areas of inventory analysis

and supply chain management.

22

2.4 LIMITATIONS OF THE STUDY

The study was conduct only in WS Industries.

Data collected is from company for 1 year only so it is data constraint.

The study is carried out for 3 months only so it time constraint.

23

2.5 RESEARCH METHODOLOGY

P .Radhakrishnan, V M Prasad, M R Gopalan ,in their thesis titled Genetic Algorithm

Based Inventory Optimization Analysis in Supply Chain Management did a research

On Inventory management is one of the significant fields in supply chain management.

Efficient and effective management of inventory throughout the supply chain significantly

improves the ultimate service provided to the customer. Hence there is a necessity of

determining the inventory to be held at different stages in a supply chain so that the total

supply chain cost is minimized. Minimizing the total supply chain cost is meant for

minimizing holding and shortage cost in the entire supply chain. This inspiration of

minimizing Total Supply Chain Cost could be done only by optimizing the base stock level at

each member of the supply chain. The dilemma occurring here is that the excess stock level

and shortage level is very dynamic for every period. In this paper, we have developed a novel

and efficient approach using Genetic Algorithm which clearly determines the most possible

excess stock level and shortage level that is needed for inventory optimization in the supply

chain so as to minimize the total supply chain cost.

Dawn Barnes-Schuster, Yehuda Bassok, Ravi Anupindi in their thesis titled Optimizing

delivery lead time/inventory placement in a two-stage production/distribution system In

this paper we study a system composed of a supplier and buyer(s). We assume that the buyer

faces random demand with a known distribution function. The supplier faces a known

production lead time. The main objective of this study is to determine the optimal delivery

lead time and the resulting location of the system inventory. In a system with a single-

supplier and a single-buyer it is shown that system inventory should not be split between a

buyer and supplier. Based on system parameters of shortage and holding costs, production

lead times, and standard deviations of demand distributions, conditions indicating when the

supplier or buyer(s) should keep the system inventory are derived. The impact of changes to

these parameters on the location of system inventory is examined. For the case with multiple

buyers, it is found that the supplier holds inventory for the buyers with the smallest standard

deviations, while the buyers with the largest standard deviations hold their own inventory.

24

J F Dong, L H Wang, J X Wang in their thesis titled Research on reverse logistics-

oriented multi sources inventory control modelto improve enterprise inventory control

strategy and optimize control parameters of inventory including external and interior reverse

logistics, through applying periods' inventory checking strategy, a multi-sources inventory

control model helpful to simulate the real logistics operations was proposed. Based on the

arrival time of returned products following Poisson distribution, the returns production with

lot-size processing method and the nonzero lead time of a rational cost function of inventory

control was established. Then the genetic algorithm was used to solve the inventory cost

function so as to obtain the optimum solution of inventory checking periods, safe inventory

point, production lot-sizes and processing lot-sizes of returns production. An example was

presented to prove the feasibility and validity of the proposed method, and the proposed

model can help the enterprises to implement multisource inventory control strategy.

Stefan Minner Multiple-supplier inventory models in supply chain management:This

paper reviews inventory models with multiple supply options and discusses their contribution

to supply chain management. After discussing strategic aspects of supplier competition and

the role of operational flexibility in global sourcing, inventory models which use several

suppliers in order to avoid or reduce the effects of shortage situations are outlined. Further,

related inventory problems from the fields of reverse logistics and multi-echelon systems are

presented. Finally, issues for future research and a synthesis of available supply chain

management and multiple supplier inventory models are discussed.

R D H Warburton, in their thesis titled An exact analytical solution to the production

inventory control problem The full set of continuous, differential delay equations

describing the inventory and orders for a typical industrial production control system are

solved exactly for a step function surge in demand. The replenishment delay is explicitly

included. The order rate is tuned with three parameters, which modulate the demand

smoothing, the recovery of the inventory deficit, and the desired level of work-in-process.

The analytical solutions are validated by comparison with numerical integration and confirm

the instabilities and inventory deficits found elsewhere. Useful management strategies can be

deduced, and the approach should be widely applicable in supply chains. 2003 Elsevier B.V.

All rights reserved.

25

Keenan D Yoho, James A Rappold in their thesis titled Beyond lean : Production and

inventory policy for the old economy Lean manufacturing has fundamentally changed the

way business leaders think about the production of manufactured goods and services. Over

the past three decades, firms have dedicated considerable resources to reducing production

setup times, shrinking inventories, and organizing work into cellular flows. Discrete parts

manufacturing has benefited from production planning schemes that smooth production and

level- load the plant to reduce idle time and overtime. But in the process industries, where

production occurs 24 hours a day, seven days a week, what does it mean to level-load the

production facility? In those industries, capacity stabilization is defined as creating

production cycles that are predictable, and level-loading consists of stabilizing manufacturing

lead times. In this article, we describe the differences between what we call inventory-centric

versus capacity-centric modes of production and inventory control, and we present data

collected from a large chemical plant operation that illustrates a mismatch between inventory

policy and capacity characteristics. We also describe policies appropriate for old economy

firms in the face of increasing consolidation and pressures to reduce costs and increase

responsiveness

J F A B Zhao, in their titledA New Kind Of Supply Chain Management Inventory

Optimization Model Based On Cooperation And Coordination Mechanisms did a

research on Cooperation and coordination problem is one of the main problems of supply

chain inventory optimization controlling currently. The MTP (matter, thing and people)

ideology was introduced and used to optimize the traditional F.Harris inventory model. On

this basis, a new kind of supply chain management inventory optimization batch Elasticity

model based on cooperation and coordination mechanisms was established. Optimizing

results were analysed through batch flexibility theory based on coordination mechanisms. A

new and feasible method to optimize inventory management was provided. In this thesis, the

inventory optimization problems were discussed from the quantitative study perspective

andbased on cooperation and coordination mechanisms using MTP ideology and combining

with F.Harris inventory model.

26

Ibeas A Herrera J Vilanova R Garcia C A, in their thesis titled A New Kind Of Supply

Chain Management Inventory Optimization Model Based On Cooperation And

Coordination Mechanisms did a research on inventory management, In this paper, an

Internal Model Control (IMC) scheme is incorporated in production inventory control

systems in a complete supply chain. This control scheme presents a good target inventory

tracking under the perfect knowledge of the system. Furthermore, the inventory tracking and

load disturbance rejection control problems can be tackled separately.

However, the closed-loop performance of the IMC scheme may be degraded due to a

mismatch between the modelled and actual delay or to the fact that delays may be time-

varying. Thus, the IMC control scheme is enhanced in this work with a novel method for the

online identification of lead times based on a multimodel scheme. In this way, all benefits of

the IMC scheme can be exploited. A detailed discussion of the proposed production inventory

system is provided including stability and performance analysis as well as the identification

capabilities of the algorithm. Several simulation examples illustrate the efficiency of the

approach

D L Olson, M Xie, in their thesis titled A Comparison Of Coordinated Supply Chain

Inventory Management System did a research on Supply chain operations are widely

used, as they have proven very effective in contemporary business environments. Traditional

supply chain coordination has suffered from well-known bullwhip effects, which have been

alleviated in part through greater information exchange from Efficient Consumer Response

(ECR) and more coordinated systems such as Vendor-Managed Inventory (VMI). The

refinements of VMI include Continuous Replenishment (CR) and Collaborative Planning,

Forecasting and Replenishment (CPFR). This paper reviews the definitions of these variant

supply chain inventory management systems. Simulation studies of VMI have studied the

expected impact on supply chain operations. This paper evaluates the relative benefits and

costs of alternative supply chain inventory systems and provides an analysis of the conditions

for which coordinated inventory management systems are appropriate.

Huafei Chen.in their thesis titled Research On Uncertainty Demand Inventory Control

In Supply Chain. did a research on overall operations of supply chain are affected by the

increase of demand uncertainty. Inventory control is an important part in supply chain

management. Under the requirement mentioned above, this paper studies the inventory

control with uncertainty demand. Three-echelon inventory model of manufacture regarded as

27

core enterprise is model, which assumes that uncertainty demand subjects to normal

distribution. Redundancy inventory in the node enterprise of supply chain is discussed under

the two inventory replenishment strategy (continuous review inventory and periodic review

inventory). It 's shown that the result of this study is valuable to reduce the total cost of

inventory and improve the performance of supply chain.

28

3.1 RESEARCH METHODOLOGY

RESEARCH

Research is a process in which the researcher wishes to find out the end result for

the given problems and thus the solutions help in future course of action.

RESEARCH DESIGN

Research design is an arrangement of condition for collection and analysis of data

in a manner that aims to combine relevance to the research purpose with economy in

procedure.

A plan outlining how information is to be gathered for an assessment or evaluation that

includes identifying the data gathering method(s), the instrument to be used/created, how the

instruments will be administered, and how the information will be organized and analysed.

The design used in this study is the analytical research.

NATURE OF THE RESEARCH

ANALYTICAL RESEARCH

In the analytical research, the research uses the facts or information already available

and analysis the existing data to make a critical evaluation of the material. The research

method used for the project involves an analytical research, which has been carried out

respect to the existing system in the company and a critical evaluation of the same is made. In

this type of research has to use facts or information already available, and analyse these to

make a critical evaluation of the material. The researcher depends on existing data for his

research work. The analysis revolves round the material collected/ or available.

SOURCES OF DATA

It is collected from the internal records of the company such as library records, trade journals,

various manuals of the company; it is also conducted from the officials of the pursed

department in the factory. Secondary data provides a better view of the problem study, tools

and other references were also mean important in this study.

29

The data collected for the purpose of this analysis is secondary. Secondary data refer to

information gathered from sources already existing. Some source of secondary data are data

available from previous research, information available from any published or unpublished

sources available either within or outside the organization, library records, online data,

websites and the internet.

There was no need for collecting primary data as the study involves analysis of data

available. The data has been collected through the annual report and statements available with

the company.

ANALYTICAL TOOLS

In order to extract meaningful information from the data collected, the data

analysis is carried out. The analysis is basically aimed at giving inferences of associations or

difference between the various variables present in the research. The data collected was

edited, coded and tabulated for analysis. The analysis can be conducted using analytical tools.

The analytical tools comprise of both statistical and financial tools. In this survey only three

of the statistical tools were used.

TOOLS & TECHNIQUES

To analyse the secondary data:

1. ABC analysis:

Always better control is the technique used for analysing the inventory. The

material are classified and controlled according to the value of the material involved. It is

also called proportional part value analysis.

Thus, high value items are paid more attention that low value items. The material are

classified under A, B or C designation on the basis of their value and importance. A category

consists of a few items of high value. Category B includes more items of medium value and

category C includes all other materials of small value.

30

PARETO CURVE

ABC inventory analysis:

ABC inventory analysis is one of the ways of classifying the inventory. Not all the items have

equal importance and therefore they do not require the same management attention. The ABC

analysis provides you helpful information to evaluate each item and decide the method to

monitor and control it. It is a basic inventory management tool. An ERP (Enterprise Resource

Planning) system also constitutes both ABC analysis and a control mechanism within itself.

Inventory Classification:

With ABC inventory analysis, the inventory is classified into three categories: A, B and C

and each category is given a different treatment:

31

Class A materials – these are usually the most expensive, highly important items and main

raw materials in the production. A class items need tight monitoring and control. They should

be managed by JIT (Just in Time) since its close management is most cost-effective.

Class B materials – these materials are usually the medium expensive items that still require

more control and some management effort. They may not require a micromanagement by

JIT, but they should also be tracked methodically.

Class C materials – these items have low value and lower importance. C class items require

the minimum controls and they generally consist of the largest volume of the inventory. They

are mostly managed by two bin system. When a bin is empty or when the system sends a

signal of reaching a minimum stock level, an order is placed.

ECONOMIC ORDER QUANTITY:

Economic order quantity is referred to as the size of the order that gives maximum economy

in purchasing the materials.

Economic order quantity for Q system:

In this system of inventory, whenever the stock level touches the reorder level, an order is

placed for a fixed quantity which is equal to EOQ.

Economic order quantity for P system:

In this system of inventory, the stock position is reviewed once in a fixed period and an order

is placed depending on the stock position, unlike a fixed quantity in the Q system of

inventory. The review period is approximately equal to EOQ/D.

WS insulators industries using P system for calculating economic order quantity.

32

3.2 ANALYSIS AND INTERPRETATION

3.2.1 TABLE SHOWING ABC ANALYSIS OF BUSHING INSULSTORS (APRIL 2011

TO MARCH 2012)

Com No Description CodePrice/Unit

(in Rs.,)Unit/Year

Annual

Consumption

(in Rs.,)

C01 Bushing Insulators 3.434.0A-B 4695 76 356820


C03 Bushing Insulators 4.1008/3A-B 72455 15 1086825


C05 Bushing Insulators 4.173/3J-B 51000 5 255000








C13 Bushing Insulators 5.3023.0A 3020 15 45300

FINAL WORKING OF ABC ANALYSIS:

33

Com

NoDescription Code

Price/Unit

(in Rs.,)Unit/Year

Annual

Consumption

(in Rs.,)

Cumulative

Consumption

(in Rs.,)

Class

C03 Bushing Insulators 4.1008/3A-B 72455 15 1086825 1086825 A



C07 Bushing Insulators 4.684.0A-B 32740 19 622060 3079885 A

C01 Bushing Insulators 3.434.0A-B 4695 76 356820 3436705 A

C11 Bushing Insulators 4.936.9A-B 29570 12 354840 3791545 B


C08 Bushing Insulators 4.691/3A-B 100000 3 300000 4411545 B


C05 Bushing Insulators 4.173/3J-B 51000 5 255000 4962885 C

C12 Bushing Insulators 4.968/3A-B 52433 1 52433 5015318 C

C13 Bushing Insulators 5.3023.0A 3020 15 45300 5060618 C

C04 Bushing Insulators 4.1099.0a-B 36390 1 36390 5097008 C

Class % of items % of values

A 38 67

B 31 25

C 31 8

3.2.1 CHART SHOWING THEABC ANALYSIS OF BUSHING INSULSTORS

(APRIL 2011 TO MARCH 2012)

34

INTERPRETATION:

It is inferred that the percentage of a items is high so the inventory should be minimized.

3.2.2 TABLE SHOWING ABC ANALYSIS OF HOT PRESS INSULATORS

INSULSTORS (APRIL 2011 TO MARCH 2012)

35

38 69 1000

20

40

60

80

100

120

percentage of consumption values

percentage of no items

perc

enta

ge o

f con

supti

on


(in Rs.,)Unit/Year

Annual

Consumption

(in Rs.,)

C01Hot Press

Insulators1.001.0Q 465 3220 1497300

C02Hot Press

Insulators1.001.0Q 500 7872 3936000

C03Hot Press

Insulators1.009.0Q 570 11000 6270000

C04Hot Press

Insulators1.033.0Q 475 16002 7600950

C05Hot Press

Insulators1.059.0Q 400 300 120000

C06Hot Press

Insulators1.093.0Q 600 12868 7720800

C07Hot Press

Insulators1.204.0Q 560 12500 7000000

C08Hot Press

Insulators1.228.0Q 850 39713 33756050

C09Hot Press

Insulators1.256.0Q 350 250 87500

C10Hot Press

Insulators1.289.0Q 1300 668 868400

C11Hot Press

Insulators1.299.0Q 1550 1801 2791550

36


Com NoDescriptio

nCode

Price/

Unit

(in Rs.,)

Unit/

Year

Annual

Consumptio

n

(in Rs.,)

Cumulative

Consumptio

n

(in Rs.,)

Class

C08Hot Press

Insulators1.228.0q 850 39713 33756050 33756050 A

C06Hot Press

Insulators1.093.0q 600 12868 7720800 41476850 A

C04Hot Press

Insulators1.033.0q 475 16002 7600950 49077800 A

C07Hot Press

Insulators1.204.0q 560 12500 7000000 56077800 B

C03Hot Press

Insulators1.009.0q 570 11000 6270000 62347800 B

C02Hot Press

Insulators1.001.0q 500 7872 3936000 66283800 C

C11Hot Press

Insulators1.299.0q 1550 1801 2791550 69075350 C

C01Hot Press

Insulators1.001.0q 465 3220 1497300 70572650 C

C10Hot Press

Insulators1.289.0q 1300 668 868400 71441050 C

C05Hot Press

Insulators1.059.0q 400 300 120000 71561050 C

C09Hot Press

Insulators1.256.0q 350 250 87500 71648550 C

37

Class Percentage of items Percentage of values

A 27 68

B 19 19

C 54 13

3.2.2 CHART SHOWING ABC ANALYSIS OF HOT PRESS INSULATORS


27 45 1000

20

40

60

80

100

120

percentage of consump-tion values


perc

enta

ge o

f con

supti

on

INTERPRETATION:


38

3.2.3 TABLE SHOWING ABC ANALYSIS OF SOLID CORE INSULATORS



(in Rs.,)Unit/Year

Annual

Consumption

(in Rs.,)

C01 Solid Core Insulators 5.6080.0Q 5500 23 126500








C09 Solid Core Insulators 5.6483.1A-B 10000 1 10000

C10 Solid Core Insulators 5.6483.2A-B 12000 9 108000



39


Com No Description Code

Price/

Unit

(in Rs.,)

Unit/Year

Annual

Consumption

(in Rs.,)

Cumulative

Consumptio

n

(in Rs.,)

Clas

s

C05Solid Core

Insulators5.6401.0Q 45000 36 1620000 1620000 A

C04Solid Core

Insulators5.6264.0Q 16000 72 1152000 2772000 A

C08Solid Core

Insulators5.6483.0Q 32500 9 292500 3064500 B

C03Solid Core

Insulators5.6105.0Q 12750 18 229500 3294000 B

C11Solid Core

Insulators5.6498.0Q 16500 8 132000 3426000 B

C01Solid Core

Insulators5.6080.0Q 5500 23 126500 3552500 B

C10Solid Core

Insulators5.6483.2A-B 12000 9 108000 3660500 C

C07Solid Core

Insulators5.6464.1Q 6700 9 60300 3720800 C

C06Solid Core

Insulators5.6446.0Q 5500 4 22000 3742800 C

C09Solid Core

Insulators5.6483.1A-B 10000 1 10000 3752800 C

C02Solid Core

Insulators5.6102.0Q 8000 1 8000 3760800 C

C12Solid Core

Insulators5.6676.1Q 5500 1 5500 3766300 C

40


A 16 73

B 34 21

C 50 06

3.2.3 CHART SHOWING ABC ANALYSIS OF SOLID CORE INSULATORS


INTERPRETATION:


41

16 50 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

3.2.4 TABLE SHOWING ABC ANALYSIS OF FREE HOT PRESS INSULATORS


Com

NoDescription Code

Price/Unit

(in Rs.,)Unit/Year

Annual

Consumption

(in Rs.,)

C01Free Hot Press

Insulators1.009.0Q 550 217 119350

C02Free Hot Press

Insulators1.009.0Q 570 135 76950

C03Free Hot Press

Insulators1.027.0Q 700 98 68600

C04Free Hot Press

Insulators1.033.0Q 510 916 467160

C05Free Hot Press

Insulators1.040.0Q 615 1112 683880

C06Free Hot Press

Insulators1.059.0Q 430 651 279930

C07Free Hot Press

Insulators1.059.0Q 450 157 70650

C08Free Hot Press

Insulators1.064.0Q 775 263 203825

C09Free Hot Press

Insulators1.228.0Q 925 6 5550

42


Com

NoDescription Code

Price/Unit

(in Rs.,)Unit/Year

Annual

Consumption

(in Rs.,)

Cumulative

Consumptio

n

(in Rs.,)

Class

C05Free Hot Press

Insulators1.040.0Q 615 1112 683880 683880 A

C04Free Hot Press

Insulators1.033.0Q 510 916 467160 1151040 A

C06Free Hot Press

Insulators1.059.0Q 430 651 279930 1430970 A

C08Free Hot Press

Insulators1.064.0Q 775 263 203825 1634795 B

C01Free Hot Press

Insulators1.009.0Q 550 217 119350 1754145 B

C02Free Hot Press

Insulators1.009.0Q 570 135 76950 1831095 B

C07Free Hot Press

Insulators1.059.0Q 450 157 70650 1901745 C

C03Free Hot Press

Insulators1.027.0Q 700 98 68600 1970345 C

C09Free Hot Press

Insulators1.228.0Q 925 6 5550 1975895 C


43

A 34 72

B 33 20

C 33 08

3.2.4 CHART SHOWING ABC ANALYSIS OF FREE HOT PRESS INSULATORS


INTERPRETATION:


44

34 67 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

34 67 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

3.2.5 TABLE SHOWING ABC ANALYSIS OF VAP INSULATORS INSULSTORS


Com No Description Code

Price/

Unit

(in Rs.,)

Unit/

Year

Annual

Consumption

(in Rs.,)

C01 VAP Insulators 1.009.0Q 550 93392 51365600














FINAL WORKING OF ABC ANALYSIS.

45

Com

NoDescription Code

Price/Unit

(In Rs.,)Unit/Year

Annual

Consumption

(in Rs.,)

Cumulative

Consumptio

n

(in Rs.,)

Class

C01VAP

INSULATORS1.009.0Q 550 93392 51365600 51365600 A

C06VAP

INSULATORS1.064.0Q 775 30000 23250000 74615600 A

C04VAP

INSULATORS1.027.0Q 700 31000 21700000 96315600 B

C07VAP

INSULATORS1.074.0Q 255 4953 1263015 97578615 C

C03VAP

INSULATORS1.025.0Q 534 1843 984162 98562777 C

C02VAP

INSULATORS1.014.0Q 225 3072 691200 99253977 C

C09VAP

INSULATORS1.168.0Q 655 995 651725 99905702 C

C08VAP

INSULATORS1.093.0Q 550 1100 605000 100510702 C

C14VAP

INSULATORS1.377.0Q 33 7584 250272 100760974 C

C12VAP

INSULATORS1.351.0Q 180 640 115200 100876174 C

C13VAP

INSULATORS1.355.0Q 515 120 61800 100937974 C

C10VAP

INSULATORS1.204.0Q 500 66 33000 100970974 C

C11VAP

INSULATORS1.256.0Q 350 69 24150 100995124 C

C05VAP

INSULATORS1.059.0Q 400 60 24000 101019124 C

46


A 14 73

B 07 22

C 79 05

3.2.5 CHART SHOWING ABC ANALYSIS OF VAP INSULATORS INSULSTORS


INTERPRETATION:


47

38 69 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

38 69 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

38 69 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

14 21 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

38 69 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

38 69 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

38 69 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

14 21 1000

20

40

60

80

100

120



perc

enta

ge o

f con

supti

on

3.2.6 TABLE SHOWING EOQ VALUES FOR THAN CLAY


S

NO

DESCRIP

TION

DEM

AND

IN

TONS

ORDER

ING

COST

PER

ORDER

CARRIY

ING

COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1THAN

CLAY450 400 15% 575

CALCULATION OF EOQ MODEL (P SYSTEM)

Annual demand, D = 450

Ordering cost per order = Rs.400.

Purchase price per unit = Rs.575.

Carrying cost per unit year = 15% of the purchase price

Economic Order Quantity = √ 2coDP∗%CC

Economic Order Quantity = 65

48

DETERMINATION OF MAXIMUM INVENTORY LEVEL FOR P SYSTEM

Review period = EOQ/D

=0.144 year

=7.51 weeks

The review period can be either 7 weeks or 8 weeks.

Selection of review period:

Total cost when the review period = 7 week:

Total cost = ordering cost + carrying cost

= (52/7) * 400 +( 45052

∗7)/2*575*.15

= 2971 +2612 = 5583



= (52/8) * 400 +( 45052

∗8)/2*575*.15

= 2600 +2985 = 5585

INTERPRETATION:

The about calculation show that total cost is minimum when the review period is 7 weeks.

Hence, select the review period as 7 weeks.

49

3.2.7 TABLE SHOWING EOQ VALUES FOR FELDSPAR POWDER


S NODESCRIPT

ION

DEMA

ND

IN

TONS

ORDERI

NG

COST

PER

ORDER

CARRIYI

NG

COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1FELDSPAR

POWDER2184 1700 10% 4160








50



=0.061 year

=3.19 weeks





= (52/2) * 1700 +( 218452

∗2)/2*4160*.10

= 44200 + 17472 = 61672



= (52/3) * 1700 +( 218452

∗3)/2*4160*.10

= 29466 +26208 = 55674

INTERPRETATION:


Hence, select the review period as 3 weeks

51

3.2.8 TABLE SHOWING EOQ VALUES FOR QUARTZ POWDER


S

NO

DESCRIPT

ION

DEMA

ND

IN

TONS

ORDERI

NG

COST

PER

ORDER

CARRIY

ING

COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1QUARTZ

POWDER2112 2000 10% 5096






52





=0.060 year

=3.15 weeks





= (52/2) * 2000 +( 211252

∗2)/2*5096*.10

= 52000 +20697 = 72697



= (52/3) * 2000 +( 211252

∗3)/2*5096*.10

= 34667+31046 = 65713.

INTERPRETATION:

53



54

3.2.9 TABLE SHOWING EOQ VALUES FOR PLASTER OF PARIS


S

NO

DESCRIPT

ION

DEMA

ND IN

TONS

ORDERI

NG

COST

PER

ORDER

CARRIY

ING

COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1PLASTER

OF PARIS120 400 15% 6000








55



=0.083 year

=4.33 weeks





= (52/3) * 400 +( 12052

∗3)/2*6000*.15

= 6934+3115= 10049



= (52/4) * 400 +( 12052

∗4)/2*6000*.15

= 5200+4154= 9354

INTERPRETATION:



56

3.2.10 TABLE SHOWING EOQ VALUES FOR LILITE CHINA CLAY


S

NO

DESCRIPT

ION

DEMA

ND IN

TONS

ORDERI

NG

COST

PER

ORDER

CARRIYI

NG

COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1

LILITE

CHINA

CLAY

7200 4000 5% 5200








58



=0.065 year

=3.39 weeks





= (52/2) * 4000 +( 720052

∗2)/2*5200*.05

= 104000+36000= 140000



= (52/3) * 4000 +( 720052

∗3)/2*5200*.05

= 69334+54000= 123334

INTERPRETATION:



60

3.2.11 TABLE SHOWING EOQ VALUES FOR CHINA CLAY(ORISSA)

(APRIL 2011 TO MARCH 2012 )

S NODESCRIPTI

ON

DEMA

ND IN

TONS

ORDERI

NG

COST

PER

ORDER

CARRIYI

NG

COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1

CHINA

CLAY(ORI

SSA)

1360 1000 10% 2800

CALCULATION OF EOQ MODEL (P SYSTEM).






62


63

DETERMINATION OF MAXIMUM INVENTORY LEVEL FORP SYSTEM.


=0.072 year

=3.78 weeks





= (52/3) * 1000 +( 136052

∗3)/2*2800*.10

= 17334+10984 = 28318



= (52/4) * 1000 +( 136052

∗4)/2*2800*.10

= 13000+14646 = 27646

INTERPRETATION:


Hence, select the review period as 4 weeks.

64

3.2.12 TABLE SHOWING EOQ VALUES FOR BALL CLAY


S

NO

DESCRIP

TION

DEM

AND

IN

TONS

ORDER

ING

COST

PER

ORDER

CARRIY

ING

COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1BALL

CLAY4200 2000 10% 1250








65



=0.087 year

=4.53 weeks





= (52/4) * 2000 +( 420052

∗4)/2*1250*.10

= 26000+20192 = 46192.



= (52/5) * 2000 +( 420052

∗5)/2*1250*.10

= 20800+25240 = 46040.

INTERPRETATION:



67

3.2.13 TABLE SHOWING EOQ VALUES FOR GIJRI T.P LAVIGATED CLAY


S NO DESCRIPTION

DEMA

ND IN

TONS

ORDERI

NG

COST

PER

ORDER

CARRIYI

NG COST

PER

UNIT

PER

YEAR

PURCH

ASE

PRICE

PER

UNIT

1

GIJRI T.P

LAVIGATED

CLAY

10800 5000 10% 1500








69



=0.078 year

=4.08 weeks





= (52/3) * 5000 +( 1080052

∗3)/2*1500*.10

= 86667+46730 = 133397.



= (52/4) * 5000 +( 1080052

∗4)/2*1500*.10

= 65000+62307 = 127307

INTERPRETATION:



71

3.3FINDINGS

From the 13 items considered for the study, 5 items found to be 30 %,( A category)

which is item very important. 4 items found to be 31%, (B category) which is items

important. 4 items found to be 31 %,( C category) which is item marginally important.


which is items very important. 2 items found to be 18%, (B category) which is

itemsimportant.6items found to be 54 %,( C category) which is items marginally

important.

From the 12 items considered for the study, 2 items found to be 16%, (A category)

which is items very important. 4 items found to be 34%, (B category) which is items

important. 6 items found to be 50 %,( C category) which is items marginally

important.

From the 9 items considered for the study, 3 items found to be 34%, (A category)

which is items very important. 3 items found to be 33%, (B category) which is items

important. 3items found to be 33 %,( C category) which is items marginally

important.


which is items very important. 1 items found to be 07 %,( B category) which is items

important. 11 items found to be 79 %,( C category) which is item marginally

important.

For theabove calculation it is found that cost is 5583 for 7 week and 5583 for 8 week.

From the above calculation it is found that cost is 61672 for 2 week and 55674 for 3

week.


week.


week.

From the above calculation it is found that cost is 140000 for 2 week and 123334 for

3 week.


week.

73


week.

From the above calculation it is found that cost is 133347 for 3 week and 127307 for

4 week.

74

3.4 SUGGESTIONS & RECOMMENDATION

The company should take some measures for controlling wastage of raw material.

The class change according to the number of items

For ex a product of 13 items are bought it comes under one class say ‘A’ class items

and the some product is purchased now the number of item purchased is 1 then it will

come under ‘B/C’ class items. Hence the combination of XYZ analysis helps in case

of such items.

A revised system has to be horizontally deployed to all the material i.e. all the direct

materials have to be classified into A,B,C category items and scheduling should be

done based on the parameter.

The company should forecast the customer demand in order to reduce the cost of

inventory

The safety stock should be calculated and main tainted to meet the customer demand.

The review period must be followed for ordering the raw materials

75

3.5 CONCLUSION

The inventory management technique is more useful in determine the optimum level of

inventory and finding answers inventory control and to problems of safety stock and lead

time. WS industries using maintain strict inventory control and will utilize in many areas.

There by any become concept leaders in the near future.

76

APPENDIX

S NO DESCRIPTION DEMAND ODERING COST

CARRIYING COST

PURCHASE PRICE review period(year)

review period(in week)

1 THAN CLAY 450 400 15% 575 65 0.144444 7.511111

2 FELDSPAR POWDER 2184 1700 10% 4160 134 0.061355 3.190476

3 QUARTZ POWDER 2112 2000 10% 5096 128 0.060606 3.151515

4 PLASTER OF PARIS 120 400 15% 6000 10 0.083333 4.333333

5 LILITE CHINA CLAY 7200 4000 5% 5200 470 0.065278 3.394444

6 CHINA CLAY(ORISSA) 1360 1000 10% 2800 99 0.072794 3.785294

7 BALL CLAY 4200 2000 10% 1250 366 0.087143 4.531429

8 GIJRI T.P LAVIGATED CLAY

10800 5000 10% 1500 849 0.078611 4.087778

77

BIBLIOGRAPHY

Books :

Research methodology, Kothari.C.R(2002), washman prakashan publications, new

delhi

Material management, Robert B.ballot, 11th edition, pearson education.

Supplier and material management, H.K. Compton

Production and operation management, R.panneerselvam

Introduction to material management, J.R.Tony Arnold, Stephen N.chapman, R.V.

Ramakrishnan.

Websites:

www.sciencedirect.com

www.mendely.com

www.engineeringletter.com

www.google.com

78

http://www.google.com/

http://www.engineeringletter.com/

http://www.mendely.com/

http://www.sciencedirect.com/

project

Documents