INTRODUCTION Adequate inventories facilitates production activities and help to customers satisfaction by providing good service.

The basic financial aim of an enterprise is maximization of its value. At the same time, a large both theoretical and practical meaning has the research for determinants increasing the firm value. Most financial literature contains information about numerous factors influencing the value. Among those factors is the net or!ing capital and elements creating it, such as the level ere of cash tied in accounts receivable, inventories and operational cash balances. A large ma"ority of classic financial models proposals, relating to the optimum current assets management, constructed for firms, hich ith net profit maximization in vie . #n order to ma!e these models more suitable ant to maximize their value, some of them must be reconstructed. #n the

sphere of inventory management, the estimation of the influence of changes in a firm$s decisions is a compromise bet een limiting ris! by having greater inventory and limiting the costs of inventory. #t is the essential problem of the corporate financial management. The basic financial inventory management aim is holding the inventory to a minimally acceptable level in relation to its costs. %olding inventory means using capital to finance inventory and lin!s problems ith inventory storage, insurance, transport, obsolescence, asting and spoilage costs. %o ever, maintaining a lo create the ne inventory level can, in turn, lead to other

ith regard to meeting supply demands. The inventory management policy decisions, inventory level in a firm. #t has the influence on the firm value. #t is the result of ith inventory and generally of costs of inventory managing.

opportunity costs of money tied in the firm value changes.

&oth the first and the second involve modification of future free cash flo s, and in consequence

#nventory changes 'resulting from changes in inventory management policy of the firm( affect the net or!ing capital level and the level of operating costs of inventory management in a firm as ell. These operating costs are result of storage, insurance, transport, obsolescence, asting and spoilage of inventory. Maximization of the o ners$ ealth is the basic financial goal in enterprise management. #nventory management techniques must contribute to this goal. The modifications

to both the value)based *+, model and value)based -+, model may be seen in this article. #nventory management decisions are complex. *xcess cash tied up in inventory burdens the enterprise ith high costs of inventory service and opportunity costs. &y contrast, higher inventory stoc! helps increase income from sales because customers have greater flexibility in ma!ing purchasing decisions and the firm decrease ris! of unplanned brea! of production. Although problems connected ith optimal economic order quantity and production order quantity remain, e conclude that value)based modifications implied by these t o models ill help managers ma!e better value)creating decisions in inventory management. INTRODUCTION OF INVENTORY #nventories constitute the most significant part of current assets of a large ma"ority of companies in #ndia. +n an average, inventories are approximately ./0 of current assets in public limited companies in #ndia. &ecause of the large size of inventories maintained by firms, a considerable amount of feuds is required to be committed to them. #t is therefore, absolutely imperative to m1nage inventories efficiently and efficiently in order to avoid unnecessary investment. A firm neglecting the management of inventories 3/ percent, ill be "eopardizing its long run profitability and may fail ultimately. #t is possible for fore a company to reduce its levels of inventories to a considerable degree e.g. 2/ to ithout any adverse effect on production and sales, by using simple inventory planning and control techniques. The reduction in excessive inventory carries a favourable impact on a company$s profitability. MEANING OF INVENTORY:#nventory is the physical sto!e of goods maintained in an organization for its smooth sunning. #n accounting language it may mean stoc! of finished goods only. #n a manufacturing concern, it may includes ra materials, or!)in)progress and stores etc. #n the form of materials or supplies to be consumed in the production process or in the rendering of services. #n brief, #nventory is unconsumed or unsold goods purchased or manufactured. NATURE OF INVENTORIES :-

#nventories are stoc! of the product a company is manufacturing for sale and components that ma!e up the product. The various forms in hich inventory exist in a manufacturing company are ra materials, or! in progress and finished goods. RAW MATERIALS:4a materials are those inputs that are converted into finished product though materials inventories are those units hich have been the manufacturing process. 4a WORK IN PROGRESS:These inventories are semi manufactured products. They represent products that need more or! before they become finished products for sales. PACKAGING MATERIAL:-ac!aging material includes those items hich are used for pac!aging of perfumery product i.e. cap of the bottle, pump, coller,liver, box etc. FINISHED GOODS:5inished goods inventories are those completely manufactured products hich

purchased and stored for future productions.

are ready for sale. 6toc! of ra materials and or! in progress facilitate production. 7hile stoc! of finished goods is required for smooth mar!eting operation. Thus, inventories serve as a lin! bet een the production and consumption of goods. The levels of four !inds of inventories for a firm depend on the nature of its business. A manufacturing firm inventories, hile a retail or ill have substantially high levels of all three !inds of ill have a very high and no ra material and or! ill be differences. 8arge heavy ill not be large, holesale firm

in progress inventories. 7ithin manufacturing firms, there

engineering companies produce long production cycle products, therefore they carry large inventories. +n the other hand, inventories of a consumer product company because of short production cycle and fast turn over. INVENTORY MANAGEMENT

As the cost of logistics increases the manufacturers are loo!ing to inventory management as a ay to control costs. #nventory is a term used to describe unsold goods held for sale or ra materials a aiting manufacture. These items may be on the shelves of a store, in the bac!room or in a arehouse mile a ay from the point of sale. #n the case of manufacturing, they are typically !ept at the factory. Any goods needed to !eep things running beyond the next fe hours are considered inventory. 9#nventory9 to many small business o ners is one of the more visible and tangible aspects of doing business. 4a materials, goods in process and finished goods all represent various forms of inventory. *ach type represents money tied up until the inventory leaves the company as purchased products. 8i!e ise, merchandise stoc!s in a retail store contribute to profits only hen their sale puts money into the cash register. #n a literal sense, inventory refers to stoc!s of anything necessary to do business. These stoc!s represent a large portion of the business investment and must be ell managed in order to maximize profits. #n fact, many small businesses cannot absorb the types of losses arising from poor inventory management. :nless inventories are controlled, they are unreliable, inefficient and costly. #nventory management simply means the methods you use to organize, store and replace inventory, to !eep an adequate supply of goods goods are !ept hile minimizing costs. *ach location here ill require different methods of inventory management. ;eeping an inventory, hat they

or stoc! of goods, is a necessity in retail. <ustomers often prefer to physically touch

are considering purchasing, so you must have items on hand. #n addition, most customers prefer to have it no , rather than ait for something to be ordered from a distributor. *very minute that is spent do n because the supply of ra materials expenses as interrupted costs the company unplanned

DEFINITIONS OF INVENTORY MANAGEMENT

2. -olicies, procedure and techniques employed in maintaining the optimum number or amount of each inventory item. 3. 6ystems and processes that identify inventory requirements, set targets, provide replenishment techniques and report actual and pro"ected inventory status.

=. %andles all functions related to the trac!ing and management of material. This

ould

include the monitoring of material moved into and out of stoc!room locations and the reconciling of the inventory balances. Also may include A&< analysis, lot trac!ing, cycle counting support etc. DEFINITIONS OF INVENTORY 2. #nventory> goods that businesses intend to sell to their customers or ra process items that ill be converted into salable goods 3. #nventory is the stoc! of idle resources hich has economic value and is maintained to fulfill the present and future needs of an organization =. #n Manufacturing +rganization > #nventory can be as ra components and finished goods etc? @. #n 6ervice +rganization > #nventory of any &an! can be broachers, forms, pamphlets and also can be currency notes and coins. %ospitals can have inventory as syringes, glucose bottles, medicines etc. IMPORTANCE OF INVENTORY #nventory 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 companyAs shareholdersBo ners. The ord 'invento !' can refer to both the total amount of goods and the act of counting them. materials, spare parts, materials or in)

Many companies ta!e an inventory of their supplies on a regular basis in order to avoid running out of popular items. +thers ta!e an inventory to insure the number of items ordered matches the actual number of items counted physically. 6hortages or overages after an inventory can indicate a problem ith theft or inaccurate accounting practices. -ossessing a high amount of inventory for long periods of time is not usually good for a business because of inventory storage, obsolescence and spoilage costs. %o ever, possessing too little inventory isnAt good either, because the business runs the ris! of losing out on potential sales and potential mar!et share as ell.

O"#ECTIVES OF INVENTORY MANAGEMENT

The basic managerial ob"ectives of inventory control are t o)foldC first, the avoidance over)investment or under)investment in inventoriesC and second, to provide the right quantity of standard ra material to the production department at the right time. #n brief, the ob"ectives of inventory control may be summarized as follo s>

A$ O%e &tin' O()e*tive+:

'2(

En+, in' Av&i-&(i-it! o. M&te i&-+: There should be a continuous availability of all types of ra materials in the factory so that the production may not be help up ants of any material. A minimum quantity of each material should be held in store to permit production to move on schedule.

'3(

Avoi/&n*e o. A(no 0&- W&+t&'e: There should be minimum possible astage of materials hile these are being stored in the godo ns or used in the factory by the should be allo ed up to a certain level !no n as normal or!ers. 7astage astage. To avoid any abnormal

astage, strict control over the inventory should be exercised. 8ea!age, theft, embezzlements of ra material and spoilage of material due to rust, bust should be avoided.

'=(

P o0otion o. M&n,.&*t, in' E..i*ien*!: #f the right type of ra material is available to the manufacturing departments at the right time, their manufacturing efficiency is also increased. Their motivation level rises and morale is improved.

'@(

Avoi/&n*e o. O,t o. Sto*1 D&n'e : #nformation about procurement of ra

availability of materials should be

made continuously available to the management so that they can do planning for material. #t maintains the inventories at the optimum level !eeping in vie the operational requirements. #t also avoids the out of stoc! danger. 'D( "ette Se vi*e to C,+to0e +: 6ufficient stoc! of finished goods must be maintained to match reasonable demand of the customers for prompt execution of their orders. 234Hi'5-i'5tin' +-o6 0ovin' &n/ o(+o-ete ite0+ o. 0&te i&-+$

274 De+i'nin' %oo e o '&ni8&tion .o invento ! 0&n&'e0ent: <lear cut accountability should be fixed at various levels of organization.

"$ Fin&n*i&- O()e*tive+:

294 E*ono0! in %, *5&+in': A proper inventory control brings certain advantages and economies in purchasing also. *very attempt has to ma!e to effect economy in purchasing through quantity and ta!ing advantage to favorable mar!ets. 2:4 Re&+on&(-e P i*e: 7hile purchasing materials, it is to be seen that right quality of material is purchased at reasonably lo price. ,uality is not to be sacrificed at the cost of lo er price. The material purchased should be of the quality alone hich is needed.

'=(O%ti0,0 Inve+tin' &n/ E..i*ient U+e o. *&%it&-: The basic aim of inventory control from
the financial point of vie is the optimum level of investment in inventories. There should be no excessive investment in stoc!, etc. #nvestment in inventories must not tie up funds that could be used in other activities. The determination of maximum and minimum level of stoc! attempt in this direction.

IMPORTANCE OF INVENTORY MANAGEMENT

9$ COUNTING CURRENT STOCK All businesses must !no hat they have on hand and evaluate stoc! levels ith respect to

current and forecasted demands. Eou must !no

hat you have in stoc! to ensure you can meet ay you ill !no if there is a problem

the demands of customers and production and to be sure you are ordering enough stoc! in the future. <ounting is also important because it is the only problems you can ta!e steps to eliminate them. :$ CONTROLLING SUPPLY AND DEMAND 7henever possible, obtain a commitment from a customer for a purchase. #n this ensure that the items you order possible, you may be able to share responsibility for the cost of carrying goods ay, you ith the ith theft occurring at some point in the supply chain. 7hen you become a are of such

ill not ta!e space in your inventory for long. 7hen this is not

salesperson, to ensure that an order placed actually results in a sale. Eou can also !eep a list of

goods that can easily be sold to another party, should a customer cancel. 6uch goods can be ordered ithout prior approval. Approval procedures should be arranged around several factors. Eou should set minimum and maximum quantities hich your buyers can order ithout prior approval. This ensures that you are maximizing any volume discounts available through your vendors and preventing over) ordering of stoc!. #t is also important to require pre)approval on goods ith a high carrying cost. ;$ KEEPING ACCURATE RECORDS Any time items arrive at or leave a ordered. #nventory leaving your arehouse, accurate paper or! should be !ept, itemizing the hen you ill find brea!age or loss on the goods you arehouse must be counted to prevent loss bet een the

goods. 7hen inventory arrives, this is

arehouse and the point of sale. *ven samples should be recorded, ma!ing the salesperson responsible for the goods until they are returned to the storage facility. 4ecords should be processed quic!ly, at least in the same day that the ithdra al of stoc! occurred. <$ MANAGING EMPLOYEES &uyers are the employees ho ma!e stoc! purchases for your company. 4e ard systems should

be set in place that encourage high levels of customer service and return on investment for the product lines the buyer manages. 7arehouse employees should be educated on the costs of improper inventory management. &e sure they understand that the lo er your profit margin, the more sales must be generated to ma!e up for the lost goods. #ncentive programs can help employees !eep this in perspective. 7hen they see a difference in their paychec!s from poor inventory management, they are more li!ely to ta!e precautions to prevent shrin!age. *ach stoc! item in your arehouse or bac! room should have its o n procedures for

replenishing the supply. 5ind the best suppliers and storage location for each and record this information in official procedures that can easily be accessed by your employees. #nventory management should be a part of your overall strategic business plan. As the business climate evolves to ards a green economy, businesses are loo!ing for ays to leverage this trend as part of the big picture. This can mean re)evaluating your supply chain and choosing products that are environmentally sound. #t can also mean putting in place recycling procedures

for pac!aging or other materials. #n this

ay, inventory management is more than a means to

control costsC it becomes a ay to promote your business. SUCCESSFUL INVENTORY MANAGEMENT 6uccessful inventory management involves balancing the costs of inventory ith the benefits of

inventory. Many small business o ners fail to appreciate fully the true costs of carrying inventory, hich include not only direct costs of storage, insurance and taxes, but also the cost of money tied up in inventory. This fine line bet een !eeping too much inventory and not enough is not the managerAs only concern. +thers include> Maintaining a ide assortment of stoc! )) but not spreading the rapidly moving ones too thinC #ncreasing inventory turnover )) but not sacrificing the service levelC ;eeping stoc! lo )) but not sacrificing service or performance. +btaining lo er prices by ma!ing volume purchases )) but not ending up moving inventoryC and %aving an adequate inventory on hand )) but not getting caught ith obsolete items. The degree of success in addressing these concerns is easier to gauge for some than for others. 5or example, computing
A"OUT INVENTORY

ith slo )

CONTROL

#nventory consists of the goods and materials that a retail business holds for sale or a manufacturer !eeps in ra materials for production. #nventory control is a means for maintaining the right level of supply and reducing loss to goods or materials before they become a finished product or are sold to the consumer. #nventory control is one of the greatest factors in a company$s success or failure. This part of the supply chain has a great impact on the company$s ability to manufacture goods for sale or to deliver customer satisfaction on orders of finished products. -roper inventory control balance the customer$s need to secure products quic!ly of demand, and cost of inventory. ill ith the business need to control

arehousing costs. To manage inventory effectively, a business must have a firm understanding

ADVANTAGES OF INVENTORY CONTROL:

'2( 4eduction in investment in inventory. '3( -roper and efficient use of ra materials. '=(Fo bottlenec! in production. '@( #mprovement in production and sales. 'D( *fficient and optimum use of physical as ell as financial resources. '.(+rdering cost can be reduced if a firm places a fe large orders in place of numerous small orders. 'G(Maintenance of adequate inventories reduces the set)up cost associated ith each production 4un.

INVENTORY COSTS There are three main types of cost in inventory. There are the costs to carry standard inventories and safety stoc!. +rdering and setup costs come into play as ell. 5inally, there are shortfall costs. A good inventory control system ill balance carrying costs against shortfall costs. SAFETY STOCK 6afety stoc! is comprised of the goods needed to be !ept on hand to satisfy consumer demand. &ecause demand is constantly in flux, optimizing the 6afety 6toc! levels is a challenge. %o ever, demand fluctuations do not holly dictate a company$s ability to !eep the right supply on hand most of the time. <ompanies can use statistical calculations to determine probabilities in demand. ORDERING COSTS +rdering costs have to do ith placing orders, receiving and sto age. Transportation and invoice processing are also included. #nformation technology has proven itself useful in reducing these costs in many industries. #f the business is in manufacturing, then to production setup costs are considered instead. THE COST OF SHORTFALLS

6toc! out or shortfall costs represent lost sales due to lac! of supply for consumers. 6ales departments prefer these numbers be !ept lo so that an ample stoc! ill al ays be !ept. 8ogistics managers prefer to err on the side of caution to reduce arehousing costs. 6hortfall costs are avoided by !eeping an ample safety stoc! on hand. This practice also increases customer satisfaction. %o ever, this must be balanced business. +ne can then balance the need for high satisfaction ith the cost to carry goods. The best ay to manage stoc!out is to determine the acceptable level of customer service for the ith the need to reduce inventory costs. <ustomer satisfaction must al ays be considered ahead of storage costs. CYCLICAL COUNTING Many companies prefer to count inventory on a cyclical basis to avoid the need for shutting do n operations hile stoc! is counted. This means that a particular section of the arehouse or plant is counted physically at particular times, rather than counting all inventory at once. 7hile this method may be less accurate than counting the hole, it is much more cost effective. <yclical counting is preferred because it allo s for operations to continue hile inventory is

ta!en. #f not for this practice, a business ould have to shut do n hile counts ere ta!en, often requiring the hire of a third party or use of overtime employees. <yclical counting usually utilizes the A&< rule, but there are other variations of this method that can be used. The A&< rule specifies that trac!ing 3/ percent of inventory ill control H/ percent of the cost to store the goods. Therefore, businesses concentrate more on the top 3/ percent and counter other goods less frequently. #tems are categorized based on three levels> A C&te'o !: Top valued 3/ percent of goods, hether by economic or demand value " C&te'o !: Midrange value items C C&te'o !: <heaper items, rarely in demand schedule counting of inventories based on these categories. The A hile & and < categories are counted only once a

7arehouse staff can no month or once a quarter.

category is counted on a regular basis

COMMON INVENTORY VALUATION METHODS The methods a company uses to value the costs of inventory have a direct effect on the business balance sheets, income statements and cash flo s. Three methods are idely used to value such

costs. They are 5irst)#n, 5irst)+ut '5#5+(, 8ast)#n 5irst)+ut '8#5+( and Average <ost. #nventory can be calculated based on the lesser of cost or mar!et value. #t can be applied to each item, each category or on a total basis.

FIFO 5#5+ operates under the assumption that the first product that is put into inventory is also the first sold. An example of this in action can be made hen e assume that a idget seller acquires 3// units on Monday for 4s.2.// per unit. The next day, he spots a good deal and gets D// more for 4s.GD per unit. 7hen valuing inventory under the 5#5+ method, the sale of =// units on 7ednesday ould create a cost of goods sold of 4s.3GD. That is, 3// units at 4s2.// ay, the first 3// units on the income statement ere each and 2// units at 4s.GD each. #n this ending inventory. LIFO 8#5+ assumes instead that the last unit to reach inventory is the first sold. :sing the same example, the income statement and balance sheet ould instead sho a cost of goods sold of ould be valued at 4s.33D for the =// units sold. The ending inventory on the balance sheet

valued higher. The remaining @// idgets ould be valued at 4s.GD each on the balance sheet in

4s.=D/ in assets. 7hen this method is used on older inventories, the company$s balance sheet can be greatly s!e ed. <onsider the company that carries a large quantity of merchandise over a period of 2/ years. This accounting method is no assets. WEIGHTED AVERAGE Average <ost or!s out a eighted average for the cost of goods sold. #t ta!es an average cost using 2/)year)old information to value its

for all units available for sale during the accounting period and uses that as a basis for the cost of goods sold. To site our example again, e ould calculate the cost of goods sold at I'3// x 4s.2( J 'D// x 4s.GD(KBG//, or 4s.H32 each. The remaining @// units on the balance sheet in ending inventory. ould also be valued at this rate

SPECIFIC IDENTIFICATION A less commonly used, but important method to valuation is called specific identification. This method is used for high)end items that are more easily trac!ed. #n some cases, this method can be used for more common items, but less value is realized from this accounting method is such cases. This is because po erful and detailed trac!ing soft are is required to employ specific identification on large numbers of goods. INFLATIONARY EFFECTS ON VALUATION Fo matter ho you loo! at it, you are still coming up ith G// idgets that cost you a total of

4s.DGD. This ould all be ell and good if the value of money remained static. %o ever, mar!et conditions change causing inflationary changes. 7hen this happens, your accounting method can have a strong impact on ho sheets. The affects cash flo RISING PRICES 7hen prices are rising, using 5#5+ ill sho a greater value on the balance sheet, thereby cash for healthy the business loo!s on income statements and balance hen businesses see! credit to pay for ongoing operations.

increasing tax liabilities but also improving credit scores and the ability to borro

ongoing operations. +lder inventory is being used to determine the cost of goods sold and ne er inventory is being used to report assets. 8#5+ decreases the value on the income statement, but can reduce the level of depreciation you are able to ta!e on assets. This is good for taxes but bad for borro ing. #ndustries most li!ely to adopt 8#5+ are department stores and food retailers. The method is rarely used in defences.

NEED OF THE STUDY:-

#nventories are equivalent to cash and they ma!e up an important of the total cost.

#t is essential that inventory should be properly safeguarded and correctly accounted. -roper control of inventory can ma!e a substantial contribution to the efficiency of a bussiness. The success of a business concern largely depends upon efficient purchasing, storage, consumption and accounting. #nventory plays a vital role in study of inventory management in bul! so # selected the 65- 6ons pvt.ltd.

STATEMENT OF PRO"LEM

The current system in the company under inventory management system hich doesn$t specify the safety stoc! hich leads to scare for stoc!s at emergency.

The data are not properly updated at the end of each day$s or!. -roper data security system is not provided. Annual maintenance contract is not provided. 4ecords are not maintained properly.

INDUSTRY PROFILE The perfume industry in #ndia has come of age. 5rom a cottage industry it has become full) fledged industry in the last t o decades. The industry is gro ing at 23D percent annually. The gro th is attributed to an increase in disposable income. 7#T% L8+&A8#MAT#+F, liberalization and the #T revolution, living standards of the #ndians have increased manifold. The demand for fashionable products has increased too. That is all global players are eyeing the subcontinent for business purpose. The illegal flo foreign goods also compels the indigenous manufacturers to tie)up tap this segment of people. The fragrances industry is big business, very big business. #t includes much more than retail sales of fragrances. 4elated industries such as chemical companies supply the chemicals and the fragrances are made from it. Most fragrances chemicals are synthesized from petroleum products. 6ome companies formulate fragrances and flavours for other companies. Mar!eting and advertising are used to create and promote the image of a fragrance. The perfume industry, basically, as "ust a cottage industry some t o decades ago. &ut no , due to the huge demand among the people, it has blossomed into a full)fledged industry. 4ecently, NAlcome -erfumes and <osmetics$, declared a plan to set up a 4s. 2// crore green field perfume plant in and around Foida 6pecial *conomic Mone. hyC of lifestyle

products confirm the great demand for these products in #ndia. The affinity of the #ndians for ith international brands to

The domestic perfume mar!et is estimated to be

orth 4s.=// crore and is gro ing at around at a rate of 3// percent in the coming

23D percent annually. The forecast is that it may gro years, ith fast changing consumer behaviour and habits.

Leneva)base #nternational 5ragrance association has estimated that the global perfume mar!et is orth O @/ billion, out of hich the mass mar!et has a G/ percent share. #n this, #ndia, <hina has a considerable share. 7ith the gro ing demand for fragrance, the #ndian perfume companies are planning to change their strategies by utilizing their resources mainly for the domestic mar!et and a meager portion for exports. Apart from that these that these companies are also planning a multiple mar!eting and distribution strategy to foray into a mar!et ith huge potential. The potential is immense as the middle class is gro ing rapidly and disposable incomes are increasing.

2Hi+to ! o. %e .,0e in/,+t !4

9$973= 2G./ ) #n 2G./, in 8ondon, Pames %enry <reed founded the %ouse of <reed. filtered, all by hand in the highest tradition of the founder, Pames %enry <reed. <reed,cologne,designer perfume, +livier <reed,-erfume, omens perfume,Pames %enry <reed,*mpress *ugQRSTnie,discounted perfume,fragrance,<ountry,5rench perfume, perfume industry,Pasmine, omens fragrances,shopping cart,originality,scents,Master -erfumer,the 5rench. :$9>:9 2U32 ) <oco <hanel revolutionised the perfume industry by being the first to ma!e a mass mar!et scent for every oman hen she launched <hanel FoD in 2U32. Eou can still spritz on some of that vintage glamour today ith your o n bottle, V@. for D/ml *WT at %ouse of 5raser ;$9>?7 5eb 3H, 2UHG ) 7hen perfumed gloves came into fashion in the 2.th century, the to n gradually developed a separate perfume industry. ... The -rovencal Art and %istory Museum,

originally the 2Hth century home of 8ouise de Mirabeau, houses a fine collection of -rovencal art. The 2Gth century 5ragonard. <$9>?? Fov 3D, 2UHH ) #t is one of the 3// fragrance)related art ob"ects currently on vie in the 96cents of Time9 exhibit at the Museum of 6cience and #ndustry. The exhibit traces the history and evolution of fragrance, connecting each phase ith the social, political and cultural trends of the time. ... @$ 9>>9 5eb 2G, 2UU2 ) 7ritten in collaboration ith -atricia &ayer, the boo! includes chapters on 4ene 8aliqueAs life, the development of the perfume industry, the history of the 8alique company, and collecting tips. An appendix provides information on dating bottles by the signature . 3$ 9>>> Wec U, 2UUU ) of ne ly fragrances remain on the shelf after a year of launching,9 says international director for Antonio -:#L perfumes, *ugeni Ma"o. cosmetics industry is a dynamic one. itAs competitive and only companies that manage to create an product that differs from the rest ill remain9 7$ :=== Pun 3/, 3/// ) %alifaxAs eight)year)old 9Fo 6cents9 policy is creating a big stin! in the perfume industry. 4epresentatives from the American and <anadian perfume industry ere in %alifax Tuesday to launch a counter attac! ad campaign as a ay of stopping the campaign from spreading. ?$:==9 Fov 3=, 3//2 ) hitherto un!no n insights into the use of perfumes through the ages and learn that 9the history of perfume is often intert ined ith the history ... &ut, it as the Arabs

ho lin!ed 9the past and present of the perfume industry9, says the portal. 9The process of extracting oils from flo ers. >$:==: Apr 22, 3//3 ) 6cented oils and perfumes ere stored in elaborate and beautiful pots and "ars throughout *gyptian history. ... 9Fever before has a series of exhibitions in *gypt and abroad been devoted to a single industry, hich has resulted in such a ide range of artistic and utilitarian ob"ects,9

9=$:==< 6ep 33, 3//@ ) #t as a scent that changed the American position in the perfume industry. 7omen across this nation began to forsa!e all of the costly and ell) ... 6he offered her vast store of perfume !no ledge and its history ith great generosity.

COMPANY PROFILE
SOMA"HAI FULA"HAI PATEL 2SFP4
65- 6ons '#ndia( -vt. 8td established in 2UU3 is one of the leading manufacturers of -erfumes and cosmetics in #ndia. 65- is located in 6pecial *conomic Mone, <hennai and as 5ormerly !no n as 6. 5. -atel X 6ons '#ndia(.65- manufactures ide range of over 2///J products under its o n brands AAhsanA, ATaraA, ATaibahA, AMala!iA, A6alaamA, A6ilent YalleyA and A<razy MomentsA. These products are idely available in more than 3/ countries. -roduct range includes Attars 'concentrated perfume oils(, 6pray -erfumes '*WT, *W-, colognes and body mists(, -erfume Lels, <reams and Lels for %air and body, <leansing lotion, 6ho er Lels, 6hampoos, %air +il and Talcum po ders. 65- is a #6+ U//2 certified company and is committed to manufacture quality products. All products manufactured are s!in friendly and abide by all international standards laid do n by governing bodies li!e #54A, 5WA et al. 65- factory is spread over 2//,/// sq. ft area and employees over @//J people. #t houses a ell equipped 4 X W laboratory and highly qualified team to develop and manufacture high quality products. #t has a sound infrastructure and modern facilities hich helps every activity and product of 65- fulfill its brand promise and mantra Z

BRINGING FRANGRANCE TO LIFE

65- processes are managed and controlled through 6A-. The 65- team is s!illed, trained and equipped to meet and deliver all customer expectations. VISION AND MISSION <ompany vision becomes a globally leading company in perfumes and cosmetics industry. <ompany mission, delivers the quality product ith protection of environment and protect The health of customer. 65- aims at attaining, commanding mar!et position in supply of perfumery and cosmetic product by meeting the needs and expectation of customers and enhancing their satisfaction.

MANAGEMENT
65- as started by its present Managing Wirector Mr. Winesh 6. -atel an entrepreneur ith dream and vision to ma!e 65- a globally leading <ompany in perfumes and <osmetics industry. %e believes hard or!, commitment and passion combined can enrich every individualAs life.

R A D L&(
65- has ell equipped laboratory and research section, equipped to carry out in)house development and testing required as per laid do n standards. 8atest L<, refract meters, 6L meter, -h meters, Yiscometers and other #nstruments are manned by trained personnel.65- is committed to quality through its strict quality control methods. :sing latest technology every component and product are tested as per international standards at all stages of manufacturing to ensure high quality perfumes and cosmetics.

"LENDING
65- also blends some of its + n fragrances. #t has H nos of blending tan!s of capacity 2 ton ith cooling lines. #t has WM 7ater plant and a 4+ ater plant. 65- has t o tan!s for alcohol storage hich can hold D//// liters.

COSMETIC MANUFACTURING
<osmetic products manufacturing is done is ell equipped modern facilities. This plant has oil phase vessel, ater phase vessel and a main homogenizing vessel of capacity 2 ton. 65- also has

D/ liter plant to cater to smaller needs

DISTILLATION
65- also houses a unique and traditional perfume oil extraction unit from natural ingredients. %ere by distillation oils are extracted hich are used in fragrance blends.

FILLING AND PACKING -roduction facilities are ell laid do n ith

separate buildings for Attars, 6prays, <reams and Lels, %air oils and Talcum po der. A total of 23 production lines have a capacity to fill and pac! 23/,/// units every day per shift.

WAREHOUSE The ne ly constructed are house has area of over 3//// sq. ft and is ell arranged to monitor and move material ith ease. All products are bar)coded for efficient identification. 65- is ell connected by road, sea and air to have excellent supply chain.

TRAINING

65- Training <entre provides trainings to all its employees on regular basis. The training is totally based on s!ill and personality development to drive individuals and the company for ard.

SHOWROOM
The sho room ithin the factory premises

displays a range of products. #t also displays pac!aging material components. %ere customers can select items of their choice for their mar!ets.

BUALITY O"#ECTIVES OF SFP +n)time delivery of final product to customer.

Mero level of non)conformity at #n)process and final stage of the product. Mero level of customer complaint to enhance customer satisfaction.

BUALITY POLICY OF SFP SFP committed to the aim and ob"ectives of the company to manufacture products that are satisfy customer$s needs and expectations. SFP shall implement the quality management system to meet agreed requirements to enhance customer satisfaction and improve its effectiveness continually. SFP commit to highest levels of integrity and professionalism in all aspect of our business.

C e/enti&-+ o. SFP 4aad voor accreditatie, Fetherland has licensed 65- 6ons '#ndia( -vt. 8td and listed

in the bureau$s register of licensees of ,uality management system certification in respect of the products and services in accordance ith #6+ U//2>3//H and also #6+ 2@//2> 3//@ for *nvironment management system. 65- is a member of export promotion council. 65- has been recognized as one star export house having the certificate issued by the ministry of commerce X industry, government of #ndia. #n 3//G 4AP#Y LAFW%# national quality a ard panel has a arded 65- ith a <ommendation certificate for quality standard of the company at all #ndia level. 65- is a member ith *ssential oil association of #ndia. 65- is register ith #54A and 5WA.

FACILITIES AND TECHNOLOGY OF SFP 7ell planned perfume blending set up ith the required vessels, tan!s and all relevant accessories.

 Traditional fragrance extraction set up for manufacturing special attars. 7ell)equipped cosmetics manufacturing unit ith boiler etc. W.M. ater plant 4.+. ater plant. 7ell)equipped pac!aging section having bottles and tubes filing and rapping machines. 7ell)equipped talc manufacturing unit. %air oil unit machine. Alcohol'perfumery grade( storage tan!s ,uality control laboratory ith advanced L< machine and relevant testing apparatuses. 7ell)equipped in built 4XW centre. Wesign and development department hich consistently create pac!aging design hich customers$ purpose and also innovates ne designs and present to them. The company has arehouse having a large space and materials handling equipments and for!lift. The plant has 23 filling lines and a capacity of 2, 3/,/// bottles per shift. All the activities of company are done in the orld class soft are 6A- business 2. ith automatic filling, capping machines, shrin! rapping and labeling

.HUMAN RESOURCE Co0%eten*eC &6& ene++C t &inin' Available competence level of each employee on the basis of his education s!ill and experience is assessed and accordingly training needs are identified and provided competence map is done for all those ho are directly connected to the performance of conformity to

product required directly 'or( indirectly. &eside training communication system is established providing relevant information to enhance the a areness level of personnel in relation to 65- performance required. *ffectiveness of the action ta!en is evaluated organist requirement and corrective actionsB further improvement oriented actions are ta!en as on)going exercise. 7hile implementing the above activities it is ensured that personnel are made a are of the relevance and important of their activities considering this an integral requirement for their contribution to ards achievement of quality ob"ectives. 4ecords of education, training, s!ill X experience are maintained as long as the employee is in service roll in 65-.

M&n%o6e in SFP *very department has a highly experienced and qualified team. <ompany has around 3D/ s!illed or!ers. The company has 23/ experienced hands in the line of sales and mar!eting team. The company has a fully equipped training hall hich accommodates D/ persons at a time and regular training programs are held at different levels. The training is totally based on s!ill and personality development to drive individuals and the company for ard

ORGANISATIONAL CHART

DESCRIPTION OF PRODUCTION PROCESS

PERFUMERY AND COSMETIC PRODUCTS: M&te i&- ,+e/: -erfumery compounds, aroma chemical solvents. <osmetics ingredients, coloring materials procured are the ra materials, St&'e 9 -rocured material as above is sub"ected to inspection and testing to confirm their meeting specified equipment. St&'e : <ompounds either as they are ith colouring material or a formulated combined of more than one compound ith or ithout colouring material after sub"ected to process. #nspection and testing are send for filling X pac!aging. St&'e ; -roduct are then filling in convenient sizes and pac!aging iUn cartons as per customer$s requirements. Wuring filling operation the containers and the associated accessories are sub"ected to in process inspection to ensure state of conformance to specified requirements. St&'e < -ac!aged products undergo final inspection before effecting delivery.

MARKETING
65- has organized tie)up in Wubai to fee the mar!et in :.A.*. and distribution of the premium attars to African countries li!e, 6udan, *gypt, 6omalia, Figeria, Lhana, :ganda, Mambia, 6outh Africa, 8ibya, Algeria, Mauritania, morocco, <had, and <ameroon. #n 6audi Arabia the company is having distribution tie)ups in Peddah, 4iyadh, Mecca, Medina, etc. Also the company is having distribution outlets in ;u ait, Muscat, &ahrain, Woha),atar, 8ebanon, Pordan, 6yria, #ran, #raq, and Afghanistan. The company is also having export mar!et in 6ri 8an!a, 6ingapore, Malaysia, #ndonesia, Thailand, Myanmar and &angladesh. #n the est the company is having mar!et in Atlanta, Fe Eor!, Fe Persey, <hicago, 8as Angeles, 8ondon, 6pain, and 5rance. #n #ndia there are GD/ distributors throughout the country.

PRODUCT PROFILE Di..e ent " &n/+ M&n,.&*t, e/ (! SFP :

OBJECTIVE OF STUDY:P i0& ! o()e*tive:To analyze that the existing inventory management system in SFP SONS In/i& %vt$-t/. Se*on/& ! o()e*tive:2. To verify the mismatch bet een the order and receipt of mate 3. To find out the impact of inventory on or!ing capital. =. To find out minimum stoc! level, ho much stoc! should be order.

LITERATURE REVIEW

6uccess of any industrial underta!ing depends upon the . m$s 2( Money 3( Manpo er =( Machine @( Mar!et D( Material .( Management

Materials are pivotal importance not less than any other M$s. -roblems have their root in material affects the efficiency of all men, machine, money X mar!eting decisions of the firms and thus become the grave concern of management at all levels. #f there ere too much of material problems li!e ideal funds lied up in excessive inventory storage and obsolesces difficulties mar!et pressure ould arise. Thus the importance of inventory management is realized. A number of studies have been done in the field of inventory management by various researchers. 6ome of them are given belo C 9$ A,t5o :- "e n &t /e Wi--i&0 !e& :==? This study tells that the main focus of inventory management is on transportation and arehousing. The decision ta!en by management depend s on the traditional method of inventory control models. The traditional method of inventory management is ho much useful in these days the author tell about it. %e is also saying that the traditional method is not a cost reducing, it is so much expensive. &ut the managing the inventory is most important or! for any manufacturing unit. 3$ A,t5o : - #on S*5 ei(.e/e 9>>: %e said that it is easy to turn cash into inventory, the challenge is to turn inventory bac! into cash. #n early 2UU/$s many distributor recognize that they needed help controlling and managing their largest asset inventory. #n response to this need several companies developed comprehensive inventory management modules and systems. These ne pac!age include many ne features designed to help distributors effectively managed arehouse stoc!. &ut after implementing this many distributors do

not feel that they have gained control of their inventory. =$ A,t5o :-Wo-. "&'(!C M&n&'in' invento ! #n this study Mr. 7.&agby explains that by managing the inventory it becomes easier for the organization to meet the profit goals, shorter the cash cycle, avoid inventory shortage, avoid excessive carrying costs for unused inventory, and improve profitability by decreasing cash conversion and adopt P#T system. According to this study companies need to get smart about inventory. &oosting financial performance is another benefit that comes from better inventory management. #nfect large number of manufacturers en"oy savings and better performance by choosing the approach of inventory reduction. 5or this company needs to maximize the cash flo and profitability and this includes !eeping a atchful discerning eye on charge in supply and demand <$ A,t5o : - A+.&D,e A50e/ O*to(e 9:C :==< 2A ti*-e . o0 0&+te eD,i e0ent %-&nnin' &n/ 0&+te % o/,*tion +*5e/,-in'4

%e said that most of the manufacturing company vendors have planning and scheduling product hich assume either infinite production capacity for calculating quantities of ro material and or! in progress '7#-( requirements or infinite quantities of ra material and 7#- materials for calculating production capacity. There are many problems ith this approach and ho to avoid these by ma!ing sure that the product you are buying indeed ta!es into account finite quantities of required materials as ell as finite capacities of or! centers in your manufacturing facilities. @$ A,t5o :- D$Hoo%0&n A% i- 7C :==; 2A ti*-e . o0 invento ! %-&nnin' &n/ o%ti0i8&tion4 #n this article he said that inventory optimization recognize that different industry have different inventory profiles and requirements. 4esearch has indicated that solutions are priced in a large range from tens of thousands of dollars to millions of dollars. #n this niche mar!et sector price is definitely not an indicator of

the quality of solution, 4+# and usability are paramount.

3$ A,t5o :-Si-ve C E/6& / A De*::C :==: 2A ti*-e . o0 % o/,*tion &n/ invento ! 0&n&'e0ent )o, n&-4 This article considers the context of a population of items for hich the assumption underlying the *+, derivation holds reasonably ell. %o ever as is frequently the cash in practices there is an aggregate constraint that applies to the population as a hole. T o common forms of constraints are> 2( the existence of budget to be allocated among the stoc!s of the items and 3( a purchasing production facility having the capability to process at most a certain number of replenishment per year. &ecause of the constraint the individual replenishment quantities cannot be selected independently. @$ A,t5o :- C5& -e+ At1in+on 2A +t,/! on invento ! 0&n&'e0ent4 #n the study by Mr. <harles At!inson, he explained the inventory management and assessment of inventory levels. As per this study inventory management need to address t o issue -art #. %o to optimize average inventory levels. -art ##. %o to assess 'evaluate( inventory levels. This study tells about hat the manager should do and not to do, and ho much amount should be order in one placed orders. Average inventory can be calculated by simplistic method. Average inventory [ beginning inventory Jend inv.B3 ?$ A,t5o :-De-&,n&! C C S&5in EC :==7$ e

A lots of or! has been done but no if e ant to go ahead must have good visibility upon this field of research. That is hy

e are focused on

frame or! for an exhaustive revie on the problem of supply chain management ith inventory inaccuracies . The author said that their aim in this or! is also to present the most important criterion that allo a distinction bet een the different type of

managing the inventory.

RESEARCH METHODOGY

4esearch methodology is the

ay to systematically solve the research problem$

+b"ective of research study is to analysis of inventory of 65- 6ons and analyzing of inventory, e determining follo ing inventories) 2. 4a materials inventory, 3. 7or! in progress inventory, =. -ac!aging material inventory X @. 5inished goods inventory #n this section of inventories, e should analyze the annual investment in inventories, e Yaluation of inventory after closing balance of items in inventory. #n this manner, calculate reorder point, safety stoc! levels, minimum X maximum levels of inventory. 7or!ing hypothesis of the ob"ective is that inventories records. The analysis of inventory according to their data is available in the company. The data collection of inventory for analysis is by the direct store department. # ent to the all inventories as ra material, or! in progress inventory, finished goods inventory by the proper observation of data$s of the company. The particular method for data collection used direct intervie telephone intervie important data. PERIOD OF STUDY: The study as conducted in a period bet een Panuary 3/2/ to April 3/2/ during hich the researcher studied the company$s relationship ith dealers and distributors and obtained their vie . ith assistants and are the stoc! piles of goods in an

organization. 65- invests about @/0 of total assets inventory should be analyzed their

ith friends to !no n about annual investment of inventories and other

Met5o/ o. /&t& *o--e*tion: #n analysis of inventory of 65-, 7e collect the data by the different sources. 7e collect the primary and secondary data. 6*<+FWA4E WATA Z The secondary data are those data that are already in presence for specific purpose, e use the secondary data about inventory to loo! old records of the company .5or the M4F, ledger register and daily issue slip the daily information about the items are sho

of materials, the purchase register and other documentary evidence used for the findings. #n the analysis of inventory, the secondary data provided is not sufficient then e collected primary data. -4#MA4E WATA Z -rimary data or fresh data are those data that are originated very first time ith the help of primary data e formulated the research ob"ectives. -rimary data are the accurate, attainable, reliable and useful data. 2. #nventory control techniques used by the company 3. #nventory systems as perpetual and periodic systems. =. 6toc! levels etc. @. <ompany$s ebsite

INVENTORY MANAGEMENT TECHNIBUES

#n managing inventories, the firm$s ob"ective should be in consonance

ith the

ealth

maximization principle. To achieve this, the firm should determine the optimum level of

investment in inventory. To deal

ith the problems of inventory management effectively, it ith the different techniques of inventory control.

becomes necessary to be conversant

Although the concepts involved in inventory management are production)oriented and are not strictly financial it is important that the financial manager understand them since they have certain built)in financial costs. The different techniques of inventory control may be summarized as follo s>

'2(

Invento ! -eve- Te*5niD,e The main ob"ective of stoc! control is to determine and maintain the optimum level of stoc! so that there is neither shortage of any material nor unnecessary investment in inventory. 5or this purpose, determination of maximum and minimum limits of inventory and ordering level is necessary.

'3(

M&Ei0,0 +to*1 Li0it: This represents the quantity of inventory above

hich it should not the

be allo ed to be !ept. The main ob"ect of fixing this limit is to ensure that unnecessary or!ing capital is not bloc!ed in stores. The quantity is fixed !eeping in vie disadvantages of overstoc!ing. RE-ORDERING LEVEL 2ORDERING LEVEL4 #t is the point at hich if the stoc! of the material in stores reaches, the store!eeper should ay that the difference of quantity of the ill be sufficient to meet

initiate the purchase requisition for fresh supply of material. This level is fixed some here bet een maximum and minimum level is such a material bet een the reordering level and the minimum level ta!ing into consideration the follo ing factors> A"C ANALYSIS: A&< Analysis is a basic analytical management tool hich enables top management to place the effort here the result ill be greatest. This technique,

requirements of production up to the time of fresh supply of the material. #t is fixed after

popularly !no n as al ays better control or the alphabetical approach, has universal applications in many areas of managing the inventory. The technique tries to analyze the distribution of any characteristic by money value of importance in order to determine its priority. The annual consumption analysis of any organization ould indicate that a handful of top high value items less than 2/0 of total number ill account for a substantial portion

of about GD0 of the total consumption value and these fe vital item are called A class items hich need careful attention of the materials manager. 6imilarly a large number of bottom items over G/0 of total number called the trival many account only for about 2/0 of the consumption value and are !no n as the N<$ class. The items that lie bet een the top and bottom are called the N&$ category item. The follo ing facts need to be noted ith regard to A&< Analysis> 2. Through usually the inventory items are classified into three categories viz A& and< only, but nothing prohihibits a firm to underta!e the analysis on the basis of a larger catagorisization. 3.#t is necessary for an effective A&< analysis that all the items should be included for the <lassification. =.Through according to A&< Analysis category < gets only a simple attention, the management should nevertheless have to be vigilant in its approach. 5or example an items may be of small value but may be critical in the sense that its non)availability hampers the production process and its supply is irregular. The management has to be extra careful about its inventory, even though the items figures in the category <. Thus the A&< analysis not the ultimate exercise in inventory management, it needs supplementing ith detailed !no ledge and monitoring. @.-rice of the items and their physical quantities shouldn$t be made the basis of A&< analysis. #t is rather the usage value of the items hich must be used for the purpose of classification.

ECONOMIC ORDER BUANTITY TECHNIBUE

+ne of the ma"or inventory management problems to be resolved is ho added ho hen inventory is replenished. #f the firm is buying ra

much inventory should be

materials, it has to decide lost in

hich it has to be purchased on replenishment. #f the firm is planning a production run, the issue is much production to schedule 'or ho much to ma!e(. These problems are called o /e D,&ntit! % o(-e0+C and the tas! of the firm is to determine the optimum or economic order quantity 'or e*ono0i* -ot +i8e(. Wetermining an optimum inventory level involves t o type of costs> 'a( ordering costs and 'b( carrying costs> The economic order quantity is that inventory level that minimize the total of ordering and carrying costs.

*+, [ 3'annual usage in unit('order cost( Annual carrying cost per unit

VED ANALYSIS: The Y*W analysis is used generally for spare parts. The requirement and urgency of spare parts is different from that of materials. A)&)< analysis may not be properly used for spare parts. The demand for spares depends upon the performance of the plant and machinery. 6pare parts are classified as> Yital 'Y(, *ssential '*( and Wesirable 'W(. The vital spares are a must for running the concern smoothly and these must be stored adequately. The non)availability of vital spares lo ill cause havoc in the concern. The * types of spares are also necessary but their stoc!s may be !ept at figures. The stoc!ing of W types of spares may be avoided at times. #f the lead time of these spares is less, then stoc!ing of these spares can be avoided. The classification of spares under three categories is an important decision. A rong classification of any spare ill create difficulties for production department. The classification of spares should be left to the technical staff because they !no the need, urgency and use of these spares.

#UST-IN-TIME 2#IT4 SYSTEM: Papanese firms popularized the ),+t-in-ti0e 2#IT4 +!+te0 in the orld. #n a P#T system material or the manufactured components and part arrive to the manufacturing sites or stores "ust fe hours before they are put to use. The delivery of material is synchronized ith the manufacturing cycle and speed. P#T system eliminates the necessity of carrying large inventories, and thus, saves carrying and other related costs of manufacturer. The system requires perfect understanding and coordination bet een the manufacturer and supplier in terms of the timing of delivery and quality of the material. -oor quality material or complements could halt the production. The P#T inventory system complements the total D,&-it! 0&n&'e0ent 2TBM4. The success of the system depends on ho ell a company manages its suppliers. The system puts tremendous pressure on suppliers. They ill have to develop adequate system and procedures to satisfactory meet the needs of manufacturers INVENTORY TURNOVER RATIO> '#T4( #n accounting, the #nventory turnover is an equation that measures the number of times inventory is sold or used over in a period such as a year. The equation equals the cost of goods sold divided by the average inventory. #nventory turnover is also !no n as inventory turns, stoc! turn, stoc! turns, turns, and stoc! turnover.

#T4 [ <ost of goods sold Average inventory

INVENTORY MANAGEMENT SYSTEM IN SFP SONS INDIA PVT$LTD$

The procurement of inventory is totally depends on orderBdemand. #n first step they get the order from customer then they rite a form that form called indent form by hand riting. After getting order they ill send the order to purchase department for buying of 4a Material and -ac!aging material. *very time that causes the delay of delivery of goods to the customer. After receiving the ra materials from supplier they chec! the quality, because quality

is more important for them. #n

hole production process @)D times they

ill chec! the quality

and after that quality chec! seal on product. They are using 5#5+ method for delivery of good to the customers. 5irst #n 5irst +ut '5#5+( means first order should deliver first and after that continue process. #t is good every one can !no ho much stoc! is available, and ho ay of delivery that ma!e the customer satisfied. *very inspection about available stoc! is on 6Amuch order should be placed. 5or every order they !eep the numbers for identification. W& e5o,+e & &n'e0ent There is separate arehouse for !eeping the different types of inventory li!e 4a material, pac!aging material, semi finished good and finished good. 4a materials includes the perfumery liquid, arranging of these things they have rac! and rac! numbers, and unique code number for each and every liquid for identification. 5or talcum po der ra material are the talc po der hich they !ept in plastic bags in production unit itself. -ac!aging material include box, cap color, nec! etc. hich require after filling the product in bottles. 5inished goods and pac!aging material they are !eeping in same arehouse left side finished good and right side pac!aging material. 5inished good order and pac!aging material ho to find easily. *ach and every data maintained in systems so it is very easy to get the information. ise

SCOPE OF STUDY

The scope is to drive meaningful application of theory for actual implementation. As the study is focusing on identifying the present potential of the company$s inventory methods and aims, e identify best set of inventory method to be carried to improve the company$s policy to determine their inventory. This study provides insight to the management of high value item and

lo

value items. This study also gives the idea about industrial focus and addressal to ards

maintaining inventory. .

LIMITATION OF STUDY

#t consumes more time and requires lots of expenditure. More time is needed to do this study. 6tudy is based on secondary data only. The quality of inventory is not compared in analysis. The analysis is based on figures present in the internal records only. The study is based on t o year reports given by mar!eting and finance

department that has its o n limitation. 7or!ing environment didn$t permit more involved ay of collecting data.

T&(-e @$9 E*ono0i* o /e D,&ntit! Eear 3/2/ 3//U *+,'in units( =3/.G. 2/U.D=

#nterpretation> #t is infer that the *conomic order quantity for the year3//U is 2/U.D= and 3/2/ is =3/.G.. Eear 3/2/ *+, is 3.U times more than 3//U *+,.

C5& t no$@$9

INVENTORY TURNOVER RATIO

Eear 3/2/ 3//U

6ales '\( .=2=/H3U..D H22=332.

#nventory'E( 3.3UGH=D.D 3.==.UGD

4atio '\BE( 3.@/ =./H

TA&8* F+.D.3

#nterpretation> #t sho s that the ratio of sales and inventory for the year 3//U is 3.@ and for the year 3/2/ =./H. #t sho s that the inventory sales ratio of year 3//U is higher than year 3/2/.

C5& t no$ @$:

Eear

4a material

6emi finished good D2/3. @=@.G

-ac!aging material @DHD33 D@U@/U

5inished good

Total inventory

3/2/ 3//U

G@/='in !g( H@/.'in !g(

=@3U23 =/2H./

HDUH.= U/=2@3

T&(-e @$; tot&- invento ! in D,&ntit!

T&(-e @$< Tot&- invento ! in v&-,e2in -&*1+4

Eear 4a material 6emi finished good 23GD.=@ 2/H..U3 -ac!aging material U2G/@D/ UHHU=.H 5inished good Total inventory

3/2/ 3//U

D2H3=3D .=/D2@2

2/.=/3HG U/DDGG@

3.3DH.U. 3.==.UGD

C5& t no$@$;

T&(-e no$@$@ Pe *ent&'e o. invento ! . o0 tot&- invento !

Eear 4M -M 6M 5L Total inventory 2//0 2//0

3//U 3/2/

3=.U@0 2U.G=0

=G.D@0 =@.U30

@.2=0 @.H.0

=@.=H0 @/.@H0

C5& t no$@$<

Eear 3//U

4a material .=,/D,2@2

Total inventory 3,.=,=.,UGD

-ercentage 3=.U@0

3/2/

D2,H3,=3D

3,.3,DH,.U.

2U.G=0

T&(-e no$@$3 %e *ent&'e o. &6 0&te i&- . o0 tot&- invento !

C5& t no$@$3

T&(-e no$@$7 %e *ent&'e o. +e0i .ini+5e/ 'oo/ . o0 tot&- invento !

Eear 3//U 3/2/

6emi finished good 2/H..U3 23GD.=@

Total inventory 3.==.UGH 3.3DH.U.

-ercentage @.2=0 @.H.0

C5& t no$@$7

T&(-e no$@$? Pe *ent&'e o. P&*1&'in' 0&te i&- . o0 tot&- Invento !.

Eear 3//U 3/2/ -ac!aging material UHHU=. H U2G/@D/ Total inventory 3.==.UGH 3.3DH.U. -ercentage =G.D@0 =@.U30

C5& t no$@$?

T&(-e no$@$> Pe *ent&'e o. Fini+5e/ 'oo/+ . o0 tot&- invento !

Eear 3//U 3/2/

5inished good U/DDGG@ 2/.=/3HG

Total inventory 3.==.UGH 3.3DH.U.

-ercentage =@.=H0 @/.@H0

C5& t no$ @$>

T&(-e no$@$9=
Lrade A & < Total Fo. of items DG .D DH 2H/

A"C *-&++i.i*&tion
-ercentage =2...0 =..230 =3.330 2//0

C5& t no$@$9=

A&< Analysis 3//H)3//U April 3//H

BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette 1,02,024 !",!44 10,17$ 1377038.87 230183".13 3$2407.12 C A % CONSUMPTION Apr-2008 - Quantity VALUES IN RS Apr-2008 - Amount GRADING

Total TARA &tem 'roup Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total

1,71,744

404128!.12

2,080 !",370 3,24,!28 3,8!,"78

!14!2.12 3$$1$7.$! 221"2!7.! 2$3$877.27

% C A

2,$$4

130340."4

1"2 28!$

"403.$$ 13"744.$

May 3//H
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA &tem 'roup Eau e Perfume 3,200 7"1!7.11 C 1,!7,224 1",!24 4,320 1,81,0$8 1!88$!8."4 "!$0$".47 1!7183.01 2701"11.42 C % A CONSUMPTION /ay-2008- Quantity VALUES IN RS /ay-2008- Amount GRADING

(air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total

8,8!$ 1,$0,344 1,72,400

14"!17.32 7814$2.82 1010137.2!

% A

480 144 144 !04 33$ 240 1848

30100.41 10!"3.$8 !!3!.82 24$!".1 2$$03."3 13!7$.$2 1110$".!$

% A C C A %

Pune 3//H
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA 1,17,!7$ 27,4$4 2,784 1,47,824 131841".8! 1130428.47 1048"0.$" 2!!373".01 % A C CONSUMPTION 0une-2008- Quantity VALUES IN RS 0une-2008- Amount GRADING

&tem 'roup Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 144 840 !01$ 11401.$" $2"80.0" 2$712!.$4 A % 432 3,$00 1$$07.4$ 17$13$.4 C C 480 !,4"$ 47,232 72 !3280 11873.!7 1!4$37.41 4"7!30.23 $0"8.84 $70140.0! % A C %

Puly 3//H
BRAND NAME CONSUMPTION 0uly-2008- Quantity AHSAN VALUES IN RS 0uly-2008 -Amount GRADING

Perfume Oils Eau e Perfume Eau e #oilette Total TARA

"7,488 17,448 2,208 1,17,144

113$3$!.1$ 78"3!3.0! 10438".2 2030107.41

C A %

&tem 'roup Eau e Perfume 800 1"78".28 %

(air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY

180 32,73$ 144 338$0

$8$0.$" 384288.!4 121"7.$8 42313$.1"

% C A

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 72 312 2!82.8! 217"3.31 C 144 131"0.38 A "$ $020.08 %

August 3//H

BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA

CONSUMPTION Au1-2008- Quantity

VALUES IN RS Au12008-Amt

GRADING

1,87,0!$ 30,7!2 1"2 2,18,000

2232"81 13!12"4."7 10781.02 3!"!0!$.""

C A %

&tem 'roup Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 3$0 1$!$ 1$284.34 7"$"3.4! C 1,2"$ $340".11 A 1,$00 1,41$ $4,032 72 $7,120 3"!78.!$ 31$"3."4 8"8033.$8 $0"8.84 "7!40!.02 A % C %

6eptember 3//H
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA 2,80,$!$ !7,!48 !,37$ 3,43,!80 3$43082.!$ 2!8$300.7$ 184313.3! $413$"$.$7 C A % CONSUMPTION ,ep-2008-Quantity VALUES IN RS ,ep2008-Amt. GRADING

&tem 'roup Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total !04 24$!".07 !04 24$!".07 A !$,224 !24770.28 3,!20 2,232 !0,472 87072.8$ 77"12.2 3!"78!.22 % A C

+ctober 3//H
BRAND NAME CONSUMPTION O)t2008-Quantity AHSAN VALUES IN RS O)t-2008-Amt GRADING

Perfume Oils Eau e Perfume Eau e #oilette Total TARA

1,0",83$ 31,020 $72 1,41,!28

122!240.1$ 11!227$.4! 24$71.8" 2402188.!

C A %

&tem 'roup Eau e Perfume (air Oil 4,200 "$434.71 A

#al)um Po*+er Eau e #oilette Total SILENT VELLY

1,1$,088

!$288".2

120288

$!"323."1

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 1224 !"88$.38 1,224 !"88$.38 A

Fovember 3//H
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA &tem 'roup Eau e Perfume (air Oil #al)um Po*+er 800 1,200 !$,"7$ 1"78".28 2!847."1 2$1!44.28 A % C $!,!20 40,324 4,7!2 1,10,!"$ 7!"4!0.!3 1!0"870.84 1"172!.!$ 24$104$."3 C A % CONSUMPTION 2o3-2008-Quantity VALUES IN RS 2o3-2008-Amount GRADING

Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total !8"7$ 307181.47

Wecember 3//H
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA &tem 'roup Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total 13"2"$ 7"0$04.41 "$0 2,8!$ 1,3!,480 22"!0.1$ 7!!11.28 $"2142."7 % A C 1,44,2$4 2",!84 $,$72 1,80,!20 1843142.24 12312$$.38 23$237.42 3310$4$.04 C A % CONSUMPTION e)-2008-Quantity VALUES IN RS e)-2008-Amt GRADING

SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 3$0 1702!.11 3$0 1702!.11 A

Panuary 3//H
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA &tem 'roup Eau e Perfume (air Oil "$0 1,800 2210!.37 42702.4$ % A 1,01,37$ 22,288 !,"04 1,2",!$8 111!78".03 8$!4"8.7$ 224110."" 220!3"8.78 C A % CONSUMPTION 0an200"-Quantity VALUES IN RS 0an-200"-Amount GRADING

#al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total

1,12,$!$ 72 11!488

!3"000.02 !!30.!4 $0"338.3"

C %

144

$43".27

144

$43".27

5eb 3//U
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA &tem 'roup Eau e Perfume (air Oil 2,400 4"233.18 A $0,408 2!,17$ 2,0$4 87,$48 727184.84 100380$.8 12117!.3" 18!21$7.03 C % A CONSUMPTION 4e5-200"-Quantity VALUES IN RS 4e5-200"-Amount GRADING

#al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total

74,"28 72 77400

$73110.8 !!30.!4 727874.!2

C %

240

1422".32

432

1"317.8

$72

33!47.12

March 3//U
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA &tem 'roup Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY 24432 32"21!.!4 4,320 20,112 "!732."" 233482.!! A C 84,$24 1",708 480 1,04,812 "!!170.08 71"7$0.18 27802."$ 1702733.22 C A % CONSUMPTION /ar-200"-Quantity VALUES IN RS /ar-200"-Amount GRADING

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total "$ 48 480 $748.$7 3$$".$$ 2$!32.03 A A 21$ "204.2$ C 120 $"0".44 %

5inancial year 3//U)3/2/ April 3//U

BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA Item Group Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY 123048 8"8730.3" 480 3,$00 1,18,"$8 10$42.24 "$400.8 7"1$87.3! C % A 2,02,""2 !!,41$ 11,328 2,$",73$ 238812$.24 24!1!02.23 38!100.27 !224728.74 C A % CONSUMPTION Apr-200"-Quantity VALUES IN RS Apr-200"-Amt GRADING

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 1"2 288 3240 134"7.$ 20$44.2" 1!3182."4 A % 2,$$4 113!13.37 C "$ !!27.$8 %

May 3//U
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA Item Group Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY 80208 $1030".0" "$0 7,$20 71,$28 21283.2 1704!3.77 418!72.12 C % A 1,47,312 3",480 1,!3$ 1,88,328 187$017." 1!11140.04 4"8!4.72 3437012.$$ A % C CONSUMPTION /ay 6200"7 - Quantity VALUES IN RS /ay-200"-Amount GRADING

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total

Pune 3//U
BRAND NAME AHSAN Perfume Oils Eau e Parfum Eau e #oilette Total TARA Item Group Eau e Parfum (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY 7"200 $$1!"$."8 8,880 70,320 143!01.2 !180"!.78 A C 1,28,"28 $,4!$ 1,488 1,3$,872 133830".12 2$"$41.$8 !3310.24 1$$12$1.04 C A % CONSUMPTION 0une-200"-Qnty VALUES IN RS 0une200"-Amt GRADING

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 1"44 82812.7 1,"44 82812.7 A

Puly 3//U
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA Item Group Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY 1,8!,8"2 1$"3013.7! 4,800 ","72 1,71,120 107232 21!0$7."$ 1370713.7" A % C 3,44,772 3",81$ !,37$ 3,8","$4 4730478."$ 1$2"4!7.42 1"7208.48 $!!7144.8$ C A % CONSUMPTION 0uly-200"-Qnty VALUES IN RS 0uly-200"-Amt GRADING

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total "$ 144 177$ $803.!2 10444.32 847!$ % A 1,440 $1"48.8 C "$ !!!".3$ %

August 3//U
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA Item Group Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total 88,284 87$288.$3 1,"20 3,300 83,0$4 428"2.8 82202."2 7!11"2."1 % A C 3,08,381 4$,008 8,3!2 3,$2,741 3$7!$31.1! 1"2401".!2 280743.3$ !8803"4.03 C A % CONSUMPTION Au1-200"-Qnty VALUES IN RS Au1-200"-Amt GRADING

SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 3480 1!4!27.3$ "$ $803.!2 A 3,240 13"384.8 C 144 833".04 %

6eptember 3//U

BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA Item Group Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette

CONSUMPTION ,ept-200"-Qnty

VALUES IN RS ,ept-200"-Amt

GRADING

1,81,!12 38,0$4 !,424 2,2!,000

22!77!0.08 1300!00.!7 1804$7.!2 3738718.17

C A %

"48 !7,$00

2"043.!1 321"!8.!8

A C

Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total

!8!48

3!1002.0"

3,$72

1!7"$".44

3$72

1!7"$".44

+ctober3//U

BRAND NAME AHSAN Perfume Oils Eau e Parfum Eau e #oilette Total TARA Item Group Eau e Parfum (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup

CONSUMPTION O)t-200"-Qnty

VALUES IN RS O)t-200"-Amt

GRADING

1,74,!88 !2,320 $,1"2 2,33,100

20$4442.37 1842301.8! 1843"7.7$ 40"1141."8

C A %

3,888 1,0",200 288 11337$

"$082.!$ $223!1.11 2120!.44 73"$3".11

% C A

(air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total

240 1"2

138"8.4 1270$.!$

C A

432

2$$04."$

Fovember 3//U
BRAND NAME AHSAN Perfume Oils Eau e Parfum Eau e #oilette Total TARA Item Group Eau e Parfum (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil 313$4 370020.33 !00 1,$80 2",184 131$0 4!"01.!4 310"!8.7" % A C 1,1!,104 2$,4"$ 1,872 1,43,472 13"4237.3" 114712".2 !!748.1$ 2!"7114.7! C A % CONSUMPTION 2o3-200"-Qnty VALUES IN RS 2o3-200"-Amt GRADING

,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 1"2 144 840 13$07.04 43$8."$ 3$281.28 A C 3$0 144 12110.4 $1"4.88 C %

Wecember 3//U
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA Item Group Eau e Perfume (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY 28,224 $$3177.!! !,040 !,184 18,000 2348$4 147$"".0! 280$14.! A % C 1,72,0$4 !!,$$0 $,8$4 2,34,!88 1"07!"1.01 210$838.02 2373$".$ 42!17"8.$3 C A % CONSUMPTION e)-200"-Qnty VALUES IN RS e)-200"-Amt GRADING

&tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas(air Cream ,-ampoo .otions Total 2!"2 111442.03 2,!"2 111442.03 A

Panuary 3/2/
BRAND NAME AHSAN Perfume Oils Eau e Perfume Eau e #oilette Total TARA Item Group Eau e Parfum (air Oil #al)um Po*+er Eau e #oilette Total SILENT VELLY &tem 'roup (air Oil ,-o*er 'el (air 'el %o+y ,plas1,"44 83$71.21 A 8",400 118!!17.2$ $,240 4,!$0 78,$00 2"0784 107$"7.73 78703!.!3 A % C 1,08,288 27,044 3,!!2 1,38,884 10$3!24."$ 10!!0"3.44 11!244.1$ 22338$2.!$ C A % CONSUMPTION 0an-2010-Qnty VALUES IN RS 0an-2010-Amt GRADING

(air Cream ,-ampoo .otions Total 2,1$0 4104 $8$73.41 1!2344.$2 C

FINDINGS

<ompany is maintaining zero safety stoc! it cause production loss. The inventory turnover is in decreasing order in 3//H)/U it is =, but in 3//U)3/2/ it is 3.@. &y A&< Analysis e can say that there is a little difference bet een A & X < class items so every product is important for company. There is positive correlation bet een sales to inventory. The percentage of ra 3/2/. The percentage of finished goods, semi finished good, pac!aging material from total inventory is =@0 ,D0,=G0 in 3//U but in 3/2/ @/0, @0, =@0. <ompany$s aim to achieve more sale it may require huge amount of inventory in future. <ompany is concentrating on domestic mar!et and first time they achieve the target of 2/ crore, that is good sign of establishment of domestic mar!et. *conomic order quantity '*+,( in year 3//U is 2/U.D3. units *+, for year 3/2/ is =3/.G. units, it sho s that company can place more orders at one time. There is good relationship bet een company and their distributors, vendors and sales executives. material from total inventory is 3=.U@0 in 3//U and 2U.G=0 at

SUGGESTIONS

There can be a system

here in periodical revie

't ice in a month( of inventory could

be carried out so that the inventory can be !ept under control. There should be periodical revie of movement of items so that any non moving items can be identified and suitable action can be done. At present the company is maintaining zero safety stoc! for all items, if the safety stoc! is maintained for important items, delay in production can be eliminated and orders can be supplied in time hich ill result in a better credibility in both international and domestic mar!et. #t has been predicted that if company is planning to achieve more sale it may require huge amount of inventory in future. 6o the company has to arrange capital to meet future requirement. #t is suggested that they can have close monitoring of receipts and issue for A class items in order to have control of inventory. To increase the inventory turnover ratio by increasing the sales level and maintaining the required level of inventory. To maintain the 4e)order level, Min)stoc! level and *conomic order quantity company should consider the demand of the product. There should be proper communication bet een purchase and production department. There is no communication from dispatch section to store department, about quantity asted. 5eedbac! about the quantity asted ill help the store department to forecast future requirements and to focus on minimum possible aste.

#mprove the minimum value of product < up to D0)H0 in total sale value by increasing mar!et level of these products. #t helps to get min return on investment in these products as soon as possible.

There is one arehouse for !eeping the finished good and pac!aging material and pac!aging material are not arranged in good manner so it should be in order ise.

CONCLUSION

#nventory control is exercise hen you order an item. #f you do a poor "ob then everything after is inventory correction L+4W+F L4A%AM

#nventory is the physical asset of a company that can create problem if there is shortage, hile in production and also if it$s in excess even after production. #nventory is constantly changing as quantities are sold and replenished. %ence it can be understood that efficient inventory management can ta!e the company to ne heights and inefficient inventory management can ruin the company. <ompany is highly concentrated on domestic mar!et, it increase the mar!et level of company because trend of domestic mar!et is changing. The study on #nventory management in 65- 6ons '#ndia( -vt. 8td about A &< analysis for items is predicting future inventory requirements etc. 5rom the study it is predicted that future sales have to be achieved and inventory level have to be maintained. A&< Analysis as carried out to identify the fast moving and important items. The company has to periodically revie the inventory to avoid production loss. The results of the study can be further extended for future research.

"I"LIOGRAPHY

 5inancial Management) Theory And -ractice) -rasanna <handra Management Accounting) 4.;. 6harma and 6ashi. ;. Lupta 5inancial Management Z #. M. -andey Finths *dition 5inancial Management Z6.<.;uchhal MAT*4#A8 MAFAL*M*FT &++; Z &E 4AP*FW4A M#6%4A +-*4AT#+F AFW -4+W:<T#+F -8AFF#FL &++; 8+L#6T#<6 MAFAL*M*FT Z &E ;. 6%4#W%A4A &%AT MAT*4#A8 MAFAL*M*FT Z &E 6. W. A-%A8* -4+W:<T#+F AFW MAT*4#A8 MAFAL*M*FT) -. 6A4YAFAY*8 ,6. 6:MAT%#
WWW$INVENTORY $COM WWW$INVESTOPEDIA$COM WWW$WISEGEEK$COM

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Different Brands Manufactured by SFP :

-our %omme -our 5emme Magic Fight "o/! Mi+t <lean *ffect #n <ontrol -odium :rban <olours 6tressed +ut 7a!e :p 5resh :p Wazzling Futritious

C e&0+ Antidandruff <oconut %erbal Wazzling

H&i Ge-+ *xtra %old Mega %old 4egular %old 6tyling 7et 8oo!

S5o6e Ge-+ Aleo Yera 8emon 4ose %erbal

Lotion *nergizing 4ose 5irming +live 4elaxing Aloe Yera 4evitalizing Almond 6limming Multi Yitamin Toning Mus! Almond 4ose <leansing 8otion

S5&0%oo+ Aloe Yera Anti Wandruff %erbal 8emon

H&i Oi-+ Pasmine

 Amla %erbal <oconut

:=0- S% &! &lossom <ool &lossom 8ove &lossom Fature &lossom -leasure &lossom 4omance

;=0- S% &!

Lolden Magnet -leasures for Men -leasures for 7omen 4omantic for Men 4omantic for 7omen 6andal 7hite 5lo er @=0- S% &! Ahsan for Men <harm 2.

+nly Ahsan -earl for 7omen 3= 0- S% &! Fe Man Fe 7omen Attraction 5reedom A"ooba -erpetuity 5resh