Introduction

The definition of the best retail inventory method is at watershed moment in the history of global logistics. Where once a fairly simple model existed of locally or domestically sourced products came to market, or the more recent model of purchasing massive quantities through low-cost country sourcing, a new retail inventory method is emerging. In a recent analysis by the Aberdeen Group, a clear model emerged among a group defined as "Best-in-Class" The retail inventory model that stands out ahead of the rest is Cross Channel Supply Chain Execution. In plain English, Cross Channel Supply Chain Execution is leveraging the supply chain not just at the supplier and customer ends of the chain, but to also use multiple distribution centers, lateral stores, and multiple source buying to increase in-stocks, improve profit margins, and reduce logistic support overhead. This is achieved through an efficient application of automation, cost to serve initiatives, improvements in direct to customer distribution, and leveraging of vendor relations in both the supply chain and in synergistic relationships with third party logistics services (3PL) and logistics service providers (LSP).

Objectives of the study.

Primary objectives: 1. The analysis on Retail Inventory Management in Afra Mobiles.

2. To know the effectiveness of inventory management from customers view.

Secondary objectives:
 To analyze the inventory position of the organization.  To identify the inventory requirements and replenishment techniques  To ascertain optimum Levels of inventory  To ensure proper inventory control.  To analyse the period of inventory holding.  To estimate the level of inventory.  To suggest to improvement of inventory management.

Need For The Study

Inventory Management:
Inventory management is primarily about specifying the size and placement of stocked goods. Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods. The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. Inventory management involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. Systems and processes that identify inventory requirements, set targets, provide replenishment techniques and report actual and projected inventory status. Handles all functions related to the tracking and management of material. This would include the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. Also may include ABC analysis, lot tracking, cycle counting support etc.

Management

of

the

inventories,

with

the

primary

objective

of

determining/controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs.

Using insight-driven inventory management, retailers can move away from the reactive process of the past and drive to more proactive inventory management. The benefits of this forward-looking approach can be impressive and result in substantial savings in Cost of Goods Sold and a marked increase in Gross Margin Return on Inventory.Top 5 benefits of Insight-Driven Inventory Management include: Improve Customer Service and Loyalty, Reduce StockOuts and Overstocks Lower Inventory Carrying Costs, Synchronize Supply and Demand Streamline Inventory Planning

With improved visibility into supply and demand, retailers can make critical decisions about where to reduce inventory and still maintain the highest level of customer service. Integrated Inventory Planning provides the forward-looking data and intelligence that allow retailers to be proactive about the future instead of being reactive based on the past.

Industry profile
The Indian mobile phone industry is growing at a furious pace and proved itself as the fastest growing telecommunication industry in the world. The growth in the manufacturing of mobile handsets and sales of new and used mobiles too has been reached an all time high in the last decade. The mobile phone India industry with 740.10 Million telephone subscribers and 706.69 Million cell phone connections is not only the second largest telecommunication network in the world after China but also has generated employment opportunities for about 10 million people. From the last few years, the next generation networks include IP technology, fiber optics, wi-fi and 3G are also growing leap and bounce by the prominent service providers in the Indian telecom market like Reliance Communications, Bharti Airtel, MTNL, Idea Cellular, Aircel Ltd, Tata Indicom , BSNL, Hutchison Essar and VSNL .

Thanks to low per-minute charges and mobile prices, most Indian consumers pay less than $12 per month for voice, music and video services. Furthermore, the implementation of the Mobile Number Portability by Telecom Regulatory Authority of India (TRAI) has also escalated the growth of its mobile phone industry.

So, keep in touch with the latest news about the Indian cellular market through a trustworthy online mobile store Mobilexchange.in.

The Communication Industry in India is one of the rapidly emerging sectors in India and is estimated to surface as the second biggest international telecom market. As per the report carried out by Telecom Regulatory Authority of India (TRAI), Indian communication industry has registered a 3.5% increase in its total telecom subscribers in December 2009. The sector touched 562.21 million in its total number of subscribers within a month, against 543.20 million in November 2009.

The growth in communication industry was triggered by an increase in the revenues generated from both landline and mobile facilities. On December 31, 2009 the sector earned the revenue of USD 8.56 billion. As per the Business Monitor International report, the nation is all set to include 8 to 10 million cellular phone subscribers on monthly basis. At this pace the communication industry is expected to encompass more than half of India's population i.e. 612 million cellular phone subscribers by mid2012. In addition, as per a research carried out by Nokia, the communications sector is estimated to surface as the biggest driving component in India's GDP with a contribution of about 15.4% by the FY2014. India as an emerging Value Added Services Market As per a research conducted by Stanford University, Indian mobile value-added services (MVAS) are expected to reach USD 2.74 bn by the FY2010. To benefit from the emerging MVAS market in India, Reliance Communications and Bharti Airtel Limited are all set to introduce online cellular phone applications in Indian retail stores. While Bharti Airtel will offer around 1,250 applications, Reliance Communications' applications will soon be accessible to its GSM customers by Feb 2010. India as an emerging telecom equipment manufacturing Market The manufacturing of Cellular phone in India is predicted to expand at an annual rate of 28.3% till the FY 2011 which can be translated as a production of 107 million mobile handsets by 2010. The production would automatically generate profits and is predicted to increase at an annual rate of 26.6% till 2011, reaching the target of USD13.7 billion.

Chief Investments in the Communication Industry in India Over the past one decade, the flourishing Indian Communication industry has been successful in drawing the attention of conglomerates that have invested and are willing to invest more in the sector. With the influx of new telecom giants in Indian market, the investments are likely to gain immense momentum:

Investment of USD 6 bn by Vodafone Essar for the next 3 fiscal years in order to expand its list of cellular phone subscribers to 100 million against the existing 40 million.

By 2010, Reliance Communications (RCom) is expecting to increase the total number of telecom towers by constructing 56,596 telecom towers and attaining the preset target of 100,000.

Telenor, Norway based telecom giant has purchased 7% of shares in Unitech Wireless and now possesses 67.25% by bringing in an investment of USD 431.70 million

Indian government owned telecom player, BSNL will invest USD1.17 billion in its WiMax scheme

A proposal of foreign direct investment worth USD 660.1 million by Federal Agency for State Property Management of the Russian Federation has been recently approved by the Indian government. The Agency would be acquiring 20% stake in Sistema-Shyam after bringing in the investment.

A USD 1 billion investment will be brought in by Tata Teleservices in its newly introduced GSM facility Tata DoCoMo. Future of Communication Industry in India Indian Communication Industry has a flourishing future in its value-added services market. The pre-set target of the 11th plan from FY 2007 - 12 is to provide 600 million cellular phone connectivity aided by an investment of USD 74 billion.

Moreover, it is estimated that by the FY 2012 the profits generated by Indian Communication Industry will touch USD 55 billion against the current USD 31 billion.

Mobile India Future of the mobile industry in India

As per the latest reports, number of mobile subscribers in India has crossed the 250 million mark. By April 2008, India is projected to become the second largest wireless market in the world. But there are a number of challenges for 3G to be successful in India:


Clear revenue sharing guidelines between operator and content producers. Currently, operators get a 60% chunk of the revenue, while the content owners get about 25% and 15% goes to the copyright owner. This breakup seems to unfairly skewed in favor of the operators. Seems like some progress is already happening on this front.

High percentage of prepaid customers. About 90% of all GSM & CDMA subscribers in India are prepaid customers. Prepaid customers are low usage customers and contribute only 25-30% ARPUs as compared to the post-paid segment (for GSM, post-paid customers contributed Rs 628 in AFRAH while pre-paid customers contributed only Rs 219. for CDMA, post-paid customers contributed Rs 499 in AFRAH while pre-paid customers contributed only Rs. 140). As mentioned earlier, the introduction of number portability will further worsen the attrition scenario, since itll make easy for users to change operators and keep their same number. Operators will have to devise means and offer plans to retain subscribers and also convert some of the pre-paid customers to post-paid ones.

More choices for affordable, 3G capable handsets. While there exists a subset of subscribers who would pay more for a premium phone, affordability would be an issue for quite large section of the subscriber base. Currently, only 5% of all handsets in India are 3G capable.

Copyright and piracy issues need to be addressed. The proposed amendments to the Indian IT Act, will most likely take care of this point.

Getting users out of the vice like grip of SMS will be a challenging task Inspite of all the hurdles, the challenges seem puny as compared to the benefits that India stands to gain from the 3G deployment. Rollout of 3G will give the much needed bandwidth that all stakeholders are hoping for. Without 3G (read high speed network), the cliched term Mobile will be the Internet platform in India will never become a reality.

Operators like Bharti Airtel seem to be raring to go theyve successfully tested 3G services in Delhi, Mumbai Chennai and Bangalore and are waiting for the spectrum to be allocated. Mobile users, of course, can hardly wait for 3G to go live in India. Landscape of the Telecom market In the early days the Indian Mobile Retailing industry was highly fragmented with no organized retail players. Mobile handsets were expensive (an average price of USD 500 per handset), with the grey market players dominating the market. There were no branded showrooms to showcase an entire range of products.

The Afrah Mobiles Workforce

The ability to attract, develop and retain a spirited, motivated and committed workforce is one of the key reasons for Afrah Mobiles's success. In keeping with the mobile generation, the average age of a Afrah Mobiles employee is 24, evenly distributed between girls and boys. From a team of five it has now grown to an organization with over 450 employees

The Afrah Mobiles Customers

There are 20000 people buying Afrah Mobiles handsets every month. This is the

highest of any retailer in India. One out of every three handsets sold in the market is from Afrah Mobiles. Its current customer base stands at 10 million. This includes numerous celebrities and other high profile customers as well as many of the top corporate organizations in the country.

The Afrah Mobiles Differentiators

Afrah Mobiles having the first mover advantage has pioneered its way through the mobile industry. y y y y y y Exchange offers Easy Installments-0% interest, quick loan approvals Knowledgeable staff-groomed in customer service and soft skills Best After Sales Service One stop shop for mobile needs Door step delivery

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Company Profile

Afrah Mobile
Industry Headquarters Telecommunications Chennai, India

Key people

AL-FAIZAL , CEO & Director

Products

Mobile

and

Home

telephone

equipment and services Employees >450

The, Afrah Mobile India's first countrywide chain of telecom retail outlets and largest mobile retailer.The Afrah Mobile set to introduce a pan-Indian network of retail telecom outlets. The, Afrah Mobile provides multi brand handsets, accessories, connections, repairs, VAS etc. The, Afrah Mobile currently has more than 13 outlets and the vision is to have a network of 120 stores by 2013 across several cities, thus covering virtually every major town in every state across India.] The Afrah Mobile outlets are in three formats: Large - 1000-1500 square feet,

Medium- 800-1000 square feet and Corner-150-200 square feet, with smaller formats located primarily in large malls.

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The Afrah Mobile offers handset purchase to the choice of service operator and miscellaneous services like monthly bill collections etc., the stores also offer connections (pre paid and post paid), accessories and VAS including ring tones, wallpapers and gaming and after sales service. The Afrah Mobile has categorized its mobile device offerings into consumer segments keeping in mind the profiles and needs of different consumers. The segments available in The MobileStore are: Business - PDA & Smartphones, Emails, data transfer etc., Lifestyle Fashion phones, Look and elegance, Fun - Multimedia & music, camera, games, wacky ring tones and wallpapers, Value for Money - Special offers, discounts and budget phones. The Afrah Mobile has also tied up with operators including Airtel, Vodafone, BPL, Idea, MTNL/BSNL and Reliance, Tata Indicom. Afrah Mobile is the largest and the leading, authorized retailer for international brands such as Nokia, Sony Ericsson, Samsung, LG, Lava,G-Five, Micromax, blackberry . Afrah Mobile specializes in wireless communication products and boasts close to 70 outlets in prime retail locations across the south. Afrah Mobile name is a stamp of quality and originality, and a guarantee for service, utmost satisfaction provided by highly trained professionals.

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REVIEW OF LITERATURE

Conceptual Review

Definition of Inventory:
Inventory -- Any list of articles or goods. The law requires that an inventory shall be attached to certain special documents, and in other cases an inventory is found advantageous for reference or comparison. Thus, an inventory is always attached to a bill of sale, a hire-purchase agreement, a marriage settlement, etc. When a distress (q.v.) is levied, an inventory must always be made of the goods and chattels which are seized. Again, an executor or an administrator must always make a "complete list or inventory of all the goods, chattels, wares, and merchandise of the deceased person whose estate is entrusted to his care for administration. And lastly, when a furnished house is let, it is the invariable practice for the parties to draw up an inventory in duplicate, so that a settlement may be arrived at when the tenancy terminates

Definition of Inventory management:

Policies, procedures, and techniques employed in maintaining the optimum number or amount of each inventory item. The objective of inventory management is to provide uninterrupted production, sales, and/or customer-service levels at the minimum cost. Since, for many firms, inventory is the largest item in the current assets category, inventory problems can and do contribute to losses or even business failures. Also called inventory control. See also inventory analysis.

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Definition of Retail inventory method:

Ending-inventory value estimation method based on the relationship between cost and retail price. It entails these steps: (1) maintaining detailed record of all purchases and onhand goods at both cost price and retail price, (2) computing a cost-to-retail percentage (Formula: Cost price x 100 Retail price), (3) estimating ending-inventory at retail prices by subtracting the retail price of goods sold from the retail price of goods in inventory, and (4) converting the estimated inventory at retail price to cost price by applying the cost-to-retail percentage computed in step #2. Also called retail inventory estimation method.

Definition of Inventory Turnover Ratio (ITR)

Stock turn over ratio and inventory turn over ratio are the same. This ratio is a relationship between the cost of goods sold during a particular period of time and the cost of average inventory during a particular period. It is expressed in number of times. Stock turn over ratio / Inventory turn over ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory. This ratio indicates whether investment in stock is within proper limit or not.

Components of the Ratio:

Average inventory and cost of goods sold are the two elements of this ratio. Average inventory is calculated by adding the stock in the beginning and at the and of the period and dividing it by two. In case of monthly balances of stock, all the monthly balances are added and the total is divided by the number of months for which the average is calculated.

Definition of Inventory cost:

Cost of holding goods in stock. Expressed usually as apercentage of the inventory value, it includes capital,warehousing, depreciation, insurance, taxation,obsolescence, and shrinkage costs.

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Inventory Management Techniques

Inventory management techniques are used by enterprises to strike an effective balance between inputs and outputs of a given process of production or trade. The following article covers some effective steps and techniques that can be used by people to properly manage their inventories. What are inventory management techniques is a question that is quite commonly asked by businessmen. Inventory is often the largest priced asset of the business after the fixed assets. The inventory of a business is often defined to be a list of all items that are present in the stock of raw materials. Keeping the inventory also means keeping a tab on the realizable value, market value the book value of all the stocks. Often inventory control methods are mistaken with inventory management methods, due to the almost synonymous meaning of the terms.

The two terms are however different and inventory control methods are practical models that help the organization to curb over consumption of a particular item of the inventory. Inventory control also involves the measurement of time element that is required to consume a given volume of raw materials. The inventory management formulas are basically used for the following purposes:
y y y

Allotment of resources at the right time Minimization of re-order time and cost Maintaining a constant inflow of raw materials The end result is that the combination of inventory management models and

inventory control techniques is a smooth inflow of raw materials at a relatively cheap cost and at a perfect timing.

Modern inventory management techniques are basically formulas and models that are established by firms on the basis of the need of the raw material and availability of the raw material. The following are some insights

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Types of Inventory Management Techniques

The basic equation that is used for the ordering and re-ordering of goods by all firms is economic order quantity. The formula of EOQ, goes as follows.

Where, Annual requirement (AR) Cost per order (CO) Cost per unit (CU) Carrying cost % of CU (CC) Carrying cost Per unit

The answer of the formula is precise level of fall in the stock that indicates a reorder. It basically means that if your inventory has 1000 unites, and your EOQ, is say 250, then the moment this stock reaches 250, you should be placing an order for a new stock. Such an order will ensure that the stock arrives on time and the stock is also cheap. The given formula is quite complex and there are a considerable number of modifications that can be included. Though the economic order and reorder quantity formula is just the basic formula, there are several constraints and problems due to which this model has to modified. The following are some inventory management techniques that are based upon the EOQ, but have some or the other modification as per necessity:
y

Fixed Order Quantity Model: The fixed order quantity model is used when the supplier of a raw material is done only in specified denominations such as 10 meters of cloth, 10 kg of stainless steel, etc. In such a situation, the carrying costs, cost per order or even carrying cost per unit are constant. The annual requirement is, however, uniform and has to be set according to the supply denominations.

Fixed Order Interval Model: The fixed order interval models are used when the supply has to be uniform at uniform intervals, such as 10 meters cloth per week. Here all the costs and annual requirements are uniform, with an occasional rise or fall in ordering costs.
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Single Period Models: Single period models are used in cases where the inventory items are of perishable nature. Here all time elements of the EOQ are uniform and unchangeable.

To know more about inventory management techniques and cost control methods, you may read on:
y y y y

Cost Control Methods Cost Control Management Cost Control Techniques Cost Control Strategies

Retail Inventory Analysis

In business, individuals conduct various analyses to learn about an industry or measure a company's performance. Analysis procedures may also focus on a particular part of a business or industry, such as inventory. Retail inventory analysis is essential for companies that rely on selling through inventory to generate profits.

Retail inventory analysis can focus on a few different factors. For example, inventory is broken out in two groups: hard and soft. Hard inventory describes goods like appliances or furniture, while soft goods include clothing and other apparel. Stores selling inventory items include branded boutiques, discount retailers or department stores with a variety of goods or services.

Business owners and managers review their retail inventory to determine their turnover ratios, which results in an indicator to determine how many times the company sold through their products. Selling through inventory more times typically results in higher profit and less inventory write-off at year-end.

Companies can use retail inventory analysis techniques to measure how well their competitors are selling inventory. This information can help business owners and managers set business strategies relating to inventory and other business operations.
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Limitation of Inventory Management.

In a business environment where even small businesses have products that ship all over the world, inventory control and management have grown in popularity. These services provide a supply chain that keeps tabs on products through every stage of development, and allows management to get real-time estimates of their available stock throughout the day. Even with all this power, there are several disadvantages to inventory control worth considering. While inventory control allows employees at every level of the company to read and manipulate company stock and product inventory, the infrastructure required to build such a system adds a layer of bureaucracy to the process. In cases where inventory control is in house, this includes a number of new hires that are now present to regulate the warehouses and facilitate transactions. In cases where inventory is controlled by a third party (e.g., InMan or SAP), the cost is a subscription price and dependence on a separate company to manage your infrastructure. Either way, this means a larger overhead and more layers of management between the owner and the customer. From the customer's standpoint, this means a problem that requires senior management to handle will take longer to solve. Another disadvantage of inventory control is a lack of personal touch. Large supply chain management systems make products more accessible across the globe, and most provide customer service support in case of difficulty, but the increase in infrastructure can often mean a decrease in the personal touch that helps a company stand out above the rest. For example, the sales manager of a small manufacturing company that sells plumbing supplies to local plumbers can throw in an extra box of washers or elbows at no charge to the customer without raising any alarms. This is done for the sake of customer relations, and often makes the customer feel like he is unique. While free materials can also be supplied under inventory control, processing time and paperwork make obtaining the material feel more like a chore for the customer, or even an entitlement.

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Inventory Control Techniques

By Daryn Edelman, eHow Contributor There are several techniques a person can use to increase profitability and streamline workflow via proper inventory control. Through research, competitive analysis and experience, an effective business leader can balance costs versus benefits to storing and ordering the necessary supplies to ensure business vitality. The supply chain is made of all materials that help you to produce, market and supply your product. Inventory control means that you have identified every facet of your supply chain and its logistics. If you deal in perishable items, FIFO (first in, first out) is an important concept to understand and maintain throughout the supply chain. If a grocery store did not rotate their stock, new stock coming in would get taken immediately and older stock would expire, causing great loss. Stock must be arranged by date received. For a great deal of stock that needs constant management, consider bar codes or RFID (radio frequency identification) where hand-held readers can immediately tell you where valuable merchandise is. Many IT inventory programs on the market provide a wealth of features including tie-ins to USPS, Fed-Ex and/or UPS to track merchandise and provide real-time logistics. A business owner must balance space available for extra stock versus speed of product turnover, fees for storage, cost in bulk versus regular ordering, and whether clients/end users would be willing to wait. Defining minimum stock level will allow you to set up regular inspections and reordering of supplies. Taking into account emergencies and vendors taking longer than average to replenish stock. This will aid you in arriving at JIT (just in time) ordering, where stock is held for a minimum amount of time before moving on to the next stage in the supply chain.

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Stock security is a necessary cost. Many experts recommend separating staff that is responsible for stock management from staff that has financial responsibility. Many times, shoplifting and thievery is committed by employees rather than a stranger. Security guards, cameras, bar codes and security devices are used by most businesses since the cost of security is minimal compared to the millions of dollars that U.S. businesses lose each year to stolen goods. Training staff in identifying potential security issues and having a clear method of reporting violations is important in reducing crime. Often, shoplifters and thieves use standard techniques to distract employees and take stock.

Having a great deal of stock on hand has both positive and negative consequences. Having an immediate supply means that end users get their product that much sooner. Speed and immediate gratification for a client can make the difference not only in a sale, but recommendations, repeat business and client loyalty. In the modern business environment where every business is a global business, an emergency or unforeseen circumstance anywhere in the world can render competition without resources you have on hand. Of course, one must take into account using capital in bulk buys, management and insurance costs as well as goods perishing or becoming obsolete.

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Applied Review
 Abstracts
New Era for retail inventory financing Article Abstract: Inventory financing, also called wholesale financing or floorplan financing, has been in existence since the advent of the manufactured home industry. This type of financing offers funds to retailers to pay for the houses displayed on their sales facilities. Lender-retailer relationships, competition and risks are just some factors present when inventory financing is carried out. In 1996, over 360,000 new manufactured homes were sold by retailers, posting about $10 billion in wholesale value. Author: Wantuck, T. Otto Publisher: RLD Group, Inc. Publication Name: Manufactured Home MERCHANDISER Subject: Construction and materials industries ISSN: 1047-2967 Year: 1997 Mobile home dealers, Manufactured (Mobile) Home Dealers, Usage, Finance, Inventory loans

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 Abstract:
AbstractPurchase dependency refers to the dependency of purchase or non-purchase of one item or itemset on the purchase or non-purchase of another item or itemset. The research in this paper models for incorporating purchase dependencies in retail multi-item inventory management. One illustrative example has been discussed with data mining in retail sale data. Various types of purchase dependencies including negative dependency have been identified and discussed. These purchase dependencies are relevant for inventory management in retail stores. The model with an illustration in this research paper will be motivational to researchers and inventory managers for incorporating purchase dependencies while managing inventory.

 Abstract:

Professor Ton's research focuses on the last link in many supply chains, the retail store. She examines how store operations should be designed and managed to ensure that both in-store logistics activities and customer service activities are performed well. Currently, she is studying store operations at multiple retailers to build a contingent model for store operations that identifies the contextual factors that drive the differences in the best approach for designing and managing store operations. She is also studying operating decisions related to workforce management that will improve store performance and employee motivation. Her work is at the intersection of operations management and human resource mananagement literatures.

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Research Methodology

Meaning of Research:
Research can be defined as the search for knowledge or any systematic investigation to establish facts. The primary for applied research (as opposed to basic research) is discovering, interpreting and the development of methods and use the scientific method, but need not do so. system for the advancement of human

knowledge on a wide variety of scientific matters of our world and the universe. Research can

Problem Identification:
Evaluation of effectiveness of Retail Inventory Management in Afrah Mobiles.

Research Design:
Descriptive research design is adopted for primary data and analytical research design is adopted for secondary data.

Data Collection Method:

Primary Data:
Primary data is the first hand information collected during the course of the research. Primary are collected through discerssion held with staff in the finance department and through the personal interview.

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Secondary Data:
The study is mainly based on the secondary data which is Historic in nature, financial data are collected from the monthly inventory report of the company.

Pilot Survey:
A preliminary piece of research conducted before a complete survey to test the effectiveness of the research methodology. This should be completed before the final survey commences. The intention is to data survey to any difficulties that were not anticipated at the survey proposal stage.

SAMPLING: Sampling Size:

The sample size used for the study is 60

Sampling Method:
The sampling method uses in the study is convenience, sampling method.

Convenience sampling is a non-probability sampling technique where the respondents are selected because of their convenient accessibility and proximity to the research.

Research Instruments :
The research instruments used in the study is Questionnaire method. A questionnaire is a quick and efficient way to obtain information from a large number of customers who are visiting the outlet.

Period of study:
The study analysis the Retail Inventory Managements of Afrah Mobiles covers the financial year from 2010-2011 consequently.

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Analytical Tool For Secondary Data

Formula of Stock Turnover/Inventory Turnover Ratio:

The ratio is calculated by dividing the cost of goods sold by the amount of average stock at cost. (a) [Inventory Turnover Ratio = Cost of goods sold / Average inventory at cost] Generally, the cost of goods sold may not be known from the published financial statements. In such circumstances, the inventory turnover ratio may be calculated by dividing net sales by average inventory at cost. If average inventory at cost is not known then inventory at selling price may be taken as the denominator and where the opening inventory is also not known the closing inventory figure may be taken as the average inventory (b) [Inventory Turnover Ratio = Net Sales / Average Inventory at Cost] (c) [Inventory Turnover Ratio = Net Sales / Average inventory at Selling Price] (d) [Inventory Turnover Ratio = Net Sales / Inventory]

ABC Analysis of Inventory

Not all products are created equal. A relatively small percentage of products and materials get used the bulk of the time. By switching our management philosophy to recognize this distribution, we operate more efficiently. An example of this is applied to inventory control, as discussed in the following article. Inventory management, especially in small businesses, can be an extremely costly process. Using a concept known as ABC inventory, the small business can better manage their inventory and save a lot of money along the way. ABC Analysis, also known as the Pareto Principle, states that 80% of your sales are coming from 20% of your clients.
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Take a minute to comprehend that statement. By understanding this distribution, we can better manage our inventory and our customers. When talking about inventory, we can say that 20% of our inventory makes up 80% of our overall volume. While this figure may be slightly off, some internal analysis should reinforce this distribution. Measure how often your inventories turn over and you'll find that a small percentage of materials make up the bulk of your inventorying procedures. We can split up our inventory into three basic categories; A, B and C. The A materials will be the 20% that are most crucial to your process. Depending upon your business, the A materials could be less or more than 20% of your inventory. You want to manage your A materials the most closely. Your A level materials should be counted and ordered more frequently than other materials. Depending upon your particular business, this could be as frequent as once a week. The B materials typically make up about 30% to 40% of your process. These materials should be monitored every month or every other month. These materials are less crucial than the A items, but still important. The C materials are items that do not get used on a frequent basis. As a result, we do not need to check and count them regularly. We should check our C materials once or twice a year and they should not be treated the same as our A and B materials. C materials could be seasonal items or materials that are only used on a rare basis. If we spend our time counting all of our materials, we're focusing as much on less important materials as we are on critical materials. Logically, this does make sense. By switching to the ABC inventory method, we can pay closer attention to materials that need it, and spend less time on materials that do not need it. This can be extremely valuable and result in great cost savings. Consulted for a company that made seasonal decorative items. Depending upon the season, they had different products with different labels, ribbons and other packaging materials. The company did a physical count of their inventory on a monthly basis. It took two to three employees two days to count all of the packaging materials.

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In reality, only the year-round products needed to be counted on a monthly basis, while the seasonal items only had to be counted once or twice a year. By making the switch to the ABC inventory policy, the company was able to compute month-end physical inventory counts in half a day with one employee.

Retail Inventory Analysis

Accounting for inventory in a retail operation presents several challenges. Retailers with certain types of inventory may use the specific identification method to value their inventories. Such an approach makes sense when individual inventory units are significant, such as automobiles, pianos, or fur coats. However, imagine attempting to use such an approach at WalMart, True-Value Hardware, Sears, or Bloomingdaleshigh-volume retailers that have many different types of merchandise. It would be extremely difficult to determine the cost of each sale, to enter cost codes on the tickets, to change the codes to reflect declines in value of the merchandise, to allocate costs such as transportation, and so on. An alternative is to compile the inventories at retail prices. In most retail concerns, an observable pattern between cost and price exists. Retail prices can therefore be converted to cost through use of a formula. This method, called the retail inventory method, requires that a record be kept of (1) the total cost and retail value of goods purchased, (2) the total cost and retail value of the goods available for sale, and (3) the sales for the period. Here is how it works: The sales for the period are deducted from the retail value of the goods available for sale, to produce an estimated inventory (goods on hand) at retail. The ratio of cost to retail for all goods passing through a department or firm is then determined by dividing the total goods available for sale at cost by the total goods available at retail. The inventory valued at retail is converted to ending inventory at cost by applying the cost to-retail ratio. Use of the retail inventory method is very common. For example, Safeway supermarkets uses the retail inventory method, as do the department stores of Target Corp. The retail inventory method is illustrated below with assumed data for Best Buy.

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Retail Inventory Analysis .

Cost Opening stock Purchase Goods Available for sale = = = XXX XXX XXX

Retail XXX XXX XXX

Deduct Sales Ending Inventory at retail Ratio of cost at retail (489502/549400) Ending Inventory at cost

= = =

XXX XXX XXX

XXX

ANOVA
One-way analysis of variance (ANOVA) tests allow you to determine if one given factor, such as drug treatment, has a significant effect on gene expression behavior across any of the groups under study. A significant p-value resulting from a 1-way ANOVA test would indicate that a gene is differentially expressed in at least one of the groups analyzed. If there are more than two groups being analyzed, however, the 1-way ANOVA does not specifically indicate which pair of groups exhibits statistical differences. Post Hoc tests can be applied in this specific situation to determine which specific pair/pairs are differentially expressed. This document will provide the necessary information for you to perform these analyses within Gene Spring.

28

Secondary Data Analysis

Table:5.1: Inventory Turnover Ratio

Sl.No

Brands
Nokia Sony Ericsson Samsung Lava

Cost of goods sold

34337 128285 33989 24660

Average Inventory
1813*12 1207*12 1485*12 1633*12

Ratio
1.5 .95 1.9 1.2

1 2. 3. 4.

5. 6. 7.

G-Five Maxx Fly

16084 11038 29403

1330*12 125*12 522*12

1 7.3 4.6

8.

LG

17375

131*12

11

Micro Max

23435

860*12

2.2

10.

Black Berry

94408

367*12

21

29

Turnover Ratio:

Inventory Turnover Ratio: Cost of Goods Sold Average Inventory

Inference:
The above table implies that the Black Berry brand has got the highest Inventory Turnover Ratio of 21 and G-Five brand has got the turnover ratio of 1.

30

Table:5.2: Inventory Turnover Period Sl.No Brands days Inventory Turnover Ratio
1.5

Inventory Turn over Period

20

Nokia

31

2.

Sony Ericsson

31

.95

33

3.

Samsung

31 31

1.9

16

4.

Lava

1.2

26

5.

G-Five

31

31

6.

Maxx

31

7.3

7.

Fly

31

4.6

8.

LG

31

11

Micro Max

31

2.2

14

10.

Black Berry

31

21

31

Inventory Turnover Period: Days/Months in the Year Inventory Turnover Ratio

Inference:
The above table shows that the Black Berry brand models has the least turnover period of which implies that the Black Barry brand models are moving rapacity in the market.

32

ABC Analysis
Table:5.3:ABC Analysis for Nokia:

Unit Annual price Demand (unit)

Annual Value

Cumulative value

Cumulative %

Item Level

3653 1634 1250 2547 1537 1057 4038 4326 7047 1249

125 96 266 124 262 224 55 148 115 245

456625 156864 332500 315828 402694 236768 222090 640248 810405 306005 3880027

456625 613489 945989 1261817 1664511 1901279 2123369 2763617 3574022 3880027

11.8% 15.8% 24.4% 32.5% 42.9% 49.0% 54.7% 71.2% 92.1% 100.0%

A1 A2 B1 B2 B3 C1 C2 C3 C4 C5

Total
Inference:

The above table implies that item code S16 and S18 comes under A classification B classification contains S11,S14, S15 item code, Classification C contains S12, S13,S17,S19 and S20.

33

Table:5.4: ABC Analysis for Sony Ericsson

Item Code

Unit price

Annu al Dema nd (unit) 137

Annual Value

Cumulativ e value

Cumulativ e%

Item Level

S16

17850

2445450

2445450

15.3%

A 1 A 2 A B1 B2 B3 B C1 C2 C3 C4 C5 C

S18 S11 S15 S14 S12 S17 S19 S20 S13

13850 1450 17850 17850 4795 7990 15950 12850 17850

105 98 136 98 90 124 90 188 141

1454250 142100 2427600 1749300 431550 990760 1435500 2415800 2516850

3899700 4041800 6469400 8218700 8650250 9641010 11076510 13492310 16009160

24.4% 25.2% 40.4% 51.3% 54.0% 60.2% 69.2% 84.3% 100.0%

Total 16009160
Inference:
The above table implies that item code S16 and S18 comes under A classification B classification contains S11,S14, S15 item code, Classification C contains S12, S13,S17,S19 and S20.

34

Table:5.5:ABC Analysis for Lava

Item Unit Annual Annual Code price Deman Value d (unit) S16 S18 S11 S15 S14 S12 S17 S19 S20 S13 2014 2279 3530 1776 1882 4505 2250 2714 2264 1446 201 127 220 172 140 160 197 112 184 120 404814 289433 776600 305472 263480 720800 443250 303968 416576 173520 4097913

Cumulati ve value

Cumulative %

Item Level

404814 694247 1470847 1776319 2039799 2760599 3203849 3507817 3924393 4097913

9.9% 16.9% 35.9% 43.3% 49.8% 67.4% 78.2% 85.6% 95.8% 100.0%

A1 A2 B1 B2 B3 C1 C2 C3 C4 C5

Total

Inference:
The above table implies that item code S16 and S18 comes under A classification B classification contains S11,S14, S15 item code, Classification C contains S12, S13,S17,S19 and S20.

35

Table:5.6:ABC Analysis for G-Five

Item Unit Annua Code price l Dema nd (unit) S16 1734 154 S18 1734 133 S11 1545 125 S15 1448 123 S14 1561 162 S12 1545 122 S17 1632 145 S19 1448 111 S20 1448 132 S13 1989 123

Annual Value

Cumulativ Cumulative e value %

Item Level

267036 230622 193125 178104 252882 188490 236640 160728 191136 244647 2143410

267036 497658 690783 868887 1121769 1310259 1546899 1707627 1898763 2143410

12.5% 23.2% 32.2% 40.5% 52.3% 61.1% 72.2% 79.7% 88.6% 100.0%

A1 A2 B1 B2 B3 C1 C2 C3 C4 C5

Total
Inference:

The above table implies that item code S16 and S18 comes under A classification B classification contains S11,S14, S15 item code, Classification C contains S12, S13,S17,S19 and S20.

36

Table:5.7:ABC Analysis for Fly

Item Unit Annua Cod price l e Deman d (unit) S16 S18 S11 S15 S14 S12 S17 S19 S20 S13 2900 4000 951 3390 1164 4500 3600 2999 4567 1332 54 53 47 34 12 76 65 78 51 52

Annual Value

Cumulat Cumulative ive value %

Item Level

156600 212000 44697 115260 13968 342000 234000 233922 232917 69264 1654628

156600 368600 413297 528557 542525 884525 1118525 1352447 1585364 1654628

9.5% 22.3% 25.0% 31.9% 32.8% 53.5% 67.6% 81.7% 95.8% 100.0%

A1 A2 B1 B2 B3 C1 C2 C3 C4 C5

Total

Inference:
The above table implies that item code S16 and S18 comes under A classification B classification contains S11,S14, S15 item code, Classification C contains S12, S13,S17,S19 and S20.

37

Table:5.8:ABC Analysis for Samsung

Item Unit Annual Cod price Deman e d (unit)

Annual Value

Cumulat ive value

Cumulative %

Item Level

S16 S18 S11 S15 S14 S12 S17 S13

4649 7500 1490 4090 3690 2690 4890 4990

196 160 180 216 202 217 192 122

Total

911204 1200000 268200 883440 745380 583730 938880 608780 6139614

911204 2111204 2379404 3262844 4008224 4591954 5530834 6139614

14.8% 34.4% 38.8% 53.1% 65.3% 74.8% 90.1% 100.0%

A1 A2 B1 B2 B3 C1 C2 C3

Inference:
The above table implies that item code S16 and S18 comes under A classification B classification contains S11,14, S15 item code, Classification C contains S12, S13,and S17.

38

Table:5.9:ABC Analysis for Maxx

Item Unit Annual Annua Cumulativ Code price Deman l Value e value d (unit) S11 S15 S14 S12 S13 1850 2808 2700 1325 2355 23 34 12 34 22 42550 95472 32400 45050 51810 267282 42550 138022 170422 215472 267282

Cumulative % 15.9% 51.6% 63.8% 80.6% 100.0%

Item Level A1 A2 B1 B2 B3

Total

Inference:
The above table implies that item code S16 and S18 comes under A classification B classification contains S11,S14, S15 item code..

39

Table:5.10:ABC Analysis for Micro Max

Item Unit Annual Annual Cumulati Cumulative Code price Deman Value ve value % d (unit)

Item Level

S16 S18 S11 S15 S14 S12 S17 S19 S20 S13

1523 1285 2086 2475 2091 1999 3097 2475 4285 2119

142 97 22 124 125 34 126 56 87 102

216266 124645 45892 306900 261375 67966 390222 138600 372795 216138 2140799

216266 340911 386803 693703 955078 1023044 1413266 1551866 1924661 2140799

10.1% 15.9% 18.1% 32.4% 44.6% 47.8% 66.0% 72.5% 89.9% 100.0%

A1 A2 B1 B2 B3 C1 C2 C3 C4 C5

Total
Inference:

The above table implies that item code S16 and S18 comes under A classification B classification contains S11,S14, S15 item code, Classification C contains S12, S13,S17,S19 and S20.

40

Table:5.11:ABC Analysis for Black Barry

Item Code

Unit price

Annu al Dema nd (unit) 67 36 102 162

Annual Value

Cumulativ e value Cumulative %

Item Level

S11 S14 S12 S13

18509 24991 18509 32399

1240103 899676 1887918 5248638

1240103 2139779 4027697 9276335

13.4% 23.1% 43.4% 100.0%

A1 A2 B1 B2

A B

Total 9276335

Inference:
The above table implies that item code S11 and S14 comes under A classification B classification contains S12,and S13, item code.

41

Table:5.12: ABC Analysis for LG

Item Code

Unit Annual Annual Cumulative Cumulative price Deman Value value % d (unit)

Item Level

S16 S11 S15 S14 S12 S17 S13

1550 5800 1800 1450 3625 2000 1150

13 34 11 21 24 16 12

20150 197200 19800 30450 87000 32000 13800 400400

20150 217350 237150 267600 354600 386600 400400

5.0% 54.3% 59.2% 66.8% 88.6% 96.6% 100.0%

A1 A2 A B1 B2 B3 B C1 C2 C

Total

Inference:
The above table implies that item code S16 and S11 comes under A classification B classification contains S12,S14, S15 item code, Classification C contains S13,andS17.

42

Retail Inventory Analysis

Retail Inventory Analysis for Nokia:

Cost Opening stock Purchase Goods Available for sale = = = 474890 14612 489502

Retail 533000 16400 549400

Deduct Sales Ending Inventory at retail Ratio of cost at retail (489502/549400) Ending Inventory at cost

= = =

98400 451000 89%

401390

Inference:
The above analysis shows that the ratio of cost to retail for Nokia (A1) item is 89% and ending inventory at cost is 401340.

43

Retail Inventory Analysis for Sony Ericsson:

Cost Opening stock Purchase Goods Available for sale = = = 2516850 89250 2606100

Retail 2538000 90000 2628000

Deduct Sales Ending Inventory at retail Ratio of cost at retail (2606100/2628000) Ending Inventory at cost

= = =

36000 2592000 99%

2566080

Inference:
The above analysis shows that the ratio of cost to retail for Sony Ericsson (A1) item is 99% and ending inventory at cost is 586080

44

Retail Inventory Analysis for Lava

Cost Opening stock Purchase Goods Available for sale Deducted Sales Ending Inventory at retail Ratio of cost at retail (398772/475200) Ending Inventory at cost 392730 6042 398772

Retail 468000 7200 475200 94800 470400 83%

390432

Inference:
The above analysis shows that the ratio of cost to retail for Lava (A1) item is 83% and ending inventory at cost is .3090432.

45

Retail Inventory Analysis for Samsung:

Cost Opening stock Purchase Goods Available for sale = = = 864714 27894 892608

Retail 9114000 29400 9143400

Deduct Sales Ending Inventory at retail Ratio of cost at retail (892608/9143400) Ending Inventory at cost

= = =

19600 9123800 97%

8850086

Inference:
The above analysis shows that the ratio of cost to retail for Samsung (A1) item is 97% and ending inventory at cost is 8850086.

46

Retail Inventory Analysis for G-Five:

Cost Opening stock Purchase Goods Available for sale = = = 254890 12130 267020

Retail 286650 20650 307300

Deduct Sales Ending Inventory at retail Ratio of cost at retail (267020/307300) Ending Inventory at cost

= = =

8850 298450 86%

256667

Inference:
The above analysis shows that the ratio of cost to retail for G-Five (A1) item is 86% and ending inventory at cost is 256667.

47

Retail Inventory Analysis for Fly:

Cost Opening stock Purchase Goods Available for sale = = = 150800 11600 162400

Retail 166400 12800 179200

Deduct Sales Ending Inventory at retail Ratio of cost at retail (162400/179200) Ending Inventory at cost

= = =

9600 169600 90%

152640

Inference: The above analysis shows that the ratio of cost to retail for Fly (A1) item is 90% and ending inventory at cost is 152640.

48

Retail Inventory Analysis for LG:

Cost Opening stock Purchase Goods Available for sale = = = 34100 4650 38750

Retail 37400 5100 42500

Deduct Sales Ending Inventory at retail Ratio of cost at retail (38750/42500) Ending Inventory at cost

= = =

3400 39100 91%

35581

Inference: The above analysis shows that the ratio of cost to retail for LG (A1) item is 91% and ending inventory at cost is Rs.35581.

49

Retail Inventory Analysis for Micro Max:

Cost Opening stock Purchase Goods Available for sale = = = 323400 19600 343000

Retail 356400 21600 378000

Deduct Sales Ending Inventory at retail Ratio of cost at retail (343000/378000) Ending Inventory at cost

= = =

5400 32400 90%

32400

Inference: The above analysis shows that the ratio of cost to retail for Micro Max (A1) item is 90% and ending inventory at cost is .32400.

50

Primary Data Analysis

Table:5.13:Age classification of respondents

No.of Respondents 21 19 12 8 60

Age 21-30 years 31-40 years 41-50 years 50 above years Total

Percentage 35.0 31.7 20.0 13.3 100.0

Inference:
The above table shows that 35 percentage of the respondents belong to 21-30 years of age, 31.7 percentage of the respondents belong to 31-40 years of age, 20 percentage of the respondents belong to 41-50 years of age and 13.3 percentage of the respondents are above 50 years of age.

51

Chart:5.1 Age classification of respondents

Age

52

Table:5:14:Gender Classification of Respondents

Gender
Male Female Total

No. of Respondents
44 16 60

Percentage
73.3 26.7 100.0

Inference:

The above table shows that 73.3 percentage of the respondents are Male and 26.7 are female

53

Chart:5.2: Gender Classification of Respondents

Gender

54

Table:5.15 Educational Qualification of Respondents

Educational Qualification
UG PG TECHNICAL Professional Total

No.of Respondents
17 21 12 10 60

Percentage
28.3 35.0 20.0 16.7 100.0

Inference:
The above table shows 28.3 percentage of respondent are under the UG category,35 percentage are under the PG category ,20 percentage of respondent are under the TECHNICAL category,16.7 percentage of respondent are under the professional category.

55

Chart :5.3: Educational Qualification of Respondents

Educational Qualification

56

Table:5.16: Occupation Classification of Respondents

Occuption
Government Employee Private Employee Businessman

No.of Respondents
14 34 11

Percentage
23.3 56.7 18.3

Total

60

100.0

Inference:
The above table shows that 23.3 percentage of respondent are Government Employee ,56.7 percentage of respondent are Private Employee and 18.3 percentage of

respondent are Businessman

57

Chart:5.4: Occupation Classification of Respondents

58

Table:5.17: Frequency of Visit

Frequency of Visit
Very Frequently Frequently Weekly Monthly Rarely Total

No.of Respondents 9 24 7 15 5 60

Percentage 15.0 40.0 11.7 25.0 8.3 100.0

Inference:
The above table shows that 15 percentage of respondents are very frequently visiting the store,40 15 percentage of respondents are frequently visiting the store, 11.7 percentage of respondents are weekly visiting the store,25 percentage of respondents are monthly visiting the store,8.3 percentage of respondents are rarely visiting the store.

59

Chart:5.5: Frequency of Visit

60

Table:5.18:Level of Agreement Towards Availability

Level of Agreement Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No.of Respondents 10 21 16 7 6 60

Percentage 16.7 35.0 26.7 11.7 10.0 100.0

Inference:
The above table shows that 16.7 percentage of respondents strongly agree that all models are available,35 percentage of respondents agree that all models are available,26.7 percentage of respondents neutrally agree disagree that all models are available. that all models are available 11.7 percentage of

respondents disagree that all models are available,10 7 percentage of respondents strongly

61

Chart :5.6: Level of Agreement Towards Availability

Level of Agreement

62

Table:5.19:Satisification towards Services

Level of Satisfaction
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total

No. Of Respondents
11 27 11 9 2 60

Percentage
18.3 45.0 18.3 15.0 3.3 100.0

Inference:
The above table shows that 18.3 percentage of respondents are highly satisfied by the service provided to them,45 percentage of respondents are satisfied by the service provided to them, 18.3 percentage of respondents are neutrally satisfied by the service provided to them, 15 percentage of respondents are dissatisfied by the service provided to them, 3.3 percentage of respondents are highly dissatisfied by the service provided to them.

63

Chart:5.7: Satisfaction towards Services.

Level of Satisfaction

64

Table:5.20: Opinion Towards Unavailability

Response Yes No Total

No.of Respondents 13 47 60

Percentage 21.7 78.3 100.0

Inference:
The above table shows that 21.7 percentage of the respondents say that models are unavailable and 78.3 percentage of respondents say that models are available.

65

Chart:5.8: Opinion Towards Unavailability

Response

66

Table:5.21:Opinion on Obsolete Model

Level of Agreement Strongly Agree Agree Neutral Disagree Strongly Disagree Total

No.of Respondents 5 30 14 10 1 60

Percentage 8.3 50.0 23.3 16.7 1.7 100.0

Inference:
The above table show that 8.3 percentage of the respondents strongly agree that obsoletes models are available,50 percentage of the respondents agree that obsoletes models are available, 23.3 percentage of the respondents neutrally agree that obsoletes models are available, 16.7 percentage of the respondents disagree that obsoletes models are available, 1.7 percentage of the respondents strongly disagree that obsoletes models are available,

67

Chart:5.9: Opinion on Obsolete Model

Level of Agreement

68

Table:5.22:Opinion Towards Outlets of Afrah Mobiles

Response yes No Total

No.of Respondents 44 16 60

Percentage 73.3 26.7 100.0

Inference:
The above table shows that 73.3 percentage of the respondents agree that outlets are available everywhere, 26.7 percentage of the respondents disagree that outlets are available everywhere,

Chart:5.10: Opinion Towards Outlets of Afrah Mobiles

69

Response

70

Weighted Average

Weighted Average for Nokia

Alwaya Available Available Rarely Available Not available Total

Frequency 29 24 6 1

Weight 4 3 2 1 10

F*W 116 72 12 1 201 20.1

Weighted Average for Sony Ericsson

Frequency Always Available Available Rarely Available Not available Total 8 28 21 3 W 4 3 2 1 10 F*W 32 84 42 3 161 16.1

71

Weighted Average for Lava

Frequency Always Available Available Rarely Available Not available Total 11 27 17 4 W 4 3 2 1 10 F*W 44 81 34 4 163 16.3

Weighted Average for Samsung

Frequency Always Available Available Rarely Available Not available Total 7 44 8 1

W 4 3 2 1

F*W 28 132 16 1 177 17.7

72

Weighted Average for Micro max

Frequency Always Available Available Rarely Available Not available Total 9 39 9 3

W 4 3 2 1 10

F*W 36 117 18 3 174 17.4

73

Table:5.23:Ranks of various brands

Sl.No

Models

Average

Rank

Nokia

20.1

Sony Ericsson

16.1

Lava

16.3

Samsung

17.7

Micro max

17.4

Inference:
y y y y y Nokia brand has been rated first . Samsung is rated second. Micro Max is rated third . Lava is rated fourth. And Sony Ericsson is rated fifth.

74

ANOVA

RESEARCH HYPOTHESIS : TO FIND OUT WHETHER THERE IS SIGNIFICANT RELATION BETWEEN FREQUENCY OF VISIT AND UNAVAILABILITY OF MODELS. NULL HYPOTHESIS (H0) : There is no significant relation between frequency of visit and unavailability of models. ALTERNATE HYPOTHESIS (H1) : There is significant relation between frequency of visit and unavailability of models.

Crosstab

Unavailability /Frequency very frequently Frequently Weekly Monthly Rarely Total

yes 1 0 1 8 3 13

no 8 24 6 7 2 47

Total 9 24 7 15 5 60

75

ANOVA

Sum of Squares Between Groups Within Groups Total 24.154 66.029 90.183

df 1 58 59

Mean Square 24.154 1.138

F 21.217

Sig. .000

RESULT : Since the calculated value is not less than that of the table value , we accept the alternate hypothesis (H1) and reject the null hypothesis (H0)..Hence there is significant relation between frequency of visit and unavailability of models.

76

Findings of the Study

y The ABC analysis for Nokia reveals that model numbers S16 and S18 are classified A category y The ABC analysis for Sony Ericsson reveals that model numbers S16 and S18 are classified A category y The ABC analysis for Lava reveals that model numbers S16 and S18 are classified A category y The ABC analysis for Fly reveals that model numbers S16 and S18 are classified A category y The ABC analysis for Micro Max reveals that model numbers S16 and S18 are classified A category y The ABC analysis for G-Five reveals that model numbers S16 and S18 are classified A category y The ABC analysis for Samsung reveals that model numbers S16 and S18 are classified A category y The ABC analysis for Maxx reveals that model numbers S11 and S15 are classified A category y The ABC analysis for Black Berry reveals that model numbers S11 and S14 are classified A category y Retail Inventory analysis shows that the ratio of cost to retail for Nokia is 89% and ending Inventory y 401390.

Retail Inventory analysis shows that the ratio of cost to retail for Sony Ericsson is 99% and ending Inventory is 2566080

Retail Inventory analysis shows that the ratio of cost to retail for Samsung is 97% and ending Inventory is 8850086

Retail Inventory analysis shows that the ratio of cost to retail for Lava is 83% and ending Inventory is 390432.

Retail Inventory analysis shows that the ratio of cost to retail for G-Five is 86% and ending Inventory is 256667.

77

Retail Inventory analysis shows that the ratio of cost to retail for Fly is 90% and ending Inventory is 152640.

Retail Inventory analysis shows that the ratio of cost to retail for LG is 91% and ending Inventory is 35581.

Retail Inventory analysis shows that the ratio of cost to retail for Micro Max is 90% and ending Inventory is 32400

Retail Inventory analysis shows that the ratio of cost to retail for Black Berry is 91% and ending Inventory is 35581.

y y

From the costumer information 40%of Response are frequently visiting the outlets. Form the costumer information 78% of response agree that the store contains all models of mobiles are available.

Form the costumer information 50% of response agree that the store has got obsoletes models.

Form the costumer information 73% of response everywhere.

agree that outlets are available

Form the costumer information 45% response agree that service provided by the store is satisfactory.

78

SUGGESSTIONS

Selective Inventory Control:

1. The Inventory items are classified in to A, B and C items. The selective strategy for the ABC items are. A Items the items come under A classification need vigorous control. Less amount of stock has to be stored in order to minimize the carrying cost. The record maintenance can be done individually for each item. Just in time purchased is recommended for A item. B- items: The mobile models that are classified under B items need moderate attention and combined record maintenance. The purchase of B- item can be made periodically and better stock can be maintained. C item The mobile models classified under C- items need vary less control These mobile can be purchased according market and manufacturing condition. Record maintenance can be simple. 2. Mark up for Lava, and Maxx mobiles are attractive and the retailer can store more of the model to increase the profit. 3. the time of need. 4. Sony Ericsson and G five , Lava , are slow moving inventory. There is a The inventory level of Nokia and Sony Ericsson should be kept in control. The

interest rate in investment may exceed the mark up. Hence replenishment of stock can be done at

chance of the product becoming obsolete as it is a technology oriented product. Efforts can be taken to sell these brands quickly and clear the stock. Micro Max and Fly are fast movers items. So frequent replenishment of stock is recommended.

79

CONCLUSION

Retail Inventory analysis is essential to determining the effectiveness of inventory management. The study has revealed that the inventory management is efficient in Afrah Mobiles. The analysis focused on recommending selective inventory control method and the level of stock to be maintained for various brands of mobiles.

The specific mobile model listed as A items need critical control and just in time purchase is suitable for such models. The Lava , Micro Max model mobile phones are fast moving, so higher level of inventory need to be maintained for effective sales. Thus the suggestion made in the study will improve the inventory management practices.

80