Big Bajar Warehouse

Inventory management

Inventory can be defined as s goods which is held for future production or sales comprising of raw materials ,finished goods, unfinished goods,spare Parts

Inventory management

Acquiring an adequate supply and assortment of merchandise to meet the customer demand

Objectives of inventory management

To ensure continuous supply of raw material, spares and finished goods
To avoid both overstocking and under stocking of inventory To maintain investments in inventories at optimum level

Inventory management involves

Properly maintaining adequate stocks to ensure uninterrupted service. What and how much stock you have. When to order fresh supplies What and how much has been ordered, when it was ordered. Where all supplies were stored Determining when to order Ensuring proper storage of inventory
when it was ordered W W red stock was recei

Inventory management in big baazar

 Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days.

Within a span of ten years, there are now 161 Big Bazaar stores in 90 cities and towns across India.
Big Bazaar has included a wide range of products and service offerings under their retail chain. Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of Pantaloon Retail India

Inventories include product, food category, apparel

Process of maintaining inventory

The store manager decides the level of inventory, he inspects the stocks time to time and the demands of customers. Stock - in & Stock - out is maintained so as to decide the level of inventory.
Inventories such as apparel are ordered approximately after 45 days and for every sample of clothes they have 10 backup pieces. A computerised automated system that ensures the availabilty of backup once the product is sold off. Transfer of interest

 The inventories maintained in the outlet, are of dif product category Mainly inventory is maintained for FMCG product category & Food Category, Apparel. The inventories are maintained according to the demands of customer. Perishable goods like vegetables are brought on daily basis on customer demand. Imperishable goods like electronic items are brought through distributors through supply chain process.

Cont..
Apparels are ordered when their stock falls below 4 item per piece. Food items and non food items are ordered after every 7 days.
Vegetables are taken on a daily basis

Operation strategies
LOCATION Centrally located Near to customer Situated in shopping malls Areas which are densely populated Easy transportation

Operation strategies
PRODUCT
Customised product High quality Cost effective Discount offers

Conti.
Billing , management of inventory, electonic equipments are fully computerised. Food items are regulary checked and inventory room is regularly checked to prevent sort of leakages. Short circuit cameras are regularly checked to prevent any breach in security. Strict check on quality of food item is maintained both in store and in inventory

INVENTORY PROBLEM
Objective
is to minimize the total (actual or expected) cost or to maximize (actual or expected) profit. Inventory problem can be classified as a. The Controlled variables b. The uncontrolled variables

objectives
CONTROLLED VARIABLES
1.The quantity acquired - By purchase, production, or some other means.
2.The frequency of timing of acquisition -how often or when the inventory should be replenished. 3. The stage of completion of stocked items -The stage which the unfinished items are held so that there is no delay in supplying customers.

UNCONTROLLED VARIABLES
Holding or storage cost
The costs associated with the storage of the inventory until used are known as the holding or storage costs.

Demand
Demand is the number of items required per period and the amount sold.

Lead Time
Time gap between production and arrival and delivery of good

Amount delivered
Instantaneous or over a period of time

ADVANTAGES OF INVENTORY
The economics of production The smooth and efficient running of the busin

The economics in transportation. The advantage of price discounts by bulk purchasing.

Faster and adequate service to the customers and, Profit from speculation in the market where price are expected to rise.

Disadvantages

Ware house rent. Interest on invested capital. Physical handling. Accounting.

Depreciation and determination.

Risk associated with inventory management at Big bazaar

PRICE difficulty in determining what price to charge for the goods. Economic condition Retail buisness is often affected by decline in economic condition which affects the customer demand. TASTE AND PREFERENCE Changing taste and preferences is another risk, specifically for stores selling technology-related items. THEFT AND DAMAGE retail stores face an ever-present concern regarding theft of physical goods.

conclusion
We have found that Big Bazaars inventory is well equipped and their cost is under their control due to the short cycle time of ordering and buffering. Their inventory cost is very high because of their stocking of various products. Their product range varying from mere Rs.5 to Rs.50,000. Hence their range satisfies one and all. Their inventory is well equipped if it sees any fundamental changes on the demand of the products, be it desired or undesired. Their inventory is quickly refilled which is one of their strengths and also they take less than a day to fully make their inventory a wide spectrum.

A brief analysis of our study

Serail No. Product Name Sale/month Total value Percentage Cumulative % per(%) Cumulative % 1 Cooking oil 6530 1002240 20.54677413 20.54677413 8.822894 8.822893585 2 Tea 1780 825860 16.93083381 37.47760794 2.405015 11.22790899 3 Ghee 4710 723640 14.8352367 52.31284464 6.363833 17.59174188 4 Kurkurre 3770 377000 7.728821287 60.04166593 5.093769 22.68551046 5 Wheat Flour 3300 376050 7.709345477 67.75101141 4.458736 27.14424688 6 Namkeen 5990 235500 4.827950698 72.57896211 8.093282 35.23752905 7 Hair oil 5980 182710 3.745710709 76.32467282 8.079771 43.3172999 8 Washing Soap 8632 179416 3.678180902 80.00285372 11.66297 54.98027347 9 Soap 7400 156000 3.198132946 83.20098667 9.998379 64.97865211 10 deodrants 1350 148500 3.044376555 86.24536322 1.824029 66.80268065 11 Detegent 4390 137980 2.828707589 89.07407081 5.931471 72.73415122 12 Cold Drinks 890 122000 2.501103971 91.57517478 1.202508 73.93665892 13 Noodles 2680 107356 2.200889491 93.77606427 3.621034 77.55769335 14 Cream 1480 74000 1.517063064 95.29312734 1.999676 79.55736908 15 Shampoo 6720 60550 1.241326602 96.53445394 9.079609 88.63697779 16 Butter 1800 48600 0.996341418 97.53079536 2.432038 91.06901584 17 Biscuits 4220 47960 0.983220872 98.51401623 5.701778 96.77079393 18 Paneer 1220 28000 0.574023862 99.08804009 1.648381 98.41917527 19 Jam 570 23484 0.481442014 99.5694821 0.770145 99.18932065 20 Face Wash 600 21000 0.430517897 100 0.810679 100 Total 74012 4877846 100 100

EOQ 10738.83 29971.03 43730.79 62011.28 34846.55 130140.2 187539.2 93690.63 27213.44 23686.26 83104.47 44595.64 122943.3 22694.49 286230.6 24657.65 297340.2 19855.47 12884.85 27213.44

Average Inventory 5369.415 14985.515 21865.395 31005.64 17423.275 65070.095 93769.575 46845.315 13606.72 11843.13 41552.235 22297.82 61471.635 11347.245 143115.275 12328.825 148670.085 9927.735 6442.425 13606.72