CHAPTER 01

(INTRODUCTION)

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1 INTRODUCTION

DEFINITION AND MEANING

Inventory is a list of goods and materials, or those goods and materials themselves, held
available in stock by a business. Inventories are held in order to manage and hide from
the customer the fact that manufacture/supply delay is longer than delivery delay, and
also to ease the effect of imperfections in the manufacturing process that lower
production efficiencies if production capacity stands idle for lack of materials.
The reasons for keeping stock,

All these stock reasons can apply to any owner or product stage. Buffer stock is held in
individual workstations against the possibility that the upstream workstation may be a
little delayed in providing the next item for processing. Whilst some processes carry very
large buffer stocks, Toyota moved to one (or a few items) and has now moved to
eliminate this stock type. Safety stock is held against process or machine failure in the
hope/belief that the failure can be repaired before the stock runs out. This type of stock
can be eliminated by programmes like Total Productive Maintenance Overproduction is
held because the forecast and the actual sales did not match. Making to order and JIT
eliminates this stock type. Lot delay stock is held because a part of the process is
designed to work on a batch basis whilst only processing items individually. Therefore
each item of the lot must wait for the whole lot to be processed before moving to the next
workstation. This can be eliminated by single piece working or a lot size of one. Demand
fluctuation stock is held where production capacity is unable to flex with demand.
Therefore a stock is built in times of lower utilization to be supplied to customers when
demand exceeds production capacity. This can be eliminated by increasing the flexibility
and capacity of a production line or reduced by moving to item level load balancing.
Line balance stock is held because different sub-processes in a line work at different
rates. Therefore stock will accumulate after a fast sub-process or before a large lot size
sub-process. Line balancing will eliminate this stock type.

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 Changeover stock is held after a sub-process that has a long setup or
change-over time. This stock is then used while that change-over is happening. This stock
can be eliminated by tools like SMED. Where these stocks contain the same or similar
items it is often the work practice to hold all these stocks mixed together before or after
the sub-process to which they relate. This 'reduces' costs. Because they are mixed-up
together there is no visual reminder to operators of the adjacent sub-processes or line
management of the stock which is due to a particular cause and should be a particular
individual's responsibility with inevitable consequences. Some plants have centralized
stock holding across sub-processes which makes the situation even more acute.

The basis of Inventory accounting,

Inventory needs to be accounted for where it is held across accounting period boundaries
since generally expenses should be matched against the results of that expense within the
same period. When processes were simple and short then inventories were small but with
more complex processes then inventories became larger and significantly valued items on
the balance sheet. This need to value unsold and incomplete goods has driven many new
behaviors into management practice. Perhaps most significant of these are the
complexities of fixed cost recovery, transfer pricing, and the separation of direct from
indirect costs. This, supposedly, precluded "anticipating income" or "declaring dividends
out of capital". It is one of the intangible benefits of Lean and the TPS that process times
shorten and stock levels decline to the point where the importance of this activity is
hugely reduced and therefore effort, especially managerial, to achieve it can be
minimized.

LIFO V/S FIFO

When a dealer sells goods from inventory, the value of the inventory reduces by the cost
of goods sold(CoG sold). This is simple where the CoG has not varied across those held
in stock but where it has then an agreed method must be derived. For commodity items
that one cannot track individually, accountants must choose a method that fits the nature

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of the sale. Two popular methods exist: FIFO and LIFO accounting (first in - first out,
last in - first out). FIFO regards the first unit that arrived in inventory the first one sold.
LIFO considers the last unit arriving in inventory as the first one sold. Which method an
accountant selects can have a significant effect on net income and book value and, in
turn, on taxation. Using LIFO accounting for inventory, a company generally reports
lower net income and lower book value due to the effects of inflation. This generally
results in lower taxation. Due to LIFO's potential to skew inventory value, UK GAAP
and IAS have effectively banned LIFO inventory accounting.

SUPPLY CHAIN MANAGEMENT

A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into intermediate
and finished products, and the distribution of these finished products to customers.
Supply chains exist in both service and manufacturing organizations, although the
complexity of the chain may vary greatly from industry to industry and firm to firm.

Supply chain management is typically viewed to lie between fully vertically

integrated firms, where the entire material flow is owned by a single firm and those
where each channel member operates independently. Therefore coordination between the
various players in the chain is key in its effective management. Cooper and Ellram [1993]
compare supply chain management to a well-balanced and well-practiced relay team.
Such a team is more competitive when each player knows how to be positioned for the
hand-off. The relationships are the strongest between players who directly pass the baton
(stick), but the entire team needs to make a coordinated effort to win the race. Below is
an example of a very simple supply chain for a single product, where raw material is
procured from vendors, transformed into finished goods in a single step, and then
transported to distribution centers, and ultimately, customers. Realistic supply chains
have multiple end products with shared components, facilities and capacities. The flow of

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materials is not always along an arborescent network, various modes of transportation
may be considered, and the bill of materials for the end items may be both deep and large.

To simplify the concept, supply chain management can be defined as a loop: it

starts with the customer and ends with the customer. All materials, finished products,
information, and even all transactions flow through the loop. However, supply chain
management can be a very difficult task because in reality, the supply chain is a complex
and dynamic network of facilities and organizations with different, conflicting
objectives.Supply chains exist in both service and manufacturing organizations, although
the complexity of the chain may vary greatly from industry to industry and firm to
firm.Unlike commercial manufacturing supplies, services such as clinical supplies
planning are very dynamic and can often have last minute changes. Availability of patient
kit when patient arrives at investigator site is very important for clinical trial success.
This results in overproduction of drug products to take care of last minute change in
demand. R&D manufacturing is very expensive and overproduction of patient kits adds
significant cost to the total cost of clinical trials. An integrated supply chain can reduce
the overproduction of drug products by efficient demand management, planning, and
inventory management.

Traditionally, marketing, distribution, planning, manufacturing, and the

purchasing organizations along the supply chain operated independently. These
organizations have their own objectives and these are often conflicting. Marketing's
objective of high customer service and maximum sales dollars conflict with
manufacturing and distribution goals. Many manufacturing operations are designed to
maximize throughput and lower costs with little consideration for the impact on inventory
levels and distribution capabilities. Purchasing contracts are often negotiated with very
little information beyond historical buying patterns. The result of these factors is that
there is not a single, integrated plan for the organization---there were as many plans as
businesses. Clearly, there is a need for a mechanism through which these different
functions can be integrated
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together. Supply chain management is a strategy through which such integration can be
achieved.

Supply Chain Management (SCM) is the process of planning, implementing, and

controlling the operations of the supply chain with the purpose to satisfy customer
requirements as efficiently as possible. Supply chain management spans all movement
and storage of raw materials, work-in-process inventory, and finished goods from
point-of-origin to point-of-consumption.

According to the Council of Supply Chain Management Professionals (CSCMP),

a professional association that developed a definition in 2004, Supply Chain Management

“encompasses the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities”. Importantly, it also
includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. In essence, Supply Chain
Management integrates supply and demand management within and across companies.

According to Cohen & Lee (1988)

Supply Chain Management is “The network of organizations that are having linkages,
both upstream and downstream, in different processes and activities that produce and
deliver the value in form of products and services in the hands of the ultimate consumer.”
Thus a shirt manufacturer is a part of the supply chain that extends upstream through the
weaves of fabrics to the spinners and the manufacturers of fibers, and downstream
through distributors and retailers to the final consumer. Though each of these
organizations are dependent on each other yet traditionally do not closely cooperate with
each other. An integrated supply chain management streamlines processes and increases
profitability by delivering the right product to the right place, at the right time, and at the
lowest possible cost.

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According to Ganeshan & Harrison (2001)
Supply Chain Management is a “systems approach to managing the entire flow of
information, materials, and services from raw materials suppliers through factories and
warehouses to the end customer.”
Supply chain event management (abbreviated as SCEM) is a consideration of all possible
occurring events and factors that can cause a disruption in a supply chain. With SCEM
possible scenarios can be created and solutions can be planned.
Some experts distinguish supply chain management and logistics management,
while others consider the terms to be interchangeable. From the point of view of an
enterprise, the scope of supply chain management is usually bounded on the supply side
by your supplier's suppliers and on the customer side by your customer's customers.
Supply chain management is also a category of software products

2 COMPANY PROFILE

"Vince Plastics" was incorporated in the year 1990, with a declaration to provide the
precisely manufactured products to clients and First time in kerala nursery flower pots
making unit. They are a Proprietor owned entity which is performing its occupational
activities in a proficient manner in the field of Manufacturer. The product spectrum we
offer to our customers includes Plastic Pot, Pot Plate, Hanging Pot, Plastic Hanging
Flower Pot Clip and many more. We are dedicated to constant improvement and
up-gradation, which helps us to evolve totally and assists us to take our company to new
heights.
Vins Plastics provides paper, plastic and foil packaging for tailored solutions. We set the
pace through speed-to-market, product quality and customer-focused flexibility.Vins
Plastics is vertically integrated and supports the latest in extrusion, printing, lamination

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and converting technology. We strive for excellence by committing to invest in our
people, our customers, and our technology

3 INDUSTRIAL PROFILE

Plastics have excellent potentialities. Our country is equipped with all kinds of processing
machinery and skilled labor and undoable, and extra to boost export, finished plastics
products will yield rich dividends. Today India exports plastic products to as many as 80
countries all over the world. The exports, which were stagnant at around rest. 60-70 cores
per annum doubles to 129 craters The Plastic industry has taken up the challenge of
achieving an export target of Rs. 17 cores. Major export markets for plastic products and
linoleum are Australia, Bangladesh, Canada, Egypt, Hong Kong, Italy, Kuwait, Federal
Republic of Germany, Sri Lanka. Sweden, Taiwan, U.K., U.S.A., and Russia With view
to boosting the export, the plastics and linoleum's export promotion council has urged the
government to reduce import duty of plastic raw material, supply indigenous raw
materials at international prices, fix duty, drawbacks on weighted average basis and
charge freight rate on plastic products on weights basis instead of volume basis. The
Production of various plastics and raw materials in the country is expected to double by
the end of seventh plan, the consumption of commodity plastics including LDPE, HDPE,
PP. PS AND PVC has immense scope for the use of plastics in agriculture, electronics.
automobile, telecommunications and irrigation and thus, the plastic industry is on the
threshold of an explosive growth.

Role of Plastics in the national economy

Plastics are perceived as just simple colorful household products in the mind of the
common person. A dominant part of the plastics of the percent and future find their
utilization in the areas.

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 ● Agriculture, forestry and water management.
● Automobile and transportation
● Electronics and telecommunications buildings, construction
● Food processing and packaging
● Power and gas distributor

4 IMPORTANCE OF PLASTIC INDUSTRY

We shall look at the basic data about plastics and particularly those properties, which are
so, fused in practical working with plastics. Plastics are man-made materials. The oldest
raw material for producing plastics is carbonaceous material obtained from coal tar
(benzene, phenol).Today the majority of raw materials are obtained from petroleum
chemical sources and they can be economically produced in large quantities.Plastics have
changed our world and day-by-day they are becoming important. They own their success
to whole series of advantage, which they have over conventional materials such as;
● Lightweight
● Excellent mold ability
● Attractive colors.
● Low energy requirements for convention
● Low labor and cost of manufacture
● Low maintenance & High strength weight ratio

Every landscape project is different; however, planting is part of it, there is a common
denominator: plastic pots. Usually black, these are the containers in which plants are
grown and shipped, and later discarded after installation. The adoption and use of plastic
pots has facilitated efficient production and shipping and contributed substantially to the
growth of the landscaping industry, Completed projects, however, yield vast bees of d
pans each year, generating an avalanche of horticultural plastic waste that is difficult to
manage Options include reuse-often costly and impractical on a commercial scale:

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recycling-if there is a facility that accepts them; incineration if that capacity exists; or if
all the fails-burial in a landfill. L sustainability requires a closed loop, such that the
material for producing the pot can be endlessly re-used, then achieving that critical goal
through existing methods seems unlikely Plastic pots features such as durability,
flexibility, variety of sizes and shapes and low cost, coupled with changes in markens far
recycled good,

results in plastic pots continuing to accumulate. Landscape designers recognize that we

are indirect consumers of these pots, via our projects, and therefore help to perpetuate the
demand for these products. The Sustainability Committee of the Association of
Professional Landscape Designers (APD) wants to understand the scope of the problem.
How many of these plastic pots are used in the tinned States and Canada? How many are
actually recycled? And, if recycled, is there a strong market for that material? Arethey
accumulating, with nowhere to go? As long as they are out there, what sort of impact do
they have on the environment and health? These are among the questions this research
seeks to answer APLD has joined with the Missouri Botanical Garden, a leading public
garden in St. Louis, Missouri (which began blazing this trail with its own ambitious
initiative to recycle plastic pots) to find the facts and to compile them in this report, Here
we share what we have learned about the production, use, disposal, and environmental
impact of horticultural Profile.

The Indian plastics market comprises around 25,000 companies and employs 3 million
people. The domestic capacity for polymer production was 5.72m tonnes in 2009. The
State of Gujarat in Western India is the leading plastics processing hub and accounts for
the largest number of plastics manufacturers, with over 5.000 plastics firms.

The growth rate of the Indian plastics industry is one of the highest in the world, with
plastics consumption growing at 16% per annum (compared to 10% p.a. in China and
around 2.5% p.a. in the UK). With a growing middle class (currently estimated at 50

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million) and a low per capita consumption of plastics, currently 8kg per head, this trend is
likely to continue. The Plastindia Foundation estimates that plastic consumption is likely
to reach 16 kg per head by 2015.Despite India having a population of 1.15 billion and a
workforce of 467 million, plastics companies have reported problems with labor
shortages. This has led to increased investment in technology such as automation and
conveyor belt systems.Apart from the shortage of skilled labor, the plastics industry is
also facing the problem of a nationwide power deficit. The electricity demand deficit is
12-13 per cent. This provides excellent opportunities for firms.offering energy saving
solutions, power saving machines and ancillary equipment.

SIZES
Various sizes ranging from 1 to 10 offered to customers. Even plastic flower pots with
different gauges and
sizes are manufactured wo sait specific conditions

PACKING
Packing plays a less important role in products like flower pots because the hollow space
inside can be utilized. For the purpose of cubic space in tracks while transport.
Organization is adopting techniques like pipes in pipes.

PAYMENT PERIOD
Vince plastic company adopts credit policy and goods are not delivered unless cash
remittances are made For credit is entitled up to a week. The difference between these
brands is a su brand image

TRANSPORTATION
The transportation department of Vince plastic pvt is very admumble. This unique
strength of the organization enables the dealers to reduce inventory levels to the
minimum. Thas dealers are also supplemented with dealers and reduce inventory levels to

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the minimum. Thus dealers are also supplemented with the benefit of the lower tied-up
capital in the form of inventory.

THE INFORMATION ABOUT THE COMPANY

The company is equipped with a sophisticated laboratory to carry out all tests to ascertain
outgoing quality level of the Vince plasti LS.I trademark, which speaks for itself for the
quality of the plastic.. Numbers of statistical quality control techniques are applied to
sustain the quality level of the product.Managers at the company are and are well
educated. Supervisory staff or intermediate managerial staff who are able to talk in their
areas are not highly educated. Most of the employees are skilled in uniqueness of workers
in Vince plastic s pvt ltd. There is non-ulgence in trade union activities.
It is fascinated with good communication networks, which includes
teles, fax machine, and Internet Company has also got the support of electronic data
processing. The company's major strength is considered to be transportation vehicles: a
unique cash outflow justifies itself by providing a good reputation for the company
through improved customer service.

5 OBJECTIVES OF THE STUDY

● To contemplate stock administration dependent on proportions

● Secure stock impact on position capital.

● To think about stock administration and its viable power over different techniques.

● Indicate ventures to improve stock dimensions.

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6 SCOPE OF THE STUDY

This study is conducted at Vince plastic pvt ltd. The study seeks to clarify the concept of
inventory management and various inventory management techniques that are used by
machine tools manufacturing companies. The study describes the theory and techniques
of inventory management and how the companies can use these techniques to improve
their organizational efficiency. The study has been conducted to find out the different
inventory management techniques that are used by the HMT Machine Tools to improve
their organizational efficiency and profitability.

• Manage Inventory:
Inventory management helps to manage the stock of the company. It provides proper
details of the products, what kind of raw material, what are the sizes we require and etc.
to the purchasing department.

• Less Storage:
When the inventory management provides proper information to management, they buy
according to them which helps the company to store fewer products.

• Improve Product Inventory:

Inventory management helps to improve the productivity of the machines and manpower.
Employees are aware of stocks and the quantity that is required to produce.

• Increase Profits:
Inventory management helps to improve the profits of the company. it helps to provide
proper information about stocks, that saves the unnecessary expenses on stocks.

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 CHAPTER ll
(REVIEW OF
LITERATURE)

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1 REVIEW OF LITERATURE

The investment in inventories constitutes the most significant part of current assets /
working capital in most of the undertakings. Thus, it is very essential to have proper
control and management of inventories. The purpose of inventory management is to
ensure availability of materials in sufficient quantity as and when required and also to
minimize investment in inventories. Meaning and Nature of Inventory: In accounting
language, inventory may mean the stock of finished goods only. In a manufacturing
concern, it may include raw materials, work-in- progress and stores etc.

Benefits of holding inventories:

Although holding inventories involves blocking of a firm's and the costs of storage and
handling.every business enterprise has to maintain a certain level of inventories to
facilitate uninterrupted production and smooth running of business. In the absence of
inventories a firm will have to make purchases as soon as it receives orders. It will mean
loss of time and delays in execution of orders which sometimes may cause loss of
customers and business. A firm also needs to maintain inventories to reduce ordering cost
and avail quantity discounts etc.

There are three main purpose of holding inventories:

1. The transaction motive: This facilitates continuous production and timely execution of
sales order

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2. The precautionary motive: This necessitates the holding of inventories for meeting the
unpredictable changes in demand and supplies of materials.

3. The speculative motive: This induces to keep inventories for taking advantage of price
fluctuations, saving in re- ordering costs and quantity discounts.

Risk and costs of holding inventories:

The holding of inventories involves blocking of firms funds and incurrence of capital and
other costs. The various costs and risks involved in holding inventories are: Capital costs:
Maintaining inventories results in blocking of the firm's financial resources. The firm has
therefore to arrange for additional funds to meet the cost of inventories. The funds may
be arranged from their own resources or from outsiders. Storage and Handling Costs:

Holding of inventories also involves costs on storage as well as handling of materials.

The storage of costs include the rental of the go down, insurance substantial

1. Risk of Price decline: There is always a risk of reduction in the prices of inventories by
the supplies, competition or general depression in the market.

2. Risk of Obsolescence: The inventories may become absolute due to improved

technology, changes in requirements, change in customer tastes etc.

3. Risk Determination in quality: The quality of materials may also deteriorate while the
inventories are kept.

Inventory management:

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Inventory Management is concerned with the determination of optimum level of
investment for each component of inventory and the operation of an effective control and
review of mechanism. The main objectives of inventory management are operational and
financial. The operational objective means that the materials and parts should be
available in sufficient quantity that work is not disrupted for want of inventory. The
financial objective means that inventory should not remain idle and minimum working
capital should be locked in it.

The following are the objectives of inventory management:

1. To ensure continuous supply of materials, spares and finished goods so that production
should not suffer at any time and the customers demand should also be met.

2. To avoid both over-stocking and under stocking of inventory.

3. To maintain investment in inventories at the optimum level as required by the

operational and sales activities.

4. To keep material cost under control so that they contribute in reducing the cost of
production and overall. costs.

5. To eliminate duplication in ordering or replenishing stocks. This is possible with the

help of centralizing purchases

6. To minimize losses through deterioration, pilferages, wastages and damages.

7. To ensure perpetual inventory control so that materials shown in stock ledgers should
be actually lying in the stores. To ensure right quality goods at reasonable prices. Suitable

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quality standards will ensure proper quality of stocks. The price analysis, the cost
analysis and value analysis will ensure payment of proper prices.

8. To facilitate furnishing of data for short-term and long-term planning and control of
inventory.

Tools and techniques of inventory management in HMT Machine Tools Limited: A

proper inventory control not only helps in solving the acute problem of liquidity but also
increases profit and causes substantial

reduction in the working capital of the concern. The following are the important tools and
techniques of inventory management and control.

● Determination of stock levels:

Carrying too much and too little of inventory is detrimental to the firm. If the inventory
level is too little, the firm will face frequent stock outs involving heavy ordering cost and
if the inventory level is too high it will be unnecessary to tie up capital. An efficient
inventory management requires that a firm should maintain an optimum level of
inventory where inventory costs are the minimum and at the same time there is no stock
out which may result in loss or sale or shortage of production.

a) Minimum stock level: It represents the quantity below its stock of any item should not
be allowed to fall.Lead time: A purchasing firm requires some time to process the order
and time is also required by the. supplying a firm to execute the order. The time in
processing the order and then executing it is known as lead time.

Rate of Consumption: It is the average consumption of materials in the factory. The rate
of consumption will be decided on the basis of past experience and production plans.

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Nature of materials: The nature of material also affects the minimum level. If a material
is required only against the special orders of the customer then. minimum stock will not
be required for such material. Minimum stock level can be calculated with the help of
following formula:

Minimum stock level - Re-ordering level (Normal consumption x Normal re-order

period)

b) Re-ordering Level: When the quantity of materials reaches at a certain figure then
fresh order is sent to get materials again. The order is sent before the materials reach
minimum stock level. Re-ordering level is fixed between minimum level and maximum
level.

c) Maximum Level: It is the quantity of materials beyond which a firm should not exceed
its stocks. If the quantity exceeds the maximum level limit then it will be overstocking.
Overstocking will mean blocking of more working capital, more space for storing the
materials, more wastage of materials and more chances of losses from obsolescence.
Maximum stock level Reordering Level + Reorder Quantity (Maximum Consumption x
Minimum reorder period)

d) Danger Stock Level: It is fixed below minimum stock level. The danger stock level
indicates emergency of stock position and urgency of obtaining fresh supply at any cost.
Danger Stock level Average rate of consumption x emergency delivery time.

e) Average Stock Level: This stock level indicates the average stock held by the concern.
Average stock level Minimum stock level + ½ x reorder quantity.

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 CHAPTER lll
(RESEARCH METHODOLOGY)

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1. RESEARCH METHODOLOGY
1. Define the Research Objectives:
Clearly outline the purpose of the research, such as identifying best practices in inventory
management, evaluating the effectiveness of current inventory management systems, or
exploring the impact of inventory management strategies on business performance.

2. Literature Review:
Conduct a thorough review of existing literature and research studies related to inventory
management. This helps in understanding the current state of knowledge, identifying
gaps in the literature, and formulating research hypotheses.

3. Formulate Hypotheses or Research

Questions: Based on the literature review and research objectives, develop specific
hypotheses or research questions that will guide the study.

4. Research Design:
Determine the research design, which could be experimental, quasi-experimental,
correlational, case study, or qualitative in nature. Select appropriate data collection
methods and sampling techniques.

5. Data Collection:
Collect relevant data to test the hypotheses or answer the research questions. This could
involve gathering quantitative data through surveys, observations, or analyzing existing
datasets, as well as collecting qualitative data through interviews, focus groups, or case
studies.

6. Data Analysis:

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Analyze the collected data using appropriate statistical or qualitative analysis techniques.
Common methods include regression analysis, correlation analysis, ANOVA, thematic
analysis, or content analysis, depending on the nature of the data and research objectives.

7. Interpretation of Results:
Interpret the findings of the data analysis in relation to the research objectives and
hypotheses. Identify any patterns, trends, or relationships in the data and discuss their
implications for inventory management practices.

8. Conclusion and Recommendations:

Summarize the key findings of the study, draw conclusions based on the evidence
gathered, and provide recommendations for practitioners or policymakers based on the
research findings.

9. Documentation and Reporting:

Document the research methodology, findings, and conclusions in a comprehensive
research report or academic paper. Ensure that the research report follows appropriate
formatting and citation guidelines.

10. Validation and Peer Review:

Validate the research findings through peer review or validation by experts in the field.
Incorporate feedback from reviewers to strengthen the validity and reliability of the
research findings.

2. SAMPLING TECHNIQUES
Inventory management is crucial for businesses to maintain optimal levels of stock,
ensure efficient operations, and meet customer demands. Sampling techniques play a
significant role in managing inventory effectively by allowing businesses to gather

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information about their inventory with less time and effort compared to a complete
inventory count.Importance of Inventory Sampling. Inventory sampling involves
selecting a subset of items from the entire inventory population for examination or
analysis. It helps in:

1. Resource Optimization: Conducting a full inventory count can be time- consuming and
resource-intensive. Sampling allows businesses to gather valuable insights with fewer
resources.

2. Timely Decision-Making: By regularly sampling inventory, businesses can make

informed decisions about replenishment, pricing, and stocking levels more quickly.

3. Accuracy Improvement: Sampling helps in identifying discrepancies between recorded

inventory levels and actual stock on hand, contributing to improved accuracy in inventory
management.
● Objectives of Inventory Sampling
● The primary objectives of inventory sampling include:
● Assessing Inventory Accuracy:

Sampling helps businesses gauge the accuracy of their inventory records by comparing
sampled counts with recorded quantities.Identifying Trends and Patterns: Sampling
allows for the detection of trends, patterns, and irregularities in inventory data, aiding in
demand forecasting and inventory planning.Risk Management: Sampling can help
identify high-risk areas in the inventory, such as slow-moving or obsolete items, enabling
proactive risk mitigation strategies.

Common Inventory Sampling Techniques

Several sampling techniques are employed in inventory management, each with its own
advantages and applications:

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1. Random Sampling:
Involves selecting items from the inventory population randomly, ensuring each item has
an equal chance of being chosen.
• Advantages: Reduces bias and provides a representative sample of the entire inventory.
• Limitations: May not capture specific characteristics or patterns within the inventory
effectively.

2. Stratified Sampling:
• Divides the inventory into distinct strata or categories based on predetermined criteria
(e.g., value, demand, category).
Samples are then selected randomly from each stratum, proportionate to its size or
importance.
• Advantages: Ensures representation from different segments of the inventory, allowing
for more precise analysis.
• Limitations: Requires accurate classification of items into strata and may introduce bias
if not done properly.

3. Systematic Sampling:
Involves selecting items at regular intervals from a sorted list of inventory items.
• For example, selecting every 10th item from a sorted list.
• Advantages: Easy to implement and provides a structured approach to sampling.
• Limitations: Susceptible to periodic patterns or anomalies in the inventory list.

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Additional Inventory Sampling Techniques and Considerations

1. ABC Analysis:
• Prioritizes inventory items based on their value or importance, typically categorized as
A (high-value), B (medium-value), and C (low-value) items.
Sampling efforts are then focused disproportionately on each category, reflecting their
significance.
Advantages: Helps prioritize resources and attention on high- value items.
Limitations: Assumes that value correlates perfectly with other important characteristics.

2. Cycle Counting:
Involves dividing the inventory into smaller sections and conducting regular counts of
items within each section on a rotating basis.Provides ongoing visibility into inventory
accuracy and allows for timely identification and correction of discrepancies.
Advantages: Ensures continuous monitoring of inventory accuracy.
• Limitations: Requires dedicated resources for regular counting activities.

Inventory sampling techniques are invaluable tools in modern inventory

management, allowing businesses to maintain accurate records, optimize resource
allocation, and make informed decisions. By understanding and implementing
appropriate sampling techniques, businesses can enhance efficiency, reduce costs, and
improve customer satisfaction in their inventory operations. This structured approach
provides a comprehensive overview of inventory sampling techniques, their significance,
and practical applications in inventory management

TOOLS USED FOR DATA COLLECTION

Data collection tools are instruments used to collect information for performance
assessments, self-evaluations, and external evaluations. The data collection tools need to
be strong enough to support what the evaluations find during research. The researcher has

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used the method of interview to collect the information in that organization and other
techniques like observation to primary data. QUESTIONNAIRE is the instrument used
for the data.

TOOLS USED FOR ANALYSIS

The data collected through the well-structured questionnaire were classified and tabulated
for analysis in accordance with the outline laid down for the purpose of justifying the
objectives framed at the time of developing research design.
Ratio analysis
Comparative balance sheet statement.
Simple Percentage Analysis
PERCENTAGE ANALYSIS: Percentage analysis is the most frequent way to represent
statistics by percentage. Percent simply means per hundred" and the symbol used to
express percentage is % One percent (or 1%) is one hundredth of the total or whole and is
therefore calculated by dividing the total or whole number by 100

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 CHAPTER lV
(DATA ANALYSIS AND INTERPRETATION)

2
7
DATA ANALYSIS AND INTERPRETATION

Table 4.1.1
Gender of respondent

RESPONSES NO OF RESPONDENTS PERCENTAGE

Male 40 66.66

Female 20 33.33

Total 60 100

CHART.4.1.1
GENDER OF THE RESPONDENTS

INTERPRETATION
From the table, it can be inferred that out of 60 respondents 66.66% of respondents are
Male and 33.33% of respondents are Female.It concludes that majority of the respondents
belong to Male in my study.

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 TABLE 4.1.2
AGE GROUP OF RESPONDENTS

RESPONSES NO OF RESPONDENTS PERCENTAGE

Under 25 20 33.33

25-35 24 40

36-45 12 20

46 and above 4 6.66

Total 60 100

CHART.4.1.2

AGE GROUP OF RESPONDENTS

INTERPRETATION
From the table, it can be inferred that out of 60 respondents 66.66% of respondents are
Male and 33.33% of respondents are Female.It concludes that majority of the respondents
belong to Male in my study.

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9
 TABLE 4.1.2
AGE GROUP OF RESPONDENTS

RESPONSES NO OF RESPONDENTS PERCENTAGE

Under 25 20 33.33

25-35 24 40

36-45 12 20

46 and above 4 6.66

Total 60 100

CHART.4.1.2

INTERPRETATION
From the table ,it can be inferred that out of 60 respondents 33.33% of respondents
are under 25,36.40% of respondents are 25-35,20% of respondents are 36-45 and
6.66% of respondents are 46 above.concludes that most of the respondents belongs
to 25-35 years age group in my study.
TABLE.4.1.3
EDUCATIONAL QUALIFICATION OF RESPONDENTS

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 RESPONSES NO OF RESPONDENTS PERCENTAGE

Up to HSC 9 15

ITI/Diploma 12 20

Undergraduate 18 30

Post graduate 21 35

Total 60 100

CHART.4.1.3
EDUCATIONAL QUALIFICATION OF RESPONDENTS

INTERPRETATION
From the table ,it can be inferred that out of 60respondents 15% of respondents are Up to
HSC,20% of respondents are ITI/Diploma,30% of respondents are Undergraduate and
35% of respondents are Postgraduate.It concludes that most of the respondents belongs to
Postgraduate in my study.

TABLE 4.1.4
CURRENT POSITION OF RESPONDENTS

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 RESPONSES NO OF RESPONDENTS PERCENTAGE

Top level 6 10
management
Middle level 26 43.33
management
Non-management 28 46.66

Total 60 100

CHART 4 .1.4
CURRENT POSITION OF RESPONDENTS

INTERPRETATION
From the table ,it can be inferred that out of 60 respondents 10% of respondents are Top
level management,43.33% of respondents are Middle level management and 46.66% of
respondents are Non-management. It concludes that the majority of the respondents
belong to Non-management in my study.

TABLE.4.1.5

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 showing data for the inventory turnover 2015-2018
Inventory Turnover Ratio = Cost of goods sold / Average Inventory

Period Net Sales Average Inventory Turnover Ratio

2015 3918558196 506460567 7.73

2016 5958016404 746837818 7.97

2017 10833256904 1432524560 7.56

2018 13177230047 1775802189 7.42

CHART.4.1.5
showing for the inventory turnover ratio.

INTRODUCTION
The above table shows the Inventory Turnover Ratio. There were small changes
B/W year to year 7.73 in the year 2015, 7.97 in the year 2016, 7056 in the year 2017
& 7.42 in the year 2018. So Its sales increased in value but not increased in overall
Ratio.

TABLE.4.1.6

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3
Raw material Turnover Ratio:
showing data for the raw materials form 2015-2018

Raw Average Raw Turn over

Period
material material Ratio
consumed

2015 2232086848 145788351 15.31

2016 3937812454 226333146 17.39

2017 7794794675 466270075 16.71

2018 8453055263 475934324 17.76

Raw material Turnover Ratio = Raw material consumed / Average Raw material

CHART.4.1.6
Showing for the raw materials turnover ratio

INTERPRETATION

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4
The above table shows the Raw material Turnover Ratio. It was 15.31 items in 2015,
17.39 items in 2016, 16.71 in 2017. In the year 2018, The Ratio was more than the norm
on that sales also increased.
TABLE.4.1.7
Work- In-Process Turnover Ratio :
showing data for the work in process turnover ratio from 2015-2018
work in process turnover ratio = Cost of production / Average work in process

Average work
Period Cost of production Turn over ratio
in process

2015 2803302510 177728384 15.77

2016 4780617871 253103985 18.89

2017 9236956058 478121242 19.32

2018 9928113854 581208251 17.08

CHART.4.1.7
showing for the work in process turnover ratio

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INTERPRETATION
The above table shows the Work-in-progress Turnover Ratio. It was 15.77 in the year
2015,18.89 in the year 2016, 19.32 in the year 2017 & 17.08 items in the year 2018. The
Work-in- progress

TABLE.4.1.8
showing data for Finished Goods Turnover Ratio :

Average Finished
Period Cost of Goods sold Turnover Ratio
Goods

2015 3918558196 84493680 46.37

2016 5958016404 120859398 49.29

2017 10833256904 277797726 38.99

2018 13177230047 389043563 33.87

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6
 CHART.4.1.8
showing for the finished goods turnover ratio

INTERPRETATION
The above table shows that the Finished Goods Turnover Ratio. It was 46.37 in the year
2015,49.29 in the year 2016, 38.99 in the year 2017 & 33.87 in the year 2018 . It
indicates the Finished Goods is decreasing year to year . From 2017 to 2018.

Comparison of Turnover Ratio:

showing data comparison of turnover ratios from 2015-2018

Turnover ratio 2015 2016 2017 2018

Raw materials 15.31 17.39 16.71 17.76

Work in process 15.77 18.89 19.32 17.08

Finished goods 46.37 49.29 38.99 33.87

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 Inventory 7.73 7.97 7.56 7.42

CHART.4.1.9
showing for comparison of turnover ratio 2015-2018

INTERPRETATION
Comparison of Turnover Ratio.showing data comparison of turnover ratios from
2015-2018
showing data for the inventory holding period from 2015-2018

Inventory Holding Period

Period No of Days
Turnover Ratio

2015 365 7.73 47

2017 365 7.56 48

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 2018 365 7.42 49

CHART.4.1.10
showing for the inventory holding period

INTERPRETATION
The above table shows the Inventory Holding period. It was 47 in the year 2015, 46 in the
year 2016, 48 in the year 2017 & 49 in the year 2018. The holding period is low in the
year 2016. It was beneficial to the company.
TABLE.4.1.11
Showing data for the raw material holding period for 2015-2018

Raw Material
Period No of Days Holding Period
Turnover Ratio

2015 365 15.31 24

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 2016 365 17039 21

2017 365 16.71 22

2018 365 17.76 21

TABLE.4.1.12
showing data for the work in process holding period from 2015-2018

Work in
Period No of Days Holding Period
Process
Turnover Ratio

2015 365 15.77 23

2016 365 18.89 19

2017 365 19.32 18

2018 365 17.08 21

showing data for the work in process holding period from 2015-2018

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INTERPRETATION
The above table shows the Work-in-progress Holding period. It was 23 days in 2015, 19
days in 2016, 18 days in 2017 & 21 days in 2018. So the Holding period is very less in
the year 2017, 18 days it was beneficial to the company.

TABLE.4.1.13
showing data for the finished goods holding period form 2015 -2018

Finished Goods
Period No. of days Holding Period
Turnover Ratio

2015 365 46.37 8

2016 365 49.29 7

2017 365 38.99 9

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 2018 365 33.87 11

CHART.4.1.13

INTERPRETATION
The above table shows the Finished goods Holding period. It was 8 days in the year 2015,
7 days in the year 2016, 9 days in the year 2017 & 11 days in the year 2018. So the year
2015, holding period is low & turnover is high so the company again maintains that level
that is beneficial to the company.

TABLE.4.1.14
showing comparison data for the inventory holding period from 2015-2018

Inventory 2015 2016 2017 2018

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 Raw Materials 24 21 22 21

Work In Process 23 19 18 21

Finished Goods 08 -07 09 11

Inventory 47 46 48 49

CHART.4.1.14

showing comparison data for the inventory holding period from 2015-2018

%
CLASS VALUE CUMULATIVE ITEMS
OF %
VALU
E

A 16803152 54 54 102

B 8785515 29 83 151

C 5276050 17 100 327

30864717

TABLE.4.1.15
showing data for the abc analysis for 2015

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showing data for the abc analysis for 2015

INTERPRETATION
In the year 2015 there are 102 items which constitutes their value of 54% in the total
value which comes under “A” category.151 items which constitutes 29% in the total
value which comes under “B” category and 327 items which constitutes 17% in the total
value which comes under “C” category.

TABLE.4.1.16

showing Data ABC analysis for 2016

Class Value % Of value Cumulative % Items

A 67963606 90 90 90

B 6330760 8 98 124

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4
 C 1538254 2 100 385

75832620

CHART.4.1.16
showing Data ABC analysis for 2016

INTERPRETATION
In the year 2016 there are 69 items which constitutes their value of 90% in the total value
which comes under “A” category.124 items which constitutes 8% in the total value which
comes under “B” category and 385 items which constitutes 2% in the total value which
comes under “C” category.

TABLE.4.1.17

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5
showing data for ABC Analysis for 2017

Class Value % of value Cumulative % Items

A 73880742 91 91 92

B 6858300 8 99 176

C 862667 1 100 310

81601709

CHART.4.1.17

showing data for ABC Analysis for 2017

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INTERPRETATION
In the year 2017 there are 92 items which constitute their value of 91% in the total value
which comes under “A” category. 176 items which constitutes 8% in the total value
which comes under “C” category.

TABLE.4.1.18
showing data for the abc analysis for 2017

Class Value % of value Cumulative % Items

A 375515268 96 96 10

B 12049495 3 99 36

C 3935710 1 100 532

391500473

CHART 4.1.18
showing data for the abc analysis for 2017

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INTERPRETATION
In the year 2018 there are 10 items which constitute 96% of the total value which comes
under “A” category. 36 items which constitutes 3% in the total value which comes under
“B” category and 532 items which constitutes 1% in the total value which comes under
“C” category.
TABLE.4.1.19
ECONOMIC ORDER QUANTITIES
showing data for the EOQ for 2015

Total
Annual Carryin
Description ordering EOQ
consumption g cost
cost

LEAD-A 132827193.20 7396 3.339561035 767007

LEAD-B 10667526.61 540 0.300133651 195923

LEAD-C 5238997.96 289 0.131719665 151622

LEAD-D 362802426.40 22155 8.904450803 1343638

LEAD-E 82222161.09 5302 2.362562052 607488

LEAD-F 151503021.70 10305 3.990497753 884577

LEAD-G 90219604.18 5261 2.646367148 598927

LEAD-H 75688159.84 4210 1.948271607 571933

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 LEAD-I 51622360.50 2762 1.297897061 468733

CHART 4.1.19
showing for the EOQ for 2015

INTERPRETATION
The above data indicates the item wise economic order quantity. In the year 2015
indigenous items like Lead-A and Lead-C were increased based on the company orders
and the EOQ respectively. To note that the quantity anyhow per order will be influenced
by minimum shipment quantity, transportation cost and supplier capability.

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 TABLE 4.1.20
showing data for the EOQ for 2016

Total
Annual Carryin
Description ordering EOQ
consumption g cost
cost

LEAD-A 197502159.60 7624 15.81230149 425982.04

LEAD-B 23815321.44 923 1.033302007 206267.32

LEAD-C 8056951.10 281 0.324606244 118106.85

LEAD-D 371790043.10 11900 14.59495924 778638.56

LEAD-E 91534338.84 3739 4.066062402 410296.42

LEAD-F 166562629.34 7657 6.882704027 608770.44

LEAD-G 99352279.40 3321 4.515980384 382263.05

LEAD-H 79324194.96 14050 3.031998152 857415.89

LEAD-I 52048334.70 1910 2.070089408 309913.53

CHART 4.1.20

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 showing data for the EOQ for 2016

A B C D E F G H I
INTERPRETATION
The above table indicates the item wise economic order quantity.In the year 2016
indigenous items like Lead-A, Lead-D and imported items like Lead-F, Lead-H increased
as compared to the year 2015 respectively. To note that the quantity anyhow per order
will be influenced by minimum shipment transportation cost and supplier capability.

TABLE 4.1.21

showing data for the EOQ for 2017

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 Total
Annual Carryin
Description ordering EOQ
consumption g cost
cost

LEAD-A 759398976 2770 0.821819293 2262568

LEAD-B 12287610 758 0.134980812 371490

LEAD-C 10145470 146 10.88744244 16495

LEAD-D 148666539 415 0.123427151 999862

LEAD-E 248082560 820 0.238343931 1306525

LEAD-F 122637708 355 0.114488865 872086

LEAD-G 77201388 180 0.077529479 598729

LEAD-H 36142807 321 0.032430905 845860

LEAD-I 128348532 693 0.117028297 1232910

CHART 4.1.21

showing for the EOQ for 2017

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 A B C D E F G H I

INTERPRETATION
The above table indicates the item wise economic order quantity. In the year 2017
indigenous items like Lead-A , Lead-D and imported items like Lead-F , Lead-H
decreased as compared to the year 2016 respectively. To note that the quantity anyhow
per order will be influenced by minimum shipment quantity, transportation cost and
supplier capability.

TABLE 4.1.22
showing data for the EOQ analysis for the 2015

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 Annual Total
Description Carrying cost EOQ
consumption ordering
cost

A 76216,320 26800 11.78 588889.4

B 75391,463 22000 10.012 575608.24

C 19118,160 26800 12.65 284616.57

D 11267,376 20200 9.56 218209.26

E 10889,934 28600 6.5 309566.5

F 9767,363 10600 1.08 138468.39

G 7627955 10600 2.78 241184.61

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 H 5646620 9520 3.56 173781.18

I 3169636 22600 10.45 117088.91

J 2291535 16000 4.56 126810.67

K 2161964 19600 2.2 196270.9

CHART 4.1.22

showing for the EOQ analysis for 2015

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INTERPRETATION
Inventory turnover ratio was 8% in the year 2015 and it was continuously increased to
14% in the year 2018 where inventory turnover ratio was increasing year to year
subsequently sales are also increased. In the year 2017 graph you can see that window
gray tray,sulphuric acid, were used in a lot as compared to 2015 the window gray tray
was as same

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 CHAPTER V
(FINDINGS, SUGGESTIONS,CONCLUSION )

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FINDINGS

Inventory turnover ratio increased by 7.73 times in 2015, decreased in 2017 in 2017,
decreased in sales in 2019, but decreased in turnover.
Raw Material Turnover Ratio is 15.31 times in 2015, 17.39 times in 2016, 16.76 in 2017,
17.76 in 2018. This ratio was high in the year 2017 and sales increased during that year.
In 2015 the processing turnover ratio was 15.77 times in 2015, 18.89 in 2016, 19.32
times in 2018 and 17.08 times in 2018. This ratio decreased in comparison to the
previous year in 2018.
The finished goods turnover ratio is 46.37 times in 2015, 49.29 times in 2016, 38.99
times in 2018 and 33.87 times in 2018. The ratio decreased but the sales of the company
increased.
Inventory Holding Period is a transition period of 47 days, 46 days, 48 days and 49 days
from 2015 to 2018, with variations from year to year. The conversion period is low, so it
indicates that the payments of the supplier are faster.
A, B & C analysis under ABC Analysis shows two methods based on the percentage of
total items and the 'A' items are low but the value of the consumption is high.
The 'B' and 'C' class items of 2015 will increase by 2018, where the value is higher.
Finally a 'class' factor decreases as compared to 2015.As an order of collecting orders is
not subject to the requirement of the received commands, an important part of the
inventory takes place as it moves.
When ordering customer orders, the company does not follow the correct policy order.

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SUGGESTION

The inventory turnover ratio indicates whether inventory investment is the right limit or
not. Quickly measures inventory sales. It is necessary to maintain a turnover ratio greater
than the lower ratio. A good ratio indicates a good inventory system and reflects effective
business activities.
The company must improve its inventory holdings over all years impacting the
company's sales.
According to EOQ, the company must comply with the financial size of the company for
adjustable purchases on a regular order on its EOQ basis. This will reduce profitability.
Evaluation of 70% of A-Items to concentrate on these values under ABC Analysis.
The Company should try to "get the right time to the right place at the right time".
Companies must place inventory items according to risk and opportunity.
The company must distinguish between affected items, critical items (higher risk, greater
allowance).

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CONCLUSION

The company will reduce the order cost by following the correct inventory management
technique. Just-in-time (JIT) means that it intends to reduce costs, continuous
improvement philosophy, quality improvement, performance improvement, delivery
improvement, flexibility enhancement, increase innovation, adding and removing
activities (or waste).
JIT is not about automation. It eliminates garbage, but helps maintain inventory by
providing an environment that can process and simplify the processes. A collection of
techniques used to improve operations. Maybe a new manufacturing system used to
produce goods and services. When successful implementation of JIT principles,
significant competitive benefits are achieved, JIT principles can be applied to all parts of
the organization: action, purchase, operations, distribution, sales, accounting, design etc.
JIT generally identifies seven major types of elimination: waiting / waste time waste,
transport waste, inventory waste, processing waste, motion waste, waste of products,
waste of products

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BIBLIOGRAPHY

TEXT BOOK REFERENCE:

In this chapter the reference made from textbooks, journals, newspapers and magazines
are listed. The source of the internet and websites may also have been mentioned with the
correct address of the site.

● Philip Kotler marketing management “Himalaya publisher ltd.”

● Research methodology (C.R. Kothari
● Academic literature on the topic 'Distribution channel management’(Graflati)

ARTICLES REFERENCE:

1. Gadde, Lars-Erik. "The rise and fall of channel management." IMP Journal 10, no.
1 (March 14, 2016)
2. Guan, Xu, Murali Mantrala, and Yiwen Bian. "Strategic information management
in a distribution channel." Journal of Retailing 95, no. 1 (March 2019)
3. Sperandio Milan, Gabriel, Eric Dorion, and José Alberto da Rosa Matos.
"Distribution channel conflict management: a Brazilian experience." Benchmarking: An
International Journal 19, no. 1 (February 24, 2012)
4. Greenland, Steven J. "Network management and the branch distribution channel."
International Journal of Bank Marketing 13, no. 4 (June 1995)
5. Egede, Ehikwe Andrew, and Felix O. Egboro. "Challenges of Channel Conflicts
Management in Soft Drink." INTERNATIONAL JOURNAL OF MANAGEMENT &
INFORMATION TECHNOLOGY 9, no. 1 (March 31)
6. Záboj, M. "Analysis of using Category Management in the distribution process."
Agricultural Economics (Zemědělská ekonomika) 50, No. 9 (February 24, 2012)

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QUESTIONNAIRE

1. Orders are placed on a timely basis. How would you rate the overall quality of this
process?
(Use a scale of 1 to 5, with 1-Poor and 5-Best)

2. All purchase order transactions are completely prepared and recorded on a timely basis
a. Yes
b. No

3. Who receives the invoices for purchased inventory

a. Operational manger
b. production manager
c. marketing manager

4. Rate the working strategies of the supply chain management department on the basis of
the current programs
a. Outstanding
b. Excellent
c. Good
d. Average

5. Is the supply chain management department having sufficient transportation?

a. Yes
b. Not sufficient

6. According to the current growth process of the organization, which of the

following needs much attention
a. Operational activities

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2
b. Tactical activities
c. Current programming strategies

7. Choose the right option, where the supply chain department is facing problems in
taking care of the raw material?
a. During storage
b. Packaging
c. Testing of packaging
d. Evaluation of defective raw material

8. How do you rate the delivery activity of the department

a. Excellent
b. Very
effective c.Good
d.. Average

9. Is there any case recorded by the supply chain department in which the production
department complained late
a. Yes
b. No

10. The process should include how purchases are started (inventory levels), who is
involved, and ho QUESTIONNAIRE
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Straverage

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11. Which is the best inventory control technique?
a. FIFO
b. LIFO
c. Weighted average
d. Simple average

12. Is the technique used to evaluate the inventory is best for your company
a. Yes
b. No

13. How often are supplier performance reviews conducted?

- a. Monthly
- b. Quarterly
- c. Annually
- d. Not regularly

14. Are suppliers selected based on a standardized evaluation process?

a. Yes
b. No

15. Are purchase order approvals completed within the required timeframe?
a. Always
b. Most of the time
c. Sometimes
d. Rarely

16. Does the company use automation tools for procurement processes?
a. Yes
b. No

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17. How frequently is inventory checked for accuracy?
a. Daily
b. Weekly
c. Monthly
d. Quarterly

18. What is the main challenge in inventory management?

a. Overstocking
b. Understocking
c. Inventory discrepancies
d. Slow-moving stock

19. What is the main challenge in inventory management?

a. Overstocking
b. Understocking
c. Inventory discrepancies
d. Slow-moving stock

20. Are inventory restocking decisions based on data analysis?

a. Yes
b. No

21. How do you rate the efficiency of current transportation strategies?

a. Excellent
b. Good
c. Average
d. Needs Improvement

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22. What is the most common transportation issue faced?
a. Delayed deliveries
b. High transportation costs
c. Vehicle maintenance issues
d. Lack of sufficient fleet

23. Are there backup suppliers or transportation plans in case of delays?

a. Yes
b. No

24. How satisfied are you with vendor communication and responsiveness?
a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied

25. Is there a structured process for handling defective raw materials from suppliers?
a. Yes
b. No

26. How often does the supply chain team face compliance issues with procurement policies?
a. Frequently
b. Occasionally
c. Rarely
d. Never

27. Are key performance indicators (KPIs) used to measure supply chain efficiency?
a. Yes
b. No

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28. What is the biggest challenge in supply chain management?
a. Supplier reliability
b. Inventory accuracy
c. Cost management
d. Transportation efficiency

29. Do you believe digital transformation (AI, automation, blockchain) can improve supply chain
efficiency?
a. Strongly agree
b. Agree
c. Neutral
d. Disagree

30. What area should the company prioritize for supply chain improvement?
a. Technology adoption
b. Supplier relationships
c. Inventory management
d. Logistics & transportation

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