Professional Documents
Culture Documents
Project Report on
Faculty Guide
Prof. Sachin Kamble
Asst. Professor
NITIE, Mumbai
This is to certify that Mr. Sumedh Shirgaonkar, a student of the Post Graduate Diploma
in Industrial Engineering (PGDIE), 43rd Batch of the National Institute of Industrial
Engineering (NITIE), Mumbai has successfully completed the summer project in Supply
Chain Management titled,
Under my guidance. Based on the professional work done by him, this report is being
submitted for the partial fulfillment of Post Graduate Diploma in Industrial Engineering
(PGDIE), at NITIE, Mumbai.
Faculty Guide,
This is to certify that Mr. Sumedh Shirgaonkar a student of Post Graduate Diploma in
Industrial Engineering, 43rd Batch of National Institute of Industrial Engineering
(NITIE), Mumbai has completed the summer project titled,
Industry Guide
Acknowledgement
I take this opportunity to extend my sincere thanks to Croda India for offering a
unique platform to earn exposure and garner knowledge in the field of Materials
Management aspect of supply chain.
I wish to extend my sincere and heartfelt gratitude to my guide Ms. Mallika
Nair (Manager-Customer Service) who guided, supported and encouraged me during
the entire tenure of the project. I also thank Mr. Jaideo Upasani (Manager-Supply
Chain) and Mr. Chetan Verma (Manager-Procurement) at Croda India Company Pvt.
Ltd, for their co-operation and valuable advice throughout the course of my project.
Their constant support helped me in accomplishing the objectives of the project. I am
able to say with conviction that I have immensely benefited from auspicious and
prestigious association as a summer intern with Croda India.
I also thank Prof. Sachin Kamble my faculty guide, who inspired me and showed
me the right course to pursue.
I would like to express my sincere gratitude to each and every employee of the
organization who has contributed for the successful completion of the project.
Sumedh Shirgaonkar
PGDIE-43,
NITIE, Mumbai
Executive Summary
Croda is a global leader in specialty chemicals, sold to a wide range of markets- from
Personal Care to Health Care; from Crop Care to Coatings and Polymers. Croda is a truly
international company with
INDEX
I
II
Objective of the
Project
11
III
Methodology
12
IV
Literature Survey
13
19
VI
Scope &Limitations
34
VII
Academic
Contributions
35
VIII
Bibliography
36
I
About the Company
1.1 Company History
Croda was formed in Yorkshire, England in 1925 to make lanolin. Initially, trading was
difficult, but a report from the National Physical Laboratory showed that lanolin was
effective rust preventive. This opened up new markets, particularly during the war years
which led to collaboration with the government to produce specialties such as camouflage
creams, insect repellent and gun cleaning oils. Post war, many of these markets
disappeared
so
the
company
had
to
diversify
into
new
areas.
During the 1990s, the company focused increasingly on its important specialty chemicals
business. In 2006, Croda acquired Uniqema from ICI. Following a successful integration
programme, Croda is firmly established as a global leader in natural based specialty
chemicals and well placed to meet the challenges of the twenty first century.
1.2 Presence:
Croda is a truly international company with approximately 3400 employees working at 43
sites, 34 countries.
Crodas corporate headquarters are at Cowick Hall in East Yorkshire, England. Croda has
technical centers and manufacturing plants throughout the UK, France, Germany, the
Netherlands, Italy, Spain, USA, Brazil, India, Australia, Singapore, South Korea, Indonesia
and Japan.
1.3 Products
Croda uses a variety of technologies to manufacture a uniquely broad portfolio of
oleochemical and specialty products. These products provide enhanced functionality when
used as ingredients, additives, or processing aids within a wide cross section of industries,
including many of the following:
1.3.1Consumer Care
Croda Personal Care is one of the worlds leading global suppliers of specialty raw
materials for the personal care industry, working with their customers to meet
consumer needs.
Croda Health Care is a world leading supplier of high purity ingredients suitable
for use across the pharmaceutical, dermatological, animal health, nutraceutical and
functional food markets. Ingredients range from Super Refined excipients to
ultra-pure medical grade lanolins and omega 3 lipid concentrates.
Croda Crop Care offers formulation aids and adjuvants under respected brand
names such as Atlox, Crovol and Atplus.
1.3.2 Performance Technologies
Croda Lubricant Additives offers a unique global range of specialty products
designed to deliver superior performance to formulators in the automotive and
industrial lubricant markets.
Croda Coatings and Polymers offers environmental solutions to the resin
manufacturers, formulators and additive producers through its range of natural,
high performance oleochemicals and specialty surfactants.
Croda Geo Technologies encompasses the business sectors of oilfield, mining and
water treatment
Croda Polymer Additives is a world leader providing effects to a wide range of
polymers used in today's plastics & packaging market
Croda Home Care is a world leader providing natural specialty ingredients for
home care and tissue, car care, and industrial and institutional (I&I) applications.
1.3.3 Industrial Chemicals
Crodas Industrial Chemicals business serves a variety of important industrial
markets with ingredients, additives, and processing aids. They are applied into:
Emulsion technology
Advanced materials
Bitumen additives
7
Leather auxiliaries
Paper chemicals
minimizing health and safety risks, whilst developing simpler and low energy routes to
existing and new chemical processes.
Sites are regularly audited to ensure compliance with our rigorous SHE (Safety, Health and
Environment) policies. All Croda manufacturing sites have attained the international
quality standard ISO 19001. Some, particularly those associated with the personal care and
health care/pharmaceutical industries, operate to the principles of GMP (Good
Manufacturing Practice).
All Croda manufacturing sites have the objective of certification to BS EN ISO 14001
(environmental management) and BS OHSAS 18001 (occupational health and safety
management) standards by 2010.
1.6 Safety, Health and the Environment (SHE)
The management of SHE has a high priority throughout the Croda group. At all times, the
company operates its business in a manner which actively seeks to prevent or minimize the
possibility of its operations causing harm to people, animals or plants.
All SHE activities are co-ordinated by the Group SHE department whose role includes
setting company safety standards, offering advice on how to achieve these standards,
auditing Croda activities to ensure standards are met, collating and publishing key
performance indicators to see how we are doing, and sharing best ideas in Croda with all
sites.
The management of each site is responsible for its own SHE performance, working closely
with the Group SHE department in respect of the above.
Each year, group objectives and targets are set, and the group SHE performance statistics
are reported in detail, together with news articles on SHE issues.
II
Need for the project
The consumer today have myriad of choices which makes it essential for the manufacturers
to come up with more and more innovative ways to remain competitive. To streamline the
supply chain is also crucial for sustainability of an organization in such a competitive
environment.
To streamline the supply chain it is important for any organization to have solid inventory
norms at various echelons of the chain. So the project directly addresses the level of
inventory at various levels. The inventory levels should be optimized to reduce the on hand
inventory while at the same time the customer service level should be maintained which is
highly critical for the organization.
The chemical industry is characterized by high degree of variations due to number of factors
like seasonality, trends, competitor moves etc. Here there is a paradoxical decision to
establish tradeoff between the supply chain responsiveness, the customer service level, the
on hand inventory and write-offs.
Croda India company Pvt. Ltd is operating in India since 2006. The company being in
growth phase is trying to set inventory norms for its 1083 SKUs. Inventory Turns and
Product Availability are two big issues in Crodas supply chain. Achieving the target
customer service level and making the product available at right place, at right time and in
right quantity is challenge that company is facing.
Growth
1200
1051.9 1077
1000
Value
800
586.4 593.2
600
382.8 387.1
400
200
82.7
96.7
operations
industrial chemicals
performance tech
consumer care
Segment
2012
2013
Also, the stock out opportunity cost is extremely high. So it is very essential to maintain a
high service level which can be achieved by having optimum inventory in hand which is
possible only by having correct product classification and concrete inventory norms.
10
III
Objectives of the project
3.1 Objectives:
To classify the finished goods and raw materials into product matrix.
To recommend Inventory norms for raw materials and for finished goods
3.2 Deliverables:
11
IV
Methodology
The steps followed to work on the project are shown in the chart below.
12
V
Literature Survey
5.1 Inventory Positions in the Supply Chain:
Raw
Materials
Work in
Process
Finished
Goods
incurred.
5.2.3 FSN (Fast, Slow, Nonmoving):
FSN Classification of materials can be done on average stay in the inventory, consumption
rate.
5.2.4 HML ANALYSIS (High, Medium, Low):
Only the difference from the former is being that it is the unit value and not the annual
consumption value.
H Unit value > 1000 (Sanctioned by higher officials)
M Unit value 100 to 1000
L Unit value < 100
Replenishment S t o c k :
This is the stock resulting from the ordering policies and is determined
by the frequency of ordering and the quantity ordered.
14
Random/predictive demand:
This initial item classification is usually carried out by firstly identifying any item
which has a predictive demand. By process of elimination the remainder of the item
range will be classified as having a random demand. It is necessary to set precise
rules for the identification of predictive demand items.
In this context predictive relates only to those items which have a quantity and time
commitment for when they will be required.
These would include:V items which are called off on a schedule basis by a customer with no
deviation in quantity or time against the original forecast.
V items provided for a sales campaign or promotion which will cease on the sale of
the initial supply and not generate any further demand.
V items provided in advance of a new product launch, sales campaign or
promotion, but note that these items may later become random demand items.
It can be seen that these do not include any items with any uncertainty in the
demand - this is the criterion. Any item, therefore, where there is uncertainty in the
demand over time, will be classified as random. Having completed the initial review
and classification the remaining sections apply largely to random demand items.
Stable demand:
A stable demand pattern is one where although the demand rate varies, it varies
about a constant average over time. As such, it will provide no evidence of an
increasing or decreasing trend.
Trend demand:
A trend demand pattern is one where the average demand rate varies over time
Seasonal demand:
A seasonal demand pattern is one which shows a variation in the average demand,
at different points in time throughout the planning cycle, and can generally be
related to market forces which influence the demand patterns.
5.5 Forecasting:
As part of the inventory system the ability to forecast future demand patterns is an
essential feature.
To be able to predict these changes, before they occur, in order to be able to
adjust the control parameters within the system, is the purpose of forecasting.
There are a wide variety of methods for short and long term forecasting of demand
varying from guesses or estimates, through
simple, to
extremely
sophisticated
mathematical techniques.
In practice in inventory systems it is usual to make some quantified forecast and
modify or overlay this with known additional information, where appropriate.
Simple average:
This method of predicting future demands is attractive due to the simplicity of
calculation.
E.g. 58 66 56 58 60 62
Avg. demand
=(58+56+58+60+62)/6
=360/6
=60
Moving average
This method is also used where the demand pattern indicates a trend and
from the demand data a smoothing of the pattern of demand will help to establish
16
the
mean
of
the
previous n days'
are
closing
prices.
If
those
prices
Lead time
The lead time is defined as the interval between deciding that an order needs to be
placed and the order being physically available for issue.
This should not be confused with supplier delivery time, which will cover a shorter
period, but does not include the administrative processes prior to and following the
delivery time as well as the physical activity of receiving and storing the stock. In
most inventory systems the lead time is set to a fixed time period.
= 21 days
Std. deviation
=5 days
Economies of purchasing
Economies of production
Transportation savings
Transit
Buffer
Seasonal
Decoupling
Speculative
Mistakes
VI
Modeling and Analysis
6.1 Existing System:
6.1.1 Inventory Norms for finished goods:
Initial study of the project included study of the current inventory management system
incorporated in Croda.
The finished goods were classified into three categories viz, A, B and N. Various Factors
were considered for this classification and by rating these factors the classification was
carried out. The classification factors are,
Slob Potential of FG
Customer Importance
Scheduling Pattern
Seasonality
Category MTO: There is no inventory for these materials; whenever the order is placed
planning for these materials is taken into consideration.
e.g. RMT0026, RMT0027, RMT0029, RMT0030
Main aspect of business i.e. Business Importance of the material is not taken into
consideration
The devised stock norms were developed few years back, hence to sustain in todays
dynamic market
Regularity of the product is not taken into consideration both for FG and RM
Slob Data
Year
Plant
AET0284/0200/TS08
IN01
3/15/2011
2011
3 AET0284
5600
AET0284/0210/TP49
IN01
12/17/2013
2013
12 AET0284
10500
AET0284/0210/TP49
IN01
6/12/2012
2012
6 AET0284
9870
AET0284/0210/TP49
IN01
2/14/2011
2011
2 AET0284
9240
AET0284/0210/TP49
IN01
8/31/2011
2011
8 AET0284
8820
AET0284/0210/TP49
IN01
5/31/2012
2012
5 AET0284
7350
20
Month
Short
Code
Material
Demand
AET0284/0210/TP49
IN01
4/9/2013
2013
4 AET0284
7350
AET0284/0210/TP49
IN01
4/29/2013
2013
4 AET0284
7350
AET0284/0210/TP49
IN01
4/30/2013
2013
4 AET0284
7350
AET0284/0210/TP49
IN01
5/30/2013
2013
5 AET0284
6930
AET0284/0210/TP49
IN01
6/24/2011
2011
6 AET0284
6090
AET0284/0210/TP49
IN01
7/25/2011
2011
7 AET0284
5880
AET0284/0210/TP49
IN01
9/30/2013
2013
9 AET0284
5670
AET0284/0210/TP49
IN01
2/11/2013
2013
2 AET0284
5040
Ship-to Code
Material
111421
ETT1822/0180/TS08
Billed Quantity
1440
2340
121451
ETT0129/0050/TP18
200
250
121451 ETT0369/0025/TB76
121474
EM83354/0020/8C02
121474 ETT2059/0045/TP05
50
760
225
450
675
990
121474 ETT2075/0050/TP18
Plant
Category Source
Material Code
Regularity
21
150
Forecast accuracy
6.4.1 Plant: To get an idea about the production of each plant, so that inventory at each
warehouse can be simplified products were arranged according to the plant code
e.g. IN01- Mfg. at Thane Plant
IN04- Imported Materials
(Every code has not been explained to maintain the secrecy)
6.4.2 Material Code: The products were analyzed on the material short code to avoid the
confusion and to obtain the real time data.
e.g.
Pack
Container
6.4.3 Regularity: The product sales data was analyzed to obtain the sales pattern i.e. is it
regular in sale or is it non-regular. This gives a clear picture to place the material in its
appropriate quadrant in the matrix.
Condition for regularity:
e.g.
DC08311/0025/V07/9
3000
2500
2000
1500
1000
500
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
6.4.6 Forecast: To evaluate the forecast accuracy of the products, forecast data was
analyzed which makes the picture crystal clear to place the products on X- axis. To get an
exact idea for setting the stock norms based on the sales team forecast this factor was
placed on X- axis.The products having forecast accuracy less than 60% were termed as low
while those having more than 60% were termed as high.
e.g.
23
Actua
l
Sales
Material
Short
Code
AET0284/0210/TP4
9
AET028
4
7560
7560
8000
440
AET0284/0210/TP4
9
AET028
4
1617
0
1617
0
12000
AET0284/0210/TP4
9
AET028
4
2415
0
2415
0
14000
-4170
1015
0
AET0284/0210/TP4
9
AET028
4
1218
0
1218
0
7000
-5180
AET0284/0210/TP4
9
AET028
4
1071
0
1071
0
5000
AET0284/0210/TP4
9
AET028
4
1596
0
1596
0
AET0284/0210/TP4
9
AET028
4
AET0284/0210/TP4
9
AET028
4
AET0284/0210/TP4
9
Sales
Forecas
t
Error
Absolut
e Error
% Error
%
Accuracy
Term
440
5.8201
1
94.17989
4 H
4170
25.788
5
74.21150
3 H
10150
42.029
57.97101
4 L
5180
42.528
7
57.47126
4 L
46.68534
1 L
5710
1890
-5710
1407
0
53.314
7
14070
88.157
9
11.84210
5 L
10000
1000
0
10000
0 L
5000
5000
5000
0 L
AET028
4
3570
3570
-3570
3570
100
0 L
AET0284/0210/TP4
9
AET028
4
3360
3360
10000
6640
6640
197.61
9
0 L
AET0296/0200/TP4
9
AET0296/0200/TP4
9
AET029
6
AET029
6
3200
3200
3200
100 H
3200
3200
2600
-600
600
18.75
81.25 H
AET0296/0200/TP4
9
AET029
6
3200
3200
2400
-800
800
25
75 H
AET0296/0200/TP4
9
AET029
6
4000
4000
2600
-1400
1400
35
65 H
AET0296/0200/TP4
9
AET029
6
4000
4000
2400
-1600
1600
40
60 H
24
6.4.7 Gross Margin: This factor is considered as one of the leading factor, as the ultimate
objective of any business is to earn profit by satisfying their customer. The Y- axis of the
matrix is gross margin which is measured in qualitative term and is not revealed as to
maintain the confidentiality of the company.
6.4.8 Product Matrix: The products are analyzed on all the identified factors. With the
defined conditions and rules as well as by human intelligence of the organization people
and the presenter the products are classified into their respective matrix quadrant. The
rules devised for classification were dynamic and used to vary product to product.
Sample Table:
Plant Category Source
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
IN01
Mfg.
Material
AET0296
CPT0748
CPT0811
CPT2104
CPT2177
EST0464
EST1921
ETT0105
ETT0156
ETT0186
ETT0190
ETT0498
ETT0698
ETT0922
ETT0935
ETT0981
ETT1232
ETT1534
INT0455
INT0501
SDT0936
SPT0059
Sales 2013 No of customers 2011-13 Avg. Sales 2011-13 Forecast Accuracy Forecast (L/H) Gross Margin Slob 2012 Slob 2013
158000
3
264800
62.74278768
H
L
N
N
16000
1
5333.333333
100
H
L
N
N
16000
1
5333.333333
100
H
L
N
N
23000
1
34933.33333
71.73913043
H
L
N
N
22000
1
23666.66667
61.0974611
H
L
N
N
21420
1
12600
76.75723944
H
L
N
N
18180
1
7380
93.62139918
H
L
N
N
350
1
116.6666667
85.71428571
H
L
N
N
507360
8
481250
74.08021102
H
L
Y
N
26450
30
30366.66667
60.16046381
H
L
N
N
33180
12
33180
67.5804684
H
L
Y
Y
3250
2
1250
100
H
L
Y
N
49600
3
31200
90.39986781
H
L
N
N
32530
12
28013.33333
82.99795512
H
L
N
Y
37170
5
25340
62.54005291
H
L
N
N
34400
2
29466.66667
63.32833833
H
L
N
Y
115200
2
111720
73.47513598
H
L
N
N
391400
3
218400
62.33567667
H
L
N
N
224220
49
214160
75.5050616
H
L
Y
N
78900
17
88526.66667
64.15339307
H
L
N
N
17350
3
10683.33333
70.04439434
H
L
N
N
102050
5
107450
69.70318153
H
L
N
N
Priority SBU
Fiber Finishes
Personal Care
Personal Care
Crop Care
Crop Care
Crop Care
Lubricant Additives
Personal Care
Textile Auxillaries
Textile Auxillaries
Home Care
Coatings & Polymers
Textile Auxillaries
Personal Care
Coatings & Polymers
Coatings & Polymers
Crop Care
Personal Care
Textile Auxillaries
Textile Auxillaries
Personal Care
Textile Auxillaries
On the above analyzed data we derived a product matrix in graphical format which will be
useful for the organization to know the potential materials as well as the lagged materials.
The product matrix consist of Four Quadrants viz,
Predictable
Forecastable
MTS
MTO
25
Service
Level
Forecasted
Demand
Safety
Stock
Lead Time
Actual
Demand
6.5 Predictable:
These are the high potential materials which have high gross margin as well as high
forecast accuracy along with high sales and are the regular sold materials of the
organization.
Recommendations:
Here,
Z= Service level factor taken from normal distribution tables.
26
6.6 Forecastable:
These are products which have low gross margin but are highly forecastable. They have
good customer demand and have moderate sale .They do show seasonality in their sales
pattern and are regular as well as non regular in demand.
Recommendations:
80% of inventory with respect to previous years sales should be kept as inventory
Here:
Z= Service level factor taken from normal distribution tables.
l= lead time in days
=Std. Deviation in the demand
t= Forecast period in months
They should be planned as the order arises from the customer end.
Sample Matrix:
MTS
PREDICTABLE
Gross Margin
MTO
FORECASTABLE
Forecast Accuracy
Slob Data
28
2012
1
2012
2
2012
3
2012
4
2012
5
2012
6
Material
RMR0213
RMT0004
-8936 -18748 -29750 -30936 -23914 -12810
RMT0005
-83
-7
-95
-82
-58
-82
RMT0006
-6
RMT0011
-57212
-38235 -39160 -29260
RMT0013 -22414.6 -14863.4 -18157 -12055 -9321 -7111
RMT0015
-9000 -12000 -18000 -12000 -12000 -9000
RMT0016
-1020 -510
-510 -510
RMT0017 -1916.5 -2380.5 -175 -4065
-44 -3600
RMT0020
RMT0021 -13050 -5550 -14446 -10700 -11300 -11845
RMT0022 -32453 -38670 -24166 -32903 -40784 -34857
RMT0023
-218 -123 -149
-88 -167.7 -174
RMT0024
-10322 -4753 -2151 -903 -2558
RMT0025
RMT0026 -31658 -33994 -30620 -24620 -35238.3 -43730.9
RMT0027
-10
-4568
RMT0029
RMT0030 -10700 -20842 -28204 -22783 -27303 -31297
2012
7
2012
8
2012
9
2012
10
Stock No.
Regularity
Classification
Lead Time
6.10.1 Regularity: The Raw materials Regularity was determined by imposing a condition
i.e.
29
6.10.2 Lead Time: Lead time is the time taken by the raw material to reach at the company
premises from the time of order to the supplier. This time has great influence to classify the
Raw materials in their respective matrix.
To have better stock norms we decided to link the raw materials matrix to the finished
goods matrix.
6.10.3 Steps Followed to classify the Raw materials:
Forward
Planning
MTS
MTO
Initially it was decided to classify raw materials into 3 categories MTO, MTS, FP
Firstly,
o If the lead time for raw material is less than 7 days it will be MTO
o If the lead time for raw material is less than 15 days it will be MTS
o If the lead time for raw material is more than 90 days it will be FP
Then Check for regularity of the material if it is regular then move upward as in fig
30
By using above mentioned steps we classify the raw materials into 3 categories
Sample:
StockNo
Classification
Regularity 2013
Lead time
Category
RMR0213
RMT0004
RMT0005
RMT0006
RMT0011
RMT0013
RMT0015
RMT0016
RMT0017
RMT0020
RMT0021
RMT0022
RMT0023
RMT0024
RMT0025
RMT0026
C
A
C
C
A
A
A
A
A
B
A
A
B
A
C
A
N
Y
Y
N
Y
Y
Y
Y
Y
N
Y
Y
Y
Y
N
Y
25
90
60
30
15
30
90
0
90
15
45
45
45
30
30
15
MTO
FP
FP
MTO
FP
FP
FP
MTO
FP
MTO
FP
FP
FP
FP
MTO
FP
6.11 Recommendations:
Forward Planning:
Materials should be planned early before as they have high lead time and also they
are regular in consumption
Make to stock:
Lead time of most of the materials is less 7 days, but as they are regular in nature we
have to plan them early before the order is placed depending upon the forecast data
Inventory for MTS should be carried depending upon the lead for each material
Make to order:
No inventory should be carried for these materials, except some which have lead
time more than 15 days
31
RM
LA
MA
HA
LB
MB
HB
LC
MC
HC
Classification
C
LOW
MEDIUM
FG IMPORTANCE
32
HIGH
Predictable Finished
Goods
Forecastable Finished
Goods
Make to Stock
Finished Goods
Made to Order
Finished Goods
RM Classification A
HA
RM Classification B
HB
RM Classification C
HC
RM Classification A
MA
RM Classification B
MA/MB
RM Classification C
MB/MC
RM Classification A
LA/LB/MB
RM Classification B
LB/MC
RM Classification C
LC/LB
RM Classification A
LB
RM Classification B
LB
RM Classification C33
LC
VII
Scope and Limitations
7.1 Scope of the Project:
The product classification and the inventory norms recommendations will give the senior
authorities a scenario to improve inventory norms and hence, customer service level. This
project is important for long term as it shows the products into their respective category
with importance to the business. It shows the effects of seasonality, regularity on product
sales, this can be useful to establish concrete stock norms.
Following are some suggestions to increase customer service in future:
Transit Time:
o Identification of high lead time materials
o Explore ways of reduction in Lead Times & possibility of alternate sources of
supply
o Explore reasons for variation in lead times
7.2 Limitations:
The Recommendations are based on the Past data Analysis which might fail in future
due to dynamism of the business
Definition of the Regularity might not fit for all materials both in RM and FG
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VIII
Academic Contribution
The project undertaken by me required the knowledge of work system, operation
related to inventory management, the problems faced in making an accurate practical
model. I also learned the operation of different departments and their interrelationship.
While completing the project I learnt a lot many things which are stated as
follows:
Inventory processing
Data Analytics
Demand Planning
The concepts learned at NITIE were of great use and helped in understanding things with
more depth. Following subjects were helpful during the project
Business Statistics
Materials Management
35
IX
Bibliography
SCMOPS.com
Wikipedia.org
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37