CHAPTER 1: INRTODUCTION

1.1 INTRODUCTION OF INVENTORY MANAGEMENT:

Inventories are assets of the firm and require investment and hence involve
the commitment of firms resources. The inventories need not be viewed as an idle
asset rather these are an integral part of firms operations. But if the inventories are
too big, they become a strain on the resources, or if they are too small, the firm may
lose the sales. Therefore, the firm must have an optimum level of inventories.
Inventory is actually money, which is available in the shape of materials (raw
materials, in-process and finished products), equipment, storage space, work-time
etc. Inventory is a list of goods and materials, or those goods and materials
themselves, held available in stock by a business. Inventory 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. Any organization which is into production, trading,
sale and service of a product will necessarily hold stock of various physical
resources to aid in future consumption and sale. While inventory is a necessary evil
of any such business, it may be noted that the organizations hold inventories for
various reasons, which include speculative purposes, functional purposes, physical
necessities etc.A component of supply chain management, inventory management
supervises the flow of goods from manufacturers to warehouses and from these
facilities to point of sale. A key function of inventory management is to keep a
detailed record of each new or returned product as it enters or leaves a warehouse or
point of sale.
Inventory management is a science primarily about specifying the shape and
placement of stocked goods. It is required at different locations within a facility or
within many locations of a supply network to precede the regular and planned
course of production and stock of materials.

Inventory control is concerned with achieving an optimum balance between two

competing objectives.
Minimizing the investment in inventory.
Maximizing the service levels to customers and its operating departments.

1.2 CONCEPT OF INVENTORY MANAGEMENT:

The dictionary meaning of "Inventory" is a detailed list-stock of goods in this". A
practical definition from the material management angle would be "Items of stores
or materials kept in stock to meet future demands of production, repairs,
maintenance, construction etc.". Since the materials held in the inventory are idle
resource, another definition of inventory would be "an idle resource of any kind
which has an economic value".
The inventory means and includes the goods and services being sold by
the firm and the raw materials or other components being used in the manufacturing
of such goods to be offered to customers whenever demanded by them. Inventory
management also means maintaining effective internal controls over inventory,
including safeguarding the inventory from damage or theft, using purchase orders to
track inventory movement, maintaining an inventory ledger, and frequently
comparing physical inventory counts with recorded amounts.

1.3 TYPES OF INVENTORIES:

Generally the inventories are classified into three categories and they are as follows;

1. Finished goods: These are the goods, which are either being purchased by the firm, or are being
produced or processed in the firm. These are just ready for sale to customers.
Inventories of finished goods arise because of the time involved in production
process and the need to meet customers demand promptly. If the firms do not
maintain a sufficient finished goods inventory, they run the risk of losing sales,
as the customers who are unwilling to wait may turn to competitors.

2. Work-in-progress: It refers to the raw materials engaged in various purchase of production

schedule. The degree of completion may be varying for different units. Some
units might have been just introduced; while some others may be 40%compleete
or others may be 90%complete. The work-in-progress refers to partially
produced goods.

3. Raw materials: The raw materials include the materials, which are used in the production
process, and every manufacturing firm has to carry certain stock of raw
materials in stores. These units of raw materials are regularly issued transferred
to production department Inventories of raw materials are held to ensure that the
production process in not interrupted by a shortage of these materials.

Inventory is very vital to every Company is that without inventory no company

would survive. Inventory is meant for protection and for economy in cost.
Keeping inventory of sufficient stocks will help to face lead times component,
demand and supply fluctuations and any unforeseen circumstances in the
procurement of materials. Though to have inventory is must, inventory is such a
thing that will pile up and creep into the area of profits to turn them as losses
and can put the company in red. It is therefore, necessary to have control over
inventory to save the company from piling up of inventories and to avoid losses.
Better said than done is the world that suits the inventory control.
Inventories

constitutes

second largest category

of all manufacturing

operation exceeded only by plant and equipment and followed by

receivables. The objectives of inventory control are:
a) To keep required stock of materials so that production and maintenance
activities do not suffer.
b) Minimum blockage of funds in inventory. Optimization can be achieved and
efforts need to be made to improve input

output ratio of materials by scientific

methods of determining.

1.4 DEFINITATIONS
Inventory control can be defined as Determining and maintaining
optimum investment in inventory given the significance of benefits and
cost association with holding inventory .
Inventory Control relates to a set of policies and procedure by which
an industries determines which materials it will hold in stock and the
quality of each that it will carry in stock . Therefore inventory control is
otherwise known as STOCKCONTROL.

1.5 FACTORS INFLUENCING INVENTORY

How much to buy at onetime and When to buy this quality . These
are two fundamental things on which inventory control depends. Many
factors govern these fundamental things. The prime factors that govern
these two fundamental things are:
1. Requirements
2. Quality in stock or on order
3. Lead time
4. Obsolesce.

1.6 CONTROL, MAINTENANCE AND MANAGEMENT

The essence of inventory control, broadly speaking consists of revolving
the following three factors:
1. Necessity for stocking an item
2. Time for reordering the items
3. Quality per order to be order.
Continuous and periodical review is required in the evaluation of
inventory management and treats it as a continuous process as costs,
source of supply, availability of materials; consumption will vary in the
course of time making the previous assessment invalid. This process also
helps in standardization of materials for procurement by using near
equivalents

and

eliminating

material,

which

are

discontinued

as

regulation, which will remove obsolescence.

1.7 INVENTORY CONTROL TECHNIQUES

Inventory is being maintained as a cushion in supply of materials for
continuous production without causing stock out situation. This cushion
should not be suicidal to any organization. The following scientific techniques
and methods are being used in control of inventory.
1. Inventory Management Techniques
2. Standardization
3. Selective Inventory Control
4. Just In Time
5. Perpetual inventory system
6. Inventory turnover ratio

1.8 INVENTORY MANAGEMENT TECHNIQUES

1. Economic Order Quantity
If the firm is buying raw materials, it has to decide lots in which it has
to be purchased on replenishment. If the firm is planning a production
run, the issue is how much production to schedule. These problems are
called order quantity problems, and the task of the firm is to determine
the optimum or economic order quantity.
(a) Ordering cost:
The term ordering cost is used in case of raw materials and includes the
entire costs of acquiring raw materials.
(b) Carrying cost:

Cost incurred for maintaining a given level of inventory is called carrying

cost.Economic Order Quantity is given by the formula:
EOQ = 2AOC
And the total cost of inventory is given by the formula:
Total cost of inventory = (AP) + (AO)EOQ +(EOQC)2

Where A = Annual consumption (in units)

O = Ordering cost per order (in Rs)
C = Carrying cost per unit (in Rs)
P = Price per unit (in Rs)

2.

Reorder Point

The reorder point is that inventory level at which an order should be

placed to replenish the inventory. To determine reorder point:
(a) Lead time is the time normally taken in replenishing inventory after
the order has been placed.
(b) Average usage
(c) Economic order quantity

3. Safety stock
The demand for material may fluctuate from day to day. The actual
delivery time may be different from the normal lead time. If the actual
7

usage increases or the delivery of inventory is delayed the firm can face
problem of stock out, which can be costly. So, in order to guard against
the stock out the firm may maintain a safety stock.
1.9 STANDARDIZATION
Standardization

is

very

essential

to

control

the

inventory,

as

by

standardization reduction in variety of material is possible. And because

of the reduction in variety the advantages are low order cost, low
inventory, less storage stocks, conservation of materials, variety reduction,
less paper work, easy follow up with suppliers, less number of orders.
The importance of this field has been recognized since the days of F.W.
Taylor, who first drew attention to this fundamental need in any
organization. Just as work study is necessary preliminary to work
simplification, and a basic technique for production control, quality
control, materials handling, estimated cost control, etc., Standardization
are preliminary necessity to design a basic technique on build control and
standardization procedure.

1.10 SELECTIVE INVENTORY CONTROL MANAGEMENT

Any manufacturing organization consumes few thousand items of stores. A
high degree of control on inventories of each item would, therefore
neither be practical considering the work involved, nor worthwhile since
all items are not of equal importance. Hence, it is desirable to classify or
group items to control, commensurate with importance. This is the
principle of selective control as applied to inventories and the technique
of grouping is termed as selective technique.
Selective inventory means variation in the methods of inventory control
from items to item and this differentiation should be on selective basis
8

by classification. A company has to stock thousands of items of raw

materials, standard parts, stores and spares, sub contract items, tools,
stationery etc. To have better control over the inventory/ stock on hand,
selective inventory control technique should be used in isolation/ or in
conjunction.
Thus selective control means selecting the area of control so that required
objective is achieved as early as possible without any lost of time due to
taking care of full area
Minimum loss of energy and efforts.
At minimum cost without loss of time.
There are following selective control techniques:
*

ABC Analysis

FSN Analysis

XYZ Analysis

VED Analysis

HML Analysis

a.) ABC Analysis

ABC analysis is a selective control technique which is required to be
applied when we want to control value of consumption of the item in
rupees obviously when we want to control value of the consumption
of the material we must select those materials where consumption is
very high.
In any company manufacturing, there are number of items which are
consumed or traded it may run into thousands.

Value of consumption of No. Of items

Grade

items (value in Rs).

70% of consumption

10% of no. Of items

20% of consumption

15% of no. Of items

10% of consumption

75% of no. Of items

A items these are those items which are found hardly 5% 10% but their
consumption may amount 70%

75% of the total money spend on

materials.
B items these are those items which are generally 10% 15% of he total
items and their consumption amounts to 10% 15% of the money spend
on the materials.
C items these are large number of items which are cheap and inexpensive
and hence insignificant. They are large in number s running into hardly
5% 10% of the total money spends on materials.
'A' Class Items

B Class Items

(High consumption value)

(Moderate

'C Class Items

consumption (Low consumption value)

value)

1. Very strict control

1. Moderate control

1. Loose control.

2. Low safety stocks.

2. High safety stocks

2. No safety stocks or very

Low safety stocks.

10

3. Maximum follow

up and

3. Follow
3. Periodic follow

Expediting

4. Rigorous value analysis

Can

be

management

handled

up and expediting

in exceptional cases

4. Moderate value analysis

5. Must be handled by senior 5.

officers

up

4. Minimum value analysis

by
5. Can be fully delegated

b.)FSN ANALYSIS
This type of analysis is more concerned from the point of view of
movement of the item or issue of the item or issue of the item under this
type of analysis.
F items are those items, which are fast moving i.e. in a given period of
time, say a month or a year they have been issued up till number of
items. Although fast moving does not necessarily mean that these items
are consumed in large quantities.
S items are those items which are slow moving in the sense
that in the given period of time they have been issued in a very limited
number of time
N nonmoving items are those, which are not at all issued for
a considerable period of time.
Thus, stores department whose concerned with the moving of items
would like to know and classify that the items are storing in the

11

categories FSN. So that they can manage operate and plan stores activity
accordingly.
For example, for efficient operations it would be necessary that fast
moving items as far as possible should be stored as near as possible to
the point of issue. So that it can be issued with minimum of handling.
Also such items mus2t be stored at the floor level avoiding storing them
at high heights.
Similarly, if the items are slow moving or issued once in a
while in a given period of time they can be stored in the interior of the
stores and even at the higher heights because handling of these items
becomes very rare.
Further it is necessary for stores in charge to know about nonmoving
items for various reasons:
1 They mean unnecessary blockage of money and affecting the rate of
returns of the company.
Further they also occupy valuable space in the stores without any
usefulness and therefore it becomes necessary to identify these items and
go into details and find reasons for their non-moving and if justified to
recommend to top management for their speedy disposal so that company
operations are performed efficiently.
Also inventory control to some extent can also be exercised on the basis
of FSN analysis.
For

example,

fast

moving

items

can

be

controlled

more

severely,

particularly when their value is also high. Similarly, slow moving items
may

not

be

controlled

and

reviewed

very

frequently

since

their

consumption may not be frequent and their value may not be high.
c.) XYZ Analysis
12

This type of analysis is carried out from the point of view of value of
balance stocks lying in the stores from time to time and classifies all the
items as given below.
X items are those items whose value of balance stocks lying in the
stock are very high.
Y items are those items whose value of balance stock is moderate.
Z items are those items whose value of balance stock lying in the
stocks is very low.
After knowing this type of classifications and their items can be taken to
control the situation as shown below:
1] From security point of view high value items must be stored and kept
under lock and key or if not possible they should be kept in such a way
that they are always under supervision. Similarly arrangement can be made
for y and z items accordingly.
2] From inventory control point of view we must know why there is high
inventory for X items. We should review inventory control procedure for
each and every high item because stock should be maintained to take care
of lead time consumption and also to provide safety stocks. For high
value items lying in stores we should review the reasons for long lead
time as well as demand variations and see whether lead time consumption
and safety stocks can be reduced. Thus proper inventory control procedures
can be developed on the basis of XYZ analysis.
Thus proper selective control methods should be selected to control the
materials and prevent from facing loss, taking advantage and knowing
what exactly is to be done.
d.) VED analysis

13

VED analysis is carried out to control situation, which are critical. When
applied to material in VED analysis we try to identify material according
to their criticality to the production, which means the material, without
which the production will come to stop and so on from this point of view
material classified into three categories.
V vital,
E essential,
D desirable.
Vital categories of the items are those items for the want of which the
production will come to stop. For e.g. Power in the factory.
Essential group of items are those items because of non-availability of
which the stock out cost is very high.
Desirable group of items are those items because of non-availability of
which there is no immediate loss of production and stock cost is very less
and it may cause minor disruption in the production for a short time.
e.) HML ANALYSIS
This analysis, analysis the material according to their prices and then
classifies them as H items or M items or L items.
H stands for high price,
L stands for low price and
M stands for medium price.
Since price is more concerned of purchase department mostly purchase
department people analyses the material according to HML analysis.

14

HML analysis must be carried out from any one of the following
objectives or some of the objective as the case may be.
When it is desire that purchasing responsibility should be delegated
to right level of people.
When it is desired to evolve purchasing policies then also HML
analysis is carried out i.e. whether to purchase in exact quantities as
required or to purchase in EOQ or purchase only when absolutely
necessary.
When the objective is to keep control over consumption at the
department level then authorization to draw materials from the stores
will be given to high level H item, low level for L items and
medium level for M item.
When it is desired to decide frequency of stock taking then very
frequently H category, very rarely L category and averagely M
category.

When it is desired to arrange security arrangements for the items,

then H item under lock and key, L items keep open on the shop
floor and under supervision for M items

1.11 JUST IN TIME INVENTORY SYSTEM

Keeping in view the enormous carrying cost of inventory in the stores
and go downs, manufacturers and merchandisers are asking for more
frequent deliveries with shorter purchase order lead times from their
suppliers. Now days organizations are becoming more and more interested
in getting potential gains from making smaller and more frequent
purchase orders. In other words, they are becoming interested in just in
15

time purchasing system. Just in time purchasing (JIT) purchasing is the

purchase of material or goods in such a way that delivery of purchased
items is Just in time purchasing recognizes too much carrying costs
associated with holding high inventory levels. Therefore, it advocates
developing good relations with suppliers and making timely purchases
from proven suppliers who can make ready delivery of goods available as
and when need arises. EOQ model assumes a constant order quantity
whereas JIT purchasing policy advocates a different quantity for each
order if demand fluctuates. EOQ lays emphasis on ordering and carrying
costs but inventory management extends beyond carrying and ordering
costs to include purchase costs quality costs and stock out. Just in time
purchasing takes into consideration all these costs and moveoutside the
assumptions of the EOQ model.
Advantages of JIT purchasing
1. Investment in inventory is reduced because more frequent purchase
orders of small quantities are made.
2. Carrying cost is reduced as a result of low investment in inventory.
3. A reduction in the number of suppliers to be dealt with is possible.
Only proven suppliers who can give `quick delivery of quality goods are
given purchase orders . As a result of this reduction in negotiation time
is possible. The use of longrun contracts with some suppliers with
minimal paper work involved is possible.
4. Quality costs such as inspection cost of incoming materials or goods ,
scraps and rework costs are reduced because JIT purchasing assures quick
and frequent delivers of small size orders which results in low level of
inventories causing minimum possible wastage. Therefore, JIT purchasing
is frequently applied by organizations dealing in perishable goods assured
before their use or demand.
16

CHAPTER 2: INTRODUCTION OF THE COMPANY

2.1 BIG BAZAAR
Big Bazaar is the largest hypermarket chain in India.
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.
Big Bazaar is a chain of hypermarkets in India, with more than 100 stores in
operation. It is a subsidiary of Future Group Venture Ltd's, and follows the
business model of United States-based Wal-Mart. Facilities offered by Big
Bazaar Online shopping: Big Bazaar has an official website, FutureBazaar.com,
which is one of the most favorite sites among people of India for online
shopping. Future Bazaar is an online business venture of Future Group, which
sells an assortment of products such as fashion, which includes merchandise for
men and women, mobile accessories, mobile handsets and electronics like home
theatres, video cameras, digital camera, LCD TVs, kitchen appliances and many
more.
Discounts: Hfte ka sabse sasta din was introduced by the Big Bazaar, wherein
extra and special discounts were offered on Wednesday every week, to attract
the potential buyers into their store.

17

Security check: At each exit of Big Bazaar, they use alarm systems or
Electronic Article Surveillance system, which detects the products that has
attached tags or not.
1. Big Bazaar is a chain of hypermarket in India, which caters to every familys
needs and requirements.
2. Big Bazaar has released the doors for the fashion world, general merchandise
like sports goods, cutlery, crockery, utensils, and home furnishings etc. at best
economical prices.
3. Big Bazaar group offers more than 100 stores all over the country with an
amalgamation of Indian bazaars feel and touch with a convenience and choice
of the modern retail facilities
4. The worldwide country chain, Big Bazaar, is formed by CEO of Future
Group, Mr. Kishore Biyani. Their basic attraction associated with reasonable
prices is their Unique Selling Price.
5. Big Bazaar has become a massive hit with lower middle-class and middle
class people as a major client base.
6. Reflect the look and feel of Indian bazaars at their modern outlets
GROUP VISION
To deliver Everything, Everywhere, Everytime to Every Indian Consumer in
the most profitable manner.
GROUP MISSION
1 We share the vision and belief that our customers and stakeholders shall be
served only by creating and executing future scenarios in the consumption space
leading to economic development.

18

2 We will be the trendsetters in evolving delivery formats, creating retail realty,

making consumption affordable for all customer segments for classes and for
masses.
3 We shall infuse Indian brands with confused and renewed ambition
4 We shall be efficient and cost-conscious and committed to quality in whatever
we do.

Board of directors
1. Managing director :- Mr. Kishore Biyani
2 Wholetime Director :-Mr Gopikishan Biyani
:- Mr Rakesh Biyani
3 Director :- Mr Shailesh Haribhakti
:- Mr S.Doreswamy
:-Mr Darlie Koshy
:- Mr Anil Harish
2.2 BIG BAZAAR SUPER CENTRE

Big Bazaar

Hyper mart chain in India

Outlet

140 Outlets

Parent Group

Future Group

Owner

Kishore biyani

Founded

2001

Head Quarter

Jogeshwari, Mumbai

Industry

Retail

Tagline

Is se sasta aur accha kahin nahi

19

2.3 SWOT Analysis

The SWOT analysis of Big Bazaar discusses the strength, weaknesses,
opportunities and threats for one of the major retailers of India Big bazaar.
Strengths in the SWOT analysis of Big Bazaar
High brand equity enjoyed by Big Bazaar
State of the art infrastructure
A vast variety of stuff available under one roof
Everyday low prices, which attract customers
Maximum percent of footfalls converted in sales
Huge investment capacity
Biggest value retail chain in India
It offers a family shopping experience, where entire family can visit
together.
Available facilities such as online booking and delivery of goods.
Weaknesses in the SWOT analysis of Big Bazaar
Unable to meet store opening targets on time
Falling revenue per sq. ft.
General perception: Low price = Low quality
Overcrowded during offers
Long lines at billing counters which are time consuming
20

 Limited only to value offering low price products. A no of branded

products are still missing from Big Bazaars line of products. E.g. Jockey,
Van heusen,
Opportunities in the SWOT analysis of Big Bazaar
A lot of scope in Indian organized retail as it stands at approximately 4%.
Increasing mall culture in India.
More people these days prefer to visit big stores where they can find large
variety under one roof
Threats in the SWOT analysis of Big Bazaar
Competition from other value retail chains such as Shoprite, Reliance
(Fresh and trends), Hypercity and D mart.
Unorganized retail also appears to be a threat to Big Bazaars business. A
large population still prefers to visit local convenient stores for daily
purchases
Changing Government policies
International players looking to foray India

21

CHAPTER 3: RESEARCH METHODOLOGY

The methodology in this content involves the process of collection of
data from primary and secondary sources and interpreting the same by using the
analytical tools and techniques utilizing the consequent finding to put forward
liable and insightful suggestions to the company.
Generally Data collection is classified into two categories and they are
as follows;
1 Primary Data
2 Secondary Data
Primary data is the data which is collected for the very first time and
secondary data is the data which is gathered from the past data as a further
references.

A large part of primary data was collected in the course of my

interaction with the personnel concerned departments and also developed in
consultation with costing manager, material manager and officers. The data
collected was regarding various aspects of inventory management like lead-time,
ordering cost, carrying cost and working of online computerized stores system.
3.1 TYPES OF RESEARCH DESIGN
Types of research design used in this research of inventory control
techniques are descriptive as well as analytical. It follows a descriptive
research design it is used to identify and classify the elements or
characteristics of the subject. Quantitative techniques are used to collect ,
analyze and summarize the data. In Nalco Smelter Plant, data and
information are collected to analyze the inventory control techniques.

22

Here analytical research is also used as descriptive approach is extended to

suggest and explain the causes of changes in inventory and factors
effecting inventory and inventory control techniques.
Applied research is also followed i.e. problem solving research is applied
in this project. The already known theories and knowledge of inventory
control techniques are studied and applied to practical situation like of
Nalcos inventory and understand the variation in inventory level and
finding out alternative methods and models for better inventory control.
3.2 LIMITATIONS OF THE STUDY
Some Information is some highly confidential so it is very difficult to get
the data from the organization.
The result realized are applicable to this firm only the major constraints on
this endeavor. Where the policy of time and information, the scope of the
work is confined to the inventory management rather than material
management as a whole.
The management of time for project completion is also a factor that limits
extensive study of the nature of projection process and its implications on
inventory aspects.
It is based on the data supplied by the factory personnel.
The schedule information is not available.
More dependency on secondary data.
The analysis of inventory management is based on information available and if
any mistake would be reflected in the study.

23

CHAPTER 4: INVENTORY MANAGEMENT OF BIG BAZAAR

PROCESS OF INVENTORY MANAGEMENT
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 availability of backup once the product is sold off.
Product categories in Big Bazaar
Big Bazaar generally deals in national level brands like Lee, Levis etc, Other
than this it also deals in some Private label brands DJ&C in apparel, KORIA
in electronics etc. Then we asked about the product categories , that are
:FMCG, FOOD & NON- FOOD junction , Staple items , fruits &
vegetables , fashion & apparels ,chill section , home decorator , footwear ,
book zone, CDs etc
Location of Big Bazaar
Considering all the facts which we have studied, and seeing the strategic
location of Big Bazaar, we can say, that the location is the best, it could have
in. Firstly it is in the heart of the city. Secondly it is in a shopping
mall, which has all types of customers coming in and their, footfalls, being
easily converted into sale, by the efficient employees of big bazaar.
Moreover it is at the place where traffic inception is always high. It is near
station, which gives it another competitive advantage over its competitors.
Transportation is also good, as one can easily reach big bazaar through auto,
private vehicles etc.
Types of inventories maintained.

24

The inventories maintained in the outlet, are of different product category.

Mainly Cycle inventory is maintained for FMCG product category & Food
Category, Safety level of inventory for FMCG Products, and for Apparel,
Seasonal inventory is maintained, because of fluctuation in demand.
Reorder points of inventories
The manager in charge told us that there is no such reorder points. Orders
are placed as and when required. However he told that there are no such
measures, except in a few items. Previously apparels were ordered once
there stock fell below 4 per item piece. For general merchandise, which
includes, food and non-food items, it was 7 days. However they always keep
in mind the transit time of 2 days. Vegetables are taken on a daily basis,
Form local vendors.
Perishable goods like vegetables are maintained with great care. Vegetables
are bought on daily basis on the basis of demand, and seasonal item. It is
also ascertained that damaged vegetables are sold at a low cost to some other
channels. Whereas imperishable goods like utensils and staple goods and
electronic items are brought from. The distribution channel used in
supply chain process is operated by Central Distribution Channel, which is
located in. From there goods are supplied to every Big Bazaar Store.
The modes of transportation which are used in supply chain process are
Truck & Rails, but in case of emergency, flights are also being used.
SAP Inventory Management
Inventory management in SAP is an important component of MM module. It deals
with the management of stocks and good movement.The stocks keeping is managed
by the quantity or the amount basis. This module is responsible for the entire goods
movement tracking from planning and generating various reports. Inventory
management integrated with various other modules like Sales & Distribution and
Purchasing etc.
25

Different Formats of Future Group

Format -1
Pantaloon Retail (India) Limited, is India's leading retail company with presence
across multiple lines of businesses. The company owns and manages multiple retail
formats that cater to a wide cross-section of the Indian society and is able to capture
almost the entire consumption basket of the Indian consumer. Headquartered in
Mumbai (Bombay), the company operates through 5 million square feet of retail
space, has over 331 stores across 40 cities in India and employs over 17,000 people.
The company registered a turnover of Rs. 2,019 crore for FY 2005-06.
Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion
retail chain, Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket
chain that combines the look and feel of Indian bazaars, with aspects of modern retail,
like choice, convenience and hygiene. Food Bazaar, food and grocery chain and
launch Central, a first of its kind seamless mall located in the heart of major Indian
cities, followed this. Some of its other formats include, Collection i (home
improvement products), E-Zone (consumer electronics), Depot (books, music, gifts
and stationary), all (fashion apparel for plus-size individuals), Shoe Factory (footwear)
and Blue Sky (fashion accessories). It has recently launched its Etailing venture,
future bazaar.com
Background: Founded in 1987 as a garment manufacturing company, the company
forayed into modern retail in August 1997 with the launch of its first department
store, Pantaloons in Kolkata.
Listing: Pantaloon Retail is a listed company on the Bombay Stock Exchange (BSE,
Scrip Code: 523574) and National Stock Exchange (NSE, Symbol: PANTALOONR).

26

Format-2
CENTRAL
Central, the showcase seamless mall concept is one of the more popular offerings in
the lifestyle segment that celebrates shopping in India. During the year, Central
capitalized on its positioning of being a destination where citizens can just come and
unwind, whether its for shopping for a wide range of national and international
brands, enjoying their favorite cuisine at the multiple specialty restaurants and food
courts or watching the latest movie releases at the in-house multiplexes.
The most reputed brandsare showcased in Central. It is also emerging as the
destination of first choice for new fashion brands in India. Central assures better
visibility, instant recognition, good quality and commercially viable space on the basis
of the optimum space utilization concept, taking the brand closer to the consumer.
With brands within Central competing against the best brands in the country, it also
allows benchmarking for these brands.
The coming year will also witness many new concepts being introduced at all
Central malls. Some of these concepts include communications (MPort and Gen M),
electronics (E-Zone), furniture and accents (Collection I), fitness equipments and
wellness zones, books, music, gifts & stationery (Depot) and fine dining restaurants
etc. Some of the new alliances that the group has entered into, like Etam, Lee Cooper
and Gini & Jony will also share space within all Central malls.

27

Format-3
PLANET RETAIL
A young and emerging India is also eager to experience international brands. We
sensed this opportunity some time back and have built a strong portfolio of
international brands through our strategic partnership with Planet Retail Holdings
Pvt. Ltd. The alliance with Planet Retail provides access to international fashion retail
chains like Marks & Spencer, with 9 stores at present; Guess the US brand that has
12 retail stores currently, and the Spanish brand Womens Secret which is retailed
through 2 outlets. Planet Retail also has a multi-brand international sportswear format
under the brand Planet Sports. The company is the sole licensee for sportswear
brands such as Converse, Spalding and the Athletes Foot the venture has also
launched other formats like Sports Warehouse, Accessorize, Monsoon, Next, and
Debenhams.

28

Format-4
Depot
This largely untapped unorganized market for books and music with very few players,
throws up an enormous opportunity; something that prompted Pantaloon to make its
foray through its own format, Depot in 2005-06. Located as stand-alone stores and
within most Pantaloons, Central and Big Bazaar retail formats, Depots vision is to be
a one-stop shop where customers will find an extensive range of books, multimedia,
toys, gifts and stationery, thereby transforming the way books, music, multimedia and
gifts are bought, sold and perceived in India. This would be made possible by the
creation of a portfolio of exclusive titles, an Indian experience while shopping and
connecting with the mind and soul through different languages, ideas and tunes.
Books, Music and Gifts
Reading as a habit is ingrained into the Indian psyche from time immemorial.
However, it is being increasingly associated with a select few. The company believes
that existing formats in the segment offer an intimidating environment that alienates
the masses. The company has therefore taken this initiative of launching a chain of
books, music and gifts stores that will once again democratize the reading habit in the
country. The company believes that with 1.2 billion people, the habit of reading can
become a strong business proposition. Depot seeks to work with communities in and
around the area where it is located and hopes to attract the entire family to spend
quality time together. It is focusing on the introduction of old classics and books in
regional languages with an objective to make these affordable to a mass audience.

29

Format-5
Fashion Station
Fashion Station, which represents the companys offering of the latest in fashion for
the masses, has met with reasonable success since its launch in 2004-05. These
thematic stores that offer the most contemporary in fashion and accessories, is
another of the value added propositions that Pantaloon seeks to offer. The aspirational
mass of consumers who are bombarded with the latest in style through media
penetration, hedonism and peer emulation, need an outlet that meets their
requirements of trendy, latest and yet affordable fashion. Fashion Station is
positioned to meet their requirements, and thereby take fashion to the masses.

30

Format-6
Home Improvement
Some of the key factors contributing to growth in the housing sector in India are
increasing purchasing power increasing number of nuclear families, softer interest
rates, easy availability of finance schemes and an overall real estate boom across the
country. There is a shortage of more than 33 million dwelling units. With the average
age of a homebuyer reducing from 50 to sub-30, 4 million new homes are being
bought annually. With every house, a dream is planted to decorate the house. And this
creates a demand for furniture, electronics and home improvement products. Modern
retail is ideally placed to capture a significant chunk of consumer spend made by a
new homebuyer. The market for home dcor and improvement is largely unorganized
and hence a new homeowner has to literally visit several markets and stores for
meeting his home needs. This was the opportunity that Pantaloon perceived and the
reason why it entered the Rs. 90,000 crore home solutions market in 2004-05. With its
presence in the modern retail and consumer space, this new concept was an
opportunity for the company to leverage its experience and offer the consumer an
alternative solution to canalize his consumption needs.
In the Rs.25000 crore consumer durable industry, which is growing at nearly 6 per
cent every year, E-Zone has already emerged as a force to reckon with. This lifestyle
retail format offers a never experienced before environment for shopping for the best
in national and international consumer electronic and durables brands. It retails
products ranging from music systems to laptops, from the latest plasma television
sets to DVD players, from washing machines to air-conditioners to name a few.
Typically in excess of 12,000 square feet in size, E-Zones are primarily stand-alone
concepts, but are also present within the companys Central malls

31

Format-7
COMMUNICATION

With over 2 billion phone users worldwide, mobility has now become an intrinsic part
of our personal and working lives. Mobile operators, cell phone manufacturers,
content publishers, wireless application service providers and many other key players
in the mobile industry are all working to carve out the best position in the value chain,
to find the right place from where they can best serve both their own and their
customers needs. En route towards 3 billion phones worldwide, a major shift would
occur in consumer interest from carriage to content and from a verbal to a growing
visual world. With more mobile cameras sold in 2005 than digital cameras, with more
music/video players in mobiles than iPods, with more messaging reach than PCs,
convergence with the online world is now very much a reality. In India, the story is no
different. With over 150 million mobile subscribers expected by 2008, there exists a
huge potential for all players in the mobility space. Most of the mobile phones in India
are sold through mom and pop stores, and there is a huge grey market that exists.

32

MBazaar
Pantaloon realized this largely untapped opportunity and intended to be a dominant
modern retail player in the mobile space. This is what prompted the company to set up
a new division ConvergeM in 2005-06 to identify, develop and bring to the market,
mobile products and solutions tailor-made to suit the consumers requirements at
competitive prices. ConvergeM adopts a unique approach of establishing, multi-brand,
multi-category, multi-format and comprehensive solution outlets to lead and
exponentially expand the market. As in most other formats, ConvergeM too operates
in the lifestyle and value platforms. Its value offering, MBazaar is a format that
addresses the value seekers quest for possessing latest technologies at lowest prices.
Primarily aimed at the replacement market, a typical
MBazaar is located within most Big Bazaar stores as well as stand-alone options. This
250-500 square feet offering retails both GSM and CDMA and landline phones, while
providing options of M Pods, downloads to name a few. The mission for Converge M
is to emerge as the largest organized retailer in the mobile space, while leading
innovation in mobile applications and being the most favored destination for all
communication needs.

33

Format-8
Restaurant, Leisure & Entertainment
Increasing urbanization and rising disposable incomes are characteristics that are
common in emerging economies like India. Estimates suggest a growth in urban
consumption at potentially 20% per annum in nominal terms for at least the next 5-7
year period.
The total number of middle to high income households is projected to reach 105
million by 2010, thereby adding a large number of people to the consuming class.
These demographic numbers represent a young nation, which has an increased
propensity to spend in restaurants and other food service sectors, fuelling growth in
the Leisure, Restaurants and Entertainment industries.
The company is using the collaborative approach to strengthen its position in the
leisure and entertainment space. This has helped the company build a complete
bouquet of brands that span from food courts to fine dining. As the shift from high
street to malls continues, the restaurant business is expected to increase significantly.
For Indians, shopping comes hand in hand with eating and celebrating and these
formats are being developed keeping this in mind. F123 is designed as a entertainment
zone that can be present in every mall and this business is expected
to gain traction in the coming year.

F123, the entertainment zone offering is a leisure solution for all age groups. The
focus would be to offer a wide range of gaming options from bowling and pool,
interactive video games to bumper cars. The entire concept is built around
international thinking and gaming knowledge, with Indian pricing. For the year ending
2005-06, there were three F123s operational, with the first one opening in November
2005.

34

Format-9
Star and Sitara
Delivery Formats Star & Sitara
In the beauty space, the companys offering, Star & Sitara aims at pampering the
beauty conscious consumer by offering the latest beauty products, ranging from
cosmetics, skin and hair care, aromatherapy and fragrances. Star & Sitara is set to be
part of most Big Bazaar and every Beauty and Health Mall, which the company is in
the process of setting up. There were 6 Star & Sitara operational as on June 2006.
Star & Sitara Beauty Salon
Star & Sitara, the beauty services offering, doubles as a unique parlor and salon for
men and women. Customers will be treated to the best quality hair and skin services at
unbelievable prices. One such store was operational as on the 30th June 2006.
Beauty & Health Mall
Pantaloon, will be the first retailer in India to offer health, beauty and wellness
products and services. This will be led through its Beauty & Health Mall format.
Typically, of around 25,000 square feet each, these centers will include pharmacies
and beauty product zones and a host of other offerings such as health cafes,
gymnasium, healthcare services, retailing fitness equipments, yoga centers and books
on health and fitness etc. The company plans to open at least three Health & Beauty
Malls during the year 2006-07 in Bangalore, Ahmedabad and Mumbai.

35

Format-10
E-TAILING
The emergence of a mass base of net savvy Indians is realty today. Access to Internet
is no longer limited to a small segment of young, male urban people. Cutting across
age groups, gender, geography and socio-economic backgrounds, Indians are taking to
the net like fish to water. It is estimated that there are at least 25 million Indians who
access the Internet on a regular basis. Falling prices of personal computers and laptops
coupled with increasing penetration of internet, and broadband services is driving
more and more Indians to the Internet. In fact, Indians are no longer limiting their
Internet usage to email and chatting. Online shopping has finally come of age. As the
leading retailer in India, Pantaloon could ill afford to overlook this emerging segment.
There is a sufficiently large segment of online shoppers whose consumption spends
needs to be captured. Its with this belief that the company started exploring this area.
Pantaloon perceives its online business as yet another delivery format that can
potentially reach out to 25 million customers.Future Bazaar, has modeled itself on a
unique complete retailer platform. Etailing requires extensive sourcing capabilities,
warehousing capacity, buying trends understanding & most importantly a robust &
efficient logistic backend. Future Bazaar leverages the offline brand equity and brick
& mortar presence of the group via multi-channel integration to benefit on economy
of scales, economy of scope in promotion & distribution and utilizing the offline
learning into online & vice-versa to grow at a faster pace. As a new delivery format,
Future Bazaar can benefit from the learnings and expertise gathered in existing
formats as well as boost sales at these formats through the online sale of gift vouchers

36

Format-11
Liberty Shoes
With fashion being the focus of the company, the intent is to provide a complete
wardrobe experience to the consumer that includes not just apparel but fashion
accessories also. Accessories speak a lot about the personality of the individual and
are a reflection of the attitude of the wearer. Footwear is one such category in the
fashion sphere that truly embodies the phrase-best foot forward.
Footwear as a category has been present in most of the companys Big Bazaar;
Fashion Station, Pantaloons and Central retail formats. During the year under review,
Pantaloon explored the opportunity to get into branded footwear, by partnering with
the well-established footwear company Liberty Shoes. The joint venture named Foot
Mart Retail (India) Limited would launch branded footwear retail chains in the
country under the Shoe Factory brand. These stores would be located within most
retail spaces that Pantaloon would be present in, and as stand-alone stores across the
country. Shoe Factory stores would be a destination for men, women and children of
all ages, who can choose from a wide variety of quality footwear at various price
points, suiting their budgets. The venture launched its first store in Ahmedabad on 5th
May 2006. Spread over nearly 13,000 square feet, this value format houses a wide
range of the latest and trendiest foo
twear and accessories for all occasions, at unbeatable prices.

37

Format-12
GINI & JONY
The company recognizes that the organized kids wear category has shown signs of
sizeable growth over the past couple of years. In order to expand and consolidate its
presence in this category, the company entered into a joint venture with the countrys
leading kids wear retailer, Gini & Jony Apparels Pvt. Ltd. This equal joint venture
named GJ Future Fashions Limited, apart from gaining additional visibility within
all existing and upcoming Pantaloons stores and Central malls will set up a chain of
exclusive kids wear stores throughout the country, addressing fashion needs of
children in all age groups, from 5 to 15 years. This initiative witnessed the opening of
two stand-alone stores during the year 2005-06 in Indore and Ahmedabad.

38

Format-13
BIG BAZAAR
Isse sasta aur accha kahin nahi!
Big Bazaar has clearly emerged as the favorite shopping destination for millions of its
consumers, across the country, its success is a true testament to the emotional
bonding it has established with the Indian consumer, on account of its value offerings,
aspirational appeal and service levels.
Shop till you drop! Big Bazaar has democratized shopping in India and is so much
more than a hypermarket. Here, you will find over 170,000 products under one roof
that cater to every need of a family, making Big Bazaar Indias favorite shopping
destination.
At Big Bazaar, you will get the best products at the best prices from apparel to general
merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods,
car accessories, books and music, computer accessories and many, many more. Big
Bazaar is the destination where you get products available at prices lower than the
MRP, setting a new level of standard in price, convenience and quality.
If you are a fashion conscious buyer who wants great clothes at great prices, Big
Bazaar is the place to be. Leveraging on the companys inherent strength of fashion,
Big Bazaar has created a strong value-for-money proposition for its customers. This
highlights the uniqueness of Big Bazaar as compared to traditional hypermarkets,
which principally revolve around food, groceries and general merchandise.
Boasting of an impressive array of private labels, Big Bazaar is continually striving to
provide customers with a complete look. So be it mens wear, womens wear, kids
wear, sportswear or party wear, Big Bazaar fashions has it all!

39

Format-14
Food Bazaar
Across India, food habits vary according to community, customs and geography. Food
Bazaar, through its multiple outlets addresses this. At the same time it offers best
quality products at wholesale prices to a wide cross section of the India population.
Food Bazaar effectively blends the look, touch and feel of the Indian bazaar with the
choice, convenience and hygiene that modern retail provides. The food and grocery
division of the company was launched in 2002-03 and has grown to 47 stores
nationwide at the end of the current financial year. Most stores are located within Big
Bazaar, Central and Pantaloons and act as strong footfall generators. There are
separate stand-alone Food Bazaars as well. The business contributed just fewer than
50 per cent of value retailing, and about 20 per cent to the companys turnover during
2005-06. Food Bazaar offers a variety of daily consumption items, which include
staples, soaps and detergents, oils, cereals and biscuits. On the product category side,
the primary segregation is done on the basis of staples, fresh produce, branded foods
and home and personal care products.

40

Area of Maintenance
Since the store is fully computerized, in the sense, like billing, inventory
Management, electronic equipments near the gates, to check thieves, it has to
Take proper care of machines. Food items are to be regularly checked.
Inventory room has to be checked regularly for any sort of leakages. Air
conditioners
Have to be regularly checked. Electrical wirings have to be
Closely monitored. Short circuit cameras have to be checked regularly as it is
a major factor in security arrangement.

Quality of Food-items
Food items are kept in a separate place, both in inventory and at store. Food
items which are required to be kept at cold places, like cold-drinks, cheese,
milk products, milk, fruits, etc. are kept in refrigerators, whereas those
which can be kept anyway, are kept on proper shelves.

41

Major Milestones

2005 Fashion Station - the popular fashion chain is launched all a little larger exclusive stores for plus-size individuals is launched
2006 Future Capital Holdings, the companys financial arm launches real estate
funds Kshitij and Horizon and private equity fund in division. Plans forays
into insurance and consumer credit. Multiple retail formats including
Collection

Furniture

Bazaar,

Shoe

Factory,

E-Zone,

Depot,

and

futurebazaar.com and are launched across the nation. Group enters into joint
venture agreements with ETAM Group and Generali
2007 Big Bazaar launched its 50th store in Kanpur.Big Bazaar partnered with
Futurebazaar.com to launch India's most popular shopping portal
2008 Big Bazaar crosses the 100-store mark, marking one of the fastest expansions
of the hypermarket format anywhere in the world
2010 Pantaloons opened its 50th flagship store in New Delhi on 27th November
Big Bazaar introduced Family Centre in Kolkata on 27th March 2010
2011 Future Group entered elite gourmet retailing with the launch of its first
gourmet food chain Food hall in Mumbai on 26th May 2011.
2012 On 1st May 2012, the company introduced a new retail initiative Public
Holiday Sale.Big Bazaar launched its home delivery services in Mumbai
2013 Future Group successfully introduced 'Big Bazaar Direct' an assisted
shopping concept where franchises will sell Big Bazaar products
through a catalogue on a 'tablet'
42

AWARDS

Indian Retail Forum Awards 2008

The INDIASTAR Award 2008
Retail Asia Pacific 500 Top Awards 2008
Coca-Cola Golden Spoon Awards 2008
The Reid & Taylor Awards for Retail Excellence 2008
Platinum Trusted Brand Award Images Retail Award 2005-06
DLF Award 2004

BOARD OF DIRECTORS

MR. KISHORE BIYANI, MANAGING DIRECTOR

MR. GOPIKISHAN BIYANI, WHOLE TIME DIRECTOR
MR. RAKESH BIYANI, CEO RETAIL
VED PRAKASH ARYA, INDEPENDENT DIRECTOR
MR. SHAILESH HARIBHAKTI, INDEPENDENT DIRECTOR
MR. S.DORESWAMY, INDEPENDENT DIRECTOR
DR. D.O.KOSHY, INDEPENDENT DIRECTOR
MS. ANJU PODDAR, INDEPENDENT DIRECTOR
MS.BALA DESHPANDE, INDEPENDENT DIRECTOR

43

CHAPTER: 5 TABULATION AND INTERPRETATION OF DATA

Inventory control renders to The process whereby the investment in materials and
parts carried in stock is regulated within predetermined limits set in accordance with
the inventory policy established by the management.
Inventory control refers to a planned method of purchasing and storing the
material at lowest possible cost without affecting the sales scheduled. Inventory
control therefore, is a scientific method of determining what, when and how much to
purchase and how much to have to stock for a given period of time.

ECONOMIC ORDER QUANTITY: One of the major inventory management problems to be resolved is how
much inventory should be added when inventory is replenished. If the firm is
buying raw materials, it has to decide lots in which it has to be purchased on cash
replenishment.
The economic order quantity is that inventory level, which minimizes the total of
ordering and carrying costs.
EOQ (economic order quantity) =2AO /C
EOQ=Economic Order Quantity
A=Total annual requirement for the item
O=ordering cost per order of that item
C=carrying cost

44

INVENTORY TURNOVER RATIO:

This ratio indicates the efficiency of the firm of selling its products. It is
calculated by dividing the cost of goods sold by the average inventory.
If the cost goods sold is known then inventory turnover ratio can be
computed by dividing sales by average inventory of the year-end inventory.

COST OF GOODS SOLD

INVENTORY TURNOVER
RATIO

= ---------------------------------AVERAGE INVENTORY

In accounting, the Inventory turnover is a measure of the number of times inventory is

sold or used in a time period such as a year. The equation for inventory turnover
equals the cost of goods sold or net sales divided by the average inventory.
RAW MATERIAL INVENTORY TURNOVER TATIO:
The ratio indicates the efficiency of firms raw material consumed. It is
calculated by material consumed dividing by average material inventory.

MATERIAL CONSUMED
RAW MATERIAL INVENTORY TURNOVER TATIO = --------------------------------INVENTORY

WORK IN PROGRESS TURNOVER RATIO:

45

Work in progress turnover ratio unable to company in establishing the time

gape between different stages in a production cycle and the efficiency with the
production cycle gets completed.
It is calculated from cost of production divided by average work in progress
inventory.

COST OF PRODUCTION
WORK IN PROGRESS TURNOVER RATIO

-------------------------------------AVG WORK IN PROGRESS

46

Range of Products Available at Big Bazaar

47

Places at which Big Bazaar is Located

48

Future Strategies of Big Bazaar

49

Life Cycle of Big Bazaar

50

Supply Chain Process

Supplier

Procurement cycle

Manufacturer

Manufacturing Cycle

Distributor

Replenishment cycle

Retailer
Customer order cycle

51

What is ERP?
ERP is an acronym for Enterprise Resource Planning which is software used for
business process management that allows any organization to use an information
system of integrated applications to do many back office functions related to
information technology and manages the business.
Function of Enterprise Resource Planning in Big Bazaar

Product ordering
Merchandising buying
Inventory Management
Stock Transfer

Process of MIS in Big Bazaar

a SOD (Start of the Day)
Procedure:
Start the web Portal
Enter provided login ID and password
Open webapp basics
Click SOD status
Click Start SOD
b EOD (End of the Day)
Procedure:
Start the web Portal
Enter provided login ID and password
Open webapp basics
Click EOD status
Enter Login ID and Password again

52

Press Enter
Management Information System (MIS) in Big Bazaar

Big Bazaar has strong MIS capability that helps them to improve their operations, as
well as enhancing their speed of execution in response to what the customer want.
They are thus able to monitor their speed of response on daily basis across stores,
departments and also for category of products. This really helps them to take correct
action on a timely basis and optimize their stock accordingly.
Big Bazaar uses JDA ERP and SAP ERP software. JDA ERP is an enterprise
resource planning software developed by an American software and consultancy
company while SAP ERP is an enterprise resource planning software developed
by a German company SAP (System, Application and products) SE to manage
the inventory system of different business and improve customer relationship
Functioning of Management Information System (MIS) in Big Bazaar

Main
Server
Backup

Transactio
n Counter

Transactio
n Counter

Transactio
n Counter

Transactio
n Counter

---at least 15
53

SOD/EO
D

SOD/EO
D

SOD/EO
D

SOD/EO
D

 There are 2 servers used by the MIS: Main Server and Backup Survey
Each of the servers has its own storage system (15 hard disks to store the
same information)
The information is backed up daily at the EOD (End of Day).
There are generally 15 counters for transaction in Big Bazaar. The
recording at the transaction at each of these counters is done.
The average no. of transactions made per day varies from 3500-4500 and
all transaction data is recorded at each terminal and stored at the database.

54

 Age group that visit Big Bazaar Everyday are:-

Age

Total

Below 18

30

18-40

45

40-60

15

60 above

10

Total

100

Gender of respondents in Big Bazaar

Gender

Total

Male

65

Female

35

Total

100

55

CHAPTER 6: CONCLUSION
It was 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.
56

 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.
The inventories maintained in the outlet, are of different product category.
Mainly Cycle inventory is maintained for FMCG product category &

Food
Category, Safety level of inventory for FMCG Products, and for Apparel,
Seasonal inventory is maintained, because of fluctuation in demand.
Most of the employees are satisfied with the uniforms provided.
Most of the employees are satisfied with their hygienic conditions
I visited big bazaar store in mulund and found great support their.
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.

57

BIBLIOGRAPHY
www.investopedia.com
www.managementstudyguide.com
www.futureretail.in

ANNEXURE
58

QUESTIONARRIE
1.
2.
3.
4.
5.
6.
7.

Do you have any centralized location of storage?

What is your storage capacity of various products?
Which technique do you use for inventory management?
Have you ever faced any loss or damage of inventory?
Do you use any software for inventory management?
What is your inventory management process for perishable good?
How do you manage inventory in case of bumper sales in discounts or

festival sales?
8. How do you manage shortfall in inventory?

59