Synopsis II Revan Hanji

8/14/2019 Synopsis II Revan Hanji

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Bangalore Institute ofManagement Studies

INTRODUCTION:Inventory Management is the planning, control, organizing and leading the

goods and materials required by thebusiness. Inventory Management is veryimportant for the business. It enables the business to meet or exceed expectations

of the customer by making the product readily available. If managed properly, it

can help the organization reduce its costs, achieve economies of scale and prepares

the organization for uncertainty.

Inventory management is primarily about specifying the size and placement

of stocked goods. Inventory management is required at different locations within a

facility or within multiple locations of a supply network to protect the regular and

planned course of production against the random disturbance of running out of

materials or goods. The scope of inventory management also concerns the fine

lines between replenishment lead time, carrying costs of inventory, asset

management, inventory forecasting, inventory valuation, inventory visibility,

future inventory price forecasting, physical inventory, available physical space for

inventory, quality management, replenishment, returns and defective goods and

demand forecasting.

COMPANY: BHARAT ELECTRONICS LIMITED (BEL)

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REVIEW OF THE COMPANY:

Bharat Electronics Limited (BEL) was set up at Bangalore, India, by the

Government of India under the Ministry of Defence in 1954 to meet the specialized

electronic needs of the Indian defence services. Over the years, it has grown into a

multi-product, multi-technology, multi-unit company serving the needs of

customers in diverse fields in India and abroad. BEL is among an elite group of

public sector undertakings which have been conferred the Navratna status by the

Government of India.

BEL has its corporate office at Bangalore and manufacturing units at

nine locations in India. A network of marketing and customer support centers

across India completes the vertically integrated company profile. Two offices, one

in New York and the other in Singapore mark the companys current international

presence. Defence continues to be BELs prime focus but the Company has also

diversified into civilian areas. Some of the successful civilian products include the

Electronic Voting Machines, Solar Powered LED-Based Traffic Signal Lights,

Simputers and Set Top Boxes.

BEL offers products and services in a wide spectrum of technology like

Radars, Military Communications, Naval Systems, Electronic Warfare Systems,

Telecommunications, Sound and Vision Broadcasting, Opto-Electronics, Tank

Electronics, Solar Photovoltaic Systems, Embedded Software and Electronic

Components. The company also claims to provide turnkey systems solutions. BEL

offers contract-manufacturing services for both domestic and international

customers. It has automated assembly, inspection and testing facilities as also

precision machining capabilities.

NEED FOR STUDY:

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Inventory management is a very simple concept - don't have too much stock

and don't have too little. Since there can be substantial costs involved in straying

above and below the optimal range, careful inventory management can make a

huge difference in the profitability of a business. Although the concept is simple,

the process of getting the right balance can be quite a complex and time consuming

task without the right technology.

Time - The time lags present in the supply chain, from supplier to user at

every stage, requires that you maintain certain amount of inventory to use in

this "lead time"

Uncertainty - Inventories are maintained as buffers to meet uncertainties in

demand, supply and movements of goods.

Economies of scale - Ideal condition of "one unit at a time at a place where

user needs it, when he needs it" principle tends to incur lots of costs in terms

of logistics. So bulk buying, movement and storing brings in economies of

scale, thus inventory.

OBJECTIVES OF THE STUDY:

To ensure that the supply of raw material & finished goods will remain

continuous so that production process is not halted and demands of

customers are duly met.

To maintain inventory at appropriate level so that it is neither excessive

nor short of requirement.

To keep inventory at sufficiently high level to perform production and

sales activities smoothly.

To minimize investment in inventory at minimum level to maximize

profitability.

To minimize carrying cost & ordering costs of inventory. To keep investment in inventory at optimum level.

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To reduce the losses of theft, obsolescence & wastage etc. To make arrangement for sale of slow moving items.

METHODOLOGY:

Type of researchThe research is of descriptive type.

SOURCES OF DATA

Primary Data:

Continuous interaction with the staff of Bharat ElectronicsLimited.

Through organizational accounting systems. Departmental information.

Secondary Data: www.google.com

www.bel-india.com

Annual Reports, Magazines & News Papers

LIMITATIONS OF STUDY:

Though sincere effort has been made during the study, certain limitations

cannot be avoided. They are as follows:-

Difference in definitions

All datas are according to accounting practice of the organization

This practice in some cases may lead to window dressing to cover up bad

financial position.

This study is based 5 year accounting relating to the concept

Tools used for analysis are limited

The study is purely academic purpose.

(Signature of Student) (Signature of Guide)

Revanasiddeshwara Hanji Geetha.C

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Synopsis II Revan Hanji