Declaration: The Inventory Management

THE INVENTORY MANAGEMENT
DECLARATION
I, hereby declare that the report title “A Study on Inventory Management ” is a

record of independent research carried out by me under the guidance of Mr.Raghavendra
department of M B A Of Mangalore Institute of technology & engineering, and I further
declare that the findings in the project report are independent study done by me.
Place: Mysore AVILASH MICHEL

Date:
MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

ACKNOWLEDGEMENT
I place my Sincere thanks to our honorable internal guide Mr. Raghavendra

department of M B A Of Mangalore Institute of technology & engineering, Moodbidre
for having provided necessary facilities to under go my project work
My sincere gratitude to Mr. Dr Sreenivasan, Principal ,department of M B A Of

Mangalore Institute of technology & engineering, Moodbidre , For their timely
suggestions, encouragement and support to complete this project successfully.
I express my profound gratitude to Mr. Vasanth Kumar logistic manager and

Mr.Mohan H R Manager for his fullest co operation in every stage of my project work
Date: AVILASH MICHEL
Place: Mysore :

EXECUTIVE SUMMARY
“A study on inventory management at Big bazaar in Mysore”, stocks are regulated within
predetermined limits set in accordance with inventory policy established by the
management.
The objective of the study is to study about the investment in inventory for four years
and to study the inventory control and analysis system followed by the company.
The scope of the study is limited to the study of the inventory management and
general financial performance of the company. This project is carried out for a period of
four years from 2007 to 2010.
The limitation of the study is that it is conducted purely upon the data available as per
the financial statement of the company. It considers only for four years data for the
analysis and interpretation. This cannot explain the overall performance of the company.
ABC analysis is not one time exercise and items are to be reviewed and re-categorized
periodically.
The finding of the study is to following the first in first out method in issuing the
materials to the production department.
The conclusion of the study is ABC analysis is a technique for more inventory,
accurate planning and control.
The suggestions of the study are to use advance techniques in storing of raw materials
and importance to inventory control technique.

.1 INDUSTRY PROFILE
Retail is India’s largest industry, according for over 10 per cent of the country’s
GDP and around eight per cent of the employment. Retail industry in India is at the
crossroads. It has emerged as one of the most dynamic and fast paced industries with
several players entering the market. But because of the heavy initial investments required,
break even is difficult to achieve and many of these players have not tasted success so for.
However, the future is promising; the market is growing, government policies are
becoming more favorable and emerging technologies are facilitating operations.
Retailing in India is gradually inching its way toward becoming the next boom
industry. The whole concept of shopping has altered in terms of format and consumer
buying behavior ,ushering in a revolution in shopping India. Modern retail has entered
India as seen in sprawling shopping centers, multi-stored malls and huge complexes
offer shopping, entertainment and food all under one roof, the Indian retailing sector is
at an inflexion point where the growth of organize retailing and growth in the
consumption by the Indian population is going to take a higher growth trajectory.
The Indian population is witnessing a significant change in its demographics. A
large young working population with median age of 24 years, unclear families in urban
areas, along with increasing working-women population and emerging opportunities in

the service sector are going to be the key growth drivers of the organized retailer sector in
India. The market size of Indian retail industry is about US $312 billion Organized
retailing comprises only 2.8 per cent of the total retailing market and is estimated at
around US$8.7 billion.
Retail and real estate are the two booming sectors of India in the present times. And
if industry experts are to be believed, the prospects of both the sectors are mutually
dependent on each other. Retail, one of India’s largest industries, has presently emerged
as one of the most dynamic and fast paced industries of our times with several players
entering the market. Accounting for over 10 per cent of the country’s GDP and around
eight per cent of the employment retailing in India is gradually inching its way toward
becoming the next boom industry.
As the contemporary retail sector in India is reflected in sprawling shopping

centers, multiplex- malls and huge complexes offer shopping, entertainment and food all
under one roof, the concept of shopping has altered in terms of format and consumer
buying behavior, ushering in a revolution in shopping in India. This has also contributed
to large-scale investments in the real estate sector with major national and global players
investing in developing the infrastructure and construction of the retailing business. The
trends that are driving the growth of the retail sector in India are.
 Low share of organized retailing
 Falling real estate prices
 Increase in disposable income and customer aspiration
 Increase in expenditure for luxury items
Company profile

Future value retail limited is India’s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer market.
Headquartered in Mumbai (Bombay), the company operates over 7 millions square feet
of retail space, has over 1045 stores across 53 cities in India and employs over 28,000
people. The company’s leading formats include Pantaloons, a chain of fashion outlets,
Big Bazaar,
Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality and Central, a chain of
seamless destination malls. Some of its other formats include, Depot, Shoe Factory,
Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaar and Star and Sitar. The
company also operates an online portal, futurebazaar.com.
Big Bazaar is just another hypermarket. It caters to every need of one’s family.
Where Big Bazaar scores over other stores is its value for money proposition for the
Indian customers.
At Big Bazaar, one will definitely get the best products at the best prices - that’s
what they guarantee. With the ever increasing array of private labels, it has opened the
doors into the world of fashion and general merchandise including Home furnishings,
utensils, crockery, cutlery, sports goods and much more at competitive prices. Big Bazaar
plans to add much more to complete your shopping experience.
Big Bazaar is a chain of hyper markets in India, currently with more than 149
stores. It is owned by the Future value Retail Ltd, It follows the business model as Wal-
Mart and has considerable success in many Indian cities and small towns. The idea was
pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. Currently Big
Bazaar stores are located only in India. Moreover the customer friendly ambiance and the
organized retailing of products also make Big Bazaar one of the successful retail
companies in India.
Big Bazaar: Overview
Big Bazaar, a part of the Future value retail ltd, is a hypermarket offering huge
array of goods of good quality for all at affordable prices. Big Bazaar with over 150
outlets in different parts of India is present in both the metro cities as well as in the small
towns. Big Bazaar has no doubt made a big name in the retail industry of India, moreover
shopping here is further made a memorable experience with the varied rates of discounts
on products as well as discount vouchers available in a variety of amounts, like INR
2000, INR 3000, INR 4000, INR 5000 and INR 10000 on all Big Bazaar products and
accessories.
Future group manifesto
“Future” – the word which signifies optimism, growth, achievement, strength,

beauty, rewards and perfection. Future encourages us to explore areas yet unexplored,
write rules yet unwritten; create new opportunities and new successes. To strive for a
glorious future brings to us our strength, our ability to learn, unlearn and re-learn our
ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future
scenarios in the consumer space and facilitate consumption because consumption is
development. Thereby, we will effect socio-economic development for our
customers, employees, shareholders, associates and partners.

Our customers will not just get what they need, but also get them where, how and
when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will not just spot trends; we will set trends by marrying our understanding of the
Indian consumer to their needs of tomorrow.
It is this understanding that has helped us succeed. And it is this that will help us
succeed in the Future. We shall keep relearning. And in this process, do just one thing.
About Mysore Big Bazaar:

Mysore big bazaar super centre was opened on 26th September 2008; it is the 96th
Big Bazaar of Future value Retail Ltd. It has around 250 employees with an occupied
space of 82,055 sq.ft and catering to the needs of 13, 00,000 Mysoreans.
Mysoreans at Big Bazaar can definitely get the best product at better price. It sells
variety of merchandise at affordable rates, the price which it claims are lowest in the city.
Usually the items are clubbed together for Offers and it also offers weekend as well as
monthly discounts.
Within Mysore Big Bazaar one can a find variety of Departments or formats as shown in
the below.
 FOOD BAZAAR
 GENERAL MERCHANDISE
 APPARELS OR FASHION @ BIG BAZAAR
 NEW BUSINESS DEVELOPMENT
 DEPOT
 HOME BAZAAR
 F123
 NAVARAS
These departments are managed by two main departments they are
 OPERATOIONAL DEPARTMENT
 SUPPORTING DEPARTMENTS
Operational Department
Operation team includes Assistant store managers, Departmental managers,

Assistant departmental managers, Team leaders and Team members. Their job is to
enable a store function smoothly [by virtue of defined process] without any hindrances.
These are few functions of operational department
Supporting Departments
As the name itself suggests this department is for the support of

operational department. Different types of supporting department found in Big bazaar.

 MARKETING
 HUMAN RESOURCES
 CATEGORY
 LOGISTICS
 VISUAL MERCHANDISE
 CUSTOMER SERVICE DESK
 CASH
 ADMINSTRATIVE
 MAINTAINANCE
 HOUSE KEEPING
Details about the Founder & Origin of the Company.
Mr. Kishore Biyani, Managing Director

Kishore Biyani is the Managing Director of Future value retail limited and the Chief
Executive Officer of Future Group. A quintessentially Indian experience, it doesn’t
promise more than it delivers. Basic worth allied with reasonable pricing is their USP.
The store itself and the products it stocks may not be on the cutting edge of technology or
sometimes even retail but the customer can be assured that he/she is getting their money’s
worth. Their first store opened in Calcutta in 2001, on VIP Road, in the ground floor of a
residential building. This was the first departmental store that offered regulated parking
services, apparel, steel vessels and electronics under one roof, and all at the most
competitive prices! The format got bigger and better with the introduction of fresh food
and vegetables.

BACKGROUND AND INCEPTION
Major Milestones
1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons

trouser, India’s first formal trouser brand.
1991 Launch of BARE, the Indian jeans brand.

1992 Initial public offer (IPO) was made in the month of May.
1994 The Pantaloon Shoppe – exclusive menswear store in Franchisee format launched
across the nation. The company starts the distribution of branded garments through multi-
brand retail outlets across the nation.
1995 John Miller – Formal shirt brand launched.
1997 Pantaloons – India’s family store launched in Kolkata.
2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain
launched.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central – ‘Shop, Eat, Celebrate in the Heart of Our City’ - India’s first seamless
mall is launched in Bangalore.
2005 Fashion Station - the popular fashion chain is launched – ‘a little larger’ - exclusive
stores for plus-size individuals is launched
2006 Future Capital Holdings, the company’s 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 Collections, Furniture Bazaar, Shoe
Factory, and EZone.

2007 Pantaloon Retail wins the International Retailer of the Year at US-based National
Retail Federation convention in New York and Emerging Retailer of the Year award at
the World Retail Congress held in Barcelona.
2008 Future Capital Holdings becomes the second group company to make a successful
Initial Public Offering in the Indian capital markets.
2009 Future group changed itself to that as future value retail ltd in December.
NATURE OF BUSINESS CARRIED
Retailing
Retailing – is the most active and attractive sector selling goods or services directly
to final of the last decade. While the retailing industry consumers for personal, non
business use itself has been present through history in our country, it is in the recent past
it has witnessed so mush dynamism Retailing includes all the activities involved in
selling products or services directly to final customers for their personal, non-business
use .
2.c Mission & Vision of the Organization
VISION
Future Group shall deliver Everything, Everywhere, Every time for Every Indian
Consumer in the most profitable manner.

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

making consumption affordable for all customer segments – for classes and for
masses. We shall infuse Indian brands with confidence and renewed ambition. We
shall be efficient, cost- conscious and committed to quality in whatever we do.
 We shall ensure that our positive attitude, sincerity, humility and united
determination shall be the driving force to make us successful.
CORE VALUES
o Indianess: confidence in ourselves.

o Leadership: to be a leader, both in thought and business.
o Respect & Humility: to respect every individual and be humble in our
conduct.
o Introspection: leading to purposeful thinking.
o Openness: to be open and receptive to new ideas, knowledge and
information.
o Valuing and Nurturing Relationships: to build long term relationships.
o Simplicity & Positivity: Simplicity and positivity in our thought, business
and action.
o Adaptability: to be flexible and adaptable, to me
2.d Products Profile

FOOD
Golden Harvest: Basic staples which includes all types of rice, wheat, cooking mediums
like ghee, oils and flours, pulses, spices and dry fruits are available in this department
Chill station: Dairy products, drinks & beverages and frozen foods are
available in this department.
Hungry Key: All types of ready to eat foods like biscuits fall under this category
Chef zone: Ready to cook items like noodles, instant mixes, dessert mixes, soups comes
under this department challenges.
Confectioneries & candies: This department includes chock lets and ice creams.
International food: Foods which are imported from other countries fall under this
category.
Farm fresh: Fruits and vegetables are available in this department.
Food court: products available which are required to prepare food .
NON FOOD:

Fabrikleen & spick & span: Detergents, laundry heads, fresheners, Insecticides, pet
care and shoe care; utensil cleaners are available in this department.
Wellness & head to toe: Personal care, baby care, perfumes, hair care, Medicare
products, oral care, sanitary needs, shaving needs, skin care needs are available in this
department
GENERAL MERCHANDISE:
Plastics: Household plastics which includes cleaning articles like brush, cleaners &
wipers, dust pin, dust pan and plastic bath ware like mugs, buckets, drums, soap case and,
plastic storages, children articles, kitchen articles etc , are available in this department.
Crockery: Household crockery which includes glass dinner sets, tumblers and
kitchen accessories like jars, bowls, dinner sets, plastic trays, tea sets are available in this
department.
Utensils: All types of cookers and pans, fry pan, gas stoves other cooking tools like
serving spoons, loose utensils like plates, cooking vessel comes under this category.
Home Decor: Artificial flowers, candle stand, frames and albums, gift item, religious
items, vases, wall decor items like wall paintings fall under this category.
Footwear Bazaar: Children’s foot wears, men’s foot wears, women foot wears are
available in this department.

Luggage: Bags & travel accessories which includes college and school bags,
office bags, overnight bags, travel accessories and trolley and suit case.
Toys & sports: Under toys stuffed animals, teddy bear, electronic toys, non battery
operated toys and board games like puzzles etc. Under sports fitness and bicycles,
wooden games, skating, and types of sport goods comes under this department.
APPARALS OR FASHION AT BIG BAZAAR
Men’s: casuals, jeans wear, seasonal wear ,sports wears, fabrics which includes shirting,
suiting cut pieces and vocational wears, night wears, accessories like belts, cap,
inner wears, hand kerchief, ties comes under men’s wear.
Ladies: Ethnic wears which includes mix & match Karta, dupatta ladies western wears,
night wear, seasonal & sportswear, comes under this category.
Kids: trousers, jeans, shorts, jackets, t-shirts comes under boys section. Girls wear
includes tops, jeans, night wear, t-shirts and infant apparel includes bath
utility, feeding utility, and accessories includes inner wears, belts, cap, ties,
handkerchief etc
Home linen: Bath linen which includes bath accessories, hand loom towels, terry towels
and bed covers, bed shits comes under bed linen. Table linen includes table mats, covers
etc comes under home linen.
NEW BUSINESS DEVELOPMENT

Auto accessories includes car covers and mats, car decorative, perfumes, helmets
and watches and sun glasses includes umbrellas and watches. Star & Sitara provides all
skin and hair related beauty service. The salon is spacious and the atmosphere relaxed.
Men, women and children can easily find a service to cater to their need. But the focal
and niche element of salon is the affordable and attractive pricing.
DEPOT
Depot is one of the youngest brands from the Pantaloon stable and is a tribute to our
freedom of thought, speech and expression shared in a novel fashion with customers as
books, multimedia, toys, stationary and gifts.
HOME BAZAAR
Home Bazaar’, is a satellite version of its national home making and improvement retail
brand Home Town. Home Bazaar is an amalgamation of the value-lifestyle
so appears eminently approachable to the budget-buyer, the aspiration customer
as well as the lifestyle driven customer.
Home Bazaar will provide consumers with all that goes into building a house and
everything to make it a ‘Home’. Home Bazaar offers consumers choice and variety under
one roof with expert Home Bazaar will have displays of various room settings such as
living room, dining room, bedroom, kids' room, kitchen & bathroom. Customers will get
to select from a range of products like sofa sets, dining tables, beds, kids furniture,
electronics, kitchen fittings, bathroom fittings, furnishings, mattresses, paints, tiles,
electrical fittings, decor lighting, plywood, etc.

NAVARAS
Navaras, a fine 22 carat pure gold and diamond jewellery brand, retailed from Big Bazaar
stores, offers nine unique rational benefits to the consumer namely – BIS Hallmark
jewellery, free cleaning and polishing, insurance cover against theft and burglary,
transparent making charges, a buyback if unsatisfied, 0% weight loss if jewellery is
exchanged, diamond certification, free karat meter check and a range of designs.
SERVICE PROFILE
3 Ways by which customers can register their feedback

 Share with Us Book available at the Store
 Share with Us Forms available at the Store
 E-Mail
Use Signage’s
To Encourage Customers for Sharing Their Experiences

To Inform them About Various Medium of Communication
At CSD Counters and also At Prominent Locations in Store Of 2’x 2 Dimension.
Lead Time for Complaints
All complaints to be resolved within 24 hours

For severe issues, it might get extended to 48 hours
2. E AREA OF OPERATION:

Big Bazaar is operating nationwide, there are almost over 159 retail outlets
situated all over the nation it has been able to capture the mass all over which has mainly
led to the success of the store and its expansion. Also big bazaar is planning to open 300
More stores in 2011.
Head Quarter = Jogeshwari Mumbai
8 Top Cities Tier one and Tier two towns

 Mumbai Sangali
 Delhi NCR Durgapur
 Kolkata Bhubaneswar
 Chennai Nasik
 Bangalore Nagpur
 Pune Vizag
 Ahmadabad Thissur
 Hyderabad Kochi
Surat
Calicut
Mangalore
Mysore
Hubli
Belgaum and many more
OWNERSHIP PATTERN

Future value retail limited is India’s leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer market.
Headquartered in Mumbai (Bombay), the company operates over 7 millions square feet
of retail space, has over 1045 stores across 53 cities in India and employs over 28,000
people. The company’s leading formats include Pantaloons, a chain of fashion outlets,
and Big Bazaar,
Name Designation
Mr. Kishore Biyani Managing Director
Mr. Gopikishan Biyani Non Executive Director
Mr. Rakesh Biyani Executive Director
Mr. Shailesh Haribhakti Chairman and Independent Director
Mr. S. Doreswamy Non Executive Independent Director
Mr.Rakesh Biyani Executive Director
Mr Anshuman Singh CEO – Future logistics
Mr Chandra Prakash Toshniwal CFO
Mr V.K Chopra CEO – General merchandising
Mr.Sadhashiva Kumar CEO – BIG BAZAAR
COMPETATORS INFORMATION
Reliance Retail-
Reliance claimed last year to start a retail chain that will be unique in size and
spread, will lead to the welfare of one and all ranging from Indian farmers, manufacturers
ultimately consumers. It is known as Reliance Retail Ltd.(RRL) and is a 100 percent
subsidiary of Reliance industries Ltd.(RIL).

DLF Shopping Malls- DLF Retail Developers Ltd. is one of the troikas of the
DLF Group. Besides being India’s largest real estate developer, DLF is also of
the leaders in innovating shopping malls in India. It caught public eye when it launched
the 2, 50,000 sq ft. shopping mall in Gurgaon. It has brought a dramatic change in the
lifestyles and entertainment with its City Centers and DT Cinemas. DLF has plans to
invest Rs. 2000-3000 crore in all the emerging areas from metros to A class cities in the
next two years.
Westside-The Company has a turnover of Rs. 357.6 crores (FY 2005-2006)

and currently operates 36 stores in the major metros and mini metros of
India. An international shopping experience, a perception of values, and offering
the latest styles, has created a loyal following for West side’s own brand of
merchandise Westside was named the 'Most Admired Large Format Retail
Chain of the Year' by the Lycra Images Fashion Awards 2005
Marks & Spencer-

Marks & Spencer (M&S) is a major British retailer, with over 885 stores in more than 40
territories around the world, over 600 domestic and 285 international.[1][2] It is the
largest clothing retailer in the United Kingdom, as well as being a food retailer, and as of
2008, the 43rd largest retailer in the world.[3] Most of its domestic stores sell both
clothing and food, and since the turn of the century it has started expanding into other
ranges such as home wares, furniture and technology. In 1998 it became the first British
retailer to make a pre-tax profit of over £1 billion,[4] though a few years later it plunged
into a crisis which lasted for several years. It is listed on the London Stock Exchange and
is a constituent of the FTSE 100 Index.
Shoppers Stop- Shoppers Stop is an Indian department stores promoted by the K Raheja
Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in
Andheri, Mumbai Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the
Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona,
on April 10, 2008. Shoppers Stop is listed on the BSE. With the launch of the Navi
Mumbai departmental store, Shoppers Stop has 27 stores in 12 cities in India.
2. G INFRASTRUCTURAL FACILITIES
The shopping malls of Big Bazaar have all the necessary amenities required of a hypermarket,
including Trial rooms, Wheel chairs, Lifts/elevators, Drinking water, Restrooms etc.
2. H ACHIEVMENT/AWARD
Achievement
2003
Indian Express Award
(PRIL –Marketing Excellence and Excellence in Brand Building)
Indus land Bank
(PRIL - Excellence in Brand Building)
2004
Images Retail Awards 2004
(PRIL- Most Admired Retailer of the Year)
(Food Bazaar- Retailer of the Year(Food and Grocery)
(Big Bazaar-Retailer of the Year-Value Retailing)
(Central-Retail Launch of the Year)
Reid & Taylor and DLF Awards
(PRIL - Retailer of the year)

2005
Images Retail Awards 2005
(PRIL- Most Admired Retailer of the Year )
(Food Bazaar- Retailer of the Year(Food and Grocery)
(Big Bazaar-Retailer of the Year(Value Retailing)
(Central-Retail Launch of the Year)
Voted by Business Today magazine as one of the

(Top 20 Companies in India to watch in 2005)
(India’s most investor-friendly companies in the top 75)
(India’s biggest wealth creators in the top 100)
DAKS London
(PRIL- Brand Builder of the Year)
2006
Retail Asia Pacific Top 500 Awards
(Asia Pacific Best of the Best Retailers – Pantaloon Retail (India) Ltd)
(Best Retailer in India – Pantaloon Retail (India) Ltd)
Ernst & Young Entrepreneur of the Year Award
(Ernst & Young Entrepreneur of the Year (Services) – Kishore Biyani)
CNBC Indian Business Leaders Awards
(The First Generation Entrepreneur of the Year – Kishore Biyani)
Images Retail Awards
(Best Value Retail Store – Big Bazaar)
(Best Retail Destination – Big Bazaar)
(Best Food & Grocery Store – Food Bazaar)
(Retail Face of the Year – Kishore Biyani)
Readers’ Digest Awards
(Platinum Trusted Brand Award - Big Bazaar)

CNBC Awaaz Consumer Awards
(Most Preferred Large Food & Grocery Supermarket – Big Bazaar)
2007
Images Retail Awards
(Most Admired Retail Face of the Year: Kishore Biyani)
(Most admired retailer of the year: Large format, multi product store: Big Bazaar)
(Most admired retailer of the year: Food and Grocery: Food Bazaar)
(Most admired retailer of the year: Home & office improveme
National Retail Federation Awards

(International Retailer for the Year 2007 – Pantaloon Retail (India) Ltd)
PC World Indian Website Awards
(Best Indian Website In The Shopping Category - Futurebazaar.com)
Reader’s Digest Trusted Brands Platinum Awards
(Most admired Retail Company of the year: Pantaloon Retail (India) Ltd
2008
Indian Retail Forum Awards 2008
(Most Admired Retail Company of the year - Future Group)
(Best Retailer Of The Year ( Hypermarket) - Big Bazaar)
The INDIASTAR Award 2008
(Food Bazaar: Best Packaging Innovation)
Retail Asia Pacific 500 Top Awards 2008
(Gold Winner -Top Retailer 2008 Asia Pacific)
Coca-Cola Golden Spoon Awards 2008

(Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani)
(Most Admired Food & Grocery Retailer of the Year – Supermarkets: Food Bazaar)
The INDIASTAR Award 2008

(Food Bazaar: Best Packaging Innovation)
Retail Asia Pacific 500 Top Awards 2008
(Gold Winner -Top Retailer 2008 Asia Pacific)
(Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani)
(Most Admired Food & Grocery Retailer of the Year – Supermarkets: Food Bazaar)
(Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar)
( Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar)
The Reid & Taylor Awards For Retail Excellence 2008
(Retail Best Employer of the Year: Future Group)
(Retailer of The Year: Home Products and Office Improvements: Hometown)
2009
Images Fashion Forum 2009
(Most Admired Fashion Group Of The Year - Future Group)
(Most Admired Private Label - Pantaloons, the lifestyle format)
(Critic’s Choice for Pioneering Effort in Retail Concept Creation – Central)

(Most Admired Food & Grocery Retailer of the Year)
(Most Admired Food Court)
FUTURE GROWTH AND PROSPECTS
1. The Kishore Biyani-led Future Group is all set to foray into real estate business for
building ready-to-move-in houses. The company has informed that it has signed
50:50 joint ventures with Kolkata-based developer Sumit Dabriwal, to incorporate
FH Residencies, for 'branded apartments' that would be available at an 'affordable'
cost. The latest move was considered as a part of the company's strategy to
achieve a turnover o f Rs 13,000 crore by July 2011.
2. For one, the Future value Group's retail chain Big Bazaar is itself is planning to
have 300Hypermarkets in the country by 2010-11. The company may also
increase its annual turnover to Rs 13,000 crore by 2010-11, up from Rs 3,600
crore last fiscal on the back of its expansion. They had reported begun with their
first store in October 2001 and till date have crossed the 100-store mark.
3. Big Bazaar, the largest retail chain of Future Group, is eyeing a turnover of Rs
8,000 crore by the next financial year. Speaking on the sidelines of Images
Fashion Forum in Mumbai, Kishore Biyani, CEO, Future value retail said,
“We want to introduce new value culture, manage operating costs better
and boost profitability of Big Bazaar. However, to fund our expansion, we are not
looking at listing Big Bazaar.” Recently, future Retail, the group’s listed entity,
decided to hire off four business divisions, including Big Bazaar and
Food Bazaar, into separate companies. The company is now looking at
openining a total of 300 Big Bazaar stores and has introduced the neighborhood
concept of retail, opening stores in residential areas.
4. They are also planning to open 58 new big bazaars in Maharashtra
5. Big Bazaar is planning to have 300 hypermarkets in the country by 2010-11. The
company may also increase its annual turnover to Rs. 13,000 crore by 2010-11, up
from Rs. 3,600 crore last fiscal on the back of its expansion. To achieve this they
are targeting a turnover of Rs. 5,000 crore in the current fiscal year and have
formulated plans for reaching a figure of Rs. 13,000 crore by 2010-11 fiscal. The
average size of a Big Bazaar hypermarket is 30,000 sq ft to one lakh sq ft.
2. J McKINSEY’S 7s FRAME WORK.
The 7-S-Model is better known as Mc Kinsey’s 7’S. This is because the two person
who developed this model. TOM peter & Robert waterman have been consultants at Mc
Kinsey’s & Co at that time. They published their Books “The Art of Japanese management”
and “In search of the difficulties of organization changes”. The model shows that
the organizational immune systems and many interconnected variables involved makes
change Complex and therefore an effective change effort must address many of these issues
simultaneously.

What is 7-S-Model?
The seven-Ss are a framework for analyzing organization and their effectiveness. It
looks at the seven key elements that make the organizations successful, or not. i.e.,
Structures, Skills, Style, Strategy, Systems, Staff & Shared values.
A Systematic approach to improving organization:

The 7-S Model is a tool for managerial analysis and action that provides a structure
with which to consider a company as a whole, so that the organization’s problems may be
diagnosed and a strategy may be developed and implemented. It’s called 7 s modelSeven-S”
formula- A comprehensive guide is to analyze the Culture and Behavior of
Corporations.
Those seven elements are distinguished in so called hard S’s and soft S’s. The hard
elements (green circles) are feasible and easy to identify. They can be found
in strategy statements, corporate plans, organizational charts and other documentations.
The four soft S’s however, are hardly feasible. They are difficult to describe since
capabilities, values and elements of corporate culture are continuously developing and
changing. They are highly determined by the people at work in the organization.
Therefore it is much more difficult to plan or to influence the characteristics of the soft
elements. Although the soft factors are below the surface, they can have a great impact of
the hard Structures, Strategies and Systems of the organization.
STRATEGY
Customer oriented Employee oriented
1. Attracting and retaining customers 1. Consider biggest assets
2. Uses non-traditional marketing strategy 2. Employee welfare trust
3. Behavioral psychology 3. Employee growth /training
programs
4. Moving demo-trolley 4. “PRERNA” the employee plan
5. Used young population as strategic blessings 5. Standardization of staff room
7. Regular interesting offers/discounts 7. Internal
publications-“Pragati”
8. Spot discounts
9. Night shopping culture
10. Occasions based services
11. Baby’s day out promo
12. More organized floors
STYLE
The Big bazaar practices the both method of decision making i.e. the bottom up
approach and Top down approach.
If the problem is minor then decision taken at lower level and the problem solved at
low-level management and they have authority to make the decision. E.g.: If there is
problem for a offer updating and item not found then decision will be taken at low level
management and the problem will be solved and if the problem is major. For e.g.: If there
is problem with goods and has to be replaced than that will be informed to top level
management than at top level decisions are made to replace that goods or to solve any
other problem.
STRUCTURE:
In general structure is referred as the framework in which the
activities of the organization’s members are coordinated. The four basic structural
forms are the functional form, divisional structure, matrix structure and networkThe
organization structure for Big bazaar is flat in nature. For Big bazaar, the divisions are
apparel, non apparel and the new business division, which includes gold, footwear and
the shopping- shops. For Food Bazaar, a separate team has been created which again
works independently. About 1,800 people work for Big bazaar directly. Support and
ancillary services comprise another 400 people. A new trainee is put through a basic three
day training program before going on the shop floor. Evaluation is done every six
months.
SKILLS
Skills refer to the fact that employees have the skills needed to carry out the
company’s strategy. Skills can be acquired by Experience, Training and Development – it
ensures people known how to work and stay update with the latest techniques.
Certain standard skills are required in employees in order to perform or carry out
the company strategy. Big bazaar gives more stress on quality service and delivery time.
In order to maintain better quality there will be two sessions for continues improvement
for the skill up gradation. main intension is continues improvement in products and
processes.
 Basic Skills: Active learning, Listening, Speaking, writing, Critical

thinking and Monitoring
 Complex Problem solving Skills: Developed capacities used to solve ill-defined

problems in complex, real-world settings for the purpose of Complex problem
solving at the store.
 Resource Management Skills: Developed capacities used to allocate resource

efficiently for the purpose of Management of Financial, Personal and

Material Resources and Time Management
 Social Skills: Developed capacities used to Work with people to achieve

Goals for the purpose of Coordination, Instructing, Negotiation,
Persuasion, service orientation and social perceptiveness.
 System Skills: Developed capacities used to understand, monitor and

improve socio-technical system for the purpose of Judgment and
decision making, System analysis and Evaluation .
 Technical Skills: Developed capacities used to Design, set-up, operate

and correct malfunctions involving Equipment Maintenance, Selection,
Installation, operation Monitoring and Analysis, Programming, Repairing, Trouble
shooting and Technology Design.
Training:
According to Flippo “Training is as act of increasing the knowledge and skills of an

employee for doing a particular Job”
ON THE JOB TRAINING: For Fire Fighting, customer approach, problem solving,
behavior, language using, approaching managers, how to make paging.
OFF THE JOB TRAINING: For Effective communication, housekeeping, handling

storage and preservation, manufacturing strategy and communication skill, supplier
development.

SYSTEMS:
In general systems in big bazaar refers to “The formal and informal procedure,
including innovation systems, compensation systems, management information
systems and Capital allocation systems that govern everyday activity in big bazaar and
these are the main strengths that govern the day basis transactions
STAFFS
Staff means a group or team formed to carry out a particular function or a task. that
the company has hired able people trained them well and assigned them to the right jobs
this is done by the process of selection, training, reward, and recognition, retention,
motivation, and assigning to appropriate work are all key issues .
Here in the BIG BAZAAR Mysore there are 220 permanent employees and 60
temporary employees, and are classified by giving grades on the basis of the seniority and
superiority in the company.
SHARED VALUES
Shared values are what engender Trust and link an organization together. Shared
values are also the identity by which an organization is known throughout its business
areas. Thus, some of the values that are shared by both the employees and the
management at big bazaar are as follows:
Product and service quality

Productive efficiency
Team work concept
Customer satisfaction
TPM (Total Productivity Management)

SWOT Analysis of the BIG BAZAAR

Strengths
 High brand equity in evolving retail markets.
 State of art infrastructure at big bazaar outlets.
 Point of purchase promotions to increase the purchase.
 Variety of stuff under single roof.
 Quality goods are available at reasonable prices.
 Large percentage of customers from the growing Indian middle class.
 Good security system
Weaknesses
 Unable to meet the store opening target till now.
 Falling revenue per square feet.
 Specific items not consistently available
Opportunities
 Evolving customer preferences in recent years
 There remains a large future scope for the retail industry in India, as
incomes rise and consumption increases
 The opportunity for widening the business all over India because Big
Bazaar opens new stores in untapped markets, such as smaller or second
tier cities such as Sangre, Belgaum and Hubli.
Threats
 Competition from current Indian retail companies like Shoppers Stop, Trent,
More, Lifestyle, and Subhiksha.
 Possible future competition from international retail companies like Walmart
 High taxes in India suppress consumption.

 Unorganized retail market of India.

 Government policies not well defined in emerging markets like India .
ANALYSIS OF FINANCIAL STATEMENT

JUN_1
PROFIT & LOSS ACCOCUNT JUN_06 JUN_07 JUN_08 JUN_09 0
Sales & Operating Incomes 1868.97 3236.74 5048.91 6341.7 5934.37
Other Income 3 92.03 3.76 6.06 84.63
Total Income 1871.97 3328.77 5052.67 6347.77 6019

Cost of Goods Sold 1243.43 2245.05 3512.19 4429.95 4062.53
Labour Charges 20.66 14.62 21.28 15.79 14.82
Packing Materials 19.22 27.8 40.4 51.74 26.74
Power 37.41 61.51 78.2 98.97 83.2

Excise - - - - -
Rent 113.46 207.01 326.27 405.76 477.07

Personnel Cost 112.07 206.09 274.07 274.26 279.56

Advertisement Expenses 50.96 93.14 118.28 114.23 149.52
Transportation Expenses 19.08 - - - -
Sales Tax - - - - -
Misc. Expenditure 106.03 165.92 217.7 282.55 248.84
Total tax 1722.34 3021.14 4588.39 5673.27 5342.3
PBDIT 149.64 307.63 464.28 674.5 676.7
Finance Charge 36.92 89.76 185.27 318.22 288.24
PBDT 112.71 217.87 279.01 356.28 388.46
Depreciation 20.82 36.86 83.39 140.05 161.88
PBT 91.9 181.01 195.62 216.23 226.57
Prior Period Items 0.07 0.06 -0.03 - 12.93
Profit after EOI 91.82 180.96 195.64 216.23 213.64
Current Tax 11.04 30.71 29.16 25.23 36
Deferred Tax 14.84 27.93 37.28 48.26 1.25
Fringe Benefit Tax 1.75 2.32 3.24 1.89 -
Earlier Year Income tax - - - 0.27 -3.17
PAT 64.16 119.99 125.97 140.58 179.56
PARTICULARS JUN_06 JUN_07 JUN_08 JUN_09 JUN_10

SOURCE OF FUNDS
Equity share capital 26.88 29.35 31.86 38.065 41.23
Share capital (Pending) - - - - 64.66
Share Application money - 0.01 - - -
Warrant Application
money - - 63.26 22.88 122.88
Reserves& Surplus 500.02 1062.82 1751.5 2211.48 2527.48
Share Holdres fund 526.9 1092.18 1846.62 2272.42 2756.25
Secured Loans 428.1 951.93 1991.77 2525.53 1236.03
Unsecured Loans 173.29 347.65 200.01 324.86 150.19
Deffered Tax Liability 27.92 55.84 67.84 116.1 72.43
TOTAL LIABILITIES 1156.2 2447.6 4106.24 5238.91 4214.9

APPLICATION OF
FUNDS
Gross Blocks 366.01 767.07 1368.76 1876.45 1417.04
Depreciation 56.58 92.47 170.59 307.69 294.89
Net Block 309.43 674.6 1198.17 1568.76 1122.15
Capital WIP 86.06 131.13 330.64 345.23 59.68
NB+CWIP 395.49 805.73 1528.81 1913.99 1181.83
Investments 161.67 252.01 586.52 954.03 2002.91
CURRENT ASSTES
Inventries 507.02 885.96 1429.84 1787.84 1270.67
Debtors 17.03 65.17 113.16 177.25 123.57
Cash &Bank balance 21.77 162.97 121.1 109.34 100.54
Loanes & Advances 297.57 633.85 962.32 1202.56 421.68
Other Currents Assets 1.09 1.5 2.16 5.75 1.34
Total Currents Assets 844.48 1749.45 2628.58 3282.74 1917.8
CURRENT
LIABIULITIES
Creditors 136.08 223.72 310.4 385.38 446.48
Other Currents Liabilities 93.73 120.15 309.68 506.01 416.93
Provisions 15.62 15.71 17.58 20.47 24.22
Total Currents Liabillities 245.44 359.58 637.66 911.86 887.63
Net Currents Assets 599.04 1389.86 1990.91 2370.88 1030.17
Misc. Expenditure - - - - -
TOTAL ASSETS 1156.2 2447.6 4106.24 5238.91 4214.9
LEARNING EXPERIENCE
Project training created a sensory impression in my mind putting across what actually is
an organization. This sensory impression guide in relating theoretical concepts which
have been converted in past and which is being converted in future also. Management
concepts were difficult to analyze. But, after plant training I felt empowered with
confidence and understood different management concepts in pragmatic manner.
 I came to know the importance of different management functions such as

planning, organizing, staffing, directing and controlling which guide
the organization in facing stiff competition from competitors.

 I got to know how centralized structure is doing through others and with
others work and things
 Through this training I was able to understand company is having sufficient
number of employee/ workers with different skills, talents, abilities,
attitudes etc and how they are being utilized in optimum manner in
achieving organization goals.
 I learnt the importance of leadership trait which guide in achieving personal
and organizational goals.
 I came to know that how information technology and various systems have
reduced the time of an activity and documentation also.
 I came to know the importance of time management.
 I learnt the quality control and assurance guide the entire organization in
providing quality service to customers there improving loyalty from their
side.
PART -B
1.General introduction
The necessity of effective inventory management is being increasingly

realized in industrial and non-industrial organization both in India and abroad. This
realization has come about because of increasing complexity of the task of managers and
administrators. In most organization, the problem of effective inventory control is now
viewed as the most critical problem with changes in social climate. While these can be
great assets to the organization, they become problems if the organization is not able to
manage inventory properly.
Liquidity and profitability are the two vital aspect of corporate business. Any
business cannot run without these two. A firm may run without profits for sometime; but
with no liquidity, the firm cannot run their business. That is why management of
inventory is an integral part of corporate planning in business life.
The proper inventory control system leads to an optimum utilization of

Resources. Idle materials are of a financial burden to the organization. Thus proper,
inventory management directly assists in efficient functioning of the company. S.L. Goel
says “Take care of the forest, the tree will take care of itself”, it should be the main motto
of an inventory controller.
In inventory management, various methods and techniques can be

adopted to control the inventory like, prompt maintenance of registrars, proper raw
material arrangement, and fixation of various control levels and application of inventory
control techniques and bin card system etc, which are relevant for inventory control in
stores department
Importance of the study.
Today, growth and continued existence of business are largely depends on

competitive advantage. The risk of competitive advantage inside an increasingly global
market place has forced firms to consider habits of improving the modern practices.
Severe contests make it necessary to endlessly bring in new products and new design of
products and this will lead to significant shorter existence series.

The problem of competition is increasing in global market place. It has forced the
firm to consider ways of improving the manufacturing practices. Now a day every
company will face the competition. Because of that every company will maintain a
flexible manufacturing and distinction system. It will depend on how the company will
respond to the fast changing market needs, customer expectations and technological
advancement
The following techniques may be used to control the size of inventory .

 Vital essential and desirable (VED) classification
 Fixing the maximum and minimum limits of inventory.
 Re-ordering level or ordering level.
 Economic order quantity.
 Two bin system.
 Order cycling system.
 Statically inventory control system.
 ABC classification
 Budgetary control system.
 VED (Vital Essential and Desirable) classification:

While in ABC classification, inventories are classified on the basis of their
consumption value and in HML analysis, unit value is the basis; criticality of
inventories is the basis for VED categorization. The VED analysis is done to
determine the criticality of an item and it’s effect on production and other services.
It is specially used for classification of spare parts. If a part is vital, it is given ‘V’
classification, if it is essential, then it is given ‘E’ classification and if it is not so
essential, then it is given ‘D’ classification. For ‘V’ items, a large stock of
inventory is generally maintained, while for ‘D’ items, minimum stock is enough.

 Fixing the minimum and maximum limits of inventory:

In order to have proper check on the investment in inventory, it is necessary
to fix the minimum and maximum limits of inventory so that there should be no
over stocking of materials nor shortage of raw materials, in fixing the levels of
inventories, the following two factors should be kept in mind.
a. Time lag between indenting and receiving of the raw materials i.e., lead time.
b. Rate of consumption during lead time.
Under this system, an order of sufficient size is placed when a minimum

point in inventory to the maximum point, past experience may help the fixing of
minimum and maximum points in inventories.
 Re-ordering level or ordering level:

It is a point [if material reaches at this point] where orders for fresh
suppliers are placed with suppliers, the point is fixed somewhere in between the
maximum and minimum point in such a way that the quantity available between
the minimum level and this point is sufficient to meet requirement of production
upon the time fresh suppliers are received.
Re-ordering level = minimum level + [time in acquiring material * rate of
Consumption.
 Economic order quantity:

EOQ is an important factor in controlling the inventory. It is a quantity of
inventory which can reasonably by ordered economically at a time, in determining
this point ordering cost and carrying costs are taken into consideration.

The quantity may be calculated with the help of the following formula.
EOQ = 2.A.S/C.H
A = Annual quantity used [in units]
S = cost of placing an order [fixed cost]
C.H. = Cost of holding one unit for one year.
 Two bin system:

Under this system all inventory items are grouped under two categories, in
the first group a sufficient supply is kept to meet the current requirement over a
designed period of time. In the second group or bin, a safety stock is maintained to
meet the requirement of inventory times when sock in the first bin is exhausted and
re-ordering occurs.
 Order cycling system:

In this system, a review of each item of inventory is made from time to time
depending upon the critically of the item to have the predetermined level of
inventories critical item may required a short review cycle and on the other hand,
lower cost non-critical item may require longer review cycle, at each review date, a
required quantity of inventory is ordered to bring it to the pre-determined level.
 Statistical inventory control system:

Statistical modes are used by some firms to find out their widely
distribution system with the help of computers, it helps the management in taking
the inventory management decisions. But this system is valid only in the sufficient
information for cost comparison is available and the data has accurately been
complied otherwise it is otherwise to find out the alternatives.

 ABC ( Always better control) classification:

One of the widely used techniques for control of inventories is ABC
analysis. The objectives of ABC control is to vary the expenses associated with
maintaining appropriate control according to the potential savings associated with
a proper level of such control.
ABC analysis consists of the classification of materials into categories, A, B

& C on the basis of their value. Items of high value and comparatively less in
number are included in ‘A’ category. Generally, they constitute about 70% of the
total value and about 15% of the total number. Items of low value and large in
number are included in ‘C’ category.
70% of the total value and about 15% of the total number. Items of low
value and large in number are included in ‘C’ category.
Generally, they account for about 70% of the total value and about 60% of
the total number. Items of moderate value and moderate in number are included in
‘B’ category. They account for about 20%of the total value and 25% of the total
number.
Items of ‘A’ category are subject to strict control with regard to purchase,
storage and use. Items of ‘B’ category are not subject to much control. The
objective of this analysis is to reduce the investment of inventory, the cost of
inventory control and also loss of inventory.
 Budgetary control system:

Under this system, inventory budgets are prepared and then compared with
the actual consumption figures. Though budgets, inventory consumption and

leaves are co-ordinates with the expected usage, it serves the purpose of
controlling cash and debtors. The inventory budget is a plan for inventing funds in
stock at regular intervals via raw materials, work in progress and finished stocks.
Various levels of materials:

1. Minimum stock level.
2. Maximum stock level.
3. Re-ordering level.
4. Danger level.
1. Minimum stock level:

This represents the minimum quantity of stock that should be held at all
times, stock level is normally not allowed facing below this level. This level of
stock is buffer stock for use during emergencies. Fall 1 stock level below
minimum level will indicate potential danger to this business. This extra efforts
have to be taken to expedite the supply.
Minimum stock level is : Re –order level – [ Normal consumption * Normal

re-order period.
The following factors are to be considered in fixing the minimum level.

a. Nature of items of materials.
b. Minimum time required for delivery.
c. Rate of consumption of materials.
d. Stock-out costs which includes loss of contribution margin, loss of goodwill etc.
2. Maximum Stock Level:

Maximum level indicates maximum quantity of an item of material. It is

this level above which stocks are not allowed to rise, maximum level is calculated
as:
Re-order level+ Re-order quantity * minimum consumption *minimum re-
order period.
In fixing minimum stock level the factors to the consider are:
 Storage space available.

 Storage and insurance costs.
 Available of funds.
 Price advantage arising out of bulk purchase.
 Economic order quantity also affects the maximum level.
3. Re-order quantity [EOQ]:

It refers to the quantity to be purchased in a single purchase order. It is
nothing but economic order quantity.
4. Danger level:
This level is fixed usually below the minimum level emergent purchase
actions are initiated if stock below danger level.
Benefits of Inventory Management and Control:

Proper management and control of inventories will result in the following
benefits for the organization:-
 Inventory control ensures an adequate supply of materials, stores, etc., minimizes
stock-out and shortages and avoids costly interruptions in the operations.

 It keeps down investment in inventories, inventory carrying costs and

obsolescence losses to the minimum.
 It facilitates economical purchasing through the measurement of requirement on
the basis of recorded experience.
 It eliminates duplication in ordering or in replenishing stocks by centralizing the
sources from which purchase requisitions emanate.
 It permits a better utilization of avoidable stocks by facilitating inter-department
transfers within a company.
 It provides a check against the loss of materials through carelessness or pilferage.
 It facilitates cost allotting activities by producing a means for allocating material
cost to production department or other operating accounts.
 It enables management to make cost and consumption comparison between
operations and consumption comparison between operations and periods.
 It serves as a means for identifying and disposal of inactive and obsolete items of
stores.
 Perpetual inventory values provide consistent and reliable basis for preparing
financial statements.
Major Dangers of Over-Investments in Inventory:

 Block of firm’s funds in Inventory.
 Excessive carrying costs.
 Risk of Liquidity.
 The excessive level of inventories consumes the funds of the firm and cannot be
used for any other purpose. The carrying cost such as the cost of storage, handling,
insurance, recording and inspection also increases in proportion to the volume of
inventory. Excessive inventories carried for a long period brings down the liquidity
of the firm.

Valuation of material issues:

Various methods can be used for valuation of materials issue, which are:
 First In First Out Method [FIFO]:

Here the earliest acquired stock is assumed to be used first. The stock is
assumed to used first. The stock, which is bought, first is issued first. In other
words the principle is that the materials are issued in this order and at the price of
their original purchase.
This method is claimed to be accurate for the reasons that the material are
charged into production at actual cost in the order of receipt. The closing
inventories are valued at the most recent prices. If the closing inventory balance
includes material at several different prices, the problem of considerable clerical
work is involved.
 Last in first out method [LIFO]:

This method is opposite of the FIFO method. It assumes that the material,
which is acquired, last is issued first. Hence material issues are priced on the basis
of the cost of the recent purchases.
 Weighted cost average method: Under this method issues are priced at the
weighted average cost of material in stock [the weight being proportional to
quantities.].To get an up to date weighted average cost figures, a
STATEMENT OF THE PROBEM

 Inventories movement in big bazaar
OBJECTIVES OF THE STUDY
Through the efficient Management of Inventory of the wealth of owners will be

maximized. To reduce the requirement of cash in business, inventory turnover should be
maximized and management should save itself from loss of production and sales, arising
from its being out of stock. On the other hand, management should maximize stock
turnover so that investment in inventory could be minimized and on the other hand, it
should keep adequate inventory to operate the production & sales activities efficiently.
The main objective of inventory management is to maintain inventory at appropriate level
so that it is neither excessive nor short of requirement Thus, management is faced with 2
objectives
(1) To keep inventory at sufficiently high level to perform production and sales
activities smoothly.
(2) To minimize investment in inventory at minimum level to maximize
profitability.
Both in adequate & excessive quantities of inventory are undesirable for
business. These mutually conflicting objectives of inventory management can be
explained is from of costs associated with inventory and profits accruing from it
low quantum of inventory reduces costs and high level of inventory saves business
from being out of stock & helps in runningproduction & sales activities smoothly.
The objectives of inventory management can be explained in detail as under:-

(i) 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.
(ii) To minimize carrying cost of inventory.
(iii) To keep investment in inventory at optimum level.
(iv) To reduce the losses of theft, obsolescence & wastage etc.
(v) To make arrangement for sale of slow moving items.
Scope of inventory management
A significant example concerning inventory management is allocation of

responsibilities and authorities. Inventory control problems can easily arise when for
instance nobody is in the organization is responsible for the inventory or the responsible
person has insufficient authorities to carry out the task.
Likewise, high inventory values indicating a lack of control may just be the result of
inaccurate inventory records or of a reporting system that doesn’t function well.

All functional areas listed above utilizes the information contained with the inventory
management control system and asset repository of information.
The inventory management discipline encompasses all system and data elements from
the mainframe to the server level throughout the enterprise. All mainframe and data
network based hardware and software assets must be identified and entered into the
inventory system. Any changes to these environments must be reflected in the inventory
system. Financial and technical product information must be available through the
inventory system, as needed to support the functional responsibilities of personnel within
the finance and contracts management departm

Methodology:
DATA COLLECTION METHOD’S:
In order to fulfill the objectives of the study data was collected from primary
and secondary sources.
1) PRIMARY DATA
 By interacting with accounts manager.

 Interaction with divisional general manager.
 Personal observation of activities in the organization.
 Interaction with accounts staff members.
2) SECONDARY DATA:
 Past records and files of the organization.
 Financial statements.
 Journals, magazines, newspapers.
 Internet.
Limitations of the study:

The study was conducted at Big Bazar , Mysore for duration of 9 weeks only, due to
time constraints. Hence, the findings may not be applicable throughout the year.

 The study is purely for academics purpose and the inexperience of the
author makes analysis less processed when compared with the
professional analysis.
 In order to maintain the confidential of certain aspects few alterations
have been made without hampering the authenticity of the data.
It is limited to the findings of only few ratios.
ANALYSIS AND INTERPRETATION

INVENTRIES REPLENISHMENT (WHY INVENTRY IS CRICIAL IN RETAIL
INDUSTRY)
The key to successful inventory management is adherence to procedures for Inventory

replenishment. Your ability to anticipate customer demand for certain items will help
you plan your inventory purchases so that sufficient stocks are on hand to
accommodate sales volume without excesses that cause other problems. Planning
your purchases will also help you avoid shortages that can only be filled through
forfeiture of discounts or absorption of premium shipping charges.
Determining purchasing requirements involves answering two questions:
· What to buy?
· How much to buy?
Both questions can be answered by establishing an inventory target for any item you
carry expressed as so many days', weeks', or months' sales.

Inventory control
Inventory investment control is accomplished in two ways:

 Prompt elimination of overstocked items.
 Inventory replenishment in anticipation of customer demand. Whenever a
particular item is overstocked, the overstock should be reduced as promptly
as possible. Naturally, the most effective and profitable way is to sell
customers, even at a discount. However, there are other possibility Excessive
consumer goods inventories are often sold to "bargain basements"
or warehouse outlets. Perhaps you can even arrange wholesale sales to a
competitor. Frequently, it is wiser to scrap inventory that shows no
sales activity for an extended period of time. In this way, you reduce a
misleading overstatement of inventory on your company's books. At the same
time, you make space available for inventory that can be sold at a profit.
Inventory cost: - Costs that are related to inventories.
1. Ordering cost:
A) Cost of placing an order with vendor of materials.
 Preparing a purchase order.

 Processing payments.
 Receiving and inspecting the material.
B) Ordering cost:
 Machine shop.
 Start-up scrap generated from getting a production run started.

2. Carrying cost:
A) Cost connected directly with materials:
 Storage.
 Obsolescence’s.
 Deterioration.
 Pilferage.
B) Financial cost:
 Taxes.
 Insurance.
 Interest (as per the cost of capital borrowed to acquire and maintain the
inventories).
3. Capital cost:
1) Interest on money in inventory.
2) Inventory on money invested in land & building to hold inventory.
3) Inventory on money invested in inventory holding and control
equipment.
4. Inventory service cost:

 Taxes on inventory.
 Labour cost in handling & maintaining stock.
 Clerical expenses in keeping records.
 Employee benefits for warehouse & administrative personnel.
5. Handling equipment cost:

 Taxes & insurance on equipment.

 Depreciation on equipment.
 Cost of maintenance & repairs.
6. Inventory risk cost:

 Obsolescence if inventory.
 Insurance of inventory.
 Cost of maintenance & repairs.
8. Capacity cost:
 Overtime payments when capacity are too small.
 Lay offs & idle time when capacity is too large.
ABC Analysis:-
One of the widely used techniques for control of inventories is ABC always
better control and analysis the objectives of ABC analysis is to very the expenses
associated with maintaining appropriate control to the potential savings associated
with a proper level of such control.
Logically we expect to maintain strong controls over the ‘H’ items taking
whatever special actions needed to maintain availability of these items hold stocks at
the lowest possible levels consistent with meeting demands, frequent ordering
expenditure etc., because of the low amounts in the area, thus with the ‘C’ group we
may maintain some what, higher safety sticks order more months of supply except
lower levels of customer service. It is for this selective inventory control. (SIM)

ABC Analysis enables to exercise selective control when the materials manager is
confirmed with a large number of items. The significance of this analysis is that it spot
light attention to be given in respect of the areas like
 Loss.
 Wastage.
 .Quality.
 Price variance.
 Usage variance.
 Inventory turnover etc.,
It also helps to determine safety stocks frequently of ordering preparing of control

statements sources from which material is to be procured etc., hence ABC analysis
is one of the best techniques of inventory control.
A B C
Nature
(High consumption (Moderate (Low
Value) consumption Consumption
value) value)
Extent of Very strict Moderate Lose control
Control control
Safety of stock No safety stocks Low safety High safety stocks
stocks
Frequency Frequency ordering Once in 3 Bulk ordering in 6
orders months months
Control statements Weekly control Monthly control Quarterly control
statements report reports
Follow up Maximum Periodic Follow up only in
exceptional case

Type of analysis Regards value Moderate value Minimum value

analysis analysis analysis
Forecasting Accurate forecasting Estimates based on Rough estimates for
in material planning past data on present planning
plans
Period of review Minimization of Quarterly control Annual review over
waste, obsolete and over surplus and surplus and obsolete
surplus obsolete items material
Centralization Centralized Combination Decentralized
purchasing and purchasing purchasing
storage
Level of Must be handled by Can be handled by Can be fully
management senior officers middle delegated
management
Sources of supplies As many sources as Two or more Two reliable sources
possible for each item reliable source for each item.
Posting of ledger Individual posting Small group Group posting
posting
Lead time Maximum efforts to Moderate Minimum clerical
reduce lead time efforts
Value analysis Rigid Moderate Minimum
ABC analysis of big bazaar 2010-2011

sl materials items in value of cumulative Cumulative % of r
no numbers quantity % of valu Cum a
& kgs quantity e % of n
value k

1 electronic bazaar 12 32850670 32850670 2.76 21.2 21.20

2 Apparcels 15 30199570 63050240 8.06 19.5 40.71
3 fashion 30 28768067 91818307 15.8 18.6 A

&jewellaries 59.31
4 home & personal 43 25850924 11766923 25.7 16.7
care 1 76.02
5 furniture bazaar 36 13239728 13090895 36.7 8.56
9 84.58
6 food items 5250 12499860 14340821 48.7 8.08
9 92.66
7 farm products 1255 5689746 14909796 61.3 3.68 B
5 96.34
8 child care &troys 60 3385274 15248323 74.1 2.19
9 98.53
9 chill station 29 1172449 15365568 87 0.76
8 99.29
10 other services 54 1094725 15475041 100 0.71 C
3 100
Interpretation of ABC Analysis:
From the ABC analysis of Big bazar, (Here, took major groups of raw materials
for the analysis) it is clear that A Class items i.e., High value items, constitute for 59.31%
of annual inventory consumption. It comprises only 15.8%of Total inventory. From this
we can understand that only 15.8% of items are major importance because it constitutes
59.31% of the total value of annual inventory consumption. So control on this class
should be more.
B Class items constitute of total annual value and 37.03% of total items. This class is
called as medium value items. This class inventory requires medium level of control of
37.03% of the items and only of value 45.5% of inventory. When compare to A Class this
inventory require less control.

C class items constitute of 38.07%of total annual value and 3.66% of total items. This
class is called low value items. This class inventory requires no control because 47.06
items i.e., almost 40% of the items constitute only 3.66% of the total value of inventory.
So control on this inventory does not require when compare to the A and B class items.
RATIO ANALYSIS
In order to analyze the financial position of a company there are various tools
and techniques. Among them, one of the most popular way of analysis and
interpretation of financial statement is “Ratio analysis”.
Ratio analysis is one of the techniques of analysis and interpretation of financial

statement. These are point or indicators of financial strength, soundness, position and
weakness of an enterprise and helps in concluding the exact financial position of
concern. It is powerful tool of financial analysis used to diagnose the financial health of
the firm.
Some of the ratios are calculated . They are as follows.
 Inventory turnover ratio

 Current rato
 Debtor turnover ratio
 Fixed asset turnover ratio.
 Debt Equity ratio
RATIO ANALYSIS
FINANCIAL
PERFORMANCE JUN_06 JUN_07 JUN_08 JUN_09 JUN_10

Cost of goods Sold / Net Sales 66.53% 69.36% 69.56% 69.85% 68.46%
Manpower Cost / Total Incme 5.99% 6.19% 5.42% 4.32% 4.64%
Adverdising and Selling Cost /
Total Income 2.72% 2.80% 2.34% 1.80% 2.48%
Interest / Total Income 1.97% 2.70% 3.67% 5.01% 4.79%
PBDIT / Interest (Debt-Service
Ratio)
PROFITABILITY JUN_06 JUN_07 JUN_08 JUN_09 JUN_10

PBDIT / Total Income 7.99% 9.24% 9.19% 10.63% 11.24%
PBDT / Total income 6.02% 6.55% 5.52% 5.61% 6.46%
Net Profit /Total Income 3.43% 3.60% 2.49% 2.21% 2.98%
RONW (PAT / Average
Networth) 17.15% 14.82% 8.57% 6.83% 7.14%
ROCE (PBDIT / Average capital
Employed) 18.30% 17.48% 14.44% 14.73% 14.61%
BALANCESHEET JUN_06 JUN_07 JUN_08 JUN_09 JUN_10

Debt - Equity Ratio 1.14 1.19 1.19 1.25 0.5
Debtors Turnover (Days) 3 7 8 10 7
Inventory Turnover (Days) 98 99 102 101 77
Current Ratio 1.44 2.19 1.71 1.97 1.62
Quick Ratio 0.58 1.08 0.78 0.75 0.49
Asset Turnover (Total income /
Totl asset) 1.62 1.36 1.21 1.21 1.43
KEY FINANCIAL PARAMETERS ( Rs IN

CRORES)
Total revenue 1871.97 3328.77 5052.76 6347.76 6019
Profit Before Interest ,Tax and
Depreciation 149.64 307.63 464.28 674.5 676.7
Profit After Tax 64.16 119.99 125.97 140.56 179.56
Cash Profit 99.85 184.78 246.64 328.88 342.7
DATA PER SHARE JUN_06 JUN_07 JUN_08 JUN_09 JUN_10

Basic Earnings (less Exordinary
income) 5.06 8.71 7.54 7.94 8.46
Basic cash Earnigs (Rs) 6.7 11.39 14.76 18.58 16.16
Dividend (Rs) 0.5 0.5 0.6 0.6 0.8
Book Values (Rs) 39.2 74.43 111.96 118.2 124.61

Debt equity Ratio:
YEAR RATIO
2006 1.14
2007 1.19
2008 1.19
2009 1.25
2010 0.50
1.4
1.2
0.8
Series1
0.6
0.4
0.2
0
JUN_06 JUN_07 JUN_08 JUN_09 JUN_10
Debt Equity Ratio is also known as External Internal Equity Ratio, it is used to
analyze the long-term solvency of the firm. Debt-Equity ratio expresses the relationship
between debt and equity.
The standard ratio for the debt equity mix is 2:1, compared to that of the last year;
the debt equity ratio has decreased, which implies that the financial structure sound of the
company is sound.
DEBTOR TURNOVER RATIO

YEAR DAYS
2006 3
2007 7
2008 8
2009 10
2010 7
12
10
6 Series1
0
Debtors’ turnover ratio indicates the velocity of debt collection of the firm. In
simple words, it indicates the number of time the debtors are turned over during a year.
Generally, the higher value debtor’s turnover the more efficient management of
debtors/sales or more liquid are the debtors. Similarly, a low debtor turnover implies
inefficient is the management of debtors / sales and less liquid debtors. But a precaution
is needed while interpreting a very high ratio may imply a firm’s inability due to lack of
resources to sale on credit thereby losing sales and profits. There is no rule of thumb,
which may be used as a norm to interpret the ratio, as it may be different from firm,
depending upon the nature of business. This ratio should be compared with ratio of other

firm doing similar business and a trend may also be making a better interpretation of the
ratio.
This ratio indicates the number of times the debtors are collected in a year. In Big
bazaar ., debtors turnover ratio was 3 times n 2006, it is increased to 7 days in 2007 and
again increased to 8 days in the year 2008 and also again increased to 10 days in the year
2009 and it decreased to 7 days in the year 2010. The increasing trend shows the more
efficient management of debtors.
CURRENT RATIO
2.5
1.5
Series1
1
0.5
0
Current ratio may be defined as the relationship between current assets and
current liabilities, this ratio also known as working capital ratio. It is a measure of general
liquidity and is most widely used to make the analysis of a short-term financial position
or liquidity of a firm. It is calculated by dividing current assets by current liabilities. The
ideal current ratio is2:1 but it differs from company to company. This ideal ratio has set
because the current liabilities are certain and on the other current assets are uncertain, but
in this company it is 1.35, though it is lower than standard when it is compared with the
previous year it is growing from 1.31 to 1.35, which is satisfactory.

INVENTRY TURNOVER RATIO:
YEAR DAYS
2006 98
2007 99
2008 102
2009 101
2010 103
120
100
80
60 Series1
40
20
0
As we observed we come to know that inventory days are gradually increasing

Year by year . In 2006 the days were 98 ,it was increased to 99 days and in 2010 the
days are increased to 103 days .
It shows that the company is investing more and more fund on inventory
management,
ASSET TURN OVER RATIO:

YEAR RATIO
2006 1.62
2007 1.36
2008 1.21
2009 1.21
2010 1.43
1.8
1.6
1.4
1.2
1
Series1
0.8
0.6
0.4
0.2
0
Assets are used to generate sales. A firm should manage its assets efficiently to maximize
sales. Relationship between sales and net assets is called net assets turnover. A firm
ability to produce a large volume of sales for a given amount of net assets is the most
important aspects of it operating performance.
The net assets turnover of big bazar was 1.62 times in the year 2006 and
decreased in the year 2007. Again it decreased and in the year 2007 it reached to 1.21
times at 2009-10 it reach to1.43 . It indicates that big bazaar surely increase its net assets
in near future.
FINDINGS AND OBSERVATION :

Inwarding of Big Bazaar Merchandise
Process examines the methodology of inwarding merchandise in Big Bazaar for;
 Transfer of merchandise undertaken by PRIL Warehouses/Delivery Centre to the

store
 Merchandise delivered by vendors directly to stores.
 Merchandise belonging to SIS for entering/exiting the store .
Receipt of Goods by the store warehouse for transfers effected by

PRIL Warehouses/ Delivery Centers.
Basic Principle governing the process:

 Goods are received according to the Stock Transfer Note issued by the warehouse
 They are inwarded by:-

 SAP Enabled stores:-
 By invoking the handling unit number and undertaking a global count of
items sent
 Non-SAP enabled stores:- By entering each item in the system and
inwarding.

 Receipt of Goods at the Store Warehouse and Security checking

procedures
 Delivery vehicle arrives at the store warehouse.
 Security personnel to receive the supporting documents (like STN, gate
pass) and hand over the same to the warehouse personnel undertaking the
inwarding.
 Document set is checked by warehouse personnel to ensure it contains a
Stock Transfer Note (STN) in duplicate and an outward gate pass issued
by the dispatching warehouse.
Note: - Proceed with inwarding process, only if the relevant documentation is in order. If
any of the above documents are missing the staff should inform the Warehouse Manager.
Warehouse Manager to examine the case and try to solve the issue by getting in touch
with PRIL warehouse/ Delivery centre. In no circumstances, the merchandise should be
inwarded, in variance to the above.
 Warehouse in charge to confirm from the respective DM/ADM on the

stocks received from warehouse and obtain his signature on the STN.
 Security personnel to check the vehicle to ensure the seal on the cargo
area are intact and secure.
Note: - If the seal is tampered with security personnel should bring it to the
attention of the store warehouse/logistics In-charge. Store warehouse
In-charge to make a note of the same on the STN and also officially
bring it to the notice of the manager of the dispatching warehouse. No
onward seal to be applied to the vehicle in case if the vehicle is going to
a second location for delivery as the merchandise has already been

exposed.
 Unloading of Merchandise and recording of the same in security register

 Unloaders to remove the cartons from the delivery vehicle.
 An H.U. No. - Handling Unit Number (which is a unique number) is

pasted on each carton.
 During unloading, the inwarding staff should mark off each H.U. No.
on the STN.
 Independently, the security personnel to maintain a count of the
number of cartons being unloaded.
 When all cartons are unloaded, the inwarding staffs to check the STN
and ensure all cartons marked for delivery for the store have been
received. The number of cartons for delivery to the store (as indicated
in the STN) is cross-checked with the count maintained by the
security personnel while unloading.
 In case of a difference (i.e. Shortage/Damage/Excess in shipments)

refer Section 1.2 Handling Shortage/Damage/Excess in shipment
 Security personnel to record the inwards in the Store Inwards Register

. Details of GRN are left blank at this moment and will be filled in
once the goods are inwarded into the system.
 Security personnel to stamp the two copies of STN with Inward

Received Stamp mentioning the inward number (according to their
register), number of cartons unloaded and date. The Security

Personnel should retain the original set of documents and handover

the complete set to warehouse personnel who in turn will handover
the duplicate copy of STN to the delivery vehicle staff after verifying
both the copies.
Inwarding of the consignment
The unloaded cartons to be brought to the store warehouse. The STN governing this
consignment is to be invoked in the SAP system Each carton’s H.U. no. is displayed by
the system. On selecting particular H.U. nos. the contents of the carton are displayed by
the system.
 Once inwarding is complete and saved, the system generates a Goods Receipt Note
(GRN) The warehouse inwards register to be handed over to the security personnel
everyday to enable him to record the GRN number against the STN entry in their
security register.
 After which both registers are forwarded to the SM/ASM for his verification and
signature ensuring 100% GRN at the end of the day.
 The entire set of documents is forwarded by the warehouse staff to zonal/store

(wherever applicable) accounts department for effecting payment. A record of all
the documents sent to accounts to be maintained in a register at the store warehouse.
 Sample erroneous consignments for testing the system

 During every quarter, consignments will be sent which have a shortage of
items. This is being done to check whether stores are able to detect the shortage

while undertaking the inwarding process. These checks will form part of the
audit process used for reviewing the store’s operational performance.
 Scanning of items in REM system

Currently the stores point of sale system is running on the REM platform. Hence a
check needs to be performed on the items being inwarded to see if they are
recognized by the REM system. Thus one SKU per carton received needs to be
scanned at the store warehouse
Note : Any product not identified on REM is NOT to be put on the sales floor.
The article nos. of these items to be sent to the PRIL head office which
in turn will send idocs for these articles to the stores. Once these idocs
are received and loaded in the store REM system these items are ready
to be placed on the store floor for selling.
Receipt of Goods by the Store warehouse for deliveries

affected by vendors directly to the store
Basic Principle governing the process:
 Goods are received strictly as per the P.O. issued
 The consignment is inwarded by entering each SKU in the system
 Arrival of goods at the store warehouse and document verification

 On arrival at the store warehouse the vendor informs the security personnel. If a
queue of vendors exists, security personnel to issue the vendor a token

number. On his turn, arriving security personnel to call the vendor and verify the
documents pertaining to the consignment.
 Document set is checked for the following: -
 signed P.O. which has not expired

 Invoice of the supplier
 Delivery Chelan in duplicate
Note: - If any of the above documentation is not in order security

personnel to notify the store warehouse staff. Who in turn should try and
rectify the problem. However, in no case are they to deviate from the
below mentioned process of
inwarding
 Security staff to supervise unloading of the consignment into the store warehouse
and maintain a count of the number of cartons unloaded.
 Warehouse personnel to ensure that the items are bar-coded by undertaking a

sample check
 Security staff to record the inwards in their Security Registers
 Warehouse staff to open the cartons and do a global count of the items received to
confirm that the quantity received is in order. Any shortages are to be brought to
the notice of the vendor’s delivery personnel and noted on the spot on the
delivery challan and invoice.
 Store Name
 P.O. No.
 Nos. of carton & pieces received
 Received date
 One copy of delivery challan to be handed over to vendor while the set of
documents consisting of P.O., suppliers invoice, original delivery challan to be
retained by the security staff and handed over to the store warehouse personnel
Out warding of Merchandise to Warehouse

 Approval of items to be out warded
 It is of utmost important that, before out warding, permission to be sought
from the store manager, zonal supply chain team and the respective
category team.
 Preparation of the forward STO
 After taking proper approval as mentioned above, Store Warehouse

Manager to prepare a list of all the items to be outwarded in an excel sheet
and send it to the FEC team.
 FEC team to create a forward STO for the same and send the STO details
back to the store.
 Store Warehouse Manager to invoke STO No. in the SAP
 Scanning and Outwarding of items to PRIL Warehouse/Delivery Centre
 The items to be outwarded are collected, checked against the underlying

STO and packed for dispatch
 The outwarded items are saved as an STN, of which three copies are
printed
 Warehouse personnel to supervise loading onto the delivery vehicle

according to the STN. The security personnel to simultaneously maintain a
count of the cartons being loaded on the vehicle and tally the same with
the number of cartons as per the GRN.
 Security personnel to affix a seal containing store’s stamp & security’s

signature on the delivery vehicle.
 Warehouse personnel to record the STN details, merchandise details and

quantity in their Outward Register
 Security personnel to record the outward in their Security Inward Outward

Register and create a gate pass for the consignment. The STN and
gate pass are stamped with an outward stamp by the security.
 Two copies of the STN and the gate pass are to be handed over to the
delivery vehicle staff.
 The other copy of the STN and gate pass is handed back to the warehouse
personnel for filing of the same.
 When the consignment reaches the warehouse/D.C., the respective

personnel to acknowledge the receipt of the goods on one copy of the

STN, which needs to be then sent back to the dispatching store for their
records.
 Outwarding of goods directly to vendor
 Outwarding of goods to vendors can take place directly without

having to create a base P.O.
 The items to be outwarded are entered in the system and 3 copies of

an Outward Goods Receipt Note are prepared.
 When the vendor arrives, the merchandise is handed over to the

vendor. Security personnel to maintain a count of the number of
cartons being loaded on the vendor’s vehicle. This count is tallied
with the GRN to ensure that no extra merchandise gets outwarded.
 The vendor’s delivery personnel acknowledge receipt of the items on

the GRN.
 Warehouse personnel to record the Outward GRN, merchandise

details and Quantity in their Outward Register .
 Security personnel to record the outward in their Security

Register. A gate pass is generated to enable the merchandise to exit
the store premises.

 Security personnel to put an outward stamp on the GRN and gate

pass. On the outward stamp, the outward number (according to the
security register), number of cartons and date to be recorded.
 Security personnel to handover one copy of the GRN and gate pass
to the vendor’s delivery personnel and the other copy to the
warehouse personnel.
 Warehouse personnel in turn to file one GRN for records and the
other set to be Passéd onto accounts for recording. Papers forwarded
to accounts are to be recorded in a register maintained for this
purpose by the store commercial.
Inter-store Stock Transfers
Inter Store Stock Transfer refers to transferring of goods from one store to another
with in the octroi limits.
The reasons for inter stock transfer could be:

 Fluctuating customer demand
 Category initiated – for newly open stores.
The steps involved in Inter Store Stock Transfer are as follow:
 Having identified the no of merchandise required for particular category, it is the

duty of DM to send the requisition of required merchandise to zonal front end
category.
 Front End Category then checks the status of all the stores within the octroi limits
and raises the Stock Transfer Order (STO) against sent requisition.
Note:
Stock Transfer Order:
It is a document which is raised by the zonal front end category for
transferring of goods from one place to another. STO is raised and sent to the
store which will transfer goods to receiving store by the front end category.This
document gives information about all merchandise which needs to be transferred
to receiving store. For example: article number, quantity, store name (where
goods need to be transferred) etc.
 Front End Category then sends the 10 digit STO number by mail to the sending
store.
 Having received the STO number from Front End Category, particular category’s
DM accesses the STO on SAP for full details.
 On the basis of STO raised by Front End Category, DM sends the required number
of merchandise to the store warehouse.
 Store warehouse makes the physical count of the goods and scans the each
merchandise in the system.
Note:
Stock Transfer Note: It is a document which is raised by the sending store to
receiving store. This document gives information about all merchandise which is
getting transferred to receiving store. For example: article number, quantity, store
name (where goods need to be transferred) etc.
 The 3 copies of STN is issued:

1. One copy stays with the sending store
2. One copy for receiving store
3. One copy is an acknowledgement for the sending store
 Against the STN, a Gate Pass must be issued by the sending store.
 Store copy of STN and gate pass must be signed by the transporter for the number
of merchandise he will be delivering to the other store.
 Records for the gate pass must be maintained by the store security personnel.An
entry must be made in the Outward Register, which is maintained at the Security.
Mobiles – Stock Receipt and Sales Procedure

The following process is to be followed for Mobiles – Stock Receipt and Sales Procedure
 The GRN/STN must be prepared before products are taken to the sales floor to
avoid any stock discrepancies at a later stage.
 The STO and STN updation must be done before the stock is taken to the
department.
 While Inwarding, each and every product must be physically counted & checked

against the PO. Also check whether the seal is intact of all boxes. If not
the same to be intimated to the warehouse in-charge/ store manager.
 The stock must then be kept in a pre-designated safe zone.
 The DM/ASM must in turn cross-check the stock received against the GRN. The
stock received must be kept under controlled lock and key. A duplicate copy of the
STN must be documented by the respective DM for audit purposes.
 SM must ensure that there is a secured lock-up area in the store back-office where
the majority mobile stock will be kept. Only a part of the stock, i.e. Model stock
must be kept at the mobile counter under lock and key.
The final accountability of the stock remains with the SM at all times.
 To avoid negative inventory in the system, the stocks must be inwarded under
same article code as per the PO. This will avoid duplication of codes, negative
inventory and stock mis-match.
 The seal of the boxes should not be tampered with. The seal must be opened only
after the handset is sold in the presence of the customer. In an exceptional case, if
the store has to open the seal, due permission must be taken from the category.
 In case of boxes without seal, it is the responsibility of the DM/ASM to obtain the
necessary seal from the concerned category person within 3 days of opening the
box.

RECOMMENDATIONS
AND
SUGGESTIONS
I. The personnel in charge of the stores should be aware of the technique of
inventory control. They can be made useful to the concern by imparting training in
the modern techniques of inventory management.
II. The method of storing finished materials followed in big bazaar but it is felt that
it can be further improved by using modern technique of storing.

III. In this computerized world where installation of computer is must, Big bazaar has
an online system, further improvement of the same is needed.
IV. The reorder level which exists in the company is of moderate standard, it should
be more correlated to the production and demand, so that lead time for the arrival
of raw materials can be minimized.
V. For making ABC analysis usually companies consider value and consumption. In,
they also consider the value and consumption of the materials. This is one of the
best evaluations of stock.
VI. Implementation of better and new information system entrepreneur resource

planning software packages as discussed will cater to the additional information
requirements of the company which in turn will improve the efficiency of
management of inventory control system
VII. Introducing of advanced computer system for effective working of inventory

management
CONCLUSON
Inventory management at Big Bazaar Mysore, has contributed a lot for the efficient
flow of work. It was found that the inventory management process and its practice of a
higher degree and highly sophisticated manner. Efficient inventory management of
inventory will helps the owners, but also customers, suppliers, government and society.
To increase the profits it is necessary to reduce the inventory cost.
The study has been undertaken with the objectives such as inventory control system,
purchase procedure and evaluation of purchase procedure. By studying these objectives it
is helpful to know the inventory control system in Big bazaar.

At Big bazaar Inventory is managed in a systematic manner and at the same time
it has reached the highest peak of satisfactory level in the management. By preventing
over and under investment of inventories it has planned the inventory in such a way that
there is no scope for stoppage in the procurement of inventories.

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THE INVENTORY MANAGEMENT

I, hereby declare that the report title “A Study on Inventory Management ” is a

Place: Mysore AVILASH MICHEL

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

I place my Sincere thanks to our honorable internal guide Mr. Raghavendra

My sincere gratitude to Mr. Dr Sreenivasan, Principal ,department of M B A Of

I express my profound gratitude to Mr. Vasanth Kumar logistic manager and

Date: AVILASH MICHEL

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

areas, along with increasing working-women population and emerging opportunities in

As the contemporary retail sector in India is reflected in sprawling shopping

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

Big Bazaar: Overview

Future group manifesto

“Future” – the word which signifies optimism, growth, achievement, strength,

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

About Mysore Big Bazaar:

These departments are managed by two main departments they are

Operation team includes Assistant store managers, Departmental managers,

As the name itself suggests this department is for the support of

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

Details about the Founder & Origin of the Company.

Mr. Kishore Biyani, Managing Director

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

BACKGROUND AND INCEPTION

1987 Company incorporated as Manz Wear Private Limited. Launch of Pantaloons

1991 Launch of BARE, the Indian jeans brand.

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

1995 John Miller – Formal shirt brand launched.

1997 Pantaloons – India’s family store launched in Kolkata.

2002 Food Bazaar, the supermarket chain is launched.

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

NATURE OF BUSINESS CARRIED

2.c Mission & Vision of the Organization

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

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

o Indianess: confidence in ourselves.

2.d Products Profile

Farm fresh: Fruits and vegetables are available in this department.

Food court: products available which are required to prepare food .

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

APPARALS OR FASHION AT BIG BAZAAR

NEW BUSINESS DEVELOPMENT

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

3 Ways by which customers can register their feedback

To Encourage Customers for Sharing Their Experiences

Lead Time for Complaints

All complaints to be resolved within 24 hours

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

Head Quarter = Jogeshwari Mumbai

8 Top Cities Tier one and Tier two towns

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING

Westside-The Company has a turnover of Rs. 357.6 crores (FY 2005-2006)

Marks & Spencer-

MANAGLORE INSTITUTE OF TECHNOLOGY & ENGINEERING