PROJECT SYNOPSIS

ON

“INVENTORY MANAGEMENT SYSTEM INDO

ASIAN FUSION GEAR LTD.”

1. INTRODUCTION

2. STATEMENT OF THE PROBLEM

3. RATIONAL OF THE STUDY:

Inventory management assumes significant importance in

a highly integrated supply chain and the module facilitate
accomplishment of organizational objectives including
cost efficiency and enhanced consumer loyalty by
rendering superior visibility and streamlined processes.

To be competitive today, it is essential to decrease the

overall production cycle times, reduce inventories and
build those products that is most in demand. It means
focusing on good expediting and rescheduling, reduced
supplier lead time, improved turnaround rated, reduced
cost to carry inventory.
Inventories constitute the principal item in the working
capital of the majority of trading and industrial companies.
In inventory, we include raw materials, finished goods,
work-in-progress, supplies and other accessories. To
maintain the continuity in the operations of business
enterprise, a minimum stock of inventory required.
Management of inventory records and relevant details is
an important area of concern for every organization,
whether it is large or small. And also calls for efficient
planning and maintenance. No matter the viewpoint,
effective inventory management is essential to supply
chain competitiveness.

Businesses require timely and accurate information on

inventory location, movement, and valuation. Inaccurate
inventory counts can cost you sales and delay shipments
past the promise date. Out-of stock items as well as
overstocked items in inventory can be devastating to
business. Additionally, an overstated or understated
inventory valuation can result in incorrectly reported assets
within financial statements. Properly used, the Inventory
Management module can help bring about the formulation
of new or improved purchasing policies, sales policies,
pricing methods, and even enhanced customer service.
 To understand the importance of inventory management, I
will be doing study on inventory management system of
Indo Asian Fusion Gears Ltd. Indo Asian was formed in
1958 by a young group of technocrats indigenously
developed India’s first sheet steel enclosed rewirable
switch. This marked the birth of INDO ASIAN, which
today has grown into a multi product, multi Location
Company specializing in manufacturing and marketing a
wide range of high-tech. electrical products used for
distribution, protection, control and conservation of
electrical energy. they are popular under the brand names:
Indo Asian industrial plugs & sockets, stopshock RCCBs,
Indo Asian HRC fuse links and Contactors & Relays.

4. OBJECTIVES OF STUDY

Following were the objectives of the study:-

 To analyze inventory management system of Indo

Asian Fusion Gears Ltd.

 To study the annual investment in raw material

inventory, work in process inventory, finished goods
inventory.

 To calculate ratios relating to inventory.

  To understand how demand forecasting is done in
Indo Asian Fusion Gears Ltd.

 To understand the problems faced by company in

handling inventory.

 To minimize idle time caused by storage of raw

materials, stores or spare parts.

5. RESEARCH METHODOLOGY

5.1 Research Design

A research design is a framework to prepare plan or study.
It is useful as a guide to collect the data and analyzing it. It
is a blue print that is followed in completing the study.
Research design is the conceptual structure within which
the research will be conduct.

5.2 Type of Research : The study exploratory in nature.

5.3 Nature and source of data/information

5.4 Sources of Data Collection:

 Primary data will be collected through interview of

official staff and head of inventory department.
  Secondary data will be collected through assistant
ledger book MRN, website, journals, company records
etc.

5.5 Tools and Techniques to be used for data collection

6. LIMITATION OF STUDY

1) This project is restricted to study purpose only and can

be used keeping in view the object that is made for.

2) The respondent in the project may not reveal important /

confidential information pertaining to the company
policy and for this the project should be used keeping
in view the said limitation.

3) Finding of the study will be based on the assumptions

that respondents have given correct information.

7. EXPECTED CONTRIBUTION
With this project, I hope it will be helpful to understand
the inventory management system in a company, how raw
material, work in process and finished goods inventory
management is done, how their reorder , minimum and
maximum level and safety stock point level is done. How
Indo Asian Fusion Gears Ltd. does demand forecasting and
on the basis of that how it does inventory management.