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INTRODUCTION 2.docx Synposis

This document provides a synopsis for a dissertation project on inventory management at Amul Dairy Products. The 3-page synopsis includes an introduction describing the importance of inventory management. It then outlines the purpose of studying Amul's inventory strategies to identify improvements. The methodology section describes using secondary data collection from sources like interviews and annual reports. It concludes with a bibliography of relevant research papers.

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Sagar Bhardwaj
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39 views

INTRODUCTION 2.docx Synposis

This document provides a synopsis for a dissertation project on inventory management at Amul Dairy Products. The 3-page synopsis includes an introduction describing the importance of inventory management. It then outlines the purpose of studying Amul's inventory strategies to identify improvements. The methodology section describes using secondary data collection from sources like interviews and annual reports. It concludes with a bibliography of relevant research papers.

Uploaded by

Sagar Bhardwaj
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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DISSERTATAION PROJECT SYNOPSIS ON

“A PROJECT ON INVENTORY MANAGEMENT AT AMUL (DAIRY


PRODUCTS)”

Submitted in partial fulfilment for requirement of Post Graduate Diploma


in Management
INSTITUTE OF MANAGEMENT STUDIES
GHAZIABAD
(Approved by AICTE, Govt. of India)
2018-2020

Faculty Mentor Submitted By


Dr. Divya Aggarwal Shubhani Garg
BM-018316
TABLE OF CONTENT

S.no Title
1. Introduction
2. Literature Review
3. Purpose of study
4. Research Methodology
5. Biblography
INTRODUCTION
You will be in trouble if you have to keep telling customers “I am sorry we are out of stock. May we order it
for you now?” Be it anything in this world, you will lose your customers if you don’t have the right thing to
be provided to the right customer. In others words when the customer spends, you have to be ready with the
desired product or service.
This is all about inventory management. Inventory is the single largest asset in any wholesale or retail
operations. Managed inventory eliminate chances of bottleneck situation, problems associated with capital
blockage and also will provide capital to allow expansion of profit and sales.
COMPONENTS OF INVENTORY
Raw Material -Source material for a company’s manufacturing process.
Work in progress - Raw material that are semi-finished products, products which need further processing to
be transformed to finished products.
Finished goods - Products that have successfully completed the manufacturing process and are ready to sale.
Merchandise – Finished goods that have been procured or purchased from a supplier and are ready for
immediate sale.
In the India of the 1940s, when the country was still grappling under the British colonial rule, a certain other
underprivileged section was being exploited by its own people. These small time milk producers were being
offered ridiculously low prices for the produce by the only milk supplier in the area, Polson Dairy. Since milk
is a persishable product, which often went sour in the harsh summers, the could see no other alternative to
Polson. Also, milk prices were arbitrarily determined. These dairy farmers, encouraged by eminent Indian
freedom fighter Sardar Patel, formed a milk producers' co-operative union that dealt directly with the Bombay
Milk Scheme, their final buyer. This is the story of 'Amul'.

Amul, which is an acronym for Anand Milk Union Limited, is a Sanskrit word meaning valuable. These
cooperatives were formed for each village. Milk collection was decentralized keeping in mind the marginal
farmers who delivered, at most, 1–2 litres of milk per day. The cooperative that started out with milk, then
branched into other milk products like butter, cheese, ice creams, milk powder, etc.

Inventory management is a challenge for this model because the product is perishable. Yet, Amul is regarded
as having one of the best supply chain systems in the world. With over 3,500 distributors in the network, there
are also 47 setups with dry and cold warehouses for the range of products.
Supply chain process:

Production: Amul has a multi-tier model known as the Amul Model:


Milk collection happens at the Village Dairy Society
Milk procurement and processing at the District Milk Union
Milk and milk products marketing at the State Milk Federation.
PURPOSE OF STUDY
The purpose of this study is to explore the strategies of Amul for their inventory management and to study if
any further improvisations could be done to the existing inventory management system.
The primary objective is to look for
The possibility of more changes in term of inventory management at Amul with respect to their dairy
products.
And secondary objective is to critically analyse the factors affecting the inventory management at amul with
respect to different criteria.
LITERATURE-REVIEW
Inventory management is a challenging problem area that need to be every organization who is involved in
meeting customers demand one or the other way. As managing a right amount of inventory is must for any
organization as if inventory is kept under limit then organization may face bottleneck situation resulting in
letting down their customers due to unavailability of their desired requirements and if inventory is kept over-
limit then organization may block their capital which they may have used to generate some revenue by
investing it somewhere else.
Operating cycle refers to number of days a company takes in converting its inventories to cash. It equals the
time taken in selling inventories (day inventories outstanding) plus the time taken in recovering cash from
trade receivables (day sales outstanding).
R.S Chadha (1964)
This study suggested how modern inventory management techniques like operations furnishes opportunities
for the company. He explained how US based industries are involved in developing highly mathematical
model that will modernize and redefine the technological investment.
KRISHNA MURTHY (1964)
He suggested an aggressive study and how inventory is dealt with-in private sector. Study suggested how sales
represents demand of the product and need of accelerator. Here short term rate of interest plays an important
role.
LAL (1981)
His study was based on the Modi Steels Limited case, his study involved the price variability affecting
inventory. The analysis recommended how policies would affect internal and external factors would be
efficient in managing working capital.
Panigrahi (2013)
Undertook an in-depth study of inventory management practices followed by Indian cement companies and
its affect on working capital efficiency. The study also investigated the relationship between profitability and
inventory conversion days. The study, using a sample of the top five cement companies of India over a period
of 10 years from 2001 to 2010, concluded that a considerable inverse linear relationship existed between
inventory conversion period and profitability.
RESEARCH METHODOLOGY

To conduct the study following research methodology will be followed.


Research Type:- It will be an exploratory and descriptive type of research.
In this study, the data will be primarily collected from secondary resources. The qualitative data will be
collected from newspaper, interviews etc whereas quantitative data will be collected from financial statements,
surveys and statistics.

 R1.The data has been collected through interface and discussions with the directors working
with the division.
 R2.Some important information taken through unstructured and structures interviews of the executive.
 R3.Magazines and annual reports also used for the collection of necessary information.
 R4. Research Papers used for the source of secondary data.
BIBLOGRAPHY

https://www.researchgate.net/publication/327793184_A_Study_of_Inventory_Management_System
_Case_Study

https://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-terms/15282-
inventory-management.html

http://cmuscm.blogspot.com/2014/10/e-supply-chain-management-amul.html

https://www.emerald.com/insight/content/doi/10.1108/09574090810895960/full/html

Sanjiv Mittal, R.K. Mittal ,Gagandeep Singh, Sunil Gupta (2014).”Inventory Management in Fertiliser
Industry of India: An Empirical Analysis” Asia-Pacific Journal of Management Research and
Innovation ,vol.10,iss.4,pp. 291–303.

Viplesh Shardeo(2015), “Impact of Inventory Management on the Financial Performance of the firm”
IOSR Journal of Business and Management (IOSRJBM). Vol. 17, Iss. 4, pp. 01-12.

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