PROJECT ON INVENTORY MANAGEMENT SYSTEM OF

BIG BAZAAR, PATTOM

INTRODUCTION
Inventory is basically the total amount of goods and materials held in stock by a factory, store
and other business. An inventory system is a process whereby a business keeps track of the
goods and material it has available. Today’s competitive environment is forcing companies to
optimize the procurement processes and inventory levels while at the same time ensure
accuracy of controls and implementation of standard procedures for the flow of materials.
However, in the absence of appropriate systems and information infrastructure, companies
are finding it difficult to achieve smooth and efficient.
Inventory management system is a very important system that is used by the companies to
control and manage the inventory in and out in their daily transaction. How important the
inventory management system for the company and influence their sales? It is the topic that
will go to touch on this research. Keeping track of units of inventory and their associated
costs is important to the management of the firm. Information concerning the units sold and
those in inventory is an essential basis for intelligent decision about pricing, production and
reordering. An inventory system is needed to keep track of this information.

STATEMENT OF THE PROBLEM

Inventory management is becoming one of the most crucial elements in the organisation as
inventory constitutes one of the biggest part of the investment of any organization in its
current assets. So funds blocked in inventory should neither be too high nor too low. It should
just be optimum. So one of the biggest aim of inventory management system is to maintain
the optimum level of investment in inventory and stocks. Too high investment of funds in
inventory results into the high blockage of funds in the stocks which bears many kind of cost
say the cost of interest on amount of money blocked, cost of risk to bear, cost of storage in
warehouse etc. so it will reduces the overall profitability of the firm. Insufficient investment
in inventory is also a big problem it may lead to frequent stock outs. So the firm may lose
current market share as consumers once shifted can never be regained.

SCOPE OF THE STUDY

Inventory management being a very important concept in all the company’s having a void
coverage often calls for the managerial attention. In the modern times inventory management
has become the integral part of the all companies. So all the firm gives special importance for
inventory management. The major objective of the study is to examine the effectiveness of
inventory management system adopted by Big Bazaar; the study mainly focuses on the
techniques used by the company to control the inventory.
 OBJECTIVES OF THE STUDY
 To study Inventory Management and effective control through various techniques
 To find out the impact of inventory on sales
 To study how inventory management ensure profitability

RATIONALE OF THE STUDY

An inventory management system can help you manage your business’s inventory and stock
items, keeping track of exactly where your assets are and what they’re worth. The system
also analyses your business’s inventory needs and can even automate your ordering.
Inventory management systems are important for many industries including retail, food and
beverage, manufacturing, health care and more. A well-run system helps you understand your
assets and maximize their potential, thus improving your business operations and increasing
profits.

METHODOLOGY
The study is descriptive in nature

DATA COLLECTION
Both Primary and secondary data will be collected

LIMITATION OF THE STUDY

 Certain data and documents are considered to be confidential
 Data can have errors
 Lack of experience of researcher

CHAPTERISATION
Chapter 1 Introduction
Chapter 2 Review of literature
Chapter 3 Theoretical framework
Chapter 4 Industry and company profile
Chapter 5 Data analysis and discussion
Chapter 6 Findings, conclusions and suggestions
BIBLIOGRAPHY
APPENDIX