Topic: Inventory Management and Control System

Presented To: Rizwan Hamid Presented By: M.Hashaam Roll No. : AM552381 Class : MBA (B&F) 3rd Semester

Financial Management

Acknowledgment
First of all thanks of Allah who is most beneficent and the most merciful whose blessings are abundant and favors are unlimited. It is my pleasure to acknowledge the guidance and support of my subject Teacher: Mr. Rizwan Hamid for her endless guidance.

An Abstract
Inventories form a link between the production and sale of a product. Inventories give the firm flexibility in its purchasing, production scheduling, and servicing of customer demands. Financial manager must be familiar with ways to control inventories effectively. In SIWA Industries(pvt)Ltd. Financial manager invested capital effeciently in inventories.

Introduction to Inventory Management and Control System

Inventories form a link between the production and sale of a product. A manufacturing company must maintain a certain amount of inventory. RawMaterial inventory gives the firm flexibility in its purchasing. Without it, the firm must exist on hand-to-mouth basis, buying raw materials strictly in keeping with its production schedule. Large inventories allow efficient servicing of customer demands.

Classification What to Control?

ABC method of inventory control:

Method that controls expensive inventory items more closely than less expensive items.

Economic Order Quantity

How Much to Order? EOQ is used to determine the optimal order quantity for a particular item of inventory, given its forecats usage, odering cost, and carrying cost.

Order Point
When to Order? The quantity to which inventory must fall in order to signal that an order must be placed to replace an item. OP= (Lead Time Daily usage)+ Safety Stock

Just-in-Time
The JIT management philosophy focuses on: o Pulling inventory on an as-needed basis o Pushing inventory on an as-produced basis.

Inventory and the Financial Manager

Not the direct operating

responsibility Investment of funds in inventory Familiar with ways to control inventories Effective Policies

Case Study
Inventory Management and Control System in

SIWA Industries (PVT) Ltd.

Company information SIWA Industries (Pvt) Ltd Was established in 2006 . We is an exporter of Pakistan Motorcycles products. We have exported products to many other countries, such as Eastern Asia. We are absolutely capable of meeting various demands from the market. Importantly, to put quality consisting of product quality and service quality in the first place is our business! We hope that we can cooperate with more customers from all over the world and sincerely welcome all of you!

Introduction of SIWA Industries (PVT) Ltd.

Inventory Management and Control System in SIWA Industries (PVT) Ltd.

JUST-IN-TIME

Main parts like Engines, Body, Fiber etc. ABC Method All small and other parts.

SWOT Analysis

Strengths
Continously Production Effeciently use of Funds No shortage of Material

Weaknesses
Low Quality Material
Extra Investment

Opportunities
o Increase in Production
o Efficient Financing

Threats
Increase in Rate of

Material Late Delivery

Conclusion
I conclude that in SIWA Industries (PVT) Ltd. Inventory Management and Control system is working affectively. Manager use better ways to invest in inventory.

Recommendations
I will recommend that Classification of Inventory should be remove because low quality material usage decrease efficiency. Investment should be according to the requirement of production.

Thank You