About Inventory

The management and control of inventory is a problem common to all

organizations in any sector of the economy. The problems of inventory do not
confine themselves to profit making business firms. The same types of
problems are encountered by social and non-profit organizations too.
Inventories are common to besides industries viz., agriculture, wholesalers,
retailers, hospitals, temples, churches, prisons, zoo, universities and national,
State and local governments. Inventory problems have been encountered by
every society but it was not until the 20th century that analytical techniques
were developed to study them. The initial impetus for analysis expectedly
came from the manufacturing sector.
Meaning and definitions
Inventories are the assets:
Which are field for sale in the ordinary course of business.
 In the process of the production for such sale.
 In the form of materials or supplies to the consumed in the production
process or in the rendering of the services.
Inventories encompass goods purchase and held for resale, for ex:
Merchandise purchased by retailer and held for resale. Inventories also
encompass finished goods produced, or work-in-progress being produced by
the enterprise and include materials, maintenance, Suppliers, consumables and
loose tools awaiting use in the production process.
The inventories of trading concern primarily consists of the finished
goods purchased for resale whereas the inventories of a manufacturing
concern consists of raw materials, work-in-progress, finished goods, stores and
spares. The significance of valuation of inventory arises mainly because it
serves two purposes.
1. To determine true income
2. To determine true financial position
The term inventory has been defined by several authors. The most popular of
them are:
“The term inventory includes materials – raw, in process, finished

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packaging, spares and others stocked in order to meet an unexpected demand
or distribution in the future”.
“It can be used to refer to the stock on hand at a particular time of raw
materials, goods-in-process of manufacture, finished products, merchandise
purchased for resale and the like, tangible assets which can be seen, measured
and counted .. In connection with the financial statements and accounting
records, the reference may be to the amount assigned to the stock of goods
owned by an enterprise at a particular time”.
OBJECTIVES OF THE INVENTORY CONTROL
The inventory control involves some of the main objectives to move
forward they are as follows:
 Effective use of the financial resources available to business i.e., to
maintain the investment in the inventory at a lowest level consistent with
inventory cost.
 Avoidance of out of stock danger i.e., to provide a supply of required
materials without any delay for efficient and uninterrupted operations.
 Reduction of risk minimization through obsolescence.
 Economy in purchasing as affected by quality buying and favourable raw
materials market.
 Storage of inventory with minimum of handling time and cost and to
protect them from loss by fire, theft, and damages.
 Service to customers i.e., to maintain sufficient stocks of finished goods
to meet reasonable expectations at customers for prompt delivery for
their orders.

NEED FOR STUDY

The study of inventory land its control is necessary for every
organization. Inventories constitute very important part of current assets in
majorities of Indian companies and organizations.
In an approximate calculation, inventories are averagely about 60% of
current assets in public limited companies are taken part in India. Due to large
size of inventories maintenance by the firms and industries, majority of
amount of funds is required to main them so, inventory management has been
acquired a major part of recognition in the field of financial management of
Indian corporate sector in order to avoid unnecessary wastage of investment.
If company neglects in inventory issues it may lead to sudden losses and
also loose its long term profitability and may fail ultimately. The reduction in
excess maintenance of inventory from higher degree to lower carries a
favourable impact as company’s profitability. To reach the objective the firm
must and should determine the optimum level of inventory. The basic problem
is to maintain the stock level between over stocking and under stocking. It may
leads to efficient running of business and its activities.

ESSENTIALS OF INVENTORY CONTROL

1. There should be proper cooperation and coordination between various
departments’ viz., purchasing, inspection, storage, costs department etc.
2. Purchasing of stocks or other materials should be centralized under the
control of a competent manager.
3. There must be adequate planning of materials requirements and also the
classification of materials with their appropriate codes.
4. There should be effective planning control on stock in terms of physical
storage through satisfaction control procedures. Maximum, minimum and
reorder levels of stocks should be fixed.
5. There must be a system of regular reporting regarding purchasing of
materials, issuing and storage to the management.
6. The system of internal audit and internal check and maintenance must
be very effective and efficient.

TECHNIQUES OF INVENTORY CONTROL

Inventory control techniques are mainly followed by inventory control
organizations within the framework of one of the basic inventory models like.
 Fixed order quantity system or ‘Q’ system.
 Fixed order period system or ‘P’ system.
These techniques represent the operational aspect of inventory

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management and help realize the objectives of inventory control and inventory
management. Several techniques are there which is used according to
convenience of the firm to adopt any of the technique. What should be
stressed however is the need to cover all the items of inventory and all stages
that means from the point of receipt from supplier to the point of use. The
techniques in inventory control are as following.

 ABC (Always better control) Classification.

 HML (high, medium, low) Classification.
 VED (vital, desirable, essential) technique.
 SDE (scarce, desirable, easy) technique.
 FSN (fast, medium, non-moving) technique.
 EOQ (economic order quantity) analysis.
 Maximum and minimum system.
 Two-Bin system.
 JIT (Just-in-time) technique.
 MRP (materials requirement planning).

ABC ANALYSIS:
One of the widely used techniques for control of inventory is the ABC
Analysis. The objectives of ABC analysis or control is to vary the expenses
associated with maintaining appropriate control according to the potential
savings associated with a proper level of such control. The ABC approach is a
means of categorizing inventory into 3 classes A, B, & C. according to the
potential amount to be controlled. It is for the selection approach that ABC
analysis is often called the selective inventory control method (SIM).
The inspiration behind the ABC analysis has been drawn from VILFERDO
PARETO, an Italian Economist & Sociologist (1842-1923) who generated some
highly debatable concepts of economics and sociology. The principle of Pareto
was extended to inventory management by H.FORD DICKIE and developed
general concept of ABC analysis.
Procedure for developing an ABC Analysis
 List each item carried in inventory by number or some other designation.
 Determine the annual volume of usage and rupee value of each item.
 Multiply each item annual volume of usage by its rupee value.
 Compute each item percentage of the total inventory in terms of annual
usage in rupees.
 Select the top 10% of all items which have the highest rupee
percentages and classify them as ‘A’ items.
 Select the next 20% of all items with the next highest rupee percentages
and designate them as ‘B’ items.
 The next 70% of all items with the lowest rupee percentages are ‘C’
items.

HML Classification
The inventory control has been done with several techniques in inventory
control techniques. The HML classification is one of the inventory control
techniques which can be followed to classify the materials in a HIGH, MEDIUM
& LOW classification. The HML classification follows the same procedure as
adopted in ABC classification, the only difference and deviation is that in the
HML, the classification unit value is the criterion and not the annual
consumption value. The items of inventory should be listed in the descending
order of unit value and it is up to the management to fix limits for three
categories.
The HML analysis is useful for keeping control over consumption at
department levels, for deciding the frequency at physical verification and for
controlling purchases. For example: the unit cost is Rs.1000 and above those
items are ‘H’ classification and similarly between Rs.500 and Rs.1000 are
classified into ‘M’ category and Below Rs.500 are ‘L’ category. So, it is
classified like the above example. It is fixed by the company or organization

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management or higher authorities.

ECONOMIC ORDER QUANTITY:

Economic Order Quantity is the technique which solves the problem of
the materials manager. EOQ is the order size at which the total cost,
comprising ordering cost plus carrying cost is the least. Graphing the two costs
i.e., holding cost & ordering cost show exactly, where the total cost curve is at
its lowest point. An examination of the two curves reveals that the carrying
cost curve is linear i.e., the more the inventory held in any period. Greater will
be the cost of holding it.
Ordering cost curve on the other hand is different. Ordering in small
quantities means more acquisition and higher ordering costs. The ordering cost
decrease with increase in order size. Points where the holding cost curve and
ordering cost curve meet represent the least total cost which incidentally is the
EOQ.

2xYO
EOQ = ---------
√ C
EOQ technique is highly useful in as much as it answers the question of
how much to order and in so doing, establishes the frequency with which,
orders are placed. EOQ is applicable for both single items and group stock
items. Although the EOQ model can be modified to take account of increasing
and decreasing usage over time, we shall not get into this added degree of
complexities.

STOCK LEVELS:
In control of inventory and to avoid overstocking & under stocking of
stocks, various levels of materials have to adopt in maintenance of stocks.
Those are the maximum, minimum and re-order levels. On the basis of these
levels the utilization and ordering of stocks must be done automatically without
any preview.
These levels are not rigid but a proper review has to be taken according
to changes in factors which determine them, the factors are as following:
 Consumption rate of materials, Lead time, Storage capacity,
Availability of funds, Storage cost, Risk of loss of uncertainty, Seasonal
factors, Changes in price(market), Insurance pays.

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MAXIMUM LEVEL:
The maximum point level is the line which quantity of materials does not
allow going up this level of point may exceeds in some situations. It is fixed
based on some factors.
 Consumption rate, Capital cost and availability, Storage space,
Storage cost for above normal stock, Risk of obsolescence &
deterioration, Re-order quantity level.
The formula is:
Max level = Re-order level + Re-order quantity –
(Min consumption * Min Re-order period)
MINIMUM LEVEL:
The minimum stock level is the level which does not allow the stock to
fall below this point. It is also called safety stock when stock reaches to this
point it is an indicative of danger level which may shows effect on production
to stop it is fixed with some factors. They are
 Consumption rate, the time of top priority to acquire enough suppliers
to avoid stopping of production.
The formula is:
Min level = Re-order level – (Normal consumption * Normal re-order
period)
RE-ORDER LEVEL:
This level of line is appointed at which a new order has to be placed. In
other words which stock reaches to this point it indicates to order the stock
immediately. It is point fixed between min level and max level. When this point
is continued there will be not over risk in stock deficiency. It is pointed with
considering of some factors.
 Consumption rate, Minimum level, Delivery time, time difference in
deliveries.
The formula is:
Re-order level = (Max Consumption * Max re-order period.)

AVERAGE STOCK LEVEL:

 The average stock level is a point in which a separate point is fixed
between the max level point and min level point to check out the consumption
of materials which we are averagely using.
It is calculated as:
Avg stock level = min level + Max level/2
(Or)
= Min level +1/2(re-order quantity)
METHODS FOR VALUATIONS OF INVENTORY:
There are certain methods which are adopted for valuations of inventory
stocks. They are described below.
• FIFO method. • Standard cost method.
• Average cost method. • Retail inventory method.
• LIFO method. • Latest purchased price.
• Base stock method. • NIFO method.
• Specific identification method. • HIFO method.

FIFO METHOD:
FIFO is the short form of First In First Out method. It is based on the
assumption that the goods which are received first after issued first. This
assumption is made for the purpose of assigning costs and not for the purpose
of the physical flow of goods therefore, need not necessarily coincide with the
pattern of cost flow assumption. The goods sold, therefore consist of the
earliest lots and are valued at the price paid for such lots. The ending inventory
consists of the latest lots and is valued at the price paid for such lots. The
ending inventory consists of the latest lots and is valued at the price paid for
such lots. The ending inventory is stated in the balance sheet at a value nearer
the current market price.
LIFO METHOD:
THE Last In First Out method is based on the assumption that the goods
which are received last one issue issued first. The assumption is made for the
purposes of the physical flow of goods. The physical flow of goods therefore,

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need not necessarily coincide with the pattern of cost flow assumption. The
goods sold, consist of the latest lots and are valued at the price paid for such
lots. The ending inventory is understood in the balance sheet at old costs.
IMPORTANCE OF INVENTORY TURNOVER RATIO
The inventory turnover ratio tells us the rapidity with which the inventory
is termed over into receivables through sales. This ratio is judged in relation to
past and expected future ratios of the firm and in relation to ratios of similar
firms, the industry average or both. In general the higher the inventory
turnover, the more efficient the inventory management of affirm sometimes a
relatively high inventory turnover ratio may be the result of too many low a
level at inventory and frequent stock levels. It might also be the result of too
many small orders for inventory replacement. When the inventory turnover
ratio is relatively low, it indicates slow-moving inventory or obsolescence of
some of the stock. The turnover ratio sis somewhat crude measure to
investigate any perceived inefficiency in inventory management. In this regard
it is helpful to compute the turnover of the major categories of inventory to see
if there are imbalances which may indicate excessive inventory. Once we have
a hint of a problem we can investigate it more specifically to determinate its
cause the inventory turnover ratio is calculated with the formula.
Inventory turnover ratio =Annual consumption / Average Inventory
Average inventory = Opening stock + Closing stock/2
Material consumed = Opening stock + Purchases – closing stock
Inventory turnover ratio is calculated on the basis of Annual sales. It is
calculated as:
Inventory turnover ratio = Sales/Inventory
Days of inventory holding (DIH) is calculated as the basis of following formula:
DIH = 365/Inventory turnover ratio
 PROFILE OF INDUSTRY
The word ‘confectionary is derived from Latin word “CONNECTION”
which means preparation. And this is derived from “CONFICERE”, which means
to make up.
CONFECTIONERY is of two types:
1. Sugar confectionery
2. Flavour confectionery
Sugar confectionery
Sugar confectionery means sweets, which sugar is the main ingredient.
Either they consist in very “CRYSTAL” from dispersed in a sugar solution and
flavour, such as chocolate creams or fondants or there may sugar maintained
in a solution of careful blend of the different types as sugar boiled sweets,
toffee or caramels. Fats, buts are employed to obtain a variety of flavours and
textures before the 19th century, sweets, candies were the monopoly of the
apothecaries who made them to hide the taste of the drugs.
Flavour confectionery
Flavour confectionery consists of pastries and fancy cakes having
flavoured as their basis sweetened and mixed with various dairy products such
as butter and eggs.

CONFECTIONERY INDUSTRIES IN INDIA

The industry may be broadly into two sectors viz., organized sector and
unorganized sector. There are six main forms producing confectionery in
organized sector. They are as follows:
1. Nutrine confectionery 2. Parry
confectionery
3. Cadbury’s 4. Parle
5. National product 6. Ravalgom
Each company having its own specialization in their respective
fields.Nutrine confectionery co.ltd, is the single largest and an organized sector
in manufacturing confectionery and chocolates in India. Nutrine is on the
shopping list of almost multinational confectionery markets. For confectionery

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products rewires lot of “servicing”, in the distributors hold key to success in
this investment.

PROFILE OF NUTRINE CONFETIONERY COMPANY

Nutrine confectionery company limited unit of Nutrine group of
companies, spanning diversified products like confectionery, chewing gum,
granites, hire purchasing, leasing and transportation etc.
The NCCL was established in the year 1952 as a small unit manufacturing
different types of candies. The management has gained in valuation insight
into the confectionery unit, with a vision and ethics.
The organization has grown as small – scale manufacturer in the 1960’s
to become the single largest manufacturer of confectionery and toffees in
India a distinction it has claimed since 1980. With more than 45 varieties of
candies, toffees, fruit bars and lozenges, nutrine sells one of very third ton of
confectionery sold in the organized sector in India. Important strengths are its
distribution, this being an oral gratification at the retail outlays.
Nutrine reaches some 4,25,000 retailers across in India through of 2500
stockiest, who are supplied by its 36 war-house in the south and chain of
carrying and forwarding (c&f) agents in the rest of the country. Nutrine
advertising budget for 2004-05 is 9 crores with another 3.5 crores earmarked
for sundry promotions and events.

LOCATION FACTORS
NCCL is situated in the border town of Chittoor town on national highway-
4 in Andhra Pradesh. The company is located in an area where basic raw
materials like milk, sugar etc., are available in plenty and easily procurable.
Chittoor also called as “mango city” lies in an advantageous horticultural
belt where tropical fruits like mango, banana & papaya are frown in abundance
very good crops of lime, tomato and other vegetables are the compelling in the
region and nutrine has always been in forefront of this agro industry activity.
In 1980’s nutrine faced competition against parry’s and Ravalogon. In
recent years domestic rivalry has grown with Joy Company entering the
market. In the year 1990, the company embarked on a massive modernization
drive to upgrade it plant.

GROWTH & DEVELOPMENT

In the initial stages, NCC L manufacturing only candies, later NCCL has
grown multitude to become a multi-store, multi-products national giant.
Nutrine Confectionery Company limited is the single largest manufacturing
company of confectionery I India since 1982. the productive strength and
quality assurance given to the market by company particularly of the
chairman.
The management added a number of sophisticated machinery imported
from different countries like United Kingdom, United States and Germany
apart from the indigenous machinery equipments. This makes product quality
of nutrine the most acceptable to the consumer and a number of existing new
ranges of confectionery products are being manufactured in India for the past
several years. Nutrine possess the most equipped research and development
laboratory when continuous R & D and product innovation is carried out to
give newer dimensions to business philosophy.
Today, nutrine has abnormal manpower comprising 1400 employees all
over the country. Nutrine Confectionery Company limited built of an excellent
employee-employer relationship continuously being reinforced by generous
benefits offered which includes free uniform, shoes, washing and medical
allowances, subsidized tiffen and meals, free tea, dressed on the eve of
festival to family, school uniforms and stationary for children etc.
The growth of nutrine confectionery company limited has been one of
sure and steady progress with the luckiest mascot “BUNNY” designed in 1968
and with its present caption “terrific” treat in every sweet” it is emerging as a
confectionery having high market share in the organized sector.

CURRENT OPERATION AND FUTURE OUTLOOK

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 Nutrine confectionery limited exports confectionery products to various
international markets viz. Australia, middle-east south Africa New Zealand and
Sri Lanka. Every effort is being made to establish nutrine as a household name
in international market.

PRODUCTIVE SETUP
NCCL produces its confectioneries at the factory situated in chittoor and
with franchise unit arrangements located at Hyderabad.
EMPLOYEE RELATIONSHIP
NCCL has built up a reputation of excellent relationship reinforced by
generous benefits like free education benefits to the employees; free clothing
on the eve of festivals. There is only one recognized workers union out of two
registered unions, and the industrial relations are maintained peacefully.
COMPETITORS
In the confectionery field the major competitors of nutrine are parry’s,
Parle, Ravalgon, Cadbury, nestle, perfect I van melle.
SOCIAL OBLIGATIONS
The social services of nutrine are:
1. Conducting under -13 superstar cricket tournaments to latent cricketing
talent in younger generation of our country.
2. Setting up schools for children.
3. Financial assistance to association of blind people.
4. Setting up of traffic dividers and traffic islands in chittoor town.
5. Setting up of a children’s park at B.V. Reddy colony, chittoor.
6. A planned Nutrine nagger near the Bangalore highway at iruvarm, a
company quarters for the employees of nutrine.
SPONSORING FOR GAMES AND SPORTS
Nutrine sponsors many games and sports. It conducted inter college
hockey tournaments in Kerala recently Nutrine conducted the national
women’s hockey tournament at Tirupati.

VARIOUS DEPARTMENTS IN THE CONFECTIONERY

NCCL has 6 various departments they are MATERIAL DEPARTMENT,
PRODUCTION DEPARTMENT, QUALITY CONTROL DEPARTMENT, FINANCE
DEPARTMENT, MARKETING DEPARTMENT and PERSONNEL DEPARTMENT.

ABOUT PROMOTERS, BOARD OF DIRECTORS AND MANAGERIAL

PERSONNEL
NCCL has always believed in high levels of conservatism. It was set up as
small unit with a capital of RS 5 lakhs to manufacture various types of candies.
After the demise of Sri.B.V. Reddy in 1964, the business was taken over by his
son sri. V.Dwarakanath Reddy (M.Cheml.Eng) from Louisiana who is the
chairman of the Nutrine group of companies. He also had a short stint at
additions under the leadership of sri.Anantharama Krishnan. Nevertheless
expertise gained by him in the field of confectionery manufacture at nutrine
between 1956 and 1989, has helped to guide the company to its present
position of market leader.
At present, Mr.V.Vikram Reddy nephew of Sri. Dwarakanath Reddy looks
after the day- to- day management of company. Mr.Vikram Reddy holds a post
graduate degree in management from U.S.A he has groomed under. Mr.
Dwarakanath Reddy has the admirable support of other directors, Mr,
V.Madhusudhan Reddy and Mr.V.Dinesh Reddy.
Mr.K.Siva Mohan Reddy, executive director, is in charge of operations of
all the departments other than finance under his control.
The finance department is lead by Mr.S.Vasudevan, a chartered
accountant, who is with the company since 25years. He has joined the
company as management trainer and has risen to the position of executive
vice-president. He has support of a good team of professionals and senior
executives who are in the service of the company since three decades.
The marketing team is headed by Mr.S.Gopalakrishnan vice president
(sales & market and ably supported by area sales managers, zonal sales
managers and others.
Senior vice-president (production) Mr.H.Anathapadbhanabhan, graduate
in chemistry, passes long experience in the production management and senior

15
vice-president (research & products), Mr.G.Lakshminarayana again a chemistry
graduate with a lot of exposure in the sugar industry, has been specializing in
development of various products for nutrine today.
Mr.S.R Raju, P.G. diploma holder in material management, is in charge of
materials department and Mr.B.Giassuddin, a law graduate and a diploma
holder in personnel management is heading the personnel departments.
NCCL has around 1400 employees under its direct employment and over
50,000 families directly or indirectly growing with it in the country. From a
small unit manufacturing only candies, nutrine has grown to be a multi-
product, multi-market giant and has reached the position of single largest
manufacture of confectionery and toffees in India.
Nutrine has wide range of more than 45 varieties of candies, toffees,
lozenges etc., being the leader in the industry for more than a decade, nutrine
has always endeavored to satisfy the customers changing wants and desires
with its own emphasis on quality, range and cost effectiveness.
The company has centralized manufacturing unit are chittoor and also
utilizes the services of job workers. NCCL enjoys a high market share of 35% to
40% in confectionery in the organized sector in India. The strength of nutrine
lies in its manufacturing capabilities and also to a large extent to its marketing
skills. Nutrine product range distributors and stockiest and 1,50,000 dealers.
The company has modernized its plant by importing sophisticated candy
manufacturing machinery from Robert Bosch of Germany for making hygienic
confectionery. The machines imported are five or six machines of its kind in the
world. The company also imported automatic weighing and packing machine.
With the use of these machines, nutrine is able to produce good quality
confectionery with exacting standards. With sustained supported from the
valued stockiest. Nutrine is growing stronger in the market and retaining its
number one position.
SCOPE & IMPORTANCE OF THE STUDY

This study has been conducted in Nutrine Confectionery Company (p)

Ltd, Chittoor. The study seeks to find out the factors used in inventory control.
To conduct this research the researcher has analyzed the statements, ledgers
and other books of accounts of the concern.
The data collected has been analyzed and the researcher has arrives on
findings which have proved it worth to know about the areas of inventory
control.
As the study focuses an identifying the present potential of the
company’s inventory methods and aims at identifying the best set of inventory
methods to be carried to improve the company’s policy in determining their
inventory levels.

OBJECTIVES OF THE STUDY

The objectives of the study are summarized as follows:
 To study about the inventory levels of different raw materials used in
the company.
 To study the effective utilization of different raw materials used in the
company.
 To find the economic order quantities of different raw materials.
 To study about the different levels of stock.
 To calculate the inventory turnover ratios for different years.

Methods used in research

Research methodology is a way to systematically solve the research
problem by applying various research techniques along with the logic behind
the problem.

RESEARCH DESIGN
Research design is the specification of methods and procedures for
acquiring the information needed. It is the conceptual structure with in which

17
the research is conducted.

SOURCES OF DATA
Primary data:
Primary data has been the data originated by the research for the
specific purpose of addressing the research problem. Personal interview was
the technique used in collecting primary data from higher authorities.
Secondary data:
Secondary data regarding the unit was collected from the records and
documents of the company. Information about NCC (P) Ltd was obtained from
newspapers, Websites related to the topic, ledgers and other books of records.

TOOLS USED IN THE STUDY:

The following are the tools that are used in the study:
 ABC ANALYSIS
 HML CLASSIFICATION
 ECONOMIC ORDER QUANTITY
 TABLES AND CHARTS
 INVENTORY TURNOVER RATIO

PRODUCT AND THEIR CODES

Nutrine has developed wide range of products. The course few they are
listed below.
CODE PRODUCT CODE PRODUCT
ASY Aasay NCKS Nutrine Cookies
CHE Chocolate Éclairs MCC Mango creamer candy
CML Caramilk WK Wild koffy
DHT Double ORC Orange candy
GKD Gulkhand Hit NUP Nutrine Lollypop
NGL Nutrine Gold DSM Dishum
HEB Honey Fab CBB Coconut Bon Bon
LIMITATIONS OF THE STUDY
The study on inventory control has the following limitations:
 The company produces a wide range of products (more than 45
products), it uses more than 300 varieties of raw materials. But the study
is restricted to 10 most important raw materials which constitute 80% of
total raw materials cost.
 The research is restricted to Chittoor town only; the company operates at
different areas of the country
 The quality and price of inventory is not compares in the analysis.
 The analysis is carried out on the basis of the figures present in the
internet records only.

LIST OF RAW MATERIALS UNDER STUDY

 Butter  Lactic acid

 Cocoa powder  Malt extract
 Condensed milk flavour  Milk cream condensed
 D.C. powder  Raw milk
 Dry cocoa beans  Sugar
 Glucose  Sorbitol
 Ghee  Skimmed milk powder
 Gulkhand  Table salt
 Honey  Vanaspati
 Lecithin  Vanilla FL NCL 2X

19
 Statement of stock level and consumption levels
of Butter for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL ---------- 150 ----------

MAY ---------- 475 ----------

JUNE ---------- 100 ----------

JULY ---------- 130 ----------

AUGUST ---------- 40 ----------

SEPTEMBER ---------- 160 ----------

OCTOBER ---------- 506 ----------

NOVEMBER ---------- 100 ----------

DECEMBER ---------- 140 ----------

JANUARY ---------- 200 ----------

FEBRUARY ---------- 144 ----------

MARCH ---------- 100 ----------

Maximum, Minimum and Average stock levels of Butter

Average
Particulars Max. level Min. level level

Opening stock ---------- ---------- ----------

Consumption 506 40 187

Closing stock ---------- ---------- ----------

ANALYSIS OF BUTTER STOCK LEVELS

In the Nutrine Confectionery Butter is one of the major raw materials

which has been used to every product in the sense. The stock levels have been
to normal stock maintenance. In this butter stocks they are not used to
maintain the closing stocks and opening stocks because it is perishable raw
materials. So it cannot be stored to longer period of time.

In the Butter stock levels the consumption in the month of April is 150
Kgs and it has been raised to 475 Kgs as the May and in June it is declined to
100 and again increased to 130 Kgs and in month of August it was declined to
depression and fall to 40 Kgs due to the low consumption of that following
particular products.

So it is increases as September upto 160 Kgs and in October has the

highest consumption level of 560 Kgs and in next month i.e., in November it
showed to decrease of 100 Kgs and 140 Kgs on December and similarly 200
Kgs in January month. It was declined to 144 Kgs on next month and again it,
decreased to 100 Kgs on March month.

So in this consumption levels we saw that the raising and decreasing

maintenance and has no minimum fixed level of stock and reorder point also.
The minimum level is 40 Kgs and the maximum is 506 Kgs on October. So this
type of maintenance is very poor maintenance.

21
600
Statement of stock level and consumption levels of
Cocoa Powder for the period of 2006-07

Opening Closing
Month Consumption stock
stock

APRIL 3475 3475 ----------

MAY ---------- 3500 3475

JUNE 2475 2725 6000

JULY 6000 3825 4175

AUGUST 4175 2500 4175

SEPTEMBER 4175 1425 5250

OCTOBER 5250 2925 2325

NOVEMBER 2325 2775 549.44

DECEMBER 549.44 3174.44 1375

JANUARY 1375 3250 1124.5

FEBRUARY 1124.5 3297.5 1825

MARCH 1825 2575 2250

Maximum, Minimum and Average stock levels of

Cocoa Powder

Average
Particulars Max. level Min. level level

Opening stock 6000 549.44 2977

Consumption 3825 1425 2954

Closing stock 6000 549.44 2866

23
ANALYSIS OF COCOA POWDER

In the listing catalogue of raw material the next item is cocoa powder. It
is also one of the basic ingredients. But the cocoa powder is partial secondary
raw material. So, in this analysis the cocoa powder is used mainly to crunchy
product i.e., chocolates.
In the sense of stock levels we can see that as April month the opening
stock is to 3475 Kgs and the total stock is there. Similarly in the next month
i.e., May the consumption used is 3500 Kgs with some purchase quantity and
the closing level is 2475 Kgs and same remained as opening to the June month
and stock was used to 2725 Kgs on the same month we can see that the
consumption has at a equalizing level. The next month i.e., as June the
consumption is 2725 Kgs i.e., slightly decreased and closing stock levels
remained at 6000 Kgs.
The next is on July month the opening remains same and consumption
has been increased to 3825 Kgs and closing at 4175 Kgs because of purchases
is done on that month. On August the opening is at 4175 Kgs, the consumption
is 2500 Kgs it is decreased compared to previous month. The closing balance is
at 4175 Kgs. The September consumption has been decreased to 1425 Kgs and
closing is increased to 5250 Kgs.
The next month that is on October and November the Issued stocks are
2925 Kgs and 2775 Kgs respectively and closing are also at 2325 and 549.44
Kgs so this shows a major decrease of closing on November. The level of
consumption on December is increased again to 3177.44 Kgs and closing is at
1375 Kgs. The opening is same to the 1375 Kgs level only and issues has been
increased this month i.e., January to 3250 Kgs and closing at point of 1124.5
Kgs. The next last two month that is an February and March the consumption is
2575 Kgs and 2500 Kgs and closing are 2250 Kgs and 4175 kgs.
So, this segment of all stocks of openings, closings and consumptions are
very decreasing and increasing at nearest level.
7000
25
Statement of stock level and consumption levels
of Condensed Milk Flavour for the period of
2006-07

Opening Closing stock

Month Consumption
stock
APRIL 175 1755 280

MAY 280 2340 670

JUNE 670 2285 985

JULY 985 1870 375

AUGUST 375 1710 345

SEPTEMBER 345 765 840

OCTOBER 840 1620 60

NOVEMBER 60 1457 280

DECEMBER 280 2110 ----------

JANUARY ---------- 1890 420

FEBRUARY 420 1050 ----------

MARCH ---------- ---------- ----------

Maximum, Minimum and Average stock levels of

Condensed Milk Flavour

Average
Particulars Max. level Min. level level

Opening stock 985 60 402.73

Consumption 2340 765 1713.82

Closing stock 985 60 1233.33

27
ANALYSIS OF CONDENSED MILK FLAVOUR

It is one of the secondary converted raw materials in which the per

Kg cost is highest among all raw materials. This milk flavour is used in
chocolates for getting the taste of different flavours. The stocks and
consumption levels are described in the below description part. In the month of
April the opening stock stood at175Kgs and consumption laid at 1755 Kgs .the
closing is at280 Kg. the same is forwarded as opening stock for the stock for
the month of May and usage stock for this month is 2340 Kgs and closing
balance is 670Kgs. similarly for the next month i.e. on June the opening is same
at670 Kgs and utilization is 2285Kgs , closing remained at 985Kgs respectively.

In the month of July and also August the consumption level are
decreased one by one at 1870 Kgs and 1710Kgs. For the month of July the
opening is 995 Kgs and closing is 375 Kgs. Which is opening balance for August
and closing for this month is 345 Kgs. For September period consumption level
decreased to 765 Kgs and closing remained at 840 Kgs. The next month is
same at 840Kgs only. And consumed quantity 1620Kgs and closing stock is
60Kgs. In the November month the used for quantity for production purpose is
1457 Kgs and closing stock point is 280 Kgs.
In December the usage level is again increased to 2110 Kgs. Closing
stock is nil and same forwarded to next month i.e. January as opening balance
as nil point. The consumed quantity is1890 Kgs and closing is 420Kgs. The last
month i.e. on February the consumer stock is 1050Kgs and closing is nil. On
march there is no consumption and closing levels also.
2500
23
29
Statement of stock level and consumption levels
of D.C.Powder for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 825 1550 1375

MAY 1375 2250 1125

JUNE 1125 2650 700

JULY 700 1725 1975

AUGUST 1975 950 3025

SEPTEMBER 3025 1075 2075

OCTOBER 2075 950 1125

NOVEMBER 1125 1250 875

DECEMBER 875 1650 750

JANUARY 750 1600 650

FEBRUARY 650 1375 775

MARCH 775 1425 350

Maximum, Minimum and Average stock levels of

D.C.Powder

Average
Particulars Max. level Min. level level

Opening stock 3025 650 1272.92

Consumption 2650 950 1537.50

Closing stock 3025 350 1233.33

ANALYSIS OF D.C.POWDER:

The analysis of D.C. Powder is very separative because D.C.powder is

most required material to the every product in manufacturing chocolates. The
D.C.powder material has been transported from different places around A.P.
the stocks of openings and consumption are as following in the month of April
the opening has been at the point of 825 Kgs and consumption is at 1550 Kgs
then closing balance is 1375 Kgs respectively.
The next coming month the consumption is 2250 Kgs and closing is 1125
Kgs consumption has been changing. In this issue the consumption of
D.C.powder for the month of June is 2650 Kgs, similarly the closing level is 700
Kgs. The another month the usage is 1725 Kgs i.e., on July and closing stood at
1975 Kgs and it has been standard and brought down as opening for the
August month and consumed 950 Kgs only. It shows a decline in the usage and
closing balance is 3025 Kgs.
In forward coming months the September and October months the
consumption is 1075 Kgs and again 950 Kgs. The closing levels for those
months are 2075 Kgs & 1125 Kgs respectively. The openings stocks are
alternatives brought down to coming months the next month November is
having opening of 1125 Kgs and consumed at 1250 Kgs and remaining closing
is 875 Kgs.
Here the closing is poor, to raise the stock large stock has to be ordered
so next is December the consumption is used at 1650 Kgs and closing 750 Kgs.
In the month of January the previous closing balance is brought down as
opening and usage is 1600 Kgs, closing stood at 650 Kgs and on February
month the usage is 1375 Kgs and closing level is 775 Kgs. The next is last
month of the particular financial year i.e., the March the opening is brought at
1425 Kgs and the closing balance is catch up at the point of 350 Kgs. This is
the minimum stock in the entire financial year.

31
3500
 Statement of stock level and consumption levels
of Dry Cocoa Beans for the period of 2006-07

Opening Closing
Month Consumption stock
stock

APRIL 1812.5 4687.5 1125

MAY 1125 5187.5 7037.5

JUNE 7037.5 3617.5 3420

JULY 3420 5140 5280

AUGUST 5280 3600 1680

SEPTEMBER 1680 1742.5 4937.5

OCTOBER 4937.5 4250 5687.5

NOVEMBER 5687.5 4187.5 1500

DECEMBER 1500 4375 6125

JANUARY 6125 4687.5 10437.5

FEBRUARY 10437.5 4375 6062.5

MARCH 6062.5 3312.5 2750

Maximum, Minimum and Average stock levels of Dry

Cocoa Beans
Average
Particulars Max. level Min. level level

Opening stock 10437.5 1125 4592.08

Consumption 5187.5 1742.5 4096.88

Closing stock 10437.5 1125 4670.21

ANALYSIS OF DRY COCOA BEANS

33
 In manufacturing sector other important raw materials dry cocoa beans.
Stock levels and consumption levels are as following. In the April month the
opening balance is 1812.5Kgs and consumption level is4687.5 Kgs the closing
level is 1125 Kgs. In the month of May the opening is 1125 Kgs and consumed
is 5187.5 Kgs and closing stood at 7037.5 Kgs.

For the month of June the opening is same as closing in May and
consumed at 3617.5 Kgs and remained balance at 3420 Kgs . in July the usage
level is 5140 Kgs and 5280 Kgs is the closing stock. In August the consumed
level is 3600 Kgs and closing level is 1680 Kgs.

For September the opening is same at 1680 Kgs and consumption

level 1742.5 Kgs and closing point is 4937.5 Kgs. In both of the months of
October and November the utilization of stock is increased and declined in
another month. The stocks are 4250 Kgs and 4187.5 Kgs.

In December the opening is 1500 Kgs and consumed level is 4325 Kgs
and closing stock is 6125 Kgs. For January month the opening is same as in
closing of December. The usage level is4687.5 Kgs and closing stock is
10437.5 Kgs. In February the consumer stock is at 4375 Kgs used level of stock
is 6062.5 Kgs and in March the consumed quantity is 3312.5 Kgs and
remaining stock is 2720 Kgs. In this month consumption increased again.
12000
35 Opening stoc
Statement of stock level and consumption levels
of Glucose for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 222853 548506.8 8950

MAY 8950 648760 9500

JUNE 9500 724963 8964

JULY 8964 524887.65 3494

AUGUST 3494 788865 8652

SEPTEMBER 8652 317540 16634

OCTOBER 16634 601340 12016

NOVEMBER 12016 51330 - - - -----

DECEMBER --------- 794055 ----------

JANUARY --------- 665215 13651

FEBRUARY 13651 613280 19600

MARCH 19600 518395 8390

Maximum, Minimum and Average stock levels of

Glucose

Average
Particulars Max. level Min. level level

Opening stock 222853 3494 27026.17

Consumption 794055 51330 566428.12

Closing stock 19600 3494 9154.25

37
ANALYSIS OF GLUCOSE:

In the raw material description another liquid product is glucose. It is

brought very accurately for a limited period .the raw material is transported
from out of states like Maharastra and other nearby states. These raw
materials are transported with care and concern. The opening and closing
stocks are very because of limited transportation and climatic conditional
changes. The stock levels are described as.

For the month of April the opening is at maximum level of 222853Kgs

and consumption is 548506.8Kgs and closing is climbed at 8950Kgs. In May
and June months the consumption increased very rapidly. The opening balance
of May is8950 Kgs and consumption is 648760Kgs and closing is 9500Kgs the
same is forwarded to June as opening and consumption is at 724963 Kgs
similarly closing is8964 Kgs.

For the next month the consumption decreased to 524887.65Kgs and

closing to 3495 Kgs for decline for the July month. Next is August and
September, the consumed levels are 788865 Kgs and 317540 Kgs and closing
stock is 8652Kgs and 16634 Kgs. In the month of October the balance is
brought down as opening for this month and consumed quantity increased at
601340 Kgs and ending balance at 12016 Kgs. For November and December
the closing stocks are nil because total stock has been used with some
deficiency in stocks. So their usage level is 51330Kgs and 794055kgs.
Similarly for January the opening level is nil and consumption level is 665215
Kgs. The closing is 19600 Kgs which is the highest closing stock in this year for
Glucose stocks. The last month i.e., March the consumption is 518395 Kgs and
closing level is 8390Kgs decreased.
900000
39
Statement of stock level and consumption levels
of Ghee for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 14925 29970 975

MAY 975 37963 25893

JUNE 25893 40968 16585.3

JULY 16585.3 34570.3 14505

AUGUST 14505 32023.8 3869

SEPTEMBER 3869 23272 12975

OCTOBER 12975 24600 5385

NOVEMBER 5385 27975 5444.3

DECEMBER 5444.3 31394 25170

JANUARY 25170 30900 31886.5

FEBRUARY 31886.5 29381 36885

MARCH 36885 29170 29735

Maximum, Minimum and Average stock levels of

Ghee

Average
Particulars Max. level Min. level level

Opening stock 36885 975 16208.18

Consumption 40968 23272 30769.68

Closing stock 36885 975 17442.34

41
ANALYSIS OF GHEE:

In company is using one of he homely products also in this

manufacturing confectionaries, among them one is Ghee. It is the product
using very regularly at homes. This product is one of high cost products. So
here, the opening stock and closing stocks are analyzed below.
The opening stock for April is 14925 Kgs and usage is 29970 Kgs and the
next closing is 9875 Kgs which is carried down to next month that is May. For
this month the consumption level is 37963 Kgs and closing level is 25893 Kgs.
The same brought sown to June month and consumed at 40968 Kgs and closing
balance is 16585.3 Kgs the next are is July month here the decline of the stock
has been seen that is to 34570 Kgs and closing is 14505 Kgs.
The next coming month that is on August the consumption is again
decreased to 32023.8 Kgs and closing stood at 3669 Kgs and the same carry
forward to next month. The next month is September. In this period of month
the consumption level is again declined in thousand and fall as to 23272 Kgs. It
is the least consumption in which year. So in this the closing stock level is also
12975 Kgs.
The level of consumption in every month is fluctuating with rapid
changes. It may due to financial depressions or sales. This total occurrence
may be find in personal. The next is the October month the consumption is
24600 kgs and opening is similarly brought down from previous month. The
closing is focused at 5385 Kgs. It is the second least closing stock point in
whole year. So, the next is November in this month the usage level is slightly
increased and come to 27975 Kgs and closing is 5444.3 Kgs on Decembers the
opening has brought down and closing is 25170 Kgs and usage is 31394 kgs. In
the next month it is decreased to 30900 Kgs as January and closing stock is
increased to 31886.5 Kgs
In February the consumed quantity is 29381 Kgs and closing level is
36885 Kgs which is increased compared to previous month. The above balance
is carried down March and usage is 29170 Kgs and closing decreased to 29735
kgs.
45000
43
 Statement of stock level and consumption levels of
Gulkhand for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL -------- 1289 1200

MAY 1200 1200 ------

JUNE ---- 1200 300

JULY 300 1240 1060

AUGUST 1060 940 1120

SEPTEMBER 1120 400 720

OCTOBER 1720 1020 700

NOVEMBER 700 460 1240

DECEMBER 1240 680 560

JANUARY 560 1140 420

FEBRUARY 420 920 500

MARCH 500 880 620

Maximum, Minimum and Average stock levels of

Gulkhand

Average
Particulars Max. level Min. level level

Opening stock 1720 300 735

Consumption 1289 400 947.42

Closing stock 1720 300 786.67

 ANALYSIS OF GULKHAND

It is separate category which the product manufactures with this

category is also Gulkhand hit. So this material is very different from other
materials. The opening balance of this raw material is nil and user stock
is1289Kgs with purchasing level of above 2000 Kgs and closing for this
material is 1200 Kgs for April month. In May and June the consumption level is
stood stable at 1200 Kgs and closing for May is nil because the total stock has
been used and for the June 300 Kgs is the closing level.

In the month of July the utility of the stock is increased to 1240 Kgs and
closing to 1060 Kgs. So this month is increased very excessively in the closing
levels. On august the consumption decreased to 940 Kgs and closing increased
to 1120 Kgs. The September stock of opening is increased to 1120 Kgs and
consumed quantity decreased to very low at 400 Kgs. It is the lowest level of
consumption in this year. The closing stock remained at 1720 Kgs. In October
the user stock is 1020 Kgs and closing is 700 Kgs. In November the consumed
stock decreased to 460 Kgs. It is because of the low stock in stock maintenance
and closing is 1240 Kgs.

In December the consumed level of quantity is 650 Kgs and remained

stock in December is carried forwarded to January opening stock at 560 Kgs.
The consumption point is 1140 Kgs and 420Kgs as closing stock. In February
the stock decreased rapidly to 920 Kgs and closing to 500 Kgs. In March the
consumption is 880 Kgs and 620 Kgs is the closing stock.

45
2000
 Statement of stock level and consumption levels of
Honey for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 925 540 585

MAY 585 1025 1060

JUNE 1060 1010 1275

JULY 1275 875 1600

AUGUST 1600 650 950

SEPTEMBER 950 665 900

OCTOBER 900 695 925

NOVEMBER 925 775 1150

DECEMBER 1150 675 475

JANUARY 475 650 525

FEBRUARY 525 1065 960

MARCH 960 560 1400

Maximum, Minimum and Average stock levels of

Honey

Average
Particulars Max. level Min. level level

Opening stock 1275 525 944.17

Consumption 1065 540 765.42

Closing stock 1400 525 983.75

47
ANALYSIS OF HONEY:

This material is also one of the homely materials Honey. The Honey is
used to minimum quantities because it is a hard solid material in character.
The stock levels are maintained as this. The April month opening is 925 Kgs.
Where 540 Kgs. the next month are May and June in this month openings are
brought down in alternatives with closing stocks. The consumption for these
months is 1025 Kgs, and 1010 Kgs. So almost nearby consumed and closing
levels are 1060 Kgs and 1275 Kgs for June month. The same farwarded to next
month as opening, the next month is July. The consumption is 875 Kgs and
closing balance is 1600 Kgs. It is highest closing balance in the whole year.

The next is the August the closing is 950 Kgs and same carried to next
that is September the usage is fixed at 665 Kgs and ended balance is 900 Kgs
the next one is October month is

Which is closing is 925 Kgs & usage is 695 Kgs. The closing of this month
is forwarded to November and usage quantity is 775 Kgs and closing quantities
level is 925 Kgs. The same is carried forwarded and the next coming months is
December and January in this two months the consumptions are very nearby
i.e., 675 Kgs and 650 Kgs respectively. The closing quantities are 475 Kgs and
525 Kgs different the next is the February is this month the opening quantity is
525 Kgs and usage is 1065 Kgs and last month is March which has a usage
quantity of 560 Kgs and closing of 1400 Kgs.
1800
49
 Statement of stock level and consumption levels of
Lecithin for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 1540 4570 3000

MAY 3000 6400 5600

JUNE 5600 5800 5000

JULY 5000 6434 2600

AUGUST 2600 5200 15200

SEPTEMBER 15200 3800 11400

OCTOBER 11400 4600 6800

NOVEMBER 6800 5200 1600

DECEMBER 1600 5800 4800

JANUARY 4800 6200 8600

FEBRUARY 8600 5200 3400

MARCH 3400 5000 1400

Maximum, Minimum and Average stock levels of

Lecithin

Average
Particulars Max. level Min. level level

Opening stock 15200 1540 5795

Consumption 6434 3800 5350.33

Closing stock 15200 1400 5783.33

51
ANALYSIS OF LECITHIN

It is a different raw material which is used only to same products. This

material is also transported from other states. In this category the stocks are
described. For April month the beginning opening is 1540 kgs. the consumed
quantity is 4570 Kgs and closing level is 3000 Kgs and next month is May,
which the stock is brought down and usage is 6400 Kgs in which is staked at
5600 Kgs. The coming month next is June the consumption stock is 5800 Kgs
and ending balance is 5000 Kgs which is carried to next month.

In the month of July the usage is increased to 6434 Kgs and closing
decreased to 2600 Kgs. The next month is August which the consumption is
stood at 5200 Kgs and closing at increased nearby quantity of 15200 Kgs so
here this month closing is the maximum level closing balance in entire years.
The next is September the consumption is 3800 Kgs and closing is 11400 Kgs.
Similarly for October the consumption quantity is 4600 Kgs and closing level is
6800 Kgs. The next coming month is November the consumption is 5200 Kgs
and closing balance is 1600 Kgs. This month closing is forwarded to December
month as opening balance. The usage level is 5800 Kgs and closing quantity is
4800 Kgs.

In January the consumed quantity is 6200 Kgs and closing is 8600 Kgs.
The next period of month is February which the consumption and closing is like
this the usage is 5200 Kgs. And ended balance is 3400 Kgs and final are 1400
and consumption quantity is 5000 Kgs.
16000
53
 Statement of stock level and consumption levels of
Lactic Acid for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 40 320 280

MAY 280 280 320

JUNE 320 200 120

JULY 120 200 120

AUGUST 120 320 200

SEPTEMBER 200 160 40

OCTOBER 40 170 30

NOVEMBER 30 190 ---------

DECEMBER ---- 280 40

JANUARY 40 240 120

FEBRUARY 120 240 40

MARCH 40 280 ------

Maximum, Minimum and Average stock levels of

Lactic Acid

Average
Particulars Max. level Min. level level

Opening stock 320 30 112.50

Consumption 320 160 240

Closing stock 320 30 109.17

55
ANALYSIS OF LACTIC ACID

The most important raw material which is used for change of color and
flavour is Lactic Acid. It is flavour based raw material so this material is
ordered very low and limited compare to other raw materials. The stocks and
utilization levels are explained as in the month of April the opening
beginswith40Kgsand usage is 320 Kgs. Then the closing stock laid at 280 Kgs,
the same is carried down to next month. In next month, May the usage stock is
280 Kgs and closing stock is320Kgs. On June the opening stock is 320 Kgs and
consumed level is 200 Kgs where the closing stock stood at120 Kgs .

For the month of July the consumption quantity is 200 Kgs and closing is
120 Kgs. The next month the consumption increased to 320 Kgs and closing
stock at 200 kgs. In August the consumption is the highest quantity. On
September the opening is 200 Kgs and usage of stock is 160Kgs and in this
month the closing is very low compared to remaining months in this year. The
figure of closing is 40 Kgs and for next month i.e., October the consumption is
170 Kgs and closing is 30 Kgs. November has the least opening balance of 30
Kgs and consumed quantity is 190 Kgs. The closing quantity is nil here because
the total stock has been used. The same is forwarded to next month,
December as opening stock.

In the month of December the usage is 280 Kgs and closing is40Kgs. In
January and February the consumption used is 240 Kgs for both months, the
two stock are same here their closing stock are 120 Kgs and 40 Kgs
respectively. On March the usage is 280 Kgs and closing is nil.
350
57
 Statement of stock level and consumption levels of
Malt Extract for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 8410 38860 8927

MAY 8927 53870 9570

JUNE 9570 53650 16137.2

JULY 16137.2 43790 17587.2

AUGUST 17587.2 45129.7 6670

SEPTEMBER 6670 33350 15080

OCTOBER 15080 38280 12137

NOVEMBER 12137 44617 3480

DECEMBER 3480 50460 26390

JANUARY 26390 51040 28704.5

FEBRUARY 28704.5 45478.5 580

MARCH 580 47560 4640

Maximum, Minimum and Average stock levels of

Malt Extract

Average
Particulars Max. level Min. level level

Opening stock 28704.5 580 12806.08

Consumption 53870 33350 41798.73

Closing stock 28704.5 580 12491.91

ANALYSIS OF MALT EXTRACT:

The company has been using the primary raw materials at the same
time secondary materials also. In such category Malt extract is one of the
converted secondary materials. This Malt extract is used for every product in
the company. The stock levels are moving like as for the April the opening
stock begins at 28410 Kgs and issue made at quantity of 38860 Kgs and
closing level at 8927 Kgs. The same is transferred to next month as opening
stock that to May and consumption is sticked to 53870 Kgs which is the
maximum consumption level is entire current financial year and closing
balance is 9570 Kgs. The next month is June, the usage is figured at 53650 Kgs
and closing at 16137.2 Kgs. So for the next coming month the consumption is
reduced slowly july month usage is 43790 Kgs and closing stock 17587.2 Kgs.
August month usage is 45129.7 Kgs and closing balance is 6670 Kgs . These
balances are forwarded to next month that is to September.

In this month the consumption is 33350 Kgs which is minimum level in

current year and closing is normal of 15080 Kgs, then the next month October
the consumption level again increases to 38280 Kgs and closing stock reduced
to 12137 Kgs now coming month is November with of 12137 Kgs and usage of
44617 Kgs and closing point of 3480 Kgs normally. For the December month
the stock is usage is raised to 50460 Kgs and closing stock also increased to
26390 Kgs due to ordering quantity increase. The next level of month is
January the opening is 26390 Kgs and consumption quantity is 28704.5 Kgs.
For the last coming two months February and March the closing stocks are low
to 580 Kgs and 4640 Kgs similarly consumption are 45478.5 Kgs and 47560
Kgs respectively.

59
60000
Statement of stock level and consumption levels of Milk
Cream Condensed for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 70 55 115

MAY 115 105 110

JUNE 110 105 105

JULY 105 35 120

AUGUST 120 50 70

SEPTEMBER 70 40 90

OCTOBER 90 15 75

NOVEMBER 75 50 70

DECEMBER 70 70 60

JANUARY 60 80 100

FEBRUARY 100 45 115

MARCH 115 80 35

Maximum, Minimum and Average stock levels of Milk Cream

Condensed

Average
Particulars Max. level Min. level level

Opening stock 120 60 91.67

Consumption 105 15 57.50

Closing stock 120 35 88.75

61
ANALYSIS OF MILK CREAM CONDENSED:

The most important raw material in converted secondary raw material

is milk cream condensed; it is used for creamy products in confectionary. The
stock point of this material is explained rigidly. The opening balance for the
year is 70 Kgs. For April month the consumption is 55 Kgs and closing stock is
115 Kgs. In May and June consumption used is constant at 105 Kgs only. But
closing balance is different at 110 Kgs and 105 Kgs. So for the next month, July
the opening stock is 105 Kgs and consumed is 85 Kgs. The stock of closing is
120 Kgs and it is the stock which is highest closing stock in this month.

In august the consumed level of quantity of production is 50 Kgs and

closing stock is 70 Kgs. The same balance is converted to opening for
September. Consumed quantity for this month is 40 Kgs and remaining stock is
90 Kgs. In October the consumption level is very least and low compared to
remaining months in the year. So it is the minimum consumption point in this
year. The usage is 15 Kgs and closing is 75 Kgs. The next period of month is
November, in this month the usage is again increased to 50Kgs and closing to
70 Kgs.

In December the opening stock is the same of 70 Kgs and 80Kgs. The
closing stocks are 60 Kgs and 100 Kgs. In February the consumption is declined
to 45 Kgs because of production is decreased due to stock of finished goofs of
creamy products is remained unmoved at godown. So the closing increased to
115 Kgs. March month is the last month for measuring stock levels. The
consumed level is 80 Kgs and remaining stock is 35 Kgs. It is the least point of
closing stock in this year.
140
63
 Statement of stock level and consumption levels of
Raw Milk for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 11670 423031.9 1284

MAY 1284 431561.2 1200

JUNE 1200 596208.3 1280

JULY 1280 599391 1320

AUGUST 1320 512559.3 1112

SEPTEMBER 1112 49974.3 1240

OCTOBER 1240 441337 1460

NOVEMBER 1460 499643.5 1620

DECEMBER 4620 523411.3 980

JANUARY 980 422480.4 1820

FEBRUARY 1820 515153.3 1560

MARCH 1560 536050.1 527

Maximum, Minimum and Average stock levels of Raw Milk

Average
Particulars Max. level Min. level level

Opening stock 11670 980 2212.17

Consumption 599391 422480.4 500066.80

Closing stock 1820 527 1283.58

ANALYSIS OF RAW MILK

The major material in which the company using to produce a chocolate

in tasteful manner is the homely product that is raw milk. Here raw milk used
as a direct material and also converted as secondary goods to some products.
The stock level and consumption can be seen as in the month of April the
opening begins with 11670 Ltr and consumption is 423031.9 Ltr and closing at
1284 Ltr. So for next month that is on May the opening balance is brought
down and consumed is43156.2 Ltr for next month the consumption is
increased tpo 59620 Ltr and closing is weighted as1200 Ltrs. In July and August
the consumptions are stood at 599391 Ltr and 512559.3 Ltr and their closing
are 1320 Ltr and 112 Ltr with the same balance of August closing the
September month opens as opening balance and consumption made at
49974.3 Ltr closing stock is 1240 Ltr,

Now the month of October the opening stock is 1240 Ltr only and
consumption is at 441337Ltr and closing at 1460 Ltr in the month of November
the consumption increased to 499643.5Ltr and closing increased to1620 Ltr.
For the coming month the brought down is made for opening balance and
quantity used is 523411.3 Ltr and closing is least level of 980Ltr. it is the
minimum level in closing as well as for opening stock also. So for next month
i.e., January the consumption is 422480.4 Ltr compared to last month the
usage is declined and closing increases at 1870 Lts. In February and March
consumptions are again inclines to 515153.4 Ltrs and 536050.1 Ltrs. The
closing balance are decreased to 1560 Ltr and 527 Ltrs respectively.

65
700000
Statement of stock level and consumption levels of Sugar
for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 459902 756078.5 238500

MAY 238500 1010903.7 744250

JUNE 744250 953850 340400

JULY 340400 867300 213100

AUGUST 213100 854000 249100

SEPTEMBER 249100 608600 240500

OCTOBER 240500 760000 90500

NOVEMBER 90500 824500 3000

DECEMBER 3000 986483 475450

JANUARY 475450 1000050 225400

FEBRUARY 225400 891537 92670

MARCH 92670 893340 79830

Maximum, Minimum and Average stock levels of Sugar

Average
Particulars Max. level Min. level level

Opening stock 744250 3000 281064.33

Consumption 1010903.7 608600 867220.19

Closing stock 744250 3000 249391.67

67
ANALYSIS OF SUGAR:

From the raw materials in the company the major and foremost raw
material is the sugar. With out sugar the total production is stopped. So it is the
all over major commodity for the manufacturing unit. The consumptions and
opening and closing can be explained systematically as the opening level
started at 459902 Kgs in month of April and consumption at 756078.5 Kgs and
closing at 238500 Kgs. the next one is the May the opening is brought down
and consumption level at 1010903.7 Kgs and closing the stock at 744250 Kgs.
Here the consumptions is very and it is the maximum level of consumption.
The next period is March for June the closing is 744250 Kgs and consumption
quantity is 953850 Kgs as well as closing at 340400 Kgs.

Instantly the next month that is on July the consumption has decreased
to 867300 Kgs and closing stock also decreased to 213100 Kgs. the next
month, August is also fall in decrease mode of 854000 Kgs of usage quantity
and closing of 249100 Kgs for the month of September the August closing is
brought as opening for this month and consumption at 608600 Kgs and final
closing is 240500 Kgs and carried to next month. The minimum level of usage
is used in this September only. It is due to scarcity of the sugar in the market.
The next month is the October for this month the usage stock is pointed at
760000 Kgs and closing stock at 90500 Kgs the coming month that is
November the consumption at 824500 Kgs & closing at 3000 Kgs.

It is the only month which is the least closing stock point in this year of
sugar closings. The next is December and January months the usage stock is
986483 Kgs and 1000050 Kgs and closing stock at 225400 Kgs and 92670 Kgs.
It is forwarded to next month as that is on February which has consumption
point at 891537 Kgs and closing point at 92670 Kgs. the last month has
consumed 893340 Kgs as usage stock and closing remained at 79830 Kgs this
all for the month of march.
1200000
69
Statement of stock level and consumption levels of Sorbitol
for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL -------- 3415 1800

MAY 1800 5381 --------

JUNE --------- 4500 2700

JULY 2700 5161 -------

AUGUST -------- 5100 3000

SEPTEMBER 3000 3740 3900

OCTOBER 3900 3900 4500

NOVEMBER 4500 4200 300

DECEMBER 300 4564 6600

JANUARY 6600 5400 7200

FEBRUARY 7200 4580 2700

MARCH 2700 4200 900

Maximum, Minimum and Average stock levels of Sorbitol

Average
Particulars Max. level Min. level level

Opening stock 7200 300 2725

Consumption 5400 3415 4511.75

Closing stock 7200 300 2800

ANALYSIS OF SORBITOL:

The another type of limited moving of raw materials in confectionary

industry is Sorbital this raw materials is used very low in quantity in chocolates
the following are the stocks and consumption level of sorbital materials. In the
month of April the opening stock seems to nil balance and consumption has
been pointed to 3415 Kegs and closing stock remains at 1800 Kgs and same is
forwarded to next point of month that is May. The usage stock is 5381 Kgs and
closing balance is nil because of total stock has been used for consumptions.
Now for the next month, i.e., June the consumption is decreased and showed
4500 kgs and closing stock is 2700 kgs. In July the opening is 2700 kgs and
after purchasing the total stock has been used for consumption as 5161 kgs
and closing placed at nil point. So for next month that is on august opening
balance is nill and consumption level is 5100 kgs and closing stock pointed at
3000 kgs. Now the same balance carried down to September. Here the usage
stock is decrease to 3740 kgs and closing balance increased to 3900 kgs.
In the month of October the materials consumed is 3900 kgs and closing
sock again increased to 4500kgs. Now these balance forwarded to next month.
In the month 4200 kgs showed as consumption point and 300 kgs as closing
stock that is on November month. This month is the minimum closing stock
point level month in the entire year. For the month of December the stock used
is 4564 kgs & remaining closing stock is 6600 kgs. Now for next month that is
January the consumed level is 5400 kgs similarly the closing is also at 7200
kgs. So both of them are higher levels in whole year. In the month of February
and march two months the consumptions are4580kg’s and 4200 kg’s
respectively with closings of 2700 kg’s and 900 kg’s.

71
8000
 Statement of stock level and consumption levels of
Skimmed Milk Powder for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 14325 8375 14950

MAY 14950 11250 19025

JUNE 19025 6750 12275

JULY 12275 8550 4225

AUGUST 4225 5875 13350

SEPTEMBER 13350 3375 9975

OCTOBER 9975 6350 3625

NOVEMBER 3625 6500 2125

DECEMBER 2125 7500 1100

JANUARY 1100 7225 9875

FEBRUARY 9875 7150 2725

MARCH 2725 5675 6050

Maximum, Minimum and Average stock levels of Skimmed

Milk Powder

Average
Particulars Max. level Min. level level

Opening stock 19025 1100 8964.58

Consumption 11250 3375 7047.92

Closing stock 19025 1100 8275

73
ANALYSIS OF SKIMMED MILK POWDER:

The product which is converted from primary material is known as

secondary raw material. In those category are of the material is this skimmed
milk powder. These type of raw material are the converted raw materials so in
this category the stocks and utilizations are maintained like as followings. In
the April month the beginning of stock is 14,325 kg’s and consumed is 8375
kg’s and closing balance at 14,950 kg’s. For next month that’s a may the
opening sock is at same of 14,950 kg’s and utilization increased at 11,250 kg’s
and closing stock also increased at 19025 kg’s. This month consumption is the
highest consumed month in this year of skimmed milk powder category. So for
the next month the consumption depressed to 6750 kg’s and closing increased
to 12,275 kg’s. The same forwarded to next month.
The July month stock of consumption is 8550 kg’s and opening is brought
down from June months closing stock. This month closing is stocked at4225
kg’s. In the month of august the month level has been declared low because of
decrease in production. The stock is 5875kg’s and closing is 13,350 kg’s. This
month closing is the maximum level in the whole year in this category.
Similarly for next month that is September also the usage is decrease again
to3375 kgs and closing stock is 9975 kg’s. The lowest consumed stock is
figured in these months only, for the month of October the opening is 9975
kg’s and utilization of S.M powder is 6350 and remaining closing balance is
3625 kg’s.
In the months of November and December the consumptions are 6500
kg’s and 7500 kg’s and their openings are alternatively converted from
closings and these closings are pointed to 2125 kg’s and 1100 kg’s .Here the
December closing stock is the let and minimum milk powder in this year. In the
next month that is in January the consumed stock has been little down to 7225
kg’s. and closing at 9875 kg’s. The same forwards to February as opening
stock. The issue of material is 7150 kg’s and closing stock is 2725 kg’s. For
the March that is the final month for this year consumed material is depressed
to 5675 kg’s and final closing stock level at 6050 kg’s only. Therefore these
total stocks of usage and closings and their openings levels are changed
rapidly at same stages and are same at same points.

75
20000
Statement of stock level and consumption levels of Table
Salt for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 1300 3550 1750

MAY 1750 5148 13100

JUNE 13100 5100 8000

JULY 8000 4800 3200

AUGUST 3200 3850 2350

SEPTEMBER 2350 3200 2150

OCTOBER 2750 3900 3250

NOVEMBER 3250 4250 4000

DECEMBER 4000 5000 4000

JANUARY 4000 4800 4200

FEBRUARY 4200 4350 4850

MARCH 4850 4250 5600

Maximum, Minimum and Average stock levels of Table Salt

Average
Particulars Max. level Min. level level

Opening stock 13100 1300 4345.83

Consumption 5148 3200 4349.83

Closing stock 13100 1750 4704.17

77
ANALYSIS OF TABLE SALT:

In the general category of home need the basic material which is used for
every preparation is the table salt. This table salt is also are of the raw
material for our company is manufacturing products .Now we can see their
stocks and closings. In the April months the opening stock is 1300kg’s and
consumed is 3550 kg’s and closing stock is 1750 kg’s. It is the minimum
closing level in table salt category in this year. The same is carried down to
next month. These stocks is least in opening stock levels also. The consumed
level for this month is 5148 kg’s and closing is closing stock and maximum
point is opening stocks also. For June month the same to carried as opening
stock and consumption stock is 5100 kg’s and closing material level is
8000kg’s

In the month of July the consumption is 4800kg’s and remained stock is

3200 kg’s. August is the month of again decrease is consumption upto a range
of thousand that is 3850kg’s and closing stock at 2350 kg’s. For next month
that is September the opening is same of 2350kg’s and this month
consumption minimum in entire year with 3200kg’s usage. The closing is at
2150kg’. For coming next two months October &November the closings are
near by changed with 3250 kg’s and 4000kg’s and consumed at 3900 kg’s and
4250 kg’s and consumed at 3900 kg’s and 4250 kg’s. For next two months,
December and January the consumption are closely at 5000 kg’s and 4800 kg’s
and also closing stocks at 4000kg’s and 4200 kg’s. The month of February the
opening is brought down and consumed is 4350kg’s and closing is 4850 kg’s.
The last month of this year March is another point of low consumption of
4250kg’s and closing their stock of table salt for this year sis 5600kg’s.
In the entire stock levels of the table salt we analyzed that the used
stock is increasingly high than unused stock i.e. closing stock.
14000
79 1
Statement of stock level and consumption levels of
Vanaspati for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 6555 37635 6720

MAY 6720 52920 ---------

JUNE -------- 46035 7965

JULY 7965 54480 11100

AUGUST 11100 45690 13140

SEPTEMBER 13140 30690 11520

OCTOBER 11520 41160 8760

NOVEMBER 8760 41085 6075

DECEMBER 6075 47175 6900

JANUARY 6900 52725 3675

FEBRUARY 3675 43815 16920

MARCH 16920 41850 17070

Maximum, Minimum and Average stock levels of Vanaspati

Average
Particulars Max. level Min. level level

Opening stock 16920 3675 8277.50

Consumption 54480 30690 44605

Closing stock 17070 3675 9153.75

ANALYSIS OF VANASPATI:

This vanaspati is another item which we can see rarely in market. It is

one of the sweet forming items in chocolates vanaspati is a rare moving item in
home needs so it is called rare material. The usage and closing point are as
perceived in the April month the opening starts with 6555 Kgs and used at
37635 Kgs and closing stock is 6720 Kgs the next month as May the opening is
same of 6720 Kgs and utilization is 52920Kgs and closing is nil because of the
total stock has been used. The July month opening is also nil after purchase
the consumption is 46035 Kgs and 7965 Kgs is the closing levels

The next month is the highest consumed level that is an July the stocks is
54480 Kgs used for manufacturing and closing is 11100 Kgs. On August it is
decrease to 45690 Kgs and closing is maximum at 13140Kgs. It is the highest
level is closing stock category, in September the consumed level again fall
down to 30690Kgs and respective closing is11520 Kgs the same opened as
opening stock for October and consumed is 41160 Kgs and remaining is for
closing stock with 8760 Kgs from now the remaining month consumption has
been heavily decreased to depression because the sales and finished goods
stock is remained stable in godowns. So for control of manufacturing without
over output. This month i.e. November consumption is 4250 Kgs and closing
4000 Kgs. Since in December again the usage is 5000 Kgs and closing is 4000
Kgs the remained stock to brought down to January and consumed is 4800 Kgs
and closing is at 4200 Kgs the next months that is on February the opening is
4200 Kgs and consumed is 4350 Kgs and closing stock is 4650Kgs . in March
consumed and closing stock are 4250 Kgs and5600 Kgs. So a two stage levels
occurred for vanaspati in this year.

81
60000
Statement of stock level and consumption levels of Vanilla
FL NCL 2X for the period of 2006-07

Opening Closing stock

Month Consumption
stock
APRIL 120 370 150

MAY 150 540 210

JUNE 210 630 120

JULY 120 390 330

AUGUST 330 300 180

SEPTEMBER 180 330 140

OCTOBER 150 330 120

NOVEMBER 120 300 120

DECEMBER 120 420 ---------

JANUARY -------- 330 300

FEBRUARY 300 300 420

MARCH 420 390 30

Maximum, Minimum and Average stock levels of Vanilla FL

NCL 2X

Average
Particulars Max. level Min. level level

Opening stock 420 120 185

Consumption 630 300 385.83

Closing stock 420 30 177.50

83
ANALYSIS F VANILLA FL NCL 2X:

This raw material is a flavour which is used for the chocolates on the
taste of the customers. So for this means the flavour based chocolates
increased from past 2 years. So to overcome from outer competition the
confectionary was changed with different flavoured items. The opening balance
for April is120 Kgs and consumption is 370 Kgs, closing is 150 Kgs. For may the
consumption increases to 540 Kgs and closing to 210 Kgs respectively. In July
and June the consumed levels are 630 Kgs and 390 Kgs.

In closing stock there is lot of variation that is 120 Kgs and 330Kgs. In
august the consumption is 300 Kgs and 180 Kgs is closing stock. September
and October is constant at consumption level of 330 Kgs. The closing stock is
different at 150 Kgs and 120 Kgs. In November the consumption is 300 Kgs
because of stock decline. The closing stock level is 120 Kgs and same quantity
is forwarded as opening for December. Consumption for this month is 420 Kgs
and closing stock is at nil point.

On month of January the usage level is 330Kgs and closing is 300 Kgs.
Now in February the stocks of usage is decreased to 300 Kgs and remaining
stock is 420 Kgs. This is the maximum level of point in closing stock for March
the closing is 30 Kgs which is least for this year and 390Kgs is the consumption
of stock.
700
85
 ABC ANALYSIS
% on total categor
S.N
Item Name Annual usage annual y
o
usage
101 Butter 2,89,023.26 0.0642 C

102 Cocoa Powder 25,50,761.80 0.5663 C

103 C.M.Flavour 58,14,710.88 1.2910 C

104 D.C. Powder 9,35,046.00 0.2076 C

105 Dry Cocoa Beans 4,34,490.13 0.0965 C

106 Glucose 11,15,77,050.30 24.7727 A

107 Ghee 4.94,00,855.40 10.9681 B

108 Gulkhand 3,95,527.51 0.0878 C

109 Honey 8,94,710.85 0.1986 C

110 Lecithin 15,68,343.21 0.3482 C

111 Lactic Acid 3,04,766.21 0.0677 C

112 Malt Extract 1,29,96,059.58 2.8854 C

113 M.C. condensed 3,07,614.14 0.0683 C

114 Raw Milk 5,88,67,863.70 13.0700 B

115 Sugar 16,90,30,927.40 37.5287 A

116 Sorbitol 15,82,314.04 0.3513 C

117 S.M. powder 81,92,780.25 1.8190 C

118 Table salt 2,92,246.16 0.0649 C

119 Vanaspati 2,42,16,768.18 5.3767 A

120 Vanilla FL NCL 2X 7,52,045.34 0.1670 C

M.C.condensed = milk cream condensed, S.M. Powder= skimmed milk powder

C.M. flavour = condensed milk flavour
For category A =3, B=2, C=15 and value is A=304824746, B=108268719,C=
37310440
 No. of Items No. of Items

A, 3 A, 3

B, 2 B, 2

C, 15 C, 15

A B C A B C

Statement showing stock levels for the month of April 2006

Per Closin
S.N Openin Purchase
Item Name Issue kg/rat g
o g stock s
e stock
101 Butter ------- 150 150 117.72 --------
102 Cocoa Powder 3475 ------- 3475 71.96 --------

103 C.M. flavour 175 1860 1755 308.45 --------

104 D.C. Powder 825 2100 1550 50.68 1375

Dry Cocoa 1125

105 1812.5 4000 4687.5 88.36
beans
Glucose 548506. 8950
106 222853 334603.8 16.42
8
107 Ghee 14925 16020 29970 136.15 975

108 Gulkhand ------- 2489 1289 34.79 1200

109 Honey 925 200 540 97.42 585

110 Lecithin 1540 6030 4570 24.43 3000

111 Lactic Acid 40 560 320 105.82 280

112 Malt Extract 8410 39377 38860 25.91 8927

M.C. 115
113 70 100 55 445.81
condensed
Raw Milk 423031. 1284
114 11670 142645.9 9.81
9
Sugar 756078. 238500
115 459902 534676.5 16.24
5
116 Sorbitol -------- 5215 3415 29.23 1800

117 S.M. powder 14325 9000 8375 96.87 14950

118 Table salt 1300 4000 3550 5.59 1750

87
119 Vanaspati 6555 37800 37635 45.24 6720

Vanilla FL NCL 150

120 120 400 370 162.43
2X

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour
Statement showing stock levels for the month of May 2006

Per Closin
S.N Openin Purchase
Item Name Issue kg/rat g
o g stock s
e stock
101 Butter -------- 475 475 117.50 ------
102 Cocoa Powder -------- 5975 3500 70.26 2475

103 C.M. flavour 280 2730 2340 308.45 670

104 D.C. Powder 1375 2000 2250 50.21 1125

105 Dry Cocoa Beans 1125 11100 5187.5 87.50 7037.5

106 Glucose 8950 649310 648760 15.87 9500

107 Ghee 975 62881 37963 135.15 25893

108 Gulkhand 1200 --------- 1200 34.12 -------

109 Honey 585 1500 1025 96.72 1060

110 Lecithin 3000 9000 6400 24.77 5600

111 Lactic Acid 280 320 280 105.11 320

112 Malt Extract 8927 54513 53870 24.65 9570

113 M.C. condensed 115 100 105 428.16 110

Raw Milk 431561. 1200
114 1284 431477.2 9.60
2
Sugar 1516653. 1010903 744250
115 238500 16.06
7 .7
116 Sorbitol 1800 3581 5381 27.15 --------

117 S.M.powder 14950 15325 11250 96.19 19025

118 Table salt 1750 16498 5148 5.15 13100

119 Vanaspati 6720 46200 52920 44.96 --------

120 Vanilla FL NCL 2x 150 600 540 162.09 210

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder

89
C.M. flavour = condensed milk flavour
Statement showing stock levels for the month of June 2006

Per Closin
S.N Openin Purchase
Item Name Issue kg/rat g
o g stock s
e stock
101 Butter -------- 100 100 115.21 --------
102 Cocoa Powder 2475 6250 2725 68.61 6000

103 C.M. Flavour 670 2600 2285 301.40 985

104 D.C. Powder 1125 2225 2650 51.98 700

105 Dry Cocoa Beans 7037.5 -------- 3617.5 88.16 3420

106 Glucose 9500 724427 724963 16.05 8964

Ghee 16585.
107 25893 31660.3 40968 139.91 3

108 Gulkhand --------- 1500 1200 33.55 300

109 Honey 1060 1255 1010 97.14 1275

110 Lecithin 5600 5200 5800 22.61 5000

111 Lactic Acid 320 -------- 200 102.14 120

Malt Extract 16137.
112 9570 60217 53650 26.65 2

113 M.C.condensed 110 100 105 432.81 105

Raw Milk 596208 1280
114 1200 596288.3 10.50
.3
115 Sugar 744250 550000 953850 15.81 340400

116 Sorbitol --------- 7200 4500 26.00 2700

117 S.M.powder 19025 -------- 6750 95.88 12275

118 Table salt 13100 --------- 5100 5.20 8000

119 Vanaspati --------- 54000 46035 46.72 7965

120 Vanilla FL NCL 2X 210 540 630 161.16 120

WHERE,

M.C.condensed = milk cream condensed

91
S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour
Statement showing stock levels for the month of July 2006

Per Closin
S.N Openin Purchase
Item Name Issue kg/rat g
o g stock s
e stock
101 Butter ------- 130 130 121.06 ------
102 Cocoa Powder 6000 2000 3825 71.61 4175

103 C.M. Flavour 985 1260 1870 305.64 375

104 D.C. Powder 700 3000 1725 53.11 1975

105 Dry Cocoa Beans 3420 7000 5140 86.50 5280

Glucose 519417.6 524887. 3494

106 8964 18.65
5 65
107 Ghee 16585.3 32490 34570.3 131.66 14505

108 Gulkhand 300 2000 1240 30.50 1060

109 Honey 1275 1200 875 95.68 1600

110 Lecithin 5000 4034 6434 22.17 2600

111 Lactic Acid 120 200 200 108.66 120

Malt Extract 17587.
112 16137.2 45240 43790 24.16 2

113 M.C. condensed 105 100 85 442.60 120

114 Raw Milk 1280 599431 599391 9.85 1320

115 Sugar 340400 740000 867300 16.00 213100

116 Sorbitol 2700 2461 5161 26.81 ---------

117 S.M. powder 12275 500 8550 95.42 4225

118 Table salt 8000 --------- 4800 5.26 3200

119 Vanaspati 7965 57615 54480 46035 11100

120 Vanilla FL NCL 2X 120 600 390 163.45 330

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder

93
C.M. flavour = condensed milk flavour
Statement showing stock levels for the month of August
2006

Per Closin
S.N Openin Purchase
Item Name Issue kg/rat g
o g stock s
e stock
101 Butter -------- 40 40 118.09 --------
102 Cocoa Powder 4175 2500 2500 69.92 4175

103 C.M.Flavour 375 1680 1710 307.61 345

104 D.C. Powder 1975 2000 950 49.51 3025

105 Dry Cocoa Beans 5280 ---------- 3600 86.62 1680

106 Glucose 3494 794023 788865 15.85 8652

107 Ghee 14505 21387 32023.8 134.50 3869

108 Gulkhand 1060 1000 940 33.69 1120

109 Honey 1600 ---------- 650 96.65 950

110 Lecithin 2600 17800 5200 23.51 15200

111 Lactic Acid 120 400 320 101.23 200

112 Malt Extract 17587.2 34212.5 45129.7 24.26 6670

113 M.C. condensed 120 ---------- 50 432.16 70

Raw Milk 512559. 1112
114 1320 512351.3 10.30
3
115 Sugar 213100 890000 854000 14.15 249100

116 Sorbitol -------- 8100 5100 31.90 3000

117 S.M. powder 4225 15000 5875 94.29 13350

118 Table salt 3200 3000 3850 5.10 2350

119 Vanaspati 11100 48000 45690 43.96 13410

120 Vanilla FL NCL 2X 330 150 300 163.09 180

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder

95
C.M. flavour = condensed milk flavour
Statement showing stock levels for the month of September
2006

Per Closing
S.N Openin Purchase
Item Name Issue kg/rat
o g stock s stock
e
101 Butter -------- 160 160 116.98 -------
102 Cocoa Powder 4175 2500 1425 71.25 5250

103 C.M. Flavour 345 1260 765 304.98 840

104 D.C. Powder 3025 125 1075 49.16 2075

105 Dry Cocoa Beans 1680 5000 1742.5 87.15 4937.5

106 Glucose 8652 325522 317540 15.66 16634

107 Ghee 3869 32378 23272 136.61 12975

108 Gulkhand 1120 1000 400 34.14 1720

109 Honey 950 615 665 96.00 900

110 Lecithin 15200 ---------- 3800 24.62 11400

111 Lactic Acid 200 ---------- 160 101.54 40

112 Malt Extract 6670 41760 33350 23.60 15080

113 M.C. condensed 70 60 40 440.16 90

Raw Milk 499974. 1240

114 1112 50102.3 9.98
3
115 Sugar 249100 600000 608600 15.61 240500

116 Sorbitol 3000 4640 3740 29.79 3900

117 S.M. powder 13350 ---------- 3375 95.66 9975

118 Table salt 2350 3000 3200 5.85 2150

119 Vanaspati 13410 28800 30690 45.75 11520

120 Vanilla FL NCL 2X 180 300 330 160.50 150

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder

97
C.M. flavour = condensed milk flavour
Statement showing stock levels for the month of October
2006

Per Closing
S.N Openin Purchase
Item Name Issue kg/rat
o g stock s stock
e
101 Butter -------- 506 506 118.82 --------
102 Cocoa Powder 5250 -------- 2925 64.42 325

103 C.M. Flavour 840 840 1620 312.10 60

104 D.C. Powder 2075 ---------- 950 52.00 1125

105 Dry Cocoa Beans 4397.5 5000 4250 90.48 5687.5

106 Glucose 16634 596722 601340 15.81 12016

107 Ghee 12975 17010 24600 148.18 5385

108 Gulkhand 1720 ---------- 1020 35.88 700

109 Honey 900 720 695 104.09 925

110 Lecithin 11400 ---------- 4600 24.02 6800

111 Lactic Acid 40 160 170 122.46 30

112 Malt Extract 15080 35337 38280 24.56 12137

113 M.C. condensed 90 ---------- 15 515.35 75

114 Raw Milk 1240 441557 441337 9.39 1460

115 Sugar 240500 610000 760000 15.61 90500

116 Sorbitol 3900 4500 3900 40.42 4800

117 S.M. powder 9975 ---------- 6350 107.50 3625

118 Table salt 2150 5000 3900 5.80 3250

119 Vanaspati 11520 38400 41160 45.74 8760

120 Vanilla FL NCL 2X 150 300 330 162.21 120

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour

99
Statement showing stock levels for the month of November
2006

Per Closin
S.N Openin Purchase
Item Name Issue kg/rat g
o g stock s
e stock
101 Butter --------- 100 100 126.00 --------
102 Cocoa Powder 2325 999.44 2775 64.89 549.44

103 C.M.Flavour 60 1677 1457 312.03 280

104 D.C. Powder 1125 1000 1250 52.00 875

105 Dry Cocoa Beans 5687.5 ---------- 4187.5 90.48 1500

106 Glucose 12016 39314 51330 17.15 ---------

107 Ghee 5385 28034.3 27975 157.39 5444.3

108 Gulkhand 700 1000 460 35.88 1240

109 Honey 925 1000 775 100.02 1150

110 Lecithin 6800 ---------- 5200 24.02 1600

111 Lactic Acid 30 160 190 89.61 ---------

112 Malt Extract 12137 35960 44617 25.00 3480

113 M.C. condensed 75 45 50 376.28 70

Raw Milk 499643. 1620

114 1460 499803.5 9.11
5
115 Sugar 90500 737000 824500 15.90 3000

116 Sorbitol 4500 ---------- 4200 40.42 300

117 S.M. powder 3625 5000 6500 108.00 2125

118 Table salt 3250 5000 4250 5.80 4000

119 Vanaspati 8760 38400 41085 45.99 6075

120 Vanilla FL NCL 2X 120 300 300 162.21 120

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour

101
Statement showing stock levels for the month of December
2006

Per Closing
S.N Openin Purchase
Item Name Issue kg/rat
o g stock s stock
e
101 Butter --------- 140 140 125.98 ---------
102 Cocoa Powder 549.44 4000 3174.44 76.47 1375

103 C.M. Flavour 280 1830 2110 309.63 ---------

104 D.C. Powder 875 1525 1650 52.00 750

105 Dry Cocoa Beans 1500 9000 4375 91.50 6125

106 Glucose --------- 794055 794055 19.36 ---------

107 Ghee 5444.3 51120 31394 135.20 25170

108 Gulkhand 1240 --------- 680 35.88 560

109 Honey 1150 --------- 675 100.02 475

110 Lecithin 1600 9000 5800 24.20 4800

111 Lactic Acid --------- 320 280 105.27 40

112 Malt Extract 3480 73370 50460 25.80 26390

113 M.C. condensed 70 60 70 515.35 60

Raw Milk 523411. 980

114 1620 522771.3 9.26
3
115 Sugar 3000 1458933 986483 15.11 475450

116 Sorbitol 300 10864 4564 35.76 6600

117 S.M. powder 2125 6475 7500 96.00 1100

118 Table salt 4000 5000 5000 5.80 4000

119 Vanaspati 6075 48000 47175 47.67 6900

120 Vanilla FL NCL 2X 120 300 420 162.21 ---------

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour

103
 Statement showing stock levels for the month of January
2007

Per Closing
S.N Openin Purchase
Item Name Issue kg/rat
o g stock s stock
e
101 Butter --------- 200 200 138.65 ---------
102 Cocoa Powder 1375 2999.5 3250 62.25 1124.5

103 C.M. Flavour -------- 2310 1890 312.05 420

104 D.C. Powder 750 1500 1600 52.00 650

105 Dry Cocoa Beans 6125 9000 4687.5 91.50 10437.5

106 Glucose -------- 678866 665215 14.37 13651

107 Ghee 35170 37616.5 30900 134.37 31886.5

108 Gulkhand 560 10000 1140 35.68 420

109 Honey 475 700 650 101.75 525

110 Lecithin 4800 10000 6200 24.56 8600

111 Lactic Acid 40 320 240 105.90 120

112 Malt Extract 26390 53354.5 51040 24.24 28704.5

113 M.C. condensed 60 120 80 411.05 100

Raw Milk 422480. 1820
114 980 423320.4 10.94
4
Sugar 100005 225400
115 475450 750000 14.37
0
116 Sorbitol 6600 6000 5400 35.45 7200

117 S.M. powder 1100 16000 7225 109.00 9875

118 Table salt 4000 5000 4800 5.80 4200

119 Vanaspati 6900 49500 52725 48.51 3675

120 Vanilla FL NCL 2X --------- 630 330 162.28 300

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour

105
 Statement showing stock levels for the month of February
2007

Per Closing
S.N Openin Purchase
Item Name Issue kg/rat
o g stock s stock
e
101 Butter -------- 144 144 137.44 ---------
102 Cocoa Powder 1124.5 3998 3297.5 71.46 1825

103 C.M. Flavour 420 630 1050 314.87 ---------

104 D.C. Powder 650 15001375 1375 54.08 775

105 Dry Cocoa Beans 10437.5 -------- 4375 92.04 6062.5

106 Glucose 13651 619229 613280 20.42 19600

107 Ghee 31886.5 34379.5 29381 139.59 36885

108 Gulkhand 420 1000 920 34.99 500

109 Honey 525 1500 1065 105.03 960

110 Lecithin 8600 --------- 5200 24.56 3400

111 Lactic Acid 120 160 240 105.90 40

112 Malt Extract 28704..5 17354 45478.5 25.84 580

113 M.C. condensed 100 60 45 445.81 115

Raw Milk 515153. 1560

114 1820 514893.3 10.67
3
115 Sugar 225400 758807 891537 15.00 92670

116 Sorbitol 7200 80 4580 35.45 2700

117 S.M. powder 9875 --------- 7150 108.44 2725

118 Table salt 4200 5000 4350 5.47 4850

119 Vanaspati 3675 57060 43815 47.18 16920

120 Vanilla FL NCL 2X 300 420 300 161.58 420

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour

107
 Statement showing stock levels for the month of March
2007

Per Closing
S.N Openin Purchase
Item Name Issue kg/rat
o g stock s stock
e
101 Butter -------- 100 100 141.00 --------
102 Cocoa Powder 1825 3000 2575 70.57 2250

103 C.M. Flavour -------- -------- ------- ------- ---------

104 D.C. Powder 775 1000 1425 54..08 350

105 Dry Cocoa Beans 6062.5 -------- 3312.5 92.04 2750

106 Glucose 19600 507185 518395 19.69 8390

107 Ghee 36885 22020 29170 151.87 29735

108 Gulkhand 500 1000 880 35.72 620

109 Honey 960 1000 560 103.17 1400

110 Lecithin 3400 3000 5000 26.05 1400

111 Lactic Acid 40 240 280 105.49 ---------

112 Malt Extract 580 51620 47560 24.72 4640

113 M.C. condensed 115 -------- 80 445.35 35

Raw Milk 536050. 527

114 1560 535017.1 11.07
1
115 Sugar 92670 880500 893340 15.86 79830

116 Sorbitol 2700 2400 4200 34.17 900

117 S.M. powder 2725 9000 5675 100.47 6050

118 Table salt 4850 5000 4250 5.80 5600

119 Vanaspati 16920 420000 41850 47.50 17070

120 Vanilla FL NCL 2X 420 -------- 390 160.40 30

WHERE,

M.C.condensed = milk cream condensed

S.M. Powder = skimmed milk powder
C.M. flavour = condensed milk flavour

109
Statement of Economic Order Quantity and number of order

Item name E.O.Q

Butter 694

Cocoa Powder 5158

Condensed Milk ----

Flavour
D.C. Powder 2094

Dry Cocoa Beans 8912

Glucose 375949

Ghee 36049

Gulkhand 1190

Honey 916

Lecithin 9154

Lactic Acid 328

Malt Extract 34364

Milk Cream condensed -----

Raw Milk ------

Sugar 535024

Sorbitol 3143

Skimmed Milk powder -------

Table salt 3056

Vanaspati 36453

Vanilla FL NCL 2X --------

Statement showing inventory turnover ratio for 2006-2007

Raw material Ratio

Butter ----------

Cocoa Powder 1.09

Condensed Milk .Flavour 4.34

D.C. Powder 1.23

Dry Cocoa Beans 0.88

Glucose 3131

Ghee 1.83

Gulkhand 1.25

Honey 0.79

Lecithin 0.92

Lactic Acid 2.17

Malt Extract 3.30

Milk Cream Condensed 0.64

Raw Milk 286.10

Sugar 3.27

Sorbitol 1.63

Skimmed Milk powder 0.82

Table salt 0.96

Vanaspati 5.12

Vanilla FL NCL 2X 2.13

HML CLASSIFICATION

p
Per
er M Per
H category L category kg
k category kg
g

111
 50.6
Condensed 308.4 D.C.
Butter 117.7 8
milk flavour 5 Powder
16.4
Milk cream 445.8 Cocoa
71.96 Glucose 2
condensed 2 powder
34.7
Vanilla FL 162.4 Dry cocoa
88.37 Gulkhand 9
NCL 2X 3 beans
24.4
136.1
------- ----- Ghee Lecithin 3
5
25.9
Malt
------- ----- Honey 97.42 1
extract
105.8 9.81
------- ----- Lactic Acid Raw milk
2
Skimmed 16.2
------- ----- milk 96.87 Sugar 4
powder
29.2
------- ----- ------- ----- Sorbitol 3

------- ----- ------- ----- Table salt 5.60

45.2
------- ----- ------- ----- Vanaspati 4

Statement showing inventory turnover ratio from 2002-2003

to 2006-2007

Year Ratio

2002-2003 51.46

2003-2004 53.95

2004-2005 56.81

2005-2006 41.16

2006-2007 45.39

Statement showing overall days of inventory holdings (DIH)

from 2002-2003 to 2006-2007

Year Ratio
2002-2003 7.09

2003-2004 6.77

2004-2005 6.42

2005-2006 8.87

2006-2007 8.04

113
 FINDINGS
 The inventory turnover ratio was increased by 4.23 times in the year 2006-
07(45.39) when compared to 2005-06(20.69). It means that the NCCL is
maintaining the control of inventory level compared to previous year.
 The inventory holding period was also decreased by 1 day in the year 2006-
07( 8 days) when compared to 2005-06( 9 days). The turning of inventory
into receivables through sales is nearly faster.
 From the statement showing the EOQ, it is found that the EOQ of all items
except Sugar, sorbitol and table salt is more than minimum consumption
level.
 It is found that A BC categories the A category items are Glucose, Sugar and
vanaspati and in B category Ghee and Raw milk and remaining items comes
under C category.

SUGGESTIONS
 In the inventory turnover ratio to improve the inventory controls on
Sugar and Raw Milk and Glucose and increase the sales.
 In inventory holding the holding areas have to be reduced and finished
goods of stock in storing in ware houses have to be reduced.
 It is suggested that the to EOQ points are very abnormal in ordering.
Therefore to reduce ordering points levels and maintaining constant stock
levels.
 In the analysis of categorizing of items to maintain strict control on B
category items and also C category items too.
 In B category to fallow moderate value analysis and monthly control on it.
 The remaining items of C category they have to maintain high safety stocks
and minimum value of analysis.
 BIBLIOGRAPHY

Production and Operations management - K.Aswathappa &

K.Sridharara bhat
Financial management and policy - James C. Van Horne

Financial management - I.M.Pandey

Financial accounting - P.C.Tulsian

115