PROJECT REPORT ON

CREATIVITY ASSESSMENT INVENTORY OF A STARTUP

FIRM-A Case study of ASIAN GROUP
 CERTIFICATE

This is to Certify that the Project Report________________ titled Creativity Assessment

inventory of a startup firm done by__________________________________, is completed
under my guidance.

Signature of the Guide:

Date:
Name of the Guide:
 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather unexpected quarters
during the course of execution of this study. It would be a mammoth task to place on record
my gratitude to each and every one of them but a whole-hearted attempt would be made
nevertheless, least I be branded ungrateful.

I pay my heartiest gratitude _________________ for the constant support and guidance
throughout the time when I was making this project
 TABLE OF CONTENTS
S No Topic Page No
1. Certificate 1
2. Acknowledgements 2
3. Table of contents 3
4. Chapter 1: Introduction 4
Introduction to the topic
Objectives of the Study
Review of Literature
Research Methodology
Limitations of the study
5. Chapter 2: Sustainable Development Goals 32
6. Chapter 3: Analysis and interpretation of the Data 45
7. Chapter 4: Conclusion and Recommendations 57

8. References/ Bibliography 61
9. Annexure –Questionnaire 63
OBJECTIVE OF THE STUDY

As inventory management is known to be a major role player in any of a start up firm, it

includes entire inventory process required by a startup company. So in this increasing
competitive scenario the inventory management need to develop in order to provide the
stupendous logistics solution to a start up firm.

Sub Objectives are:

• To study the importance of inventory management at start Up firm
• To study the inventory management process at Asian Footwear

• To find out the current status and the problems faced by startup companies and suggest
improvement measures.
LITERATURE REVIEW

INVENTORY MANAGEMENT

Inventories constitute the most significant part of current assets of a large majority of
companies in India. On an average, inventories are approximately 6 percent of current assets
in public limited companies in India. Because of the large size of inventories maintained by
firms, a considerable amount of fund is required to be committed to them. It is, therefore,
absolutely imperative to manage inventories efficiently and effectively in order to avoid
unnecessary investment. A firm neglecting the management of inventories will be jeopardizing
its long-run profitability and may fail ultimately. It is possible for a company to reduce its
levels of inventories to a considerable degree e.g., 10 to 20 per cent, without any adverse effect
on production and sales, by using simple inventory planning and control techniques. The
reduction in 'excessive' inventories carries a favorable impact on a company's profitability.

NATURE OF INVENTORIES

Inventories are stock of the product a company is manufacturing for sale and components that
make up the product. The various forms in which inventories exist in a manufacturing company
are: raw materials, work-in-process and finished goods.

• Raw materials are those basic inputs that are converted into finished product through the
manufacturing process. Raw materials inventories are those units which have been
purchased and stored for future productions.
• Work-in-process inventories are semi-manufactured products. They represent product that
need more work before they become finished products for sale.
• Finished goods inventories are those completely manufactured products which are ready
for sale. Stocks of raw materials and work-in-process facilitate production while stock of
finished goods is required for smooth marketing operations. Thus, inventories serve a link
between the production and consumption of goods.

The levels of three kinds of inventories for a firm depend on the nature of its business. A
manufacturing firm will have substantially high levels of all three kinds of inventories, while a
retail or wholesale firm will have a very high level of finished goods inventories and no raw
material and work-in-process inventories. Within manufacturing firms, there will be
differences. Large heavy engineering companies produce long production cycle products,
therefore, they carry large inventories.

A fourth kind of inventory, supplies (or stores and spares), is also maintained by firms. Supplies
include office and plant cleaning materials like soap, brooks, oil, fuel, light bulbs, etc. these
materials do not directly enter production, but are necessary for production process. Usually,
these supplies are small part of the total inventory and do not involve significant investment.
Therefore, a sophisticated system of inventory control may not be maintained for them.

NEED TO HOLD INVENTORIES

The question of managing inventories arises only when the company holds inventories.
Maintaining inventories involves tying up of the company's funds and incurrence of storage
and handling costs. If it is expensive to maintain inventories, why do companies hold
inventories? There are three general motives for holding inventories.

• Transactions motive emphasizes the need to maintain inventories to facilitate smooth

production and sales operation.
• Precautionary motive necessitates holding of inventories to guard against the risk of
unpredictable changes in demand and supply forces and other factors.
• Speculative motive influences the decision to increase or reduce inventory levels to take
advantage of price fluctuations.

A startup company should maintain adequate stock of materials for a continuous supply to the
factory for an uninterrupted production. It is not possible for a company to procure raw
materials whenever it is needed. A time lag exists between demand for materials and its supply.
Also, there exists uncertainty in procuring raw materials in time on many occasions. The
procurement of materials may be delayed because of such factors as strike, transport disruption
or short supply. Therefore, the firm should maintain sufficient stock of raw materials at a given
time to streamline production. Other factors which may necessitate purchasing and holding of
raw material inventories are quantity discounts and anticipated price increase. The firm may
purchase large quantities of raw materials than needed for the desired production and sales
levels to obtain quantity discounts of bulk purchasing. At times, the firm would like to
accumulate raw materials in anticipation of price rise.
Work in process inventory builds up because of the production cycle. Production cycle is the
time span between introduction of raw material into production and emergence of finished
product at the completion of production cycle. Till production cycle completes, stock of work-
in-process has to be maintained. Efficient firms constantly try to make production cycle smaller
by improving their production techniques.

Stock of finished goods has to be held because production and sales are not instantaneous. A
firm cannot produce immediately when goods are demanded by customers. Therefore, to
supply finished goods on a regular basis, their stock has to be maintained. Stock of finished
goods has also to be maintained for sudden demands from customers. In case the firm's sales
are seasonable in nature, substantial finished goods inventories should be kept to meet the peak
demand. Failure to supply products to customers, when demanded, would mean loss of the
firm's sales to competitors. The level of finished goods inventories would depend upon the
coordination between sales and production as well as on production time.
Logistics channel of distribution:

Manufacturer Manufacturer Manufacturer Manufacturer

Or Or Or Or
Producer Producer Producer Producer

Retail Wholesale Agents

Retailer Wholesaler

Retailer

Consumer Consumer Consumer Consumer

LIMITATIONS OF THE STUDY

While carrying out the project work, following limitations were faced:

1. The list of major role players is exhaustive and I could choose only 5 of them.

2. The peak season and the company policies limited most of the managers not providing
exhaustive information.

3. The time period provided was short for the exploratory research for the project.
 CONCLUSION AND RECOMMENDATIONS

Conclusion
The techniques of inventory management are very useful in determining the optimum level of
inventory and finding answers to the problems of the economic order quantity, the re-order
point and the safety stock. These techniques are very essential to economies the use of resources
by minimizing the total inventory cost. Our discussion of inventory management indicates the
broad framework for managing inventories. More sophisticated techniques may be used to
handle inventory management problems more efficiently and effectively. It should, however,
be realized that inventory management, more than the use of techniques, is a managerial
process of continuous planning, coordination, control and monitoring, motivation
Recommendations

Apart from the industry making its mark in terms of contribution to the economy, there are a
few aspects which need to be taken care of. As per the study which was conducted, there are a
few suggestions:
• The startup companies should force the client to give information in time so that the
system is in place to expedite
• The employer should be trained to use the software which will reduce their workload
and increase their efficiency
• Different sectors should be made aware of the benefits of outsourcing warehousing and
distribution through seminars and presentations
• To reduce the attrition rate appropriate work with lucrative recreation facilities along
with perks and incentives should be provided
• Buying house and export houses should be more friendly and flexible in terms of
shipment information so that the shipment can be planned and booked in the carrier on
time

Download entire project for more details.

BIBLIOGRAPHY

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Industrial Engineering and Management, 2021

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small enterprises in Ethiopia. Cogent Business & Management, 5(1),

4. Sucky, Eric (2014) Inventory Management in Supply Chains: A Bargaining Problem.

5. Cooper, D., & Schindler, P. (2016), Business Research Methods, McGraw Hill 7th
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6. Gaur, V., Fisher, M., Raman, A., (2017) An econometric analysis of inventory turnover
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7. Jose, T., Jayakumar, A., & Sijo, M.T.. (2013). Analysis of Inventory Control
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8. Sunitha, K.V. (2017). A Study on Inventory Management in Sujana Metal Products

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investing-in-startups

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