SUPPLY CHAIN Submitted by:

MANAGEMENT OF AMUL 1
Ayushi Gupta PGP23162
Nancy Gupta PGP23076
LITRE FULL CREAM MILK Nitish Kumar PGP23082
Tushar Rana PGP23142
POUCH Vipul Goyal PGP23150
 SUPPLY CHAIN SURPLUS

Supply chain surplus : is the value addition by supply chain

function of an organization. It is calculated by the following formula:
Supply chain surplus = Revenue generated from a customer - Total
cost incurred to produce and deliver the product.
Supply chain Surplus of Amul 1 litre full cream Milk: 5.17

AMUL SUPPLY CHAIN MODEL

RUCTURE OF AMUL 1 LITRE FULL CREAM MILK POUCH
FULL CREAM MILK Assumptions:
S no. PARTICULARS
1 LITRE
• Cost of material = Raw Material
1. Cost of Materials 47.25 cost+opening inventory of
material-closing inventory of
2. Processing cost 3.41
material
3. Administration Overheads 0.91 • Processing cost include labour,
electricity, water, steam,
4. Selling & Distribution Expenses 0.26
refrigeration, Quality control,
5. Cost of Sales 51.83 miscellaneous, packaging
6. Profit Margin 4.05 material etc.
• Selling and distribution
7. Selling Price to Retailer 55.88 expenses includes transportation
8. Retailer's Margin 1.12 cost, marketing cost, logistics,
wages, commission etc.
9. Selling Price 57
 INVENTORY
MODEL
• Warehouse:
1. They are Pull System of replenishment process.
2. Generally they place order weekly but in case of shortage they place order
on the date.
3. They use optional replenishment system technique for inventory control.
4. The lead time is 3 days.
5. The orders grouped for dispatch is on the basis of location of distributors.

• Distributor: • Retailers:
1. They are Pull System of replenishment process. 1. They are Pull System of replenishment process.
2. They use periodic review system technique for inventory control. 2. They use periodic review system technique for inventory
control.
3. The lead time is 24hrs.
3. The lead time is one week.
4. The orders grouped for dispatch is on the basis of location of
retailers.
LEARNINGS
• We learned how Amul was able to eliminate middle man between milk farmers and
consumers to help both the consumer and the farmers.
• We learned how Amul's efficient supply chain management led to reap success
during lockdown.
• We learned how Amul calculate it’s supply chain surplus and how this surplus is
distributed among the different members of supply chain.
• We learned how use of latest technology has helped Amul in Supply Chain
Management.