INVENTORY MANAGEMENT

@ OM BIOMEDICS

PVT LTD
Submitted to Dr. Sumit Singh Jasial
By : Annu Yadav Govind Verma Pranav Singh Rajat Goyal (E-11) (E-27) (E-37) (E-43)

Contents

Contents..................................................................................................................... 1

INTRODUCTION........................................................................................................ 3 MEANING OF INVENTORY:-...................................................................................... 3 NATURE OF INVENTORIES :- ..................................................................................3 RAW MATERIALS:- ................................................................................................... 3 WORK IN PROGRESS:- ............................................................................................. 3 PACKAGING MATERIAL:....................................................................................... 4 FINISHED GOODS:- ................................................................................................. 4 INVENTORY MANAGEMENT...................................................................................... 4 Two types of cost are involved in the inventory maintenance:-..............................6 OBJECTIVES OF INVENTORY MANAGEMENT.............................................................6 Operating Objectives:.............................................................................................. 7 Financial Objectives:............................................................................................. 8 Importance of inventory management....................................................................8 SUCCESSFUL INVENTORY MANAGEMENT...............................................................10 About Inventory Control........................................................................................ 11 ADVANTAGES OF INVENTORY CONTROL:..............................................................11 Inventory Costs..................................................................................................... 12 Safety Stock.......................................................................................................... 12 Ordering Costs....................................................................................................... 12 The Cost of Shortfalls............................................................................................ 12 Cyclical Counting................................................................................................... 13 TECHNIQUES OF INVENTORY MANAGEMENT.........................................................14 Economic Order Quantity...................................................................................... 15 Just in Time Inventory............................................................................................ 16 ABC Analysis.......................................................................................................... 17 Common Inventory Valuation Methods..................................................................18 Inflationary Effects on Valuation............................................................................19 INDUSTRY OVERVIEW............................................................................................ 20 Pharmaceutical industry in India..............................................................................20 Om Biomedic Private Limited...............................................................................21 Contact Details...................................................................................................... 22 Procedure followed by the company.....................................................................22 DATA COLLECTED.................................................................................................. 23

CONCLUSION ........................................................................................................ 26

INTRODUCTION MEANING OF INVENTORY:Inventory is the physical stoke of goods maintained in an organization for its smooth sunning. In accounting language it may mean stock of finished goods only. In a manufacturing concern, it may includes raw materials, work-in-progress and stores etc. In the form of materials or supplies to be consumed in the production process or in the rendering of services. In brief, Inventory is unconsumed or unsold goods purchased or manufactured.

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 inventory exist in a manufacturing company are raw materials, work in progress and finished goods.

RAW MATERIALS:Raw materials are those inputs that are converted into finished product though the manufacturing process. Raw materials inventories are those units which have been purchased and stored for future productions.

WORK IN PROGRESS:These inventories are semi manufactured products. They represent products that need more work before they become finished products for sales.

PACKAGING MATERIAL:Packaging material includes those items which are used for packaging of perfumery cap of the bottle, pump, coller,liver, box etc. product i.e.

FINISHED GOODS:Finished goods inventories are those completely manufactured products which are ready for sale. Stock of raw materials and work in progress facilitate production. While stock of finished goods is required for smooth marketing operation. Thus, inventories serve as a link between the production and consumption of goods.

INVENTORY MANAGEMENT
"managing the level of inventory is like maintaining the level of water in a bath tub with an open drain. the water is flowing out continuously. if water is let in too slowly, the tub is soon empty. if the water is let in too fast, the tub overflows." The dictionary meaning of inventory is 'stock of goods'. The investment in inventory is very high in most of the undertakings engaged in manufacturing. The amount of investment is sometimes more in inventory than in other assets. About 90 percent part of working capital is invested in inventories. It is necessary for every management to give proper attention to inventory management. A proper planning of purchasing, handling, storing and accounting should form a part of inventory management. By proper planning it is possible for a company to reduce its levels of inventories to a considerable degree, without any adverse effect on production and sales, by using simply inventory planning and control technique. The reduction in excessive An inventories carries a of favorable inventory impact on company's will profitability. determine. efficient system management

1) What to purchase

2) How much to purchase 3) From where to purchase 4) Where to store, etc.

"Effective inventory management enables an organization to meet or exceed customers' expectations of product availability while maximizing net profits or minimizing co. Inventories constitute about 60% of current assets of companies of India. The manufacturing companies hold inventories in the form of raw materials, work in process, finished goods, stores and spares, chemicals, lubricants etc. In a literal sense, inventory refers to stocks of anything necessary to do business. These stocks represent a large portion of the business investment and must be well managed in order to maximize profits. In fact, many small businesses cannot absorb the types of losses arising from poor inventory management. Unless inventories are controlled, they are unreliable, inefficient and costly. Inventory management simply means the methods you use to organize, store and replace inventory, to keep an adequate supply of goods while minimizing costs. Each location where goods are kept will require different methods of inventory management. Keeping an inventory, or stock of goods, is a necessity in retail. Customers often prefer to physically touch what they are considering purchasing, so you must have items on hand. In addition, most customers prefer to have it now, rather than wait for something to be ordered from a distributor. Every minute that is spent down because the supply of raw materials was interrupted costs the company unplanned expenses Three motives for holding inventories: To facilitate smooth production and sales operation (transaction motive), To guard against the risk of unpredictable changes in usage rate and delivery time (precautionary motive)

To take advantage of price fluctuation (speculative motive)

Two types of cost are involved in the inventory maintenance:o Ordering cost requisition, placing of order, transportation, receiving, inspecting, storing, clerical staff, are fixed per order. Therefore, they decline as the order size increases. o Carrying cost warehousing, handling, clerical staff, insurances and taxes. Carrying costs vary with inventory holding. As order size increases, average inventory holding increases and therefore the carrying costs increase.

The firm should minimize the total cost (ordering+carrying). The economic order quantity of inventory level occur at point where total cost is minimum EOQ = 2AS/C, where A= annual requirement, S = ordering cost per unit, C = carrying cost per unit per annum

OBJECTIVES OF INVENTORY MANAGEMENT

The basic managerial objectives of inventory control are two-fold; first, the avoidance over-investment or under-investment in inventories; and second, to provide the right quantity of standard raw material to the production department at the right time. In brief, the objectives of inventory control may be summarized as follows:

Operating Objectives:
(1) Ensuring Availability of Materials: There should be a continuous availability of all types of raw materials in the factory so that the production may not be help up wants of any material. A minimum quantity of each material should be held in store to permit production to move on schedule. (2) Avoidance of Abnormal Wastage: There should be minimum possible wastage of materials while these are being stored in the godowns or used in the factory by the workers. Wastage should be allowed up to a certain level known as normal wastage. To avoid any abnormal wastage, strict control over the inventory should be exercised. Leakage, theft, embezzlements of raw material and spoilage of material due to rust, bust should be avoided. (3) Promotion of Manufacturing Efficiency: If the right type of raw material is available to the manufacturing departments at the right time, their manufacturing efficiency is also increased. Their motivation level rises and morale is improved. (4) Avoidance of Out of Stock Danger: Information about availability of materials should

be made continuously available to the management so that they can do planning for procurement of raw material. It maintains the inventories at the optimum level keeping in view the operational requirements. It also avoids the out of stock danger. (5) Better Service to Customers: Sufficient stock of finished goods must be maintained to match reasonable demand of the customers for prompt execution of their orders. (6)Highlighting slow moving and obsolete items of materials. (7) Designing poorer organization for inventory management: Clear cut accountability should be fixed at various levels of organization.

Financial Objectives:
(1) Economy in purchasing: A proper inventory control brings certain advantages and economies in purchasing also. Every attempt has to make to effect economy in purchasing through quantity and taking advantage to favorable markets. (2) Reasonable Price: While purchasing materials, it is to be seen that right quality of material is purchased at reasonably low price. Quality is not to be sacrificed at the cost of lower price. The material purchased should be of the quality alone which is needed. (3) Optimum Investing and Efficient Use of capital: The basic aim of inventory control from the financial point of view is the optimum level of investment in inventories. There should be no excessive investment in stock, etc. Investment in inventories must not tie up funds that could be used in other activities. The determination of maximum and minimum level of stock attempt in this direction.

Importance of inventory management

1. COUNTING CURRENT STOCK All businesses must know what they have on hand and evaluate stock levels with respect to current and forecasted demands. You must know what you have in stock to ensure you can meet the demands of customers and production and to be sure you are ordering enough stock in the future. Counting is also important because it is the only way you will know if there is a problem with theft occurring at some point in the supply chain. When you become aware of such problems you can take steps to eliminate them.

2. CONTROLLING SUPPLY AND DEMAND Whenever possible, obtain a commitment from a customer for a purchase. In this way, you ensure that the items you order will not take space in your inventory for long. When this is not possible, you may be able to share responsibility for the cost of carrying goods with the salesperson, to ensure that an order placed actually results in a sale. You can also keep a list of goods that can easily be sold to another party, should a customer cancel. Such goods can be ordered without prior approval. Approval procedures should be arranged around several factors. You should set minimum and maximum quantities which your buyers can order without prior approval. This ensures that you are maximizing any volume discounts available through your vendors and preventing overordering of stock. It is also important to require pre-approval on goods with a high carrying cost. 3. KEEPING ACCURATE RECORDS Any time items arrive at or leave a warehouse, accurate paperwork should be kept, itemizing the goods. When inventory arrives, this is when you will find breakage or loss on the goods you ordered. Inventory leaving your warehouse must be counted to prevent loss between the warehouse and the point of sale. Even samples should be recorded, making the salesperson responsible for the goods until they are returned to the storage facility. Records should be processed quickly, at least in the same day that the withdrawal of stock occurred. 4. MANAGING EMPLOYEES Buyers are the employees who make stock purchases for your company. Reward systems should be set in place that encourage high levels of customer service and return on investment for the product lines the buyer manages.

Warehouse employees should be educated on the costs of improper inventory management. Be sure they understand that the lower your profit margin, the more sales must be generated to make up for the lost goods. Incentive programs can help employees keep this in perspective. When they see a difference in their paychecks from poor inventory management, they are more likely to take precautions to prevent shrinkage. Each stock item in your warehouse or back room should have its own procedures for replenishing the supply. Find the best suppliers and storage location for each and record this information in official procedures that can easily be accessed by your employees. Inventory management should be a part of your overall strategic business plan. As the business climate evolves towards a green economy, businesses are looking for ways to leverage this trend as part of the big picture. This can mean re-evaluating your supply chain and choosing products that are environmentally sound. It can also mean putting in place recycling procedures for packaging or other materials. In this way, inventory management is more than a means to control costs; it becomes a way to promote your business.

SUCCESSFUL INVENTORY MANAGEMENT

Successful inventory management involves balancing the costs of inventory with the benefits of inventory. Many small business owners fail to appreciate fully the true costs of carrying inventory, which include not only direct costs of storage, insurance and taxes, but also the cost of money tied up in inventory. This fine line between keeping too much inventory and not enough is not the manager's only concern. Others include: Maintaining a wide assortment of stock -- but not spreading the rapidly moving ones too thin; Increasing inventory turnover -- but not sacrificing the service level; Keeping stock low -- but not sacrificing service or performance.

Obtaining lower prices by making volume purchases -- but not ending up with slowmoving inventory; and

Having an adequate inventory on hand -- but not getting caught with obsolete items. The degree of success in addressing these concerns is easier to gauge for some than for others. For example, computing

About Inventory Control

Inventory consists of the goods and materials that a retail business holds for sale or a manufacturer keeps in raw materials for production. Inventory control is a means for maintaining the right level of supply and reducing loss to goods or materials before they become a finished product or are sold to the consumer. Inventory control is one of the greatest factors in a companys success or failure. This part of the supply chain has a great impact on the companys ability to manufacture goods for sale or to deliver customer satisfaction on orders of finished products. Proper inventory control will balance the customers need to secure products quickly with the business need to control warehousing costs. To manage inventory effectively, a business must have a firm understanding of demand, and cost of inventory.

ADVANTAGES OF INVENTORY CONTROL:

(1) Reduction in investment in inventory. (2) Proper and efficient use of raw materials. (3)No bottleneck in production. (4) Improvement in production and sales. (5) Efficient and optimum use of physical as well as financial resources. (6)Ordering cost can be reduced if a firm places a few large orders in place of numerous small orders. (7)Maintenance of adequate inventories reduces the set-up cost associated with each production

Inventory Costs
There are three main types of cost in inventory. There are the costs to carry standard inventories and safety stock. Ordering and setup costs come into play as well. Finally, there are shortfall costs. A good inventory control system will balance carrying costs against shortfall costs.

Safety Stock
Safety stock is comprised of the goods needed to be kept on hand to satisfy consumer demand. Because demand is constantly in flux, optimizing the Safety Stock levels is a challenge. However, demand fluctuations do not wholly dictate a companys ability to keep the right supply on hand most of the time. Companies can use statistical calculations to determine probabilities in demand.

Ordering Costs
Ordering costs have to do with placing orders, receiving and stowage. Transportation and invoice processing are also included. Information technology has proven itself useful in reducing these costs in many industries. If the business is in manufacturing, then to production setup costs are considered instead.

The Cost of Shortfalls

Stock out or shortfall costs represent lost sales due to lack of supply for consumers. Sales departments prefer these numbers be kept low so that an ample stock will always be kept. Logistics managers prefer to err on the side of caution to reduce warehousing costs.

Shortfall costs are avoided by keeping an ample safety stock on hand. This practice also increases customer satisfaction. However, this must be balanced with the cost to carry goods. The best way to manage stockout is to determine the acceptable level of customer service for the business. One can then balance the need for high satisfaction with the need to reduce inventory costs. Customer satisfaction must always be considered ahead of storage costs.

Cyclical Counting
Many companies prefer to count inventory on a cyclical basis to avoid the need for shutting down operations while stock is counted. This means that a particular section of the warehouse or plant is counted physically at particular times, rather than counting all inventory at once. While this method may be less accurate than counting the whole, it is much more cost effective. Cyclical counting is preferred because it allows for operations to continue while inventory is taken. If not for this practice, a business would have to shut down while counts were taken, often requiring the hire of a third party or use of overtime employees. Cyclical counting usually utilizes the ABC rule, but there are other variations of this method that can be used. The ABC rule specifies that tracking 20 percent of inventory will control 80 percent of the cost to store the goods. Therefore, businesses concentrate more on the top 20 percent and counter other goods less frequently. Items are categorized based on three levels:

A Category: Top valued 20 percent of goods, whether by economic or demand value B Category: Midrange value items C Category: Cheaper items, rarely in demand

Warehouse staff can now schedule counting of inventories based on these categories. The A category is counted on a regular basis while B and C categories are counted only once a month or once a quarter.

TECHNIQUES OF INVENTORY MANAGEMENT

The various techniques of inventory management are:1. Level Setting 2. EOQ 3. Price Break 4. Just In time Inventory 5. ABC Analysis

Level Setting In order to have proper control on materials, following levels are set:a. RE ORDER LEVEL b. MINIMUM LEVEL c. MAXIMUM LEVEL 1. RE ORDER LEVEL - It is the point at which stock of a particular material in store approaches, the storekeeper should initiate the purchase requisition for fresh supplies of that material. The level is fixed somewhere between the maximum and the minimum level.

MINIMUM LEVEL + CONSUMPTION DONE DURING THE TIME REQUIRED TO GET FRESH STOCK OR (MAXIMUM CONSUMPTION X MAXIMUM RE ORDER PERIOD) 2. MINIMUM LEVELAlso called the safety stock, this represents the minimum quantity of the material which must be maintained in hand at all times. The quantity is fixed so that production may not be held up due to shortage of the material.

RE ORDER LEVEL (NORMAL CONSUMPTION *NORMAL RE ORDER PERIOD) 3. MAXIMUM LEVELIt represents the maximum quantity of an item of material which can be held in stock at any time. Stock should not exceed this quantity. The quantity is fixed so that there is no over-stocking. RE ORDER LEVEL + RE ORDER QUANTITY (MINIMUM CONSUMPTION * MINIMUM RE ORDERING PERIOD)

Economic Order Quantity Economic order quantity is the order quantity that minimizes total inventory holding costs and ordering costs. It is one of the oldest classical production scheduling models.EOQ applies only when demand for a product is constant over the year and each new order is delivered in full when inventory reaches zero. There is a fixed cost for each order placed, regardless of the number of units ordered. There is also a cost for each unit held in storage, sometimes expressed as a percentage of the purchase cost of the item. Assumptions:1. The ordering cost is constant. 2. The rate of demand is known, and spread evenly throughout the year.

3. The lead time is fixed.

4. The purchase price of the item is constant i.e. no discount is available 5. The replenishment is made instantaneously i.e. the whole batch is delivered at once. 6. Only one product is involved.

It consists of two parts:1. CARRYING COSTS Cost of holding the materials in the store. Eg.- Cost of warehousing, cost of racks etc. 2. ORDERING COSTS Cost of placing the order. Eg.-Cost of purchasing department, stationery costs etc. Formula of Economic Order Quantity: 2CO/I (under root) C Carrying cost O Ordering cost I Interest payment of storing cost per unit per year Price Break Model When there is discount offered on larger quantities, it may appear that the holding costs may increase. But discounts offered are so attractive that it outweighs the holding costs. The formula is the same as that of EOQ, only the holding costs/carrying costs changes according to the price break.

Just in Time Inventory

Just-In-Time or JIT purchasing is the purchase of material or goods in such a way that delivery of purchased items is assured before their use or demand. JIT purchasing recognizes too much carrying costs associated with holding high inventory levels. Hence, it advocates developing good relations with suppliers and making timely purchases from proven suppliers which can make ready delivery of goods available as and when required. JIT helps reduce the investment in inventory as more frequent purchase orders of small quantities are made. Thus, the carrying cost is also reduced as a result of low investment in inventory. Also, there is a reduction in the number of suppliers to be dealt with. Lastly, JIT reduces the wasting of time by the workforce and the time is spent concentrated on the production process. ABC Analysis The ABC analysis is a business term used to define an inventory categorization technique often used in materials management. It is also known as Selective Inventory Control. Policies based on ABC analysis: A ITEMS: very tight control and accurate records B ITEMS: less tightly controlled and good records C ITEMS: simplest controls possible and minimal records The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls. 'A' items are very important for an organization. Because of the high value of these A items, frequent value analysis is required. In addition to that, an organization needs to choose an appropriate order pattern (e.g. Just- in- time) to avoid excess capacity. 'B' items are important, but of course less important, than A items and more important than C items. Therefore B items are intergroup items. 'C' items are marginally important. According to Pareto Principle, ABC has been divided into the following categories:

Class A items may represent only about 10% of the total inventory items, but they represent about 70% of the total money value.

Class B items may represent about 20% of the total inventory items and they represent about 20% of the total money value.

Class C items may represent about 10% of the total inventory items, but they represent only about 10% of the total money value.

Using the classification each item should be handled in different way, with more attention being devoted to category A, less to B , and still less to C.

Common Inventory Valuation Methods

The methods a company uses to value the costs of inventory have a direct effect on the business balance sheets, income statements and cash flows. Three methods are widely used to value such costs. They are First-In, First-Out (FIFO), Last-In First-Out (LIFO) and Average Cost. Inventory can be calculated based on the lesser of cost or market value. It can be applied to each item, each category or on a total basis. FIFO

FIFO operates under the assumption that the first product that is put into inventory is also the first sold. An example of this in action can be made when we assume that a widget seller acquires 200 units on Monday for Rs.1.00 per unit. The next day, he spots a good deal and gets 500 more for Rs.75 per unit. When valuing inventory under the FIFO method, the sale of 300 units on Wednesday would create a cost of goods sold of Rs.275. That is, 200 units at Rs1.00 each and 100 units at Rs.75 each. In this way, the first 200 units on the income statement were valued higher. The remaining 400 widgets would be valued at Rs.75 each on the balance sheet in ending inventory. LIFO

LIFO assumes instead that the last unit to reach inventory is the first sold. Using the same example, the income statement and balance sheet would instead show a cost of goods sold of Rs.225 for the 300 units sold. The ending inventory on the balance sheet would be valued at Rs.350 in assets. When this method is used on older inventories, the companys balance sheet can be greatly skewed. Consider the company that carries a large quantity of merchandise over a period of 10 years. This accounting method is now using 10-year-old information to value its assets.

WEIGHTED AVERAGE

Average Cost works out a weighted average for the cost of goods sold. It takes an average cost for all units available for sale during the accounting period and uses that as a basis for the cost of goods sold. To site our example again, we would calculate the cost of goods sold at [(200 x Rs.1) + (500 x Rs.75)]/700, or Rs.821 each. The remaining 400 units would also be valued at this rate on the balance sheet in ending inventory. SPECIFIC IDENTIFICATION

A less commonly used, but important method to valuation is called specific identification. This method is used for high-end items that are more easily tracked. In some cases, this method can be used for more common items, but less value is realized from this accounting method is such cases. This is because powerful and detailed tracking software is required to employ specific identification on large numbers of goods.

Inflationary Effects on Valuation

Market conditions change causing inflationary changes. When this happens, your accounting method can have a strong impact on how healthy the business looks on income

statements and balance sheets. The affects cash flow when businesses seek credit to pay for ongoing operations. RISING PRICES

When prices are rising, using FIFO will show a greater value on the balance sheet, thereby increasing tax liabilities but also improving credit scores and the ability to borrow cash for ongoing operations. Older inventory is being used to determine the cost of goods sold and newer inventory is being used to report assets. LIFO decreases the value on the income statement, but can reduce the level of depreciation you are able to take on assets. This is good for taxes but bad for borrowing. Industries most likely to adopt LIFO are department stores and food retailers. The method is rarely used in defences.

INDUSTRY OVERVIEW
Pharmaceutical industry in India The Pharmaceutical industry in India is the world's third-largest in terms of volume and stands 14th in terms of value. According to Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between 2008 and September 2009 was US$21.04 billion. While the domestic market was worth US$12.26 billion. Sale of all types of medicines in the country is expected to reach around US$19.22 billion by 2012. Exports of pharmaceuticals products from India increased from US$6.23 billion in 2006-07 to US$8.7 billion in 2008-09 a combined annual growth rate of 21.25%. According to PricewaterhouseCoopers (PWC) in 2010, India joined among the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with value reaching US$50 billion. Some of the major pharmaceutical firms include Ranbaxy ,Cipla ,Sun, Cadila Healthcare and Piramal Healthcare. The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with the Patents Act in 1970. However, economic liberalization in the 1990s by the former Prime Minister P.V. NarasimhaRao and the then FinanceMinister, Dr. Manmohan Singh enabled the industry to become what it is today. This patent act removed composition patents from food and drugs, and though it kept process patents, these were shortened to a period of five to seven years.

The lack of patent protection made the Indian market undesirable to the multinational companies that had dominated the market, and while they streamed out. Indian companies carved a niche in both the Indian and world markets with their expertise in reverse-engineering new processes for manufacturing drugs at low costs. Although some of the larger companies have taken baby steps towards drug innovation, the industry as a whole has been following this business model until the present.

Om Biomedic Private Limited

Om Biomedic Private Limited is an Indian Pharma Company is engaged in manufacturing and marketing of pharmaceutical products based in Haridwar, Uttarakhand. Om biomedic private limited was established in 2007 (year) with 250 employees and we are the manufacturer and exporter of diclosenac injection , amikacinsulsate , ceseriaone , salbectam , drried ferrous sulsate and folic acid. Om Biomedic Private Limited Drug Regulatory Department has well trained personnel for reviewing drug registration procedures with various Ministries of Health across the globe and for making products dossiers.Om Biomedic Private Limitedworks as a sub unit of Akums limited and they also manufacture many products for this company. Fact Sheet

Year of Establishment = 2007 IndiaMART Member Since = 2011 Nature of Business = Manufacturer Legal Status of Firm = Limited Liability/Corporation (Privately Held) Number of Employees = 476 People

Company has expertise in

New Product Development Development of Analytical Method Validation of Analytical Method Technology Development & Transfer to others Arranging B.E. Studies & Clinical Trials Development of Reference & Working Standards Novel Drug Delivery System (N.D.D.S) Low RH Preparations with specific reference to SAMe (S-Adenosyl methionine) and clavulanic acid preparations Taste Masking of Bitter drugs; and Making drugs in palatable flavor.

Company dedicates itself to humanitys quest for longer, healthier, happier lives through innovation in Pharmaceuticals Formulations; maintains its high ethical standards, making its products & processes of high quality; and is committed to meeting the needs of its customers and constantly focuses on customer satisfaction. Contact Details Om Biomedic Private Limited Plot No- 68,69& 82- 83, Sector- 6-A, Sidcul, Haridwar - 249 403, Uttarakhand, India

Procedure followed by the company

Sales order

Purchase planning

Master formula

Requirement generation

Market quotation

Purchase order

Inward

Quality testing

Approved stock

Consumption saleorder

Issuing of material

DATA COLLECTED

CONCLUSION
The data collected by us shows that the company follows the FIFO & FEFO methods of inventory management for their different products according to the requirement of different products, Whereas there major competitor like Ranbaxy & Sun Pharma uses the LIFO & FEFO for their different products.