project report

ON

INVENTORY MANAGEMENT IN
VERKA MILK PLANT
( At Verka Milk Plant Ludhiana)
Submited to Guru Harkrishan collage
In practical fulfillment of the requirements of
the degree of
BACHELOR OF BUSINESS ADMINISTERATION
(2015-2016)
in
FINANCE
BY
GAYTRI
(UNIVERSITY ROLLNO; 201567)
DEPARTMENT OF MANAGEMENT
GURU HARKRISHAN GIRLS COLLAGE,
PHALLEWAL
AFFILITED TO; PUNJABI UNIVERSITY, PATIALA

PREFACE
This project report develops business research
knowledge
and practical skills to help
graduates to advance their careers in todays
competitive global markets. I gain a broad
understanding of contemporary management
operations, learn industry- relevant skills and
develop solutions to complex business
situations.
Emphasis was given on live
learning during training project. Grateful
acknowledgement is here made to those who
helped this researcher to gather data for this
major rearch project report entiled INVENTORY
MANAGEMENT IN VERKA PLANT. This work
would not have reached its present form without
their invaluable help.

ACKNOWLEDGEMENT
No serious and lasting achievement or success one ever
achieve without the friendly guidance and co-operation of
so many people involved in work. Foremost of all , I
express my gratitude to almighty for his blessings. I wish to
take this privilege to express my profound sence of respect
to my esteemed major advisor swaran sing and instructor
miss parveem for his enlishtened, inspiring guidance, keen
supervision,
persistent
encouragement,
valuable
suggestions and constructive criticism during the
completion of register my sincere regards to my loving
parents for their deep affection and unabated inspiration
that really kept me going. They were unending source of
strength and perseverance during the course of the study. I
place my thanks to all those who spared their time and
made it convenient for me to complete the reseaech. I
deeply acknowledge their concern for my research. Last but
not the least, I also wish to red cord my gratitude for any
persob(s), my memory has failed to recall, who rendered
their support and services.
Name : Gyatri
Class : BBA-6th semester
Roll no : 201567

TABLE OF CONTENTS
CHAPTER PARTICULARS:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Prefrance
Acknowledgement
Certificate
Table of content
Introduction
Inventory management
of verka plant
Types if inventories
Detail
of
store
inventory in verka
plant
Review of literature
limitioan
Objective of study
Research methology
Suggetions
Finding inventories
Conclution
Questionnaire
Balnce sheet
Bibliography

PAGE NO.

1
2
3
4
5-25
26-27
28
29-34
35-36
37-39
40-41
42-43
44-46
47
48
49
50-59
60

INTRODUCTION

VERKA, a leading dairy brand of Punjab, which provides fresh milk,

paneer, dahi, and desi ghee to millions of home across the region is lacing
stiff competition from a name sake brand registered in the US which has
patented the brand name and the product range. Apart form making the
Punjab state co-operative milk products federations (milkfed) task difficult
in exporting the product to the North American market, the government feels
that the US brand is misguiding unsuspecting patrons. Milkfed is
considering going for legal action.
The US based company in question is quality proudest inc in
California, incorporated in 2002, is owend by an Indian, Kulwinder Dhillon.
The companys website provides details of the company selling dahi, paneer,
and desi ghee under the verka brand across the North American continent.
The smartly packaged products bear the Real California Sea and the status
of approval accorded by the US Health Department and FDA.
Currently milkfed exports over 1100 tonnes of desi ghee wroth
Rs. 14 crore, largely to the gulf , Philippines, Australia and new Zealand.
Milkfed had a turnover of Rs. 800 crore in 2005-07 and is targeting a 15%
growth this fiscal. With the state government marking on a major revamp of
milkfeds existing capacity, it has to be seen what the government would do
to protect the hugely popular verka brand. One of the leading dairy brands of
north India, verka is yet another contribution from the state of Punjab. The
flagshipbrand of the Punjab state
co-oprative milk producers
federation ltd (milkfed), verka is today enjoying the patronage of customers
both within and outside the country. Milkfeds future programmes can never
be complete without verka.
Verka is a brand leader in milk powders particularly in northern &
eastern sectors. The milkfed brand commands a premium price over milk
powders manufactured by competitiors, which include multinational as well
as private trade and other co-operative federations.
Milkfed is serving nationwide consumers through its network of
reginal offices and strong distribution channels. Milkfed markets a variety of
products, which include liquid milk, skimmed milk prowder, whole milk
powder, infant food, ghee , butter, cheese, lasi , SFM, icecream, malted and
verka vigour etc. the annual turnover of milkfed has touched to Rs. 450
crore. Milkfed states tha5t it has successfully leveraged on the brand equity
of verka to launch new trends, needs, tastes and hopes.

Health drinks like verka vegiour, , verka lasi, sweetend flavoured

milk and a mango drink called raseela have also hit the markets. Milk has
now come out whit verka curd and a whole lot of different flavours of ice
creams. Milkfed has competition thatdrove them to alien destinations.
However , milkfed has already established its ghee market in the middle
east. Verka Ghee reaches all the emirates and is available in almost all super
markets. In additions to Ghee, SMP is also exported to asian countries like
Philippines, Bangladesh and sri lanka. Verka malt plus (malted milkfood) is
being exporter to bangladesh also. With technology mission programmes,
ever widening markets and increasing exports, milkfed is preparing itself to
take verka-added products like tetra pack plain milk and low calorie lassi.
Milkfed not only provides assure market to milk producers but also
comes inputs to enhance milk tot their doorsteps. The district co-operative
milk producers unions and milk plants have attined self-sufficiency or are on
the thereshold of attaining it Milkfed has played a very vital role in
providinga stronge base for remunerative price to the producers, they get
more money for theirmilk and payments are timely. In addition technical
inputs services in feeding breeding and management are easily accessible
value addition is one of milkfeds thrust areas and the plants produce not
only pasteurized, homogenized milk but also buttermilk, cream, chees, ice
cream, butter and clarified butter-oil and several other products. The milk
unions have marketed milk and milk products. The Punjab state milk
federation yesterday launched verka sweet lassi mango raseela in
chandigarh. Verka lassi is popular in India as well as abroad (milkfed
exported lassi to japan and Bangladesh).
The managing director of milkfed, vikas partap, said there had
been a persistent demand from the consumers to launch the tetra pack and
and it was the ideal time to hit the market. Milkfed has 11 plants in punjab
producing 35 products, including traditional Sweets. He Said there was vast
scope for expansion in the milk sweets segment and the firm would launch
two more in this category ( son papri and dhoba) by the end of this month.
Milkfed supplies 50 lakh liter per annum o9f ultra heat treated milk to
eastern command (15 lakh litre per annum) and northern command (36 lakh
liter per annum). He informed that the federation procures about 7 lakh liters
milk every day and 7 lakh farmers of Punjab were earning their livelihood
through milkfed, pure ghee and toned milk of verka is in great demand in
West Asia and we earned about 13.5 crore from export business last year,

he added. The Punjab Milkfed also supplies 40,000 liter of milk everyday to
do better with the opening up of trade tpies with Pakistan, he said. He said
a trade delegation was in feasibility. He pointed out thet the government-run
milk federation. A loss-making unit for two years, has clockes in profit due
to a upgrade of marketing strategies.
Milkfed was all set to pose a challenge to the private players, through an
aggressive marketing drive I the near future, he said. The Mohali plant of
Milkfed had received the national productivity award, 2005 on Wednesday.
The award was given by the Union Minister Agriculture in NEW DELHI.
Milk plant Mohali bagged the award for the third time.
Punjabi drinks lassi outcores drinks in competition Patiala(PTI):
Punjabs household drink lassi has outscored other exotic in a unique
enterprenueurship comparison held in Europe. Lassi was named the best
beverage drink at the know Europe-2008 enterprenueurship programmes
in which a 2 year old student from chandigarh Taman Raj Singh
represented India.
The month-long programme, organized under the aegis of Nonnandy
business school of france, aimed at assessing the enterpreneureship acurmen
of business school students around the world.
His presentstion was mix of tradition and modernity- the age old
lassi in verkas tetra packs. It impressed the judges immensily and got a
high grading of 90% and the reason why none other beverage matched
lassi was its unique qualities a mix of simplicity, flavour and health. It was
not very difficult to convince people thet lassi, a simple mixture of yoghurt
and water, was a healthy drink that could be consumed by people of all
ages, infacts and patients without hiteh. And whats more, it can be had
sweet, salty, spicy or even plain. Taman said, lassi outscored exotic wines,
fancy coffees- laffes and cappuccino in the competition thet was held last
month at four places in Brussels, the Netherlands, France and Spain.
East or west , lassi is the best. For the month- long programme, aimed
at assessing the entrepreneurship acumen of business school students, youth
all over the world were invited to give marketing presentation of beverages
famous in their countries. Tman choose the traditional Punjabi lassi.
Milk production is a verya important part of the agricultural economy in
the state of Punjab. Punnjab is one of the smallest states in Indian union with
a total area of 50362 Sq. Kms, which is 15% of the indain dairy farming is
an age old subsidiary profession in the rural areas of Punjab. It countries
milk production i.e.8 million tones annually.

HUMAN RESOURCE DEVELOPMENT

Verka milk plant ludhiana has always considered its staff member
as an assest.Various programs are run on continous basis for keeping the
morale of the employees high. Without the positive support of the employees
,the success story of Verka Milk Plant Ludhiana would not have been

possible.Yearly get-together of all officers and employees and employees is

one of the most important events of Verka Milk Plant
Ludhiana.

For the last few years,more emphasis is being given on

employees training in the field of attitude,customer realtiona, positive
thinking, time management,stress management and team building etc;a
partfrom technical subjects.Employees are being made aware of such
subjects either by nominating them to various traning organistions and
workshops and seminars.Also experts are being invited to conduct in house
workshop and seminars verka milk plant ludhiana had HRD cell also,which
circulate good and readable articles to employees for self development.

MILK PROCUREMENT AT MILK PLANT

MILK PROCUREMENT NETWORK:
Working on Anand Pattern the process of
organizing societies at village level in Punjab as early as 1978. presently,

there is strong network of about 7122 (as on 31.3.2016) milk producers

cooperative societies organized at village level. About 4.04 lakh milk
producer members are attached to these socities. Fresh milk is produced
from the milk producers twince a day through village level societies directly
without the assistance of any middleman.

INPUT SERVICES:
It is one of the fundamental objectives of MILKFED to
carry out activities for promiting milk production in the state. In view of
this, various technical input services like vererinary health care, artificial
insemination services, vaccination, supply f VERKA balanced cattle feed
and quality fodder seed etc, are provided for enhancing milk production
economic development of farming community.

CATTLE INDUCTION PROGRAMME:

Government of Punjab has identified
dairy sector as thrust area for rural development. Recently, milkfed Punjab
has signed memorandum of understanding (MOU) with state bank of patiala
and oriental bank of commerce for providing loan up Rs. 50,000/- without
any collateral security to milk producer farmers for purchase of milk cattle
on soft term and low rate of intrest.

CLEAN MILK PRODUCTION PROGRAMME:

For improving quality of raw milk right form
milk producers level, a massive programme CMP has been launched
under which 407 Bulk Milk Cooolers have been installed in the societies and
many more in pipe line. Besides, more than 1641 Automatic Milk Collection
Stations and 2313 EMT/MAS have been provided to the traditional manual

method of milk testing at society level is being replaced with

Electonic Milk Testers.
WOMEN DAIRY PROJECT:
House hold level dairying is largely the domain of
women especially in small and marginal household families . In view of this
fact ,, Milkfed has undertaken women dairy project in six Milk unions
namely Hoshiarpur, patiala, jalandhar, ludhiana and Amritsar with an
obejective to empower rural women in the field of dairy. This programme

(STEP) with assistance of government of India. Under this training

programme, 390 women societies with 20596 women beneficiary members
will be organized.

SETTING UP OF BIG COMMERCIAL DAIRY FARMS:

In order to enhance the milk production
and making dairy farming a profitable and sustainable profession, Milkfed
has planned to establish at least 10 progressive big dairy farms in each Milk
union by arranging soft terms loans form the banks. Milkfed has planned to
establish at least ten progressive big dairy farms in each Milk Union by
aaranging soft terms loans from the banks.

ACHIEVMENT:
Milk achieved impressive sales growth of 13% during the
year 2009-10 in comparison to pervious year by increasing this from Rs.
1110.32 crores to Rs. 1253.20 crores. Milk is expecting healthy sign in
growth in sales turnover to continue during the following years with special
reference to reduction ratio of salary& wages overhead to sales turnover.
SIGNIFICANT IMPROVEMENT IN FINANCIAL POSITION:
MILKFED AS AN Apex Body earned
net profit in current period Rs.39487338.61 which is significantly higher
than previous year amounting to Rs. 36881980.93 and overall financial
position is good because company has much resources and even in the
existence of short term loan of Rs. 500000.00 in the current period.

VERKAS PRODUCT RANGE:

Milked marketers a wide range of products including different
variants of pasteurized packed milk,ghee,skimmed milk powder,whole milk
powder,cheese,tetra pack products,sweetened flavoured milk,ice cream,fresh
products life lassi ,panner,dhahi,indigenous sweets under the brand name of

verka.It also markets fodder seed cattle feed and mineral mixtures for milk
producers.

IMPRESSIVE GROWTH IN PACKED LIQUID MILK

SALES
Milk marketed 7.27kg ltrs of packed milk per day in different variants durig
the year 2011 against 590kg ltrs per day during the period 2012 acheiving
impressive growth of 680kg milkfield is continuing impressive growth in
packed liquid milk sales.People are keen of packed food due to ease of carry
and consumption and that is why it has grown greatly through this style as
follows:

CONTROLLING AUTHORITIES:
The milk plant ludhiana up by Punjab government but in
1966 the control was passed on to Punjab Dairy Development co-operation
and subsequently its management was passed to milkfed w.e.f april9,1983.
The ludhiana district co-operative milk producer union ltdwas registered on
april 28th . Union has started its business on july 1, 1988 with the complete

control of plant to the union. Moreover all the assets and liabilities of Punjab
government and Punjab dairy development cooperation at the milk plant
ludhiana were transferred to union w.e.f april,1994.
The union has an elected board managing director is on deputation form
Milkfed. The officers are in the cadre of deputation from Milkfed.
GOVERNMENT SUPPORT:
Union finally functioned with share capital of Rs. 10
lacs received from government which later on enhanced to Rs. 103 lacs.
Under the operation flood, milk union, ludhiana has received.
Plant and machinery, tanker and other assets on loan cum grant basis.
A loan was given by National dairy development board Amounting to Rs.
109.49 lacs (70% loan and 39% grant). In the year 1990-91 unions has taken
Rs. 53 lacs from Milkfed as short term loan to meet its current obligation.
This year N.D.D.S has given a loan of Rs. 2.5 crore to the union. The union
gets timely fund availability of working capital loan.

QUALITY
Verka Milk Plant Ludhiana has got a sophisticated
quality control laboratory,which is equipped to carry out almost all the

chemical and bacteriological tests related with milk and milk products .The
QC lab also caries quality tests for various packaging
material,ingredients,and chemicals used in Verka plant ludhiana. The service
of quality control labs also used in verka for carrying out awareness
programs likeDudh ka dudh.We also have facility for general public for
getting their milk or ghee samples tested in our quality control labs free of
cost.

INTRODUCTION
COMPANY PROFILE

COMPANY PROFILE
The Punjab state co-operative milk
producers federation ltd. Popularly known as MILKFEDPUNJAB came into existence in 1973. It was backed by twin
objectives of providing remuneration milk to the market. Although
the federation was registed a lot earlier, it took the center stagesof
Punjab dairy scenario in 1983 when all the milk plants of Punjab
dairy development corporation ltd. Were handed over to cooperative sector and the entire state was covered under operation
flood to give the formers better value and customers better
products. The organization set up of MILKFED is based on three
tire system1. Milk producer co-operative societies at village level
2. Milk co-opertive milk union of districts
Levels
3. co-operative milk marketing federation as an apex body at a
state level.;
MILK FED with itsnetwork of over 5000 village milk producers cooperative societies and three lacs milk producers from strong network
providing assured market to milk producers. MILK FED and its units have a

workforce of about 5000 employees and also provide regular employment to

as out 600 transporters.

HISTORY
Milk plant ludhiana, whose foundation stone was laid sown by
S.Santosh Singh Randhawa then commissioned by Punjab Dairy
Development Corporation in Aug. 22nd 1983. It is spread construction of the
plant was begun in 1982-86 and it started working in 1986-87. It was
registed under co-operative societies Act with Registeration licence no.
31/R-MMPO/93. There are three chilling station working under this plant.
Milkfed is serving nationwide consumers its network of regional
piffics and strong distribution channels. Milkfed marketa wide variety of
products, which include liquid milk, skimmed milk powder, infant food,
ghee, butter, cheese, lassi, SFM, ice cream, malted food and vigouretc. The
annual turnover of Milkfed has touched to Rs. 450 crore. Milkfed states that
it successfully leveraged on the brand equity of verka to lunch new trends,
needs, tastes and hopes.

CAPACITY OF PLANT
Presently, about 6500 village level societies having about
3.65 lacs farmers as members are functioning and supplying fresh milk to
Milkfed through conconcerned district milk producers unions, 11 district
cooperative milk producers unions ltd covering entire state of Punjab with 9
milk plants are affiliated to milkfed. The handling capacity of these 9 milk
plants is 15.25 lacs liters per day. Milkfed has two cattle feed plants with
300 MTs manufacturing capacity per day. Different types of cattle feed like
ISI Type II, High energy &by pass etc. Is being manufactured as per the
requirements of milk producers. Besides, milkfed has also introduced
buffalo feed which has rich fat contents and meets the nutritional
requirements of buffaloes.

MISSION
Our mission is to be a leader in dairy industry in terms of quality of
products. To support the producers in uplifting their rural economy, make all

the milk unions viable and ensure quality milk &milk products to
consumers.

VISION
Our vision is to give the best quality and safe products to customers
and maximum remunerative price & technical inputs facilities to milk
producers at village level. To achieve sales turnover of Rs. 2500 crores by
2014-15 by ensuring more than 20% growth every year.
Milkfed with its network of over 5000 villages milk
producers from strong network providing assured milk producers. Milkfed
and its units have a workforce of about 5000 employees and also provide
regular employment to as out 600 transport.

SALIENT FEATURES
1. First milk plant in India to get ISO-9002 International Quality
Certificate milk.
2. Milk rate paid to the producers among all the unions highest in the
rate.
3. Milk procurement highest among all the unions in the state.
4. Milk procurement per society one day among all the union highest in
the state.
5. 100% milk producers co-operative societies are in profit.
6. Aggregate profit of the societies in the maximum among all the union
state ever since inception, customer, satisfaction and consistency in
are the key- trust area of this organization.
7. Number ofA.I . cases maximum among all the unions in the state.
8. Number of sick animals treated highest among all the unions in the
state.
9. Cattle feed sold to societies in maximum among all the unions in the
state.
10.F.M.D. vaccination maximum among the all unions in the state.
11.Milk transportation cost lowest among the all unions in the state.
12.Milk chilling cost lowest among all the unions in the state.
13 Average daily city supply maximum among all the unions in the state.
14. Embroyo transfer technology introduced in the field for the first time in
northern India.

15. Milk products selling at premium rates and ghee exported to gulf
countries.
16. Capacity utilization is maximum on yearly basis.
17 Fuel cost per kg milk is lowest among all the union in the state.
18. Annual turnover more than 100.00 crore of rupees, highest among all the
unions.
19. Electricity cost per kg milk is lowest among all the unions in the state.
20. Annual profitability highest among all the unions in the stae.

PRODUCTS OF VERKA
Milkfed has formulated company specification for its milk &milk products
to provide standard and quality of products to consumers.

a) Liquid Milk pasteurized pouch packed milk:

It is pouch packed milk. It may be

used as such or for milk based preparations. It shall be kept under
refrigerated conditions. It is packed in half ltr. Pouch. Its length of shelf life
is 48 hours under refrigerated conditions.it is sold in area around chandigarh,
mohali, kharar and ropar areas. Special distribution control is needed, under
refrigerated condition if transported to very distance.
b) Milk powder:
Dried milk or milk powder is product obtained by the
removal of water from milk by heat or other suitable means to produce a
solid containing 5% or less moisture. Whole milk, defeated or skim milk
may be used for drying. It comes in packing of 200 gms, 500 gms,etc. It can
be stored for 1 year before use.
c) Ghee:
Ghee may be defined as clarified butter fat prepared chiefly from
crow or buffalo milk. The product can be used on roti/ pranthas or used as
cooking other material for food. It is preserved at ambient temperature for
one year. It is packed on 500 gms, 2kgs, 5 kgs.& 15 kgs, bulk pack in tin. It
is sold any where in Punjab and abroad also. No special distribution control
is needed.
d) Butter:
Butter may be defined as a fat concentrate which is obtaining by
churning cream, gathering the fat in to a compact mass and then working it.
The product obtained from cow and buffalo milk or a combination there of,
with or without the addition of common salt and colouring matter. It can be
kept under refrigeration for three months. This comes in packs of 10 gms,
100 gms, and 500 gms.
e) Lassi:
Lassi, refers to desi butter milk which is by product obtained
when churning curd led whole milk curd indigenous devices for the
production of desi butter.

f) SFM:

It is known as sweetened flavoured milk or bottle milk. The

product used in the form of drinking sweet milk. It is preserved at at
ambient temperature. It is packed in 200 ml.bottle, 200 ml. tetra packs. The
length of shelf life of product can be held far three months under ambient
temperature. It is sold in and around Punjab and country market mainly
delhi.
g) Ice Cream:
Ice Cream may be defined as a frozen dairy product made
suitable blending and processing of cream an other milk proucts, together
with sugar an flavour, with or without colour an with the incorporation of
air during the freezing process.
h) Paneer:
Paneer refers to the small sized soft cheese. The product can be
consumed as such or can be fried and consumed. It can also be used as an
ingredient for making Indian Sweet and pneer based dishes. It is preserved
under refrigerated condition for 20 days from the date of packing. The
product is packed in poly film bags. The pack size is 200 gms. For
consumer pack and 5 kgs capacity in bulk pack as agreed by contracted by
buyer.
i) Curd/Dahi:
Dahi or curd is the product obtained from boiled milk by
souring, natural or otherwise, by a harmless lactic acid or other bacterial
culture. It should have the same percentage of fat and solids not- fat as the
milk for which it is prepared.
j) Raseela:
Raseela is a very popular product of verka which was launched
in 1995. It comes in two flavours- (1) mango raseela (2) pine apple raseela.
Mangois prepared form mango pulp and pineapple raseela from pineapple
from pineapple pulp. These are coming in 200 ml.tetra pack.

PRODUCTS:
Milkfed has formulated company specification for its
milk & milk products provide standard and quality of products to
consumers.
1. Milk
2. Cheese and paneer
3. Fresh drinks
4. Ghee and Butter
5. Ice creams
6. Milk Powder
7. Fresh Products
8. Skimmed milk powder
9. Indigenious sweets
10.Dahi/ curd
11.lassi
12.kheer
13.Dal pinni
14.panjiri
15.Nimboo pani
16.Namkeen lassi.

SWOT ANALYSIS
STRENGTH:
1.
2.
3.
4.
5.

Minimum interference form top management in day working.

Qualified, experienced and devoted workforce.
Brand name-VERKA
Direct contacts with milk producers.
Own cattle feed plant and fodder seed grading station for supplying
certified fodder seeds.
6. Technicaland financial and support form milk fed head office chandigarh
as well National Dairy Development Dairy Board.
7. ISO and HACCP certification
8. Surplus created capacities.
9. Good coporate goverence and socially responsible organization.
10.Quality of milk is very good.
11.Demand profile:Absolutely optimistic.
12.Margins:Quite reasonable, even on packed liquid milk.
13.Availability of raw material:Abundant presently, more than 80%of milk
produced is flowing into the unorganized sector,which requires paper
channelisation.
14.Technical manpower: professionally-trained,technical human resources
pool,built over last 30 years.
15.Avialability of raw material: Abundant presently, more than 80%of milk
produced is following into the unorganized sector.

WEAKNESS:
1.Situated between two rivers RAVI and BEAS and prone of floods and
sometime havoc is caused which ultimately affects the cattle of population in
the crease.
2.Indo pak border is near to ludhiana district at which situation always
disturbing local population which ultimately affects cattle rearing by the
people.
3.Highly comletive markets.
4.Financial position of plant is very weak from many years.
5.Sufficient working capital is not available.
6.Stagnation in milk procurement
7.Pasteurization has overcome this weakness partially.Surely, many new
process will follow to improve milk quality and extend its shelf life.
8.Theoreticlly there is little control over milk yield. However, increased
awareness of development like embryo transplant,artifical insemination and
properly managed animal husbandry practices,coupled with higher income
to ruler milk producer should automatically lead to improvement in milk
yield.
9.Woes of roads and inadequate transportation facility make procurements
problematic. But with over all economic improvement in India, these
problems would also get solved.

OPPORTUNITIES:
1.There is phenominalscope for innovations in products development,
packing and presentation. Given below are potential areas of value
additional.
2.Efforts to exploit export is already on.Amul is eporting to
Bangladesh,srilanka,Nigeria \ and the middle east.verka should also focus on
export as there is growing demand for India dairy product in foreign
countries.
3.Feasibility of home delivery systemfor city supply milk to be exposed.
4.Diversification of land use for improving profits.
5.Vereinaryhealth care and breeding facilities to be increased for improving
genetic milk yielding characters of animals.

Threats:
1.Private companies have started operating in this domain. These private
companies pay for procurement milk which may be challenge for verka.
2.Strong marketing strategy by competitor by offering the discount coupans
to consumers and supply healthy commission to retailer .
3.Strong supply chain management by the competitors.
4.Borders tensions and river floods.
5.Increasing salary bills as compared to turnover.
6.WTO agreements.
7.Lack of autonomy in functioning.

Inventory management
Inventory management is a science primarily
about specifying the shape and percentage of stocked goods. It is
required at different locations of with in a facility or within a
facility or within many locations of a supply network to precede
the regular and planned courcse of production and stock of
materials.

TYPES OF INVENTORIES:
TRANSFIT INVENTORIES: Inventory many times have to be
transported from one location to the other as they pass through the levels of
manufacturing. These inventories are called transit or pipeline inventories as
they are in transit from a location to another. Automobile manufactures make
use of freight consolidarators to pool in their inventories.
CASE: HPCL handles the transportation from refineries to customers
through various modes like roadways, shipping, pipelining etc.

BUFFER INVENTORY: Inventories are sometimes used to counte attrack

the uncertaines of demand and supply . they could also be used to take care
of unforeseen situation like poor transportations, poor qualityetc. The more
safety stock of a firm has very small is its probability of runningin to stock
out situation.
APPLICATION INVENTRIES: Firm often purchase and hold stock which
is much higher than their present requirements in anticipation of a future
event. These event can include
Seasonal variations in demand
Price variations
An impending labour strike
This method firms to build up their inventory reserves when the
demand is declining and as the demand shoots up they can utilize the
inventory. The firms need not increase their inventory
DECOUPLING INVENTORY: The production time of each machine in a
manufacturing plant varies. Some system produce more products in the same
time duration. The fatering of any machine must not affect the entire
productions process.
CASE: Consider a book manufacturing firm. If it is known that the paper
manufacturing machine is not working for few days then the manager
forecasts the requirement and carries out other activities like binding so that
the entire processis still intact.

DEATIL OF STORE INVENTORY IN VERKA

PLANT
PACKING MATERIAL: Any material used easily to protect
something. Packing wadding material stuff The tangible substance the goes
into makeupof a physical object ; Wheat is a stuff to make bread.
Packing is a technology of enclosing or protecting products for
distribution,storage,sale and use.Packaging also refers to the process of

designing,evaluating,and producing packages.Packaging can be described as

a
coordinated
system
of
preparing
goods
for
transport,warehousinh,logistic,sale and end use.

Previous year Amount =19156049.75

Current year Amount=18269283.70

PRINTING AND STATIONERY:

Printing is a process for reproducing text
and images using a master from or template. The earliest examples include
Cylinder seals and other objects such as the Cyrus Cylinder and the
cylinders of of nabonidus. The earliest known from of woodblockprinting
came from china dating to before 220 A.D. Later developments in printing
include the movable type, first developed by Bi sheng in China. Johannes
Gutenbergintroduced mechanical movable type printing to Europe in the 15 th
century, his printing press played a key role in the development of the
Renaissance, Reformation, the Age of Enlightenment, and the scientific

revolution and laid the material basis for the modern knowledge-bassed
economy and the spread of learning to the masses.
Stationery is a mass noun referring to commercially
manufactured writing materials, including cut paper, envelopes,
writingimplements, continuous stationery, and other office supplies.
Stationery included materials to be written on by hand (e.g, letter paper) or
by equipment such as computer printers.

1. General:
Office supplies ( specially paper and envelopes) used for
writing, typing or printing. Not to be confused with stationary which
means not moving or having a fixed position.
2.Computing:
Serveral kinds of paper used in printers, such as (1) Single
sheet stationery: paper cut into standard sizes (such as letter, legal A4),
soldusually in reams of 500 sheets and used mainly withfriction-feed
printers such as inkjet and laser printers. (2) continuous stationery: fan
floded paper whit sprocket holes on sides and transverse perforations for
easy separation into individual sheets, used mainly with impact printers.
It is of two types: (a) single part multipart may have two, three or
more plies of carbonless copying paper:the to
Previous year Amount= 533134.10
Current year Amount= 508873.00

CHEMICALS AND DETERGENTS:

Short answer: Everything is a chemical.
Longer answer: Chemistry is the study of matter and its interactions with
other matter. Anything made of made is therefore a chemical. Any liquid,
solid, Gas. Any pure substance; any mixture. Water is a chemical.
Technically speaking, so is a chunk of your computer. A chemical can often
be broken down into components, as is true with your computer. However,
people generally use the term chemical to refer to a substance that appears
homogeneous or same through out its structure.

Cleaning agents that helps to remove dirt and grease

from porous syrfaces (such as fabrics, clothes, non-treated wood) and nonporous surfaces (such as metals, plastics, treated wood). All detergents are
made principally of soaps or surfactants you must make sure make sure to
use a good detergents when cleaning out areas of your factoryso you know
the job is done right.
Previous year Amount= 491989.25
Current Year Amount= 758088.15

LABOUR WELFARE MATERIAL:

Labour welfare is an
important dimension of industrial relation, labour welfare includes
overall welfare facilities designed to take care of well being of employees
and in order to increase their living standard. It can also be provided by
government, non government agencies and trade unions.
Previous year Amount= 201429.15
Current Year Amount= 413681.60

HRDWARE AND BUILDING MATERIAL:

Household
hardware or simply hardware, is a general term for equipment that can
be touched/held by hand such as screws, nuts, washers, keys, lockds
hingers, latches, handles, wire chains, belts, plumbing supplies, electrical
supplies, tools, utensils, cutlery and machine parts. Household hardware
is typically sold in hardware stores.
Building material is any material which is
used for construction purposes. Many naturally occurring substances,
such as clay, rocks, sand, and wood, even twings and leaves, have been
used to construct buildings.
Previous year Amount= 469890
Current Year Amount= 279073.50

INGREDIENTS FOR MILK PRODUCTS:

An ingredient is a substance that
forms part of a mixture (in a general sence). For example, in cooking,
recipes specify which ingredients are used to prepare a specific dish. Many
commercial products contain a secret ingredient that is purported to make
them better than competing products. In the pharmaceutical industry, an
active ingredient is that part of a formulation that yilds the effect expected
by the customer.

Previous year Amount= 93326.90

Current year Amount= 204903.30

VEHICLE SPARES:
Previous year Amount=131905.15
Current year Amount= 204903.30

MACHINERY SPARES:
Previous year Amount=7683936.70
Current year Amount= 8354041.25

OTHER CONSUMABLE STORES:

They would soon become
consumables in the market and that made me a bit unhappy because I
really valued their originality.
Previous year Amount= 9722301.10
Current year Amount= 5139309.95

NDP1(VBMPS):

The first national development plan (NDP1) contains

a five-year development strategy. It is Namibias first medium-term
development programme and vovers the period 1995/1996 to 1999/2000.
After successful excution of the three- year Transitional national
Development plan, Government decide to formulate a medium-term
development programme where the main focus is diversification of the
economy and consolidation of the achievements realized during the
initial five years of independence.
Previous year Amount= 3245269.00
Current year Amount=0.00

LITERATURE REVIEW ON INVENTORY

MANAGEMENT
In todays sworld every business tries to strike a balance in inventory
between what is needed and what is demanded, considering the major
factor of cost cutting/ reduction. This control is called inventory
management or inventory control. Inventory is basically assets (goods
and materials) which are stock of any business. Inventory management
focus on the capacity of the inventory, the place in which it is located so
that one can use it when needed, supply chain management of the raw
materials and goods. Inventory management of the raw materials and
goods. Inventory management deals with the demand forecasting, asset
management of the raw materials and goods, to forecast the demand of
future. This helps the top level manger to understand and coordinate with
the supply chain management or production management are satisfactory
level of service.
Most company measures the ability to satisfy the
customer by the following 3 factors/ methods:
1. Number of order which act per schedule.
2. Number of order which are sipped as per schedule.
3. The idle time in inventory as well as shortage.

Limitations of traditional inventory

management practices
Inventory management is affected by
variations at any stage of production, transportation or even
warehousing. Proper inventory management will increase
the companys flexibility with the right product available at
the right time at the right place.

Deficient definitions:
Any channel strategy has to revolve around the
ultimate objective a satisfied customer. The issue that
arises here is inadequacy in defining the customer service.
Since it is a highly individual concept and cannot really be
measured, evaluation of performance is a concern.

Unreliable delivery schedules:

Inventory-in-transit can lead to confusion in
the ranks of both manufacturers and the distributors. While
the stock has already left the manufacturers warehouses,
any disturbance in-transit can throw the distributors
completely off-schedule.

Information systems:
Most of the manufacturers and channel partners
use information systems to streamline their operations.
However, these information systems operate in isolation
without any integration between themselves. This leads to
duplication and redundancy in work. The manufacturer will
have to retrieve information manually and compare it with
information from partners. If databases at each stage of the
supply chain carry the same information, information
systems become redundant.

Simplistic policies:
Most inventory policies are centred on the
quantity of usage of goods stocked. However, they do not
always consider the unpredictability surrounding the usage.
Once they are also considered, the stocking policies will be
more flexible resulting in minimal stock-outs and inventory
pile-ups.

Impact of uncertainties:
Most policies are formulated under a set of
assumptions about the future. Ideally, the potential
variations from the projections should be predicted and
accommodated in the planning. When they are not, the
impact of these uncertainties will bear heavy on the
inventory management. The problem is more complex when
the schedules of suppliers, distributors and other external
channel members are considered. Integrating all these is a
difficult task.

Organisational bottlenecks:
In case of business units and other profit centres,
the internal suppliers have their own goals to achieve, which
derails the pursuit of synergy. Inter-departmental and other
bureaucratic issues have often been the cause of many
pitfalls.

The metrics:
Supply chains today have morphed into complex and confusing
structures. Measuring performance of even internal partners can at times be
difficult; therefore evaluating the supply chain can be a cumbersome task.

OBJECTIVES
1. Diagonose the financial statement.
2. Asses the earning capacity or the profitability of
an organization.
3. To ascertain the efficiency with which the firm is
utilizing its assests in generation sales revenue.
4. To give remunerative prices to farmers and to
ensure permanent market for the whole year.
5. To provide ISI marks good quality balanced
cattle feed and fodder seeds to the farmers.
6. To provide technical inputs like artificial
insemination , to improve the breed of animals,
animals health services, preventive disease
treatment
andawareness
regarding
farm
management etc.

RESEARCH METHODDOLOGY
Research design is the arrangement of conditions for collection and
analysis data in a manner to combine relevance to the researcher purpose
with economy in procedure. Research methodology is a way to
systematically solve the research problem. It deals with the objective of a
research study, the method of defining the research problem the type of
hypothesis formulated, the type of data collected, method used for data
collecting and analysing the data etc. The methodology includes collectin
of primary and secondary data.

TYPES OF RESEARCH
DESCRIPTIVE RESEARCH
The study follows descriptive research method. Descriptive studies aims
at portraying accurately the characterstics of a particular group or
situation.Descriptive research is concerned with describing characterstics
of a particular individual or a group.Here the researcher attempts to
presents the facts by collecting data.
RESEARCH DESIGN
A research design is abasic of framework,whish provides guidelines for
the rest of research process.it is the map of blueprint according to which
the research is to be conducted.
SOURCES OF DATA
The task of data collection begins after research problems has been
identified and research design chalked out.Data collected are classified
into primary and secondary data.
PRIMARY DATA: Includes unstructured personal interviews from
account officers in the enterprise.
SECONDARY DATA: Includes the annual report,website of the
company and which of the company and which contains details,which is
helpful for making my project report.

SUGGESTIONS
Lets keep it simple: Inventory is the lifeblood of the
supply chain. Its what flows from node to node. And at each node its
critical to figure out that perfect balance of supply and demand, or
else suffer dire consequences. If you have too little inventory you risk
lost sales and customers from out of stocks. If you have too much
inventory, youll need more of everythingmore space, more
transportation, more handling, more labor and more money.

Consider

inventory

optimization

tools

I
ventory optimization tools have been
gaining ground as companies seek to evaluate their entire network
and determine the best inventory policies for each product at each
node in their supply chain. These are typically stand-alone software
tools that use data from WMS and ERP systems.

2 Employ business solutions that use real-time

analytics
under
one
platform
According to Michael Wohlwend, vice
president of SAP Americas and this years vice president of the
Warehousing Education and Research Council, the days of
managing inventory using Excel spreadsheets are pass.

Dont

treat

all

SKUs

the

same

There is no such thing as a one-size-fits-all solution. Each

and every product does not have the same supply and demand
variability pattern, says Sapra. Focus on those 20% that statistically
make up 80% of the volume and manage that inventory really well, so
you maximize sales and profits.

Keep

an

eye

on

your

suppliers

There are suppliers that dont necessarily stick to

their schedule or deliver on their commitments. Its not only in terms
of timing, but also fill rate, says Wheeler. If you ordered 1,000 cases
of pencils and the order shows up at the door with only 900, then
thats a problem.

Track

essential

attributes

Over the past few years, tracking product genealogy and traceability
are at the top of inventory managers must-have lists.
Its not enough to just track your lot number, says Curt Sardeson,
managing principal of the Open Sky Group, a consulting firm
specializing in supply chain management solutions. If you used
subcomponents and subassemblies that you mix into your product,
you also need to know those lot numbers in case your product has a
recall.

Leverage

mobile

devices

Mobile technologies and mobile user interfaces are

now ubiquitous for capturing data on inventory. Its time for even
businesses that dont see themselves as complex to demand mobility
solutions for accuracy, says Oracles Sherman.
SAPs Wohlwend points out how most sales associates on the store
floor now have mobile devices with real-time inventory of the store.
Not only are they able to improve customer service, but when
inventory is low, theyre able to generate a replenishment from the
DC down to the store.

7 Be smart about your slow-moving and obsolete items

While it makes sense to focus on your more profitable fast movers,
you cant ignore your slower-moving merchandise. Every day that
these items are not used or sold, they occupy space, utilize labor and
resources, run the risk of obsolescence, and in many cases actually
get
in
the
way
of
your
more
popular
items.
It begs the question: Do I even need these slow movers in all of my
warehouses? says Sapra.
The more DCs that you store an item in, the more inventory youre
going to have, says Wheeler. If you pull that inventory back into a
single DC, youre able to aggregate your demand variability, which
allows you to reduce your required safety stock.

FINDING INVENTORIES
A Finding aid is a document that assists researchers in navigating a
large archival collection. It usually provides a biography of the individual
who created the collection, a chronology, a brief overview of the material,
and a folder-by-folder list of contents. Finding aids for distinct collections
will be added to this site as they become available.

VIRGINIA AND GILBERT MC CLURG COLLECTIONS

Documents relating to the Colorado Cliff Dwellings Associations
and the preservation of the Anasazi ruins in Southwestern Colorado

ELSIE QUEEN NICHOLSON COLLECTION

personal papers and correspondence relating to
Colorado Srings founder W.J.palmer,the donors grandfather

CHARLES C. PAULY COLLECTION

Parsonal papers, business and financial materials, family records
ephemera.

DOROTHY HELLER COLLECTION

Scrapbooks,photographs,ephemera

EDITH BIXBY LOVE COLLECTION

Personal correspondence,printed material
L.E.ELLINWOOD COLLECTIONS
Topical files,slides,audio materials,books,newspapers.

KNUTSON BOWERS COLLECTION

Photography,theatre programs,ephemera
LOIS CROUCH COLLECTION
Manuscripts,notebooks,scrapbooks,photographs.

NELLIE BURGET MILLER COLLECTION

Personal papers,correspondence,ephemera.

Conclusion
Your company's success is not only
dependent on sales, but also on your
company's ability to say, "Yes we have that
item in stock." The problem is inventory
control is usually an after thought. After the
customer orders it, and you don't have it,
you begin thinking about it.
"We know little more about distribution today,
than Napoleon's contemporaries knew about the
interior of Africa" - Peter Drucker. If this is not
true, then why do economic downturns affect us
so? Why doesn't our profitability swing through
the roof when the economy comes back, after
the downsizing, or should I say "dumb-sizing",
because we ultimately affect everything except
the one thing that needs affecting, the accuracy
of our inventory. Now is the time we learned
about the interior of that dark continent, "your
warehouse," and begin doing something about
it.

QUESTIONNAIRE
1) Are you able to break down your operating inventory into the
three major categories when reporting levels
safety, replenishment and excess or obsolete stock?
2) Is your company using the most effective method to calculate
your safety stock levels?
3) Do you recalculate safety stock levels on a regular basis to
ensure they are up to date?
4) Who decides key inventory-related policy such as striking the
right balance between customer service and cost-effective
product inventory levels?
5) Who determines the optimal frequency for producing or
ordering products?
6) How do you determine the frequency for ordering and
inventory production if it's not set solely by factories or the
supply organization?
7) Is the optimal order or production frequency calculated on a
regular basis as part of a continuous improvement process?
8) Do you have regular visibility into excess and obsolete stock,
and is it linked to targeted action plans to sell off or reduce this
inventory?
9) Do you perform root-cause analyses on excess and obsolete
stock and know how they are linked to action plans that curb
more excesses from being created?
10) Do you apply the above practices to all parts of your
inventory (finished goods, raw material, works in process and
spare parts) and in all organizational entities?

BIBLIOGRAPHY
1. Panday IM., Financial Management, ninth addition, U S B Publication
New delhi.
2. Mahat R.N Management Accounting, sahitya Bhawan Publication,
Agra.
3. Jain. P.k Financial Management, 5th edition, publisher Mc grew hill
companies.
4. Income statement and financial statement of 2012-14
5. Financial dailies:
Economic Times
Business standard
6. Bussiness magazines
Business India
Business world
7. Internet portals:
www.verkadairy.com
www.milkfeed.com
www.dairyindia.com