INVENTORY MANAGEMENT
(Procedure being followed since 1998)

I. Placement of orders with Local Manufacturers and Import Suppliers of IMFS/BEER.

The requirement of IMFS and Beer is worked out on the first day of every month. The monthly depotwise requirement is worked out by adopting the following procedure.

i) Weighted average sale per day is arrived at by dividing the total sales with No. of working days during the last three months with weightage being given to the recent sale.

ii) The monthly order for IMFS and Beer is generated based on the Weighted average sales per day multiplied by 39 days in the case of local IMFS and 52 days in the case of import IMFS and in case of Beer the Weighted average sale per day is multiplied by 39 days.

iii) 39 working days in 1 ½ months and 52 working days and 2 months is taken for calculating the order to be generated, since we need atleast a month's stock to be generated on the first of every month. The extra days is allowed for the transhipment of the stock.

iv) Stock in transit i.e. indent issued but not despatched, goods despatched but not unloaded and the closing balance available at the Depot on the last day of that month will be deducted from the monthly requirement arrived at as per the working mentioned at Point No.(ii) above.

v) The net requirement for IMFS will be rounded off to the nearest multiples of 5 and the net requirement for fast moving Beer 650ml/325ml pack will be rounded off to the nearest multiples of 700/600 cases. In respect of slow moving Beer brands the net requirement will be rounded off to the nearest multiples of 50 cases.

II. ISSUE OF INDENTS

On 1st of every month the order is generated with all the local manufacturers and import suppliers and indent is regulated in order to have 15 days stock of a particular item in the depots including stock in transit. This ensures that the brand does not go out of stock at any point of time.

Indents are issued based on the sales closing balance, demand of the fast moving items etc., which is reflected in the daily statement showing depots with 'Nil stock' and 'low stock' (inclusive of cumulative stock in Transit) of fast moving items. This statement shows the depots which have NIL stock, 1-3 days stock, 4-7 days stock, 8-10 days stock, 11-14 days stock and 15-21 days stock for particular brand and for a particular pack size. Based on the statements, indents are being issued to the suppliers. If a particular brand and pack size is in exceptional demand in the current month and there is a likelihood of stock out situation, then additional order for that particular item is placed and indents issued thereafter.

After the indents are issued the daily despatches from the suppliers is also being monitored by TASMAC.